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The business case for off-grid energy in India

Published by: Dalberg


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This report sets out to boost entrepreneurial activity and private sector investment in renewable off-grid energy (OGE) by assessing the market, identifying business models with the greatest potential to achieve scale, and recommending investments that will be catalytic for the sector.

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General Information

SDGs Goal 7: Affordable and clean energy Goal 17: Partnerships for the goals
Published
2016
Thematic Area
Inclusive economic growth for poverty eradication
Public private partnerships
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Ensure access to affordable, reliable, sustainable and modern energy for all

Between 1990 and 2010, the number of people with access to electricity has increased by 1.7 billion, and as the global population continues to rise so will the demand for cheap energy. A global economy reliant on fossil fuels and the increase of greenhouse gas emissions is creating drastic changes to our climate system. This is having a visible impact on every continent.

However, there has been a new drive to encourage alternative energy sources, and in 2011 renewable energy accounted for more than 20 percent of global power generated. Still one in five people lack access to electricity, and as the demand continues to rise there needs to be a substantial increase in the production of renewable energy across the world.

Ensuring universal access to affordable electricity by 2030 means investing in clean energy sources such as solar, wind and thermal. Adopting cost-effective standards for a wider range of technologies could also reduce the global electricity consumption by buildings and industry by 14 percent. This means avoiding roughly 1,300 mid-size power plants. Expanding infrastructure and upgrading technology to provide clean energy sources in all developing countries is a crucial goal that can both encourage growth and help the environment.

Sustainable energy is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 7.

[format] => full_html [safe_value] =>

Ensure access to affordable, reliable, sustainable and modern energy for all

Between 1990 and 2010, the number of people with access to electricity has increased by 1.7 billion, and as the global population continues to rise so will the demand for cheap energy. A global economy reliant on fossil fuels and the increase of greenhouse gas emissions is creating drastic changes to our climate system. This is having a visible impact on every continent.

However, there has been a new drive to encourage alternative energy sources, and in 2011 renewable energy accounted for more than 20 percent of global power generated. Still one in five people lack access to electricity, and as the demand continues to rise there needs to be a substantial increase in the production of renewable energy across the world.

Ensuring universal access to affordable electricity by 2030 means investing in clean energy sources such as solar, wind and thermal. Adopting cost-effective standards for a wider range of technologies could also reduce the global electricity consumption by buildings and industry by 14 percent. This means avoiding roughly 1,300 mid-size power plants. Expanding infrastructure and upgrading technology to provide clean energy sources in all developing countries is a crucial goal that can both encourage growth and help the environment.

Sustainable energy is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 7.

) ) ) [field_the_sdgf_work] => Array ( [und] => Array ( [0] => Array ( [value] => SDG Fund’s programmes contributing to SDG 7 [format] => [safe_value] => SDG Fund’s programmes contributing to SDG 7 ) ) ) [field_icon_with_text] => Array ( [und] => Array ( [0] => Array ( [fid] => 305 [uid] => 1 [filename] => E_SDG_Icons-07.jpg [uri] => public://E_SDG_Icons-07.jpg [filemime] => image/jpeg [filesize] => 95073 [status] => 1 [timestamp] => 1450138479 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 466 [width] => 466 ) [alt] => [title] => [height] => 466 [width] => 466 ) ) ) [field_the_sdg_fund_response] => Array ( [und] => Array ( [0] => Array ( [value] =>

The SDG Fund response

The SDG Fund programmes promote the use of renewable and sustainable sources of energy. At the same, time they promote construction techniques that are more energy efficient.

For example,

  • In Bolivia, a food security and nutrition programme is promoting the use of solar energy in the food production. Farmers are able to produce at a lower cost and reduce their CO2 emissions.
  • In Mozambique, the SDG Fund programme is supporting, through UNIDO and national partners, a technology exchange with South African National Cleaner Production Center. This government facility promotes resource efficient and cleaner production methodologies to assist industry in lowering costs through reduced energy, water and materials usage, and waste management.
[format] => full_html [safe_value] =>

The SDG Fund response

The SDG Fund programmes promote the use of renewable and sustainable sources of energy. At the same, time they promote construction techniques that are more energy efficient.

For example,

  • In Bolivia, a food security and nutrition programme is promoting the use of solar energy in the food production. Farmers are able to produce at a lower cost and reduce their CO2 emissions.
  • In Mozambique, the SDG Fund programme is supporting, through UNIDO and national partners, a technology exchange with South African National Cleaner Production Center. This government facility promotes resource efficient and cleaner production methodologies to assist industry in lowering costs through reduced energy, water and materials usage, and waste management.
) ) ) [field_targets] => Array ( [und] => Array ( [0] => Array ( [value] =>
  • By 2030, ensure universal access to affordable, reliable and modern energy services
  • By 2030, increase substantially the share of renewable energy in the global energy mix
  • By 2030, double the global rate of improvement in energy efficiency
  • By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
  • By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, in accordance with their respective programmes of support
[format] => full_html [safe_value] =>
  • By 2030, ensure universal access to affordable, reliable and modern energy services
  • By 2030, increase substantially the share of renewable energy in the global energy mix
  • By 2030, double the global rate of improvement in energy efficiency
  • By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
  • By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, in accordance with their respective programmes of support
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Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

[format] => full_html [safe_value] =>

Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

) ) ) [field_the_sdgf_work] => Array ( [und] => Array ( [0] => Array ( [value] => SDG Fund’s programmes contributing to SDG 17 [format] => [safe_value] => SDG Fund’s programmes contributing to SDG 17 ) ) ) [field_icon_with_text] => Array ( [und] => Array ( [0] => Array ( [fid] => 335 [uid] => 1 [filename] => E_SDG_Icons-17.jpg [uri] => public://E_SDG_Icons-17.jpg [filemime] => image/jpeg [filesize] => 100789 [status] => 1 [timestamp] => 1450140562 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 466 [width] => 466 ) [alt] => [title] => [height] => 466 [width] => 466 ) ) ) [field_the_sdg_fund_response] => Array ( [und] => Array ( [0] => Array ( [value] =>

The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
[format] => full_html [safe_value] =>

The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
) ) ) [field_targets] => Array ( [und] => Array ( [0] => Array ( [value] =>

Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
[format] => full_html [safe_value] =>

Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
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Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.

Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.

The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.

A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:

  • Skills development
  • Supportive policies towards micro, small, and medium enterprises
  • The capacity to innovate and absorb new technologies
  • The ability to produce a higher quality and greater range of products
  • Infrastructure and other investments

Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.

Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.

The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  1. Create opportunities for good and decent jobs and secure livelihoods
  2. Support inclusive and sustainable business practices
  3. Promote better government policies and fair and accountable public institutions

For example:

  • In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
  • In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
  • In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
  • In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.



Current SDG Fund inclusive economic growth for poverty eradication programmes:

CountryProgramme TitleParticipating UN AgenciesTotal Budget  ($)
BangladeshStrengthening Women’s Ability for Productive New Opportunities (SWAPNO)UNDP,  ILO

4,613,000

ColombiaProductive and food secured territories for a peaceful and resilient population in strategic ecosystems in CaucaUNDP, UN Women, FAO, WFP

3,281,152

EthiopiaGender Equality and Women Empowerment - Rural Women Economic EmpowermentUN Women, FAO, IFAD, WFP

3,000,000

HondurasPromotion of Culture and Tourism for Local Development in Ruta LencaUNDP, UN Women

2,919,427

Côte d'Ivoire

Poverty reduction in San Pedro region

UNDP, FAO, UNICEF, UNFPA

3,310,000

MozambiqueMore and better jobs in Cabo Delgado province and Nampula province - Harnessing the opportunities of the New Economy in MozambiqueILO, UNDP, UNIDO, UN Women

3,000,000

occupied Palestinian territoryCreating one-stop-shop to create sustainable businesses” on Inclusive Economic Growth.UN Women, FAO, ITC

3,000,000

Peru

Economic Inclusion and Sustainable Development of Andean Grain producers in rural areas of extreme poverty in Ayacucho and PunoILO, FAO, UNESCO

3,880,790

Sierra LeoneEnabling Sustainable Livelihoods Through Improved Natural Resource Governance and Economic Diversification in the Kono District, Sierra LeoneUNDP, FAO

3,002,000

TanzaniaJoint programme to support Tanzania’s Productive Social Safety Nets (PSSN)UNDP, UNICEF, UNFPA, ILO

4,358,250

 

Total

34,364,619

Previous programmes:

Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction. 

[summary] => [format] => full_html [safe_value] =>

Economic growth has to be inclusive to ensure the wellbeing of the entire population. Inclusive growth requires full respect for human rights.

Inclusive growth generates decent jobs, gives opportunities for all segments of society, especially the most disadvantaged, and distributes the gains from prosperity more equally.

The first priority is to create opportunities for good and decent jobs and secure livelihoods for all. This will make growth inclusive and ensure that it reduces poverty and inequality. Better government policies, fair and accountable public institutions, and inclusive and sustainable business practices are essential parts of a Post-2015 agenda.

A second priority is to strive constantly to add value and raise productivity. Some fundamentals will accelerate growth everywhere:

  • Skills development
  • Supportive policies towards micro, small, and medium enterprises
  • The capacity to innovate and absorb new technologies
  • The ability to produce a higher quality and greater range of products
  • Infrastructure and other investments

Third, countries must establish a stable environment that enables business to flourish. Business wants a level playing field and to be connected to major markets. It also wants a simple regulatory framework that makes it easy to start, operate, and close a business. Small and medium firms that employ the most people are especially restricted by complicated regulations that can breed corruption.

Fourth, in order to bring new prosperity and new opportunities, growth must also usher in new ways to support sustainable consumption and production. It must also enable sustainable development.

The SDG Fund response

The SDG Fund supports initiatives that tackle inclusive growth from a multisectoral perspective and address the following dimensions:

  1. Create opportunities for good and decent jobs and secure livelihoods
  2. Support inclusive and sustainable business practices
  3. Promote better government policies and fair and accountable public institutions

For example:

  • In Mozambique, Sierra Leone and Ivory Coast, the SDG Fund will work with mineral extractive industries to generate economic growth and opportunities for the whole population. For example, in Mozambique, analysis indicates that the 5 largest projects in the country with an invesment of USD $3.4 billion, will generate only 33,000 direct jobs.
  • In Bangladesh and in Tanzania, the SDG Fund will contribute to the construction of the social protection systems and universal social safety nets, with special attention to the poorest women.
  • In Honduras the SDG-F will support the generation of income through the revitalization of the Lenca culture and the development of sustainable tourism micro businesses in the area, led by youth and women.
  • The armed conflict in Colombia has damaged production, institutions, food security, and social trust. Through the sustainable agricultural production of indigenous crops and their international commercialization, the SDG-F will create employment, ways of life, better nutrition, and, most importantly, peace in Cauca - one of the zones most affected by the long lasting conflict.
  • In Peru the SDG Fund will contribute to establishing an inclusive value chain in the production of quinoa and other Andean grains, so that the increase of demand in the international market can convert into economic and social improvements of currently vulnerable producers.

Current SDG Fund inclusive economic growth for poverty eradication programmes:

CountryProgramme TitleParticipating UN AgenciesTotal Budget  ($)
BangladeshStrengthening Women’s Ability for Productive New Opportunities (SWAPNO)UNDP,  ILO

4,613,000

ColombiaProductive and food secured territories for a peaceful and resilient population in strategic ecosystems in CaucaUNDP, UN Women, FAO, WFP

3,281,152

EthiopiaGender Equality and Women Empowerment - Rural Women Economic EmpowermentUN Women, FAO, IFAD, WFP

3,000,000

HondurasPromotion of Culture and Tourism for Local Development in Ruta LencaUNDP, UN Women

2,919,427

Côte d'Ivoire

Poverty reduction in San Pedro region

UNDP, FAO, UNICEF, UNFPA

3,310,000

MozambiqueMore and better jobs in Cabo Delgado province and Nampula province - Harnessing the opportunities of the New Economy in MozambiqueILO, UNDP, UNIDO, UN Women

3,000,000

occupied Palestinian territoryCreating one-stop-shop to create sustainable businesses” on Inclusive Economic Growth.UN Women, FAO, ITC

3,000,000

Peru

Economic Inclusion and Sustainable Development of Andean Grain producers in rural areas of extreme poverty in Ayacucho and PunoILO, FAO, UNESCO

3,880,790

Sierra LeoneEnabling Sustainable Livelihoods Through Improved Natural Resource Governance and Economic Diversification in the Kono District, Sierra LeoneUNDP, FAO

3,002,000

TanzaniaJoint programme to support Tanzania’s Productive Social Safety Nets (PSSN)UNDP, UNICEF, UNFPA, ILO

4,358,250

 

Total

34,364,619

Previous programmes:

Two of the MDG-F thematic windows encouraged practices related with inclusive growth, especially providing opportunities for the most vulnerable: youth, employment and migration and private sector and development. Some programmes on culture and development also tried to boost the economic potential of cultural industries to create livelihoods. Lessons learned from these programmes have been translated into a broader perspective on inclusive growth as a means of poverty reduction. 

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Economic growth is critical for poverty eradication.
Yet, an expanding economy does not mean that everyone benefits equally.

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Economic growth is critical for poverty eradication. Yet, an expanding economy does not mean that everyone benefits equally.

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Public and private institutions are converging towards the achievement of development results. One of the SDG Fund priorities is to facilitate this convergence, leading to a shared responsibility in development challenges.

The SDG Fund’s private-sector strategy has two goals: involving businesses in each of our programmes in the field from the start and creating a global business advisory council.

To better align public-private partnerships for sustainable development, the SDG Fund has established a Private Sector Advisory Groupformed by business leaders of major companies from various industries worldwide. 

The experience of the MDG-F suggests that public-private partnerships can contribute to achieving development goals, capacity building, wealth distribution, and sustainable economic growth.

The private sector is understood as micro-, small, medium, and large companies, self-employed workers, business associations, unions, chambers of commerce, and foundations.

For example, the SDG Fund programmes took into account the following criteria for designing programmes regarding public private partnerships:

  • Has the project included the private sector in its design and implementation?
  • Does the project include solutions to development challenges through core business activities and initiatives that include low-income groups in value chains and as producers, suppliers, employees, and consumers?
  • Does the project facilitate discussion between the public and private sectors and civil society on a specific development theme or industry sector?
  • Does the private sector include micro-, small, medium, and large size companies?
  • Does the project promote entrepreneurial activities of disadvantaged or low-income persons?
  • Does the project promote public and private sector representatives’ joint decisions?
  • Is a results-based management approach used in the design of the project?
  • Does the project include measurable activities and indicators related to the number and size of private institutions participating in the program?
  • Does the project include measurable joint activities between private institutions/private sector and public sector?
  • Does the program aim to enable companies to improve and develop corporate social responsibility? Does it include synergies with current corporate social responsibility initiatives?

More information on the SDG Fund Private Sector Advisory Group: link.

For further information, see:
Document HR/PUB/11/04, Guiding Principles on Business and Human Rights, prepared by the Office of the High Commissioner on Human Rights

[summary] => [format] => full_html [safe_value] =>

Public and private institutions are converging towards the achievement of development results. One of the SDG Fund priorities is to facilitate this convergence, leading to a shared responsibility in development challenges.

The SDG Fund’s private-sector strategy has two goals: involving businesses in each of our programmes in the field from the start and creating a global business advisory council.

To better align public-private partnerships for sustainable development, the SDG Fund has established a Private Sector Advisory Groupformed by business leaders of major companies from various industries worldwide. 

The experience of the MDG-F suggests that public-private partnerships can contribute to achieving development goals, capacity building, wealth distribution, and sustainable economic growth.

The private sector is understood as micro-, small, medium, and large companies, self-employed workers, business associations, unions, chambers of commerce, and foundations.

For example, the SDG Fund programmes took into account the following criteria for designing programmes regarding public private partnerships:

  • Has the project included the private sector in its design and implementation?
  • Does the project include solutions to development challenges through core business activities and initiatives that include low-income groups in value chains and as producers, suppliers, employees, and consumers?
  • Does the project facilitate discussion between the public and private sectors and civil society on a specific development theme or industry sector?
  • Does the private sector include micro-, small, medium, and large size companies?
  • Does the project promote entrepreneurial activities of disadvantaged or low-income persons?
  • Does the project promote public and private sector representatives’ joint decisions?
  • Is a results-based management approach used in the design of the project?
  • Does the project include measurable activities and indicators related to the number and size of private institutions participating in the program?
  • Does the project include measurable joint activities between private institutions/private sector and public sector?
  • Does the program aim to enable companies to improve and develop corporate social responsibility? Does it include synergies with current corporate social responsibility initiatives?

More information on the SDG Fund Private Sector Advisory Group: link.

For further information, see:
Document HR/PUB/11/04, Guiding Principles on Business and Human Rights, prepared by the Office of the High Commissioner on Human Rights

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Joining efforts and sharing responsibilities of governments and business to achieve sustainable development.

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