Financing Models for the Sustainable Development Goals

The models that channel resources directly into SDG-advancing investments include green bonds, blended finance and impact investing. Green bonds are innovative climate finance instruments designed to raise funds for sustainable investment and environmentally beneficial projects. Blended finance is a method of structuring investments, combining public, donor or philanthropic funding with private investment in SDG-enabling areas with certain barriers to entry, in order to de-risk such investment activities. Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.