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Program

SEI Finance for Sustainable Development Program

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.

Active project

2022–2025

Program contact

Daniel Duma / daniel.duma@sei.org

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.

Enhancing understanding of the challenges

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.

Daniel Duma
Daniel Duma

Research Fellow

SEI Headquarters

Miquel Muñoz Cabré

Senior Scientist

SEI US

Carly Evaeus
Carly Evaeus

Fellow

SEI Headquarters

Aaron Maltais
Aaron Maltais

Senior Research Fellow

SEI Headquarters

Katherine Browne
Katherine Browne

Team Leader: International Climate Risk and Adaptation; Research Fellow

SEI Headquarters

Maximilian Bruder
Maximilian Bruder

Research Fellow

SEI Headquarters

Annika Hilgert

Research Associate

SEI Headquarters

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