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SEI’s Finance for Sustainable Development Program conducts research and activities to generate insights on the drivers and barriers to sustainable economic activities in low- and lower-middle-income countries. The program focuses on the enablers and instruments that can help sustainable projects attract private finance. It also examines the catalytic role that development finance and interventions can play in achieving sustainable development aims.
Photo: Daniel Duma / SEI.
2022–2025
Finance is a key enabler of sustainable development. If investments are effectively deployed, they can fuel sustainable economic growth and development. Such investments can seize green windows of opportunity and enable the structural changes that are needed for low- and lower-middle-income countries to improve their economies, strengthen their institutions and improve the well-being of their citizens and their environment.
So far, the investments contributing to attaining the Sustainable Development Goals and the Paris Agreement are falling dramatically short – both on a global level and in low- and lower-middle-income countries, which are those that most need funding to achieve economic growth and make a transition to a sustainable economy. Financing this dual challenge in the ongoing economic context of high debt is a daunting task.
The Finance for Sustainable Development (FSD) Program seeks to address these critical needs. The aim is to deliver more finance – including private-sector finance – to these countries to help achieve both climate and development aims. By working with a diverse range of stakeholders – including governments, financial institutions, utilities, small businesses, large corporations and NGOs – the program aims to act as a knowledge broker, facilitator, and driver of effective change within climate and development finance spheres.
The program’s signature is a two-pronged approach. First, through its research and engagement activities, the program generates micro-level insights about the characteristics that make sustainable projects viable on the ground. Then, those insights are used to inform macro-level policies on climate and development finance that can make more sustainable projects viable in their contexts.
The program’s approach is grounded on the premise that the design of policies that can lead to progress requires greater understanding about the capacities and constraints facing those seeking to develop sustainable economic activities in these contexts. Thus, we examine investment decisions at the firm level to better understand the challenges of generating sustainable economic value and of attracting private-sector investments in low- and lower-middle-come countries.
The program also analyzes the efficacy of various policy interventions – among them, blended-finance instruments such as guarantees, insurance, and currency risk instruments that realign risk and reward parameters and help sustainable development projects attract private investment.
The program works at the intersection of research, policy, and implementation. Our team uses a portfolio of activities: conducting research, offering targeted advisory services, and enhancing the capacity of key actors. We undertake case studies to examine the characteristics of successes and failures of a wide variety of enterprises: start-ups, corporations, public utilities, and public-private partnerships. We engage with project developers, lenders, entrepreneurs, and other project-level stakeholders to help generate new insights that can in turn help create the enabling conditions for financing sustainable businesses. Our projects address topics such as renewable energy, sustainable transport, climate-smart agriculture, adaptation, biodiversity, and, in general, sustainable business models.
Started inthe research program builds on successful projects conducted under the Stockholm Sustainable Finance Centre partnership. The program is currently funded by the Swedish Ministry for Foreign Affairs.
The core research in the program is conducted by SEI researchers. Our team members also collaborate on research projects with national and international partners.
You can learn more about our work in this concept note.
Perspective / SEI and UNDP authors explore the urgency of managing transboundary climate risks to safeguard global progress.
10 June 2024 / About Adaptation, Climate policy, Disaster Risk, Geopolitics and Sustainable Development Goals
Past event / SEI experts will provide input on key climate change topics at the forefront of UNFCCC discussions.
03 June 2024 / About Adaptation, Climate policy, Finance, Mitigation and Sustainable Development Goals
Feature / This Q&A with Katherine Browne, SEI research fellow, maps the climate finance landscape and what is at stake in negotiations leading to a new goal.
31 May 2024 / About Climate policy and Finance
Feature / Cambridge MBA students build diverging business cases for basic service provision in sub-Saharan Africa.
13 June 2024 / About Energy access, Finance, Innovation, Public policy and Supply Chains
Feature / Renewable energy finance in Africa faces an uphill battle. With patience and more knowledge sharing, recent encouraging results can continue.
31 May 2024 / About Finance and Renewables
Feature / SEI was invited to share research insights with the International Development Association and Swedish Ministry of Foreign Affairs.
19 April 2024 / About Finance, Innovation, Participation, Public policy and Renewables
Feature / A recent SEI workshop explored ways to boost private investment in Africa's energy sector through collaborative dialogue.
21 December 2023 / About Energy access, Finance, Public policy and Renewables
Feature / A recent SEI workshop in Ghana revealed insights into overcoming investment barriers in African renewable energy.
22 November 2023 / About Finance, Public policy and Renewables
Perspective / Systemic changes are needed in public and private finance towards the achievement of the SDGs.
31 August 2023 / About Finance and Sustainable Development Goals
Perspective / The international community must pay serious attention and spend political capital on the mechanisms through which finance translates into actual projects.
26 June 2023 / About Finance and Renewables
Perspective / SEI researchers propose seven measures to help the global financial system better address interlinked climate and sustainable development goals.
15 June 2023 / About Finance and Sustainable Development Goals
Feature / Two SEI researchers travelled to Zambia to investigate the effectiveness of financial risk mitigation strategies intended to fuel renewable energy investment.
19 December 2022 / About Finance, Fossil fuels, Innovation, Mitigation, Renewables and Sustainable Development Goals
Past event / How can we accelerate sustainable energy investments, enhance international cooperation and scale up progress towards energy global goals?
09 July 2024 / About Energy access
Past event / SEI's Finance for Sustainable Development team explored financing solutions for clean energy in Sub-Saharan Africa at this UN side event.
23 April 2024 / About Climate policy, Finance, Innovation and Renewables
Past event / Join the FSD team at COP28 as they participate in three events on renewable energy investment, trade and green steel production.
04 December 2023 / About Climate policy, Finance, Innovation and Renewables
Past event / SEI's Daniel Duma, Carly Evaeus, Björn Nykvist, Fiona Lambe and Janet Vähämäki contributed to this dialogue organized in collaboration with Sida and Norad.
05 September 2023 / About Finance, Renewables and Sustainable Development Goals
Past event / SEI hosted a webinar on the role of risk mitigation instruments when attracting private finance to renewable energy projects in Southern Africa.
28 June 2023 / About Finance, Mitigation and Renewables
Past event / Together with SSE Executive Education and SEI, SSFC will hold a two-day executive training programme for Egyptian government officials on climate and finance.
07 October 2022 / About Finance
Past event / SSFC is organizing a seminar on climate action in developing countries with sustainable finance specialists, private sector experts and Swedish policymakers.
03 November 2020 / About Climate policy, Climate services and Finance
Other publication / High-emitting industrial sectors are set to grow in developing and emerging countries, but obstacles remain with securing investments for low-carbon production.
14 June 2023 / About Business, Finance and Innovation
Other publication / Find out more about the state of play, recent initiatives, and prospects for financing the SDGs in Ghana, Indonesia, Mexico, and Senegal.
20 October 2023 / About Finance and Sustainable Development Goals
SEI report / This report examines the use of risk mitigation and transfer (RMT) instruments in private utility-scale renewable energy investments.
1 September 2023 / About Finance and Renewables
SEI report / This report explores the role of risk mitigation and transfer (RMT) instruments for enabling renewable energy investments in SADC countries.
28 June 2023 / About Finance and Renewables
Journal article / In this journal article, 65 researchers from 23 countries summarize what the assess as the past year’s most important findings within climate change research.
8 December 2022 / About Climate policy and Finance
SEI report / Policy can address key challenges for investments in technological and production changes that bring deep emissions cuts in heavy industry in Sweden.
29 June 2022 / About Bioeconomy, Climate policy and Mitigation
Journal article / The article examines whether financing is a significant obstacle for achieving radical emission reductions in energy-intensive industrial sectors.
13 June 2024 / About Finance
Other publication / International finance institutions can play an important role in kick-starting the transition to green steel, especially in emerging and developing regions.
3 November 2022 / About Climate policy, Finance, Fossil fuels and Innovation
SEI brief / A recent study for Swedish EPA mapped financial flows of the five biggest lenders in Sweden. The results suggest limited alignment with the Paris Agreement.
25 October 2022 / About Finance
SEI report / A research report for the Swedish Environmental Protection Agency examines domestic and international flows of the largest lenders in Sweden post-climate rules.
25 October 2022 / About Finance
SEI brief / Read the policy points from a comprehensive assessment of the role of DFIs in supporting development objectives in three countries – Ethiopia, Ghana and Kenya.
31 May 2022 / About Finance
SEI report / How does development finance support national development plans and SDG achievement? This report examines the cases of Kenya, Ethiopia and Ghana.
3 March 2022 / About Finance and Sustainable Development Goals
Journal article / The aim of this paper is to further explore the role of the finance sector in sustainability transitions.
15 August 2022 / About Finance
Journal article / This article comments on the potential of sustainability-linked bonds to contribute to the decarbonization of the real economy.
31 July 2022 / About Finance and Innovation
SEI report / This report focuses on “active engagement”, where investors engage with high-emitting sectors, to impact green transition in four key industries.
26 October 2021 / About Finance and Fossil fuels
SEI brief / How can investors in high-emitting sectors help the drive to net zero? This brief presents insights for the agriculture, steel, cement, and oil and gas sectors.
28 October 2021 / About Finance and Mitigation
Journal article / What drives the market in green bonds? Read a new study from Norway and Sweden.
2 October 2021 / About Finance
SEI brief / This brief uses data and relevant literature to map the African finance landscape in order to understand the green bonds market and its future outlook.
8 February 2021 / About Adaptation, Finance, Mitigation, Public policy and Sustainable Development Goals
Journal article / This article investigates the link between companies’ climate targets and green debt financing.
14 December 2020 / About Finance
Perspective / The chief barrier to industrial transition is not a lack of capital, but the absence of clear policies on incentives for green transition.
13 November 2020 / About Climate policy, Finance and Fossil fuels
Other publication / This report shows that it will not be especially demanding to meet the investment needs for decarbonizing heavy industry in Sweden.
12 November 2020 / About Climate policy, Finance and Fossil fuels
Other publication / This report uses data to understand the structure and development of the green bonds market in Africa and explores the challenges and opportunities it faces.
5 October 2020 / About Adaptation, Finance and Mitigation
SEI working paper / This working paper looks at the potential for green bonds to scale-up financing for adaptation and resilience.
20 February 2020 / About Adaptation and Finance
Journal article / What impact are green bonds having on sustainability financing and implementation?
14 February 2020 / About Finance
Other publication / Read the results of a scoping study on sustainable city bonds.
20 March 2020 / About Finance
Team Leader: International Climate Risk and Adaptation; Research Fellow
SEI Headquarters
Project / This research project explores the effectiveness of financial risk mitigation in attracting private investment in renewable energy in Sub-Saharan Africa.
2021 - 2025 / About Energy access, Finance, Mitigation, Public policy, Renewables and Sustainable Development Goals
Project / Stockholm Sustainable Finance Centre (SSFC) aimed to have a transformative impact on sustainable finance in Sweden and beyond.
2017 - 2022 / About Finance and Sustainable Development Goals
Program / This project aims to accelerate investment in viable cities by assessing needs, frameworks and conditions under which financiers and cities can collaborate.
Project / The project investigates procedural and distributive equity in decentralised adaptation finance under the Green Climate Fund’s EDA programme
2023 - 2025 / About Climate policy
Project / The Centre for Finance for Sustainability, Bangkok (CFSB) aims to unlock private sector investments into sustainability and climate change mitigation.
2022 / About Finance and Sustainable lifestyles
Feature / SEI's George Marbuah contributed to chapter 7 on transformation of the financial sector in UNEP's Emissions Gap Report 2022.
28 October 2022 / About Climate policy, Finance and Sustainable Development Goals
Project / The project investigates procedural and distributive equity in decentralised adaptation finance under the Green Climate Fund’s EDA programme
2023 - 2025 / About Climate policy
Project / Stockholm Sustainable Finance Centre (SSFC) aimed to have a transformative impact on sustainable finance in Sweden and beyond.
2017 - 2022 / About Finance and Sustainable Development Goals
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