Investing in the Sustainable Development Goals: Mobilization, channeling, and impact

Global investment in the Sustainable Development Goals (SDGs) is falling short of the target to close the $2.5 trillion annual financing gap for developing countries. The COVID-19 shock has exacerbated existing constraints for the SDGs and may undo the progress made in he last 6 years in SDG investment. This poses a risk to delivering on the 2030 Agenda for Sustainable Development. This paper assesses the global trends in both investing in and financing the SDGs, including the myriad of financing instruments launched to respond to the COVID-19 health crisis and its economic and social impacts. It analyses the main challenges for mobilizing funds, channeling investment into SDG sectors, and maximizing positive impact, as well as regulatory dilemmas in promoting SDG investment. The article then elaborates on a set of policy measures for accelerating investment in the SDGs, including four principles for guiding private sector investment, mainstreaming the SDGs into national and international investment policies and promotion strategies, harnessing financial instruments for sustainable development, building special SDGs model zones, and promoting better ESG standards, compliance, and reporting.

Automated summary

Global investment in the SDGs falls short of the target to close the financing gap for developing countries, with the COVID-19 shock exacerbating existing constraints. This paper assesses global trends in investing in and financing the SDGs, analyzing challenges in mobilizing funds, channeling investment, maximizing impact, and regulatory dilemmas. It also elaborates on policy measures for accelerating SDG investment, such as guiding private sector investment, mainstreaming the SDGs into investment policies, and promoting better ESG standards.