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An integrated finance
framework for
sustainable development
Aaron Atteridge, Stockholm Environment Institute (SEI)
Paul St...
Key climate finance issues
Mobilising resources Making more effective use of
available resources
Includes issues of how fi...
• Support national visions for social and economic
development and sustainable environmental
custodianship
and sometimes a...
Source: ODI, “Age of Choice”
Existing regime for delivering international public finance
finance
ministry
line
ministries
...
Challenges
Finance is highly fragmented at the point of delivery
Finance is packaged as short term ”projects”
Finance ofte...
Challenges
Weak governance and fiduciary risks in recipient countries
reduces the willingness among funders to use country...
Principles of an integrated
sustainable development financing framework
An effective finance framework should:
• Maximise ...
Moving from this….
finance
ministry
line
ministries
service
utilities
Bilateral C
CC fund C
a b c
Bilateral
cooperation
Bi...
Climate
National budget
A J
KB
C
D
E
F
G
H
National development plan
SDGs DRR
Public
financial
management
Funders
Domestic...
Alignment of
International finance with domestic priorities
= coherence, ownership
Resources to achieve development and cl...
Thank you
Aaron Atteridge
aaron.atteridge@sei-international.org
Atteridge a 20150709_1730_upmc_jussieu_-_amphi_24
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Atteridge a 20150709_1730_upmc_jussieu_-_amphi_24

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Atteridge a 20150709_1730_upmc_jussieu_-_amphi_24

  1. 1. An integrated finance framework for sustainable development Aaron Atteridge, Stockholm Environment Institute (SEI) Paul Steele, International Institute for Environment and Development (IIED)
  2. 2. Key climate finance issues Mobilising resources Making more effective use of available resources Includes issues of how finance is accounted (towards ODA targets, towards climate finance targets, etc)
  3. 3. • Support national visions for social and economic development and sustainable environmental custodianship and sometimes also: • Support international agendas (e.g. reducing global warming) What is finance for sustainable development and climate change supposed to achieve?
  4. 4. Source: ODI, “Age of Choice” Existing regime for delivering international public finance finance ministry line ministries service utilities Bilateral C CC fund C a b c Bilateral cooperation Bilateral B Multilateral cooperation Global vertical funds DFIs Social impact investment Climate change funds CC fund B FoundationsCSOs Non DAC citizens DAC citizens Private sector Multilateral B
  5. 5. Challenges Finance is highly fragmented at the point of delivery Finance is packaged as short term ”projects” Finance often does not connect with the needs of the poorest Allocation decisions on how funds should be used do not always reflect a country’s or community’s most important priorities – role of fund committees in deciding what is appropriate at national level? Evaluations of effectiveness are not looking at the quality and longevity of impact Encourages thinking of SD and CC as separate rather than integrated components of the development plan/pathway
  6. 6. Challenges Weak governance and fiduciary risks in recipient countries reduces the willingness among funders to use country systems of planning and budgeting Concerns over the emphasis on private finance and incoherence of incentives
  7. 7. Principles of an integrated sustainable development financing framework An effective finance framework should: • Maximise synergies, achieving both development and climate objectives simultaneously • Align the allocation of finance closely with national priorities • Ensure benefits reach poor and vulnerable women and men • Minimise transaction costs • Support good governance and financial management • Evaluate effectiveness against real change and long-term goals • Facilitate partnerships (as a tool, but not an end in itself) • Be transparent and accountable, both the funder and country
  8. 8. Moving from this…. finance ministry line ministries service utilities Bilateral C CC fund C a b c Bilateral cooperation Bilateral B Multilateral cooperation Global vertical funds DFIs Social impact investment Climate change funds CC fund B FoundationsCSOs Non DAC citizens DAC citizens Private sector Multilateral B
  9. 9. Climate National budget A J KB C D E F G H National development plan SDGs DRR Public financial management Funders Domestic finance Domestic revenue raising potential (e.g. tax collection) Multilateral Disaster Risk Reduction To something like this? ”Mainstreaming into national priority setting process
  10. 10. Alignment of International finance with domestic priorities = coherence, ownership Resources to achieve development and climate outcomes simultaneously = synergies private finance with public sustainable development objectives = coherence SDGs and CC with the planning and budgeting of the public sector = “mainstreaming” Effective use requires an“integrated” finance framework
  11. 11. Thank you Aaron Atteridge aaron.atteridge@sei-international.org

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