This report examines how innovative financing instruments can help countries address the widening gap in financing for sustainable development amid rising debt burdens and the global “triple crisis” of food, energy, and climate shocks. It presents an overview of different sustainable finance instruments, including thematic bonds, sustainability-linked bonds, and debt swaps, and highlights the potential of these tools to attract private capital, incentivize reforms, and strengthen fiscal resilience.
Drawing on case studies from Latin America, Africa, and the Arab region, the report shows how these tools can mobilize resources for environmental and social priorities while building policy credibility and investor confidence. It emphasizes the importance of aligning national frameworks with international standards, strengthening governance and data systems, and adopting key performance indicators in financing strategies. Finally, the report underscores the role of regional initiatives and United Nations support in fostering peer learning, harmonizing approaches, and scaling up the use of innovative financing instruments to advance the 2030 Agenda and climate objectives.
