Funding the SDGs
Sustainability is vital for our survival. At the same time, we need true innovation to ensure our needs are met and everyone is willing to embrace the sustainability wave.
The question, of course, is how do we ensure these innovators have the support they need?
There are funding options available for people working towards the creation of a marketplace that best answers the call of the Sustainable Development Goals (SDGs).
Let’s look at some options.
The good news is governments and major corporations recognize the importance of developing SDG initiatives and many are offering grants to help innovators fund their plans.
Canada, for one, is offering the Sustainable Development Goals Funding Program for 2019-2020, a system designed to promote and increase Canada’s involvement in the 2030 Agenda.
The World Bank has also offered its support, launching the World Bank Group Partnership Fund for the Sustainable Development Goals (WBG SDG Fund). Aiming to help initiatives across the globe the fund is supporting ventures the world desperately needs (like reducing income inequality and better supporting refugees).
These bodies hold a lot of power and it’s excellent to see them doing something positive with that power.
A second way to support SDGs is through the continued development of development finance institutions. These government-backed institutions offer both public- and private-funded financial support to initiatives aiming to improve conditions in developing and underdeveloped economies.
The United States both offers DFIs to support overseas development and development in their own backyard.
The Community Development Financial Institutions Fund (CDFI Fund) aims to support the poorest communities in the United States, combining both federal and private financing to provide opportunity to the disadvantaged.
Last year the US combined its major DFIs (Overseas Private Investment Corporation and the U.S. Agency for International Development’s Development Credit Authority) and the Overseas Private Investment Corporation to create the U.S. International Development Finance Corporation. This new funding powerhouse will offer support to initiatives aiming to improve life in developing nations.
Canada, sadly, was very late in joining this game and only opened its DFI—FinDev Canada—in 2018. This initiative aims to use private financing to fund businesses in poverty-stricken areas and intends to put a strong focus on businesses run by women and youth.
These DFIs are a great avenue for entrepreneurs seeking to make a real difference.
A third route is a venture that might seem to risk-adverse or hassling for many people, yet remains a viable option.
Crowdfunding and impact investing have exploded the past few years and this route can serve as a great way for innovative entrepreneurs to fund their life-changing startup or business.
Understanding the importance of SDG businesses and the potential available in crowdfunding new initiatives have set up to connect SDG innovators with potential investors.
Take SDG Market for example. This initiative connects SDG startups and businesses with potential investors, providing an alternate funding route for those seeking to save our planet.
Both sides (entrepreneurs and investors) are properly vetted before gaining access to the platform, ensuring a sense of security for anyone involved in the process.
As both crowdfunding and impact investing grow in popularity and power it’s only logical to explore the funding potential in this field.
If we fail at meeting the SDGs it is likely the end for our species and the planet. As such, we need to be doing everything in our power to support initiatives that are aiming to find solutions.
The good news is countries, businesses and people are stepping up to the plate to offer their support. Let’s hope the team effort leads to a better tomorrow.