Unlocking Sustainable Investment: Empowering Low-Income NationsFinance for Sustainable Development (FSD) is SEI's research and engagement program focused on the dynamics of increasing investment in sustainable projects, particularly in low and lower-middle income countries (LLMICs). FSD builds on SEI's track-record in international climate and development finance. The program supports scaling investment into sustainable economic activities needed to achieve the UN's Sustainable Development Goals and the climate targets in the Paris Agreement.

Driving Sustainable Progress through Strategic Investments

Fostering Renewable Energy Investments in Sub-Saharan Africa

The FSD program's research on risk mitigation for renewable energy investments in Sub-Saharan Africa is a crucial component in unlocking the region's vast potential for sustainable development. By addressing the unique challenges and barriers that often hinder investment in renewable energy projects, the program aims to create a more favorable environment for private sector participation. This research delves into innovative risk-sharing mechanisms, policy frameworks, and financial instruments that can catalyze the flow of capital into clean energy initiatives, ultimately empowering local communities and driving the transition towards a low-carbon future.

Innovating Sustainable Business Models

Sustainable business model innovation is another key focus area of the FSD program. By exploring novel approaches to value creation, capture, and delivery, the program seeks to identify and support enterprises that are pioneering sustainable solutions in LLMICs. This includes investigating the integration of circular economy principles, the development of inclusive supply chains, and the leveraging of emerging technologies to enhance the environmental and social impact of businesses. The insights generated from this research can inform policymakers, investors, and entrepreneurs, enabling them to foster a more conducive ecosystem for sustainable entrepreneurship.

Strengthening International Climate Finance Institutions

The FSD program also provides policy support to international climate finance institutions, with the aim of enhancing their effectiveness and reach in mobilizing resources for sustainable development. This involves analyzing the operational frameworks, governance structures, and funding mechanisms of these institutions, and proposing evidence-based recommendations for improvement. By strengthening the capacity and impact of these key players in the climate finance landscape, the program aims to unlock greater flows of capital towards low-carbon, climate-resilient initiatives in LLMICs.

Blending Finance to Mobilize Private Sector Investment

Recognizing the critical role of the private sector in driving sustainable development, the FSD program explores the use of blended finance approaches to mobilize private capital. This includes investigating the design and implementation of innovative financial instruments, such as risk-sharing facilities, guarantee schemes, and impact investment funds. By leveraging public resources to catalyze private investment, the program seeks to unlock new sources of financing for sustainable projects, ultimately accelerating the achievement of the Sustainable Development Goals.

Capacity Building in Sustainable Finance

Underpinning the FSD program's efforts is a strong focus on capacity building in public and private sustainable finance. Through training and knowledge-sharing initiatives, the program aims to equip policymakers, financial institutions, and other stakeholders with the necessary skills and expertise to effectively mobilize, manage, and deploy capital towards sustainable development. This includes building competencies in areas such as sustainable investment analysis, impact measurement, and the integration of environmental, social, and governance (ESG) considerations into investment decision-making.