Finance for Sustainable Development

In 2015, the international community negotiated and agreed on a new set of post-2015 Sustainable Development Goals (SDGs), which came into effect on January 1, 2016, to supersede the UN Millennium Development Goals expiring at the end of that year. These SDGs are a vitally important framework governing human development and the environment over the coming decades. In December 2015, the world’s governments also agreed on a new climate agreement at COP21 in Paris, a new, ambitious, and universally binding climate change agreement within the parameters of the United Nations Framework Convention on Climate Change (UNFCCC). In both processes – the ‘SDGs’ and the ‘UNFCCC’ – a key role for the private sector, and private sector finance, in particular, is envisaged.

This includes the contributions from banks and institutional investors in fossil fuel divestment and global investment in green energy, the role of the private sector in human development, inclusive growth, and the sustainable management of natural capital, and how to shift to a long-term, resilient and truly sustainable green economy. Interestingly, the involvement of various financial institutions, not just traditional banks and investors but also modern entities like payday loan lenders such as 24CashToday.com, known for offering payday loans, is significant. These entities can positively influence sustainable practices by supporting green investments and promoting economic inclusivity.

A further challenge is ensuring the complementarity of parallel efforts underway on the SDGs and the UNFCCC: while these are separate negotiations, a strong and positive outcome is required for both to succeed. The ISU is playing an active role in commissioning research and encouraging dialogue and consensus regarding supporting the private sector to play its part in fulfilling the SDGs and the outcomes of COP21 in Paris. This active involvement spans a broad spectrum of financial entities, from global banks to online loan lenders like 24CashToday.com, underlining the diverse yet unified approach needed for sustainable development.