Investment needs to achieve SDGs: An overview

Abstract

Estimating the investments needed to achieve the Sustainable Development Goals (SDGs) is key to mobilising the financial resources to achieve them. Despite an increasing body of research to estimate the capital and operational costs towards achieving various related SDG targets individually and collectively, an overview of the total estimated investment needs at the global scale has not been conducted since the adoption of SDGs in 2015. This study provides such an overview. Estimates for investment needs are found for nine goals: SDG 2 (zero hunger), SDG 3 (good health and well-being), SDG 4 (quality education), SGD 6 (clean water and sanitation), SDG7 (access to energy), SDG 9 (infrastructure), SDG 13 (climate action), SDG 14 (life below water), and SDG 15 (life on land). The reviewed studies vary significantly in terms of applied methodology, the assumed targets that need to be achieved, and presented estimates, but overall they indicate significantly higher investment needs to achieve all covered SDGs than previous estimates suggest. For most SDGs, annual investment needs are in the order of hundreds of billion USD annually, and for SDG6 and SDG13 estimates of a trillion or more are reported.

Overcoming global inequality is critical for land-based mitigation in line with the Paris Agreement

“…Economic development alone might be insufficient to achieve the transition required, with a strengthening of governance and institutions (SDG 16) and inclusive, gender-equal development (SDG 4 and 5) being key enabling factors 28 , 29 . Estimates of the investment gap (i.e., the additional investments required above current trends) for meeting SDGs 2–4 in low- and middle-income countries are in the range of up to a few hundred billion USD per year for each of these SDGs 30 . In addition, the investment gap for SDG 13 on climate action is estimated to range from 0.3 to 3 trillion USD per year globally 30 .…”

“…Estimates of the investment gap (i.e., the additional investments required above current trends) for meeting SDGs 2–4 in low- and middle-income countries are in the range of up to a few hundred billion USD per year for each of these SDGs 30 . In addition, the investment gap for SDG 13 on climate action is estimated to range from 0.3 to 3 trillion USD per year globally 30 . Future research could explore the potential of development finance, international climate policy, and climate partnerships for reducing these large investment gaps.…”

Net zero portfolio targets for development finance institutions: Challenges and solutions

“…This requires a rapid increase in investment. Yet, reviews show higher investment gaps than anticipated across all SDGs (Kulkarni et al, 2022), with the largest gap in SDG 13 on climate action. Estimates on mitigation finance indicate that around $3.4 trillion a year may be required globally between 2020 and 2025 (Rockefeller Foundation and BCG, 2022).…”

Sustainable Entrepreneurship: The Case of Mitticool Private Limited

“…Dale (2019) reiterates the same idea that sustainable entrepreneurship is the revolutionary tool that can combat the growing challenges in society, the economy, and the environment. Kulkarni et al, (2022) point out that to achieve the Sustainable Development Goals, funding is crucially required, especially for SDG 2, 3, 4, 6, 7, 9, 13, 14, and 15. Hence, the assessment of such funding requirements is irrevocably linked to their attainment.…”