mobilization, including the Tax Inspectors without Borders partnership with the OECD. The SDG Impact team and others oversee projects seeking to leverage private capital for the SDGs. The SDG financing tools fall into the three key areas of domestic resource mobilization, international public finance and private capital markets.
5.3 Domestic resource mobilization Integrated national financial frameworks Finding 8. UNDP support to Sustainable Development Goal financing has included a key role in the support and roll-out of integrated national financing frameworks, which could potentially fill an important gap in planning and budget allocations for the Goals. The INFF provides a distinctive approach by offering a single integrated framework through which Governments and development partners can link SDG commitments to specified budget lines, and it could play a pivotal role in supporting national needs to align and mobilize financial resources for country-level development plans and the SDGs. The INFF approach emerged from concerns over the weak alignment between SDG commitments and budget allocations. The conceptual origins of the INFF can be traced back to the Addis Ababa Action Agenda. Subsequently, the Inter-Agency Task Force on Financing for Development and others identified the weak (and in many cases non-existent) link between the SDG commitments undertaken by Governments and included in national development strategies or planning statements on the one side, and financing provisions linked to budget planning on the other. The INFF approach is supported by the G20; under the Italian Presidency of the G20 (2021), with UNDP support, , one of the outcome documents, on financing for sustainable development, set out a G20 Framework for voluntary support to INFFs.152 Begun in 2019, the INFF project is supported by funding of $92 million from the European Union through the Joint SDG Fund153 and $36.3 million in co-funding for two components. Under component 1,62 countries are: (1) implementing gender-responsive INFFs; (2) developing dialogues, alliances and networks on SDG financing at the national level; (3) strengthening the capacities of public authorities and the private sector to develop SDG impact investment; and (4) conducting feasibility studies for the design of financing solutions to unlock public and private financing. Under component 2, a smaller group of countries is exploring an expanded range of projects to align financing to the SDGs, focusing on five priorities: resilient infrastructure; people and health; agriculture and food security; nature and climate action; and the blue economy. The INFFs aim to ground SDG commitments in financial planning. That objective has become more important in the light of the widening financing gaps outlined in section 5. Fundamentally, the INFF is a planning tool that aims to better align the SDGs with financial resource allocations. It challenges a planning model that has seen line ministries and ministries of planning adopt ambitious Goals which may not have been reflected in budget processes. Beyond improved coordination and alignment, another INFF objective is the mobilization of new additional resources. As part of the INFF process, Governments and partners will assess the development finance resources available to countries, seeking to identify
152
153
Financing for Sustainable Development: G20 Framework for voluntary support to INFFs, G20 High-Level principles on sustainability-related financial instruments and G20 common vision on SDG alignment, http://www.g20.utoronto.ca/2021/ Financing-for-Sustainable-Development.pdf https://www.jointsdgfund.org/
CHAPTER 5. THE UNDP FINANCING TOOLKIT
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