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Review of literature on finance and policy interventions that support the environmental dimension of sustainable development - DO0201

Description
We are seeking examples of different types of financial instruments and policy interventions that can be applied in support of the environmental dimension of sustainable development (SD) while still coherent with and, ideally, mutually reinforcing of the economic and social dimensions of SD. The research should, therefore, mainly focus on instruments and policies that increase financial flows and/or their effectiveness to achieve environmental outcomes, while minimising trade-offs between other aspects of SD and maximising synergies.

The research should, to the extent that is possible, include quantitative studies of mechanisms that leverage both public and private finance (whether domestically or internationally), and provide an assessment of their effectiveness in supporting environmental SD objectives. We are particularly interested in examples that leverage private financial flows (both national and international) and those that utilise blended finance mechanisms such as public-private partnerships, ‘innovative’ finance mechanisms, or new models for collaborative engagement of multi stakeholder communities. Where available, we would be particularly interested in studies that discuss the nature and extent of both public and private social and financial returns and that are clear on how they have managed to align incentives of different actors to achieve environmental objectives.
Objective
.The international community is developing a single, universal set of Sustainable Development Goals to take effect in 2015. These will set the global agenda for the next 15 years and are intended to be a major driver of inclusive and sustainable growth and prosperity. An intergovernmental UN Open Working Group has been established to take this work forward and make a proposal for goals and targets by September 2014. In parallel, an Intergovernmental Committee on Sustainable Development Finance (ICESDF) has been tasked with proposing options on an effective sustainable development financing strategy to facilitate the mobilization of resources and their effective use in achieving sustainable development objectives.

There is increased awareness that the provision of Overseas Development Assistance (ODA) alone will be insufficient to achieve sustainable development and poverty eradication. There is a requirement to leverage finance from other sectors of the economy to complement ODA and to ensure cost effectiveness of all finance and policy intervention. This research project will review literature assessing the scope to utilise private finance to support public finance in achieving environmental outcomes as part of sustainable development.

The research will seek to synthesise case studies and draw key finding from the academic and grey literature as to which interventions garner higher levels of private finance, which interventions are cost effective, and which interventions are most effective at delivering environmental outcomes. The research will consider the applicability of different interventions to different contexts and the scope to scale up such interventions.
Project Documents
• FRP - Final Report : Final report - Part A - synthesis report July   (587k)
• FRP - Final Report : Final report - Part B - case studies July   (1430k)
Time-Scale and Cost
From: 2014

To: 2014

Cost: £20,000
Contractor / Funded Organisations
The Overseas Development Institute (ODI)
Keywords
Economic Research