Global Outlook on Financing for Sustainable Development 2025

3. Domestic and International Private Business and Finance

Abstract

This chapter reviews the Domestic and International Private Business and Finance action area of the Addis Ababa Action Agenda (AAAA) including progress, persistent challenges, and emerging areas as the international community prepares for the Fourth International Conference on Financing for Development (FfD4). It explores the progress and challenges in mobilising private sector support for sustainable development. Key advancements include increased adoption of policy instruments, expanded private sector engagement, and the growth of sustainable finance initiatives, such as ESG and impact investing. Despite this, challenges persist in areas like financing for Least Developed Countries (LDCs), high remittance costs, and insufficient private finance mobilisation for climate action. Emerging trends highlight the growing role of sustainable finance, the need for improved transparency and governance, and the importance of addressing de-risking to enhance cross-border financial access. Ensuring long-term investments aligned with sustainability goals is crucial for future success.

3.1. Data dashboard

Key Trends

Global financial assets increased by 47% between 2015 and 2023, with an increasing share held in developing countries.

In 2022, total global financial assets fell by 0.4%, the first decline in the non-banking financial institution sector since 2009 and driven by higher interest rates and lower asset valuations.

Most (79%) of the USD 461.2 trillion in global financial assets under management (stocks) in 2022 remain concentrated in developed countries (Figure 3.1). However, the share held in developing countries has increased over 2015-22 from 17% to 21%.

Figure 3.1. Global financial assets

Note: The sum of jurisdictions is not equal to the total global financial assets reported to the Financial Stability Board. Global financial assets are those managed by entities including banks, central banks, insurance companies, pension funds, public financial institutions and other financial institutions. Non-bank financial intermediation includes investment funds, insurance companies, pension funds and other financial intermediaries.

Source: Authors based on Financial Stability Board (2023[1]), Global Monitoring Report on Non-bank Financial Intermediation 2023, https://www.fsb.org/2023/12/global-monitoring-report-on-non-bank-financial-intermediation-2023/.

Global foreign direct investment inflows have declined significantly from USD 2.4 trillion in 2015 to USD 1.3 trillion in 2023.

Global foreign direct investment (FDI) inflows dropped by 2% between 2022 and 2023 to USD 1.3 trillion, continuing a declining trend since 2015 (Figure 3.2). The latest available figures for global FDI flows indicate a further decline to USD 802 million in the first half of 2024 (OECD, 2024[2]).

Between 2015-22, FDI flows declined by 42% in least developed countries (LDCs) and 84% in other low-income countries (LICs) but decreased by only 2% in lower middle-income countries (LMICs) and increased by 8% in upper middle-income countries (UMICs). The LDC share of FDI going to developing countries decreased from 5.1% in 2015 to 3.6% in 2022 .

In addition to the volume of inflows, the quality of FDI and its impact on sustainable development matter to move from resource mobilisation to achieving Sustainable Development Goals (SDG). Importantly, Foreign investment is rapidly shifting to sectors that have lower job creation potential but are crucial for the green and digital transitions.

Figure 3.2. Foreign direct investments inflows

Notes: In the figure, HK = Hong Kong (China); SGP = Singapore. The calculation of FDI to LDCs as a percent of FDI to all developing countries is based on UN Trade and Development (UNCTAD) data. FDI inflows for OECD, non-OECD and World aggregates were compiled using directional figures when available, or asset/liability figures otherwise. Resident SPEs from Austria, Belgium, Hungary, Iceland, Latvia, Luxembourg, Mexico, the Netherlands, Portugal, and Switzerland are excluded.

Source: For total world, OECD and non-OECD countries: OECD (2024[3]) FDI statistics database available through the OECD Data Explorer (BMD4). For LDCs and the total for developing countries: UNCTAD (2024[4]), World Investment Report 2024, https://unctad.org/publication/world-investment-report-2024.

Remittance volumes are increasing though transfer costs remain high.

Total remittances to developing countries (excluding China) increased by 29% since 2015 to reach USD 476 billion in 2023. The volume of remittances has increased the most in UMICs (+49%) compared to LMICs (+20%) and LDCs (+27%). The transfer cost of sending USD 200 has declined from 7.7% to 6.4% but is still more than double the 3% SDG target (Figure 3.3).

Figure 3.3. Remittances in volume and transfer costs

Note: Calculations are based on 2015 constant prices and deflated using the GDP deflator of the US Federal Reserve Bank of St. Louis. For transfer costs, the latest available data are from the first quarter of 2024. Developing countries are defined as ODA-eligible countries, excluding China.

Source: World Bank (2024[5]), World Development Indicators, https://data.worldbank.org/topic/financial-sector?view=chart

Key performance indicators

 

	In 2021, 71% of adults in developing economies had a financial account, up from 63% in 2017.
	Greenfield FDI in renewable energies expanded sharply since 2019 in OECD countries and since 2022 in non-OECD countries, more than tripling overall.
	Energy intensity improvements have fallen short of the SDG 7.3 target of an average annual improvement of 2.6% between 2010-30, which is equivalent to doubling the average improvement rate observed over 1990-2010. To reach this target, annual progress of about 4% is needed between 2022 and 2030 (UN, 2024[6]).
	The global share of women holding management positions in 2022 declined to 27.5% from 28.5% in 2016 (UN, 2024[7]). Gender parity will take 176 years to be achieved at the current rate of change.

Note: Selected quantifiable commitments. Annex Table 3.A.1. contains the full list.

Resource mobilisation potential

• LDCs would have received USD 280 billion in FDI inflows since 2015, i.e. an additional USD 41 billion total since 2015, had their inflows increased at the same rate (17%) as in other developing countries over 2015-23 (UNCTAD, 2024[4]).

• An additional USD 16 billion could have been mobilised in support of developing country households by reducing remittance transfer prices to the 3 percentage point SDG target in 2023.1

3.2. Key areas of progress

The public sector has strengthened its approach to engaging the private sector as a key partner in support of sustainable development

Since 2015, governments have stepped up their adoption of policy instruments in support of sustainable consumption and production, including responsible business and investing, to help strengthen incentives for private sector alignment to the SDGs. From 2015-20, countries adopted 34 economic and fiscal instruments (up from 16 in 2015); 160 macro policy instruments (up from 51 in 2015); 81 regulatory and legal instruments (up from 37 in 2015); and 72 voluntary schemes (up from 30 in 2015) (UNEP, 2024[8]). In 46 of the 52 developing countries covered by the OECD 2022 Investment Tax Incentive database, at least one tax incentive supports an area related to the SDGs (Celani, Dressler and Wermelinger, 2022[9]). As of 2023, 75% of OECD countries have adopted a variety of due diligence-related regulations that require companies that require companies to manage and disclose the environmental and social impacts of activities within their global supply chains and investment portfolios.2

Several global initiatives also enhance private sector participation in sustainable development. Examples include the UN Global Compact, the world's largest corporate sustainability initiative that engages over 10 000 companies globally; the Global Investors for Sustainable Development Alliance, launched in 2019, that includes 30 corporate and financial leaders promoting sustainable investments; and the Principles for Responsible Investment network, comprised of more than 4 000 investors managing USD 121 trillion. Others are the Sustainable Stock Exchanges Initiative, which involves more than 100 stock exchanges and encourages investors to use responsible investment to enhance environmental, social and governance (ESG) transparency. In addition, the Business for 2030 initiative aligns corporate projects with the SDGs. Finally, the International Sustainability Standards Board (ISSB) builds on the Climate Disclosure Standards Board, the Task Force for Climate-related Financial Disclosures, the Value Reporting Foundation’s Integrated Reporting Framework, and the industry-based Sustainability Accounting Standards Board Standards as well as the World Economic Forum’s Stakeholder Capitalism Metrics and the International Platform on Sustainable Finance.

Development co-operation providers have also developed specific policies to more effectively engage the private sector including by supporting developing countries. official development assistance (ODA) eligibility rules ensure that donors’ direct support to the private sector (i.e. private sector instruments) can be reported as ODA only if it ensures both financial or non-financial additionality (OECD, 2024[10]). By untying most of their ODA, donors also ensure that all companies can effectively compete and access donor funds and allow recipient countries more flexibility in procurement. For example, in 2015, approximately 80% of bilateral ODA was either untied or offered on the condition that it be used to procure goods or services from the provider of the aid. By 2022, the proportion had increased to over 85%, reflecting ongoing efforts to enhance the effectiveness of donors’ private sector engagement3 (OECD DAC, 2022[11]). Another example is the Kampala Principles on effective private sector engagement in development co-operation, which promote partner country ownership of private sector engagement and ensure the alignment of projects and programmes with national sustainable development priorities (Global Partnership for Effective Development Co-operation, 2019[12]). The Kampala Principles Assessment is a novel component of the Global Partnership for Effective Development Co-operation (2023[13]) monitoring exercise that generates evidence to track and stimulate greater effectiveness on private sector engagement in development co-operation.

Finally, development co-operation providers have agreed several international standards to strengthen the commitment to effective private sector engagement. Among these are OECD DAC Blended Finance Principles and accompanying Guidance. While definitions of blended finance vary,4 the principles and guidance provide development finance actors with tools to design and implement effective, efficient and transparent blended finance programmes and ultimately to mobilise more private finance for sustainable development. Progress is being made in disseminating and implementing responsible business conduct standards to enhance the environmental and social impact of businesses and generate positive spillover effects in developing countries through the due diligence process. Development co-operation plays an important role in this regard, helping to build capacities and ensure that all countries and entities can promote sustainable investment and improve opportunities to participate in global value chains.

Financial inclusion, including bank account ownership, has steadily advanced

More than half a billion people gained access to formal financial services between 2017-21 (UN, 2024[14]). Global bank account ownership rose from 51% in 2011 to 76% in 2021, notably increasing by 30 percentage points in developing countries to reach 71% in 2021 (UN, 2024[14]). However, progress varies by region, with only 15.7% of small-scale industries in sub-Saharan Africa having access to loans or lines of credit over 2006-23 compared with 44.2% in Latin America and the Caribbean (UN, 2024[14]).

Remittance volumes are increasing and transfer costs remain high

Remittance volumes grew to USD 838 billion in 2022, including USD 614 billion to all developing countries, and remain a crucial source of income for households and small and medium-sized enterprises (SMEs) (UN, 2024[14]). Remittances were expected to have reached USD 669 billion in 2023 (UN, 2024[14]). The highest remittances growth rate (21.6%) was in the Latin America and the Caribbean region, driven by economic recovery in the United States and migrants' responses to natural disasters in their home countries (UNCTAD, 2024[4]). In 2022, LDCs received USD 62 billion in remittances – twice the volume of FDI (USD 27 billion) received that year5.

The global average cost to send USD 200 decreased from 7.7% in 2015 to 6.2% in 2023, largely due to migrants’ greater access to digital instruments for transferring remittances. However, the global average cost of sending remittances is still more than double the SDG target of 3%. The World Bank’s Smart Remitter Target (SmaRT), the simple average of the three cheapest qualifying services for sending remittances in each remittance corridor, stood at 3.5% in 2023 (World Bank, 2024[15]). However, transfer fees were higher than 5% in 20% of remittance corridors. Barriers to reducing the cost include lack of competition among money transfer operators, stiff regulatory requirements for even small transfers, and insufficient support to new digital players as well as de-risking, notably due to the absence of precise risk metrics for certain corridors.

Philanthropic financing for sustainable development in developing countries is on the rise

Philanthropic financing is growing, and domestic foundations in emerging countries are playing a growing role. Private philanthropy for development from 40 reporters grew from USD 4 billion in 2015 to 11 billion in 2022. Domestic foundations in emerging markets such as People’s Republic of China, India and Mexico accounted for 19% of this financing over the period. Sub-Saharan Africa receives the largest share of total philanthropic funding, with significant contributions to support health and economic development. The Gates Foundation and other major foundations focus heavily on this region, particularly in the areas of disease eradication and healthcare improvement, and provided a total of USD 5 billion in 2022 (Ratha et al., 2019[16]).

3.3. Persistent challenging areas

FDI flows to developing countries overall are increasing but not to LDCs

Global FDI dropped by 2% between 2022 and 2023, to USD 1.3 trillion, continuing the declining trend since 2015 and lower than the pre-COVID-19 level for the second consecutive year (UNCTAD, 2024[4]). While FDI inflows to developing countries overall increased over the 2015-23 period, FDI to LDCs has declined in terms of both volume and share. FDI inflows to LDCs have not rebounded following COVID-19 to the same degree as they have to other developing countries due to the disproportionate impacts of food and energy and successive other global crises (UNCTAD, 2023[17]). LDCs received USD 31.3 billion in FDI in 2023, down from USD 37.6 billion in 2015, 3.6% of the total FDI inflows to developing countries and 2.4% of global FDI (a slight increase from the 1.8% share in 2015) (UNCTAD, 2024[4]). FDI often bypasses LDCs due to perceived risks in the form of political instability, weak infrastructure and limited market size. Additionally, Inadequate regulatory frameworks lack of skilled labour and other structural barriers deter investors. At the same time, globally, cross-border mergers and acquisitions activity continued a downward trend, hitting a record ten-year low in 2023. Greenfield investment activity stalled in 2023, yet trends in advanced economies and in emerging and developing economies diverged, with capital expenditures up by 21% in the latter group (OECD, 2024[18]).

Capital market development is needed in developing countries to allow firms and governments to finance their long-term investments

Capital markets support capital formation and investment diversification and help ensure long-term financing. However, capital markets remain small and underdeveloped in developing economies, hindering their growth opportunities. Capital markets consist of equity markets and bond markets, and both equity and bonds can be acquired through the primary market, where new securities are issued, or through the secondary market, which involves trading existing securities. By way of comparison, equity market capitalisation reached 131% of gross national product (GNP) in high-income countries in 2022 but just 34.4% of GNP in Latin America and the Caribbean, 16.2% of GNP in Central Europe and the Baltics, and 64.4% in non-high-income East Asia and Pacific countries. Equity markets in these regions lack liquidity, are concentrated in large companies and show a trend of negative net listings over the last two decades. On the other hand, bond markets in these regions tend to be concentrated in public sector issuances. (OECD, 2024[19]).

Private sector investment mobilised by official development finance intervention has increased though remains below expectations

Between 2012 and 2022, official development finance interventions mobilised over USD 416.4 billion from the private sector, mainly through direct investments, special purpose vehicles and guarantees (OECD, 2024[20]). Private finance mobilisation increased from USD 28 billion in 2015 to USD 62 billion in 2022, with multilateral development banks contributing 70% of the total funding during 2020-22. Most mobilised private finance targeted middle-income countries (87%); only 12% supported low-income countries (OECD, 2024[20]).

According to findings in a recent OECD (2023[21]) report on mobilisation, the primary mechanisms for mobilising private finance between 2018 and 2020 were direct investments in companies and project finance special purpose vehicles (38%) and guarantees (26%). The share of finance mobilised through direct investments increased over time. Guarantees, however, accounted for a declining share, dropping from 32% of finance mobilised in 2018 to 20% in 2020. Credit lines (12%), syndicated loans (10%), shares in collective investment vehicles (8%) and simple co-financing (5%) played smaller but contextually significant roles, especially in SME financing and small-scale projects (OECD, 2023[21]).

There are significant challenges to mobilising private finance for sustainable development, particularly in developing countries. High investment risk, low returns, lack of bankable projects and insufficient financial innovation are the key barriers. In LDCs, economic instability and lack of investment expertise further hinder private mobilisation. Additionally, private investors are less inclined to finance sectors such as health and education or policy objectives such as climate adaptation due to low returns and smaller project sizes. Increasing mobilisation will require innovative financial instruments, greater risk appetite from institutions, and improved data transparency to address misperceptions of investment risk. Survey respondents identified the availability of bankable investment opportunities, financial innovation and macroeconomic stability as among the main drivers of increased finance mobilisation. Other key drivers are improved investment returns as well as the Paris Agreement, and the SDGs. These latter frameworks incentivise the mobilisation of private finance by aligning financial opportunities with global climate and sustainability objectives, encouraging investments that yield both profit and societal impact.

Gender inequality in the labour market persists

The global labour force participation rate for women is 47% versus 73% for men. Women also earn significantly less, receiving 51 cents for every US dollar earned by men. Additionally, women spend 2.6 times more than men on unpaid care and domestic work, which further limits their economic opportunities. Regional disparities are pronounced: women in Northern Africa and Western Asia spend five times as many hours on unpaid care and domestic work than men while in Oceania, Europe and Northern America, women spend about twice as many hours as men on these (UN, 2024[14]).

3.4. New and emerging areas

Sustainable finance has gained prominence, driven by growing investor interest in non-financial or ESG factors

Global sustainable investing assets are investments that consider ESG factors to promote long-term sustainability across various sectors and aim for both financial returns and positive societal impact. The volume of these assets reached USD 30.3 trillion in 2022, a substantial increase over 2016 but slightly below the record highs of 2020 and 2021. Sustainable investment funds, mostly domiciled in developed countries and particularly Europe, captured 81% of the market and have received significant inflows, peaking at USD 558 billion in 2021 before declining to USD 72 billion in 2023. By the end of 2023, sustainable funds had accumulated USD 2.56 trillion in assets under management, accounting for about 10% of all sustainable assets. In absolute numbers, however, sustainable fund assets make up a small share of total fund assets under management, representing less than 5% of total global fund assets in 2023 (UN, 2024[22]). In impact investing – a more targeted form of investment that seeks to generate measurable, positive social or environmental impact alongside financial returns – assets under management exceeded USD 1.2 trillion in 2022, driven by the rise of green and sustainability-linked bonds. The cumulative issuance of green, social, sustainability and sustainability-linked (GSSS) bonds totalled USD 5.3 trillion in 2023 (World Bank, 2024[23]). The share of GSSS bonds that was issued by entities in developing countries dropped to 5% in 2023 from 13% in 2022. (OECD, 2024[24]).

Policies to enhance transparency, accountability and governance of sustainable financial and capital markets are having significant impact

Nearly half of global GDP is generated in countries that adopted climate-related disclosure legislation. The ISSB has made significant strides in consolidating major reporting standards to improve ESG data infrastructure.6 As of July 2023, over 780 sustainable finance policy measures across 109 countries have been recorded, a 70% increase since 2015 (Green Finance Platform, 2019[25]). These measures include at least 30 taxonomies and 200 frameworks, standards and guidelines on sustainability and climate disclosures. However, in addition to the risk of market fragmentation which hampers access, many developing countries struggle with weak financial markets that further limit their ability to effectively attract sustainable finance. Though they contribute up to 40% of national income in emerging economies, for example, many SMEs face challenges to access finance and respond to emerging sustainability-related standards.

There has been progress in the information infrastructure. As of 2022, approximately 70% of monitored companies were publishing sustainability reports, a threefold increase since 2016 (United Nations Environment Programme, 2024[26]). However, data gaps and risks of greenwashing persist in developed and developing countries alike. In 2023, 30% of asset managers removed references to the abbreviation “ESG” and the phrase “net zero” from their marketing materials and websites in the United States (UN, 2024[22]). The banking and financial services sectors experienced a particularly sharp increase in greenwashing in 2023, with 148 cases reported compared with 86 in 2022. Over 50% of these cases involved misleading claims about fossil fuel involvement (RepRisk, 2023[27]).

Globally agreed sustainable finance taxonomies and legislation could help clarify rules for disclosure and minimise market distortions, risks of broader SDG washing and stalling on SDG targets – for example on SDG 8 on child labour, where no progress has been made since 2016 (United Nations, 2024[28]). Harmonisation efforts are ongoing. Further efforts to strengthen harmonisation include the collaboration between the Global Reporting Initiative and the ISSB and increasing adoption of the Taskforce on Nature-related Financial Disclosures However, disparities across jurisdictions highlight the need for global interoperability.

Private finance for climate action could be scaled up

Developed countries pledged to mobilise USD 100 billion annually in climate finance for developing nations by 2020 and extended the pledge through 2025 (AAAA § 49) (UN, 2015[29]). Climate finance surged by 30% after 2021 to reach USD 115.9 billion in 2022, surpassing the USD 100 billion target for the first time, with 60% of the financing allocated to mitigation efforts (UN, 2024[14]). Private finance mobilised by public climate finance, for which comparable data are only available from 2016, grew from USD 14.4 billion in 2021 to USD 21.9 billion in 2022 (a USD 7.5 billion or 52% increase) following several years of relative stagnation (OECD, 2024[30]). However, the UN Framework Convention on Climate Change estimates that nearly USD 6 trillion is needed for developing countries’ climate action plans by 2030, which will require additional resource mobilisation and between USD 500 billion and USD 600 billion annually in private finance by 2030. Multilateral development banks and other financial institutions are expected to mobilise a large portion of these amounts (Bhattacharya et al., 2023[31]).

Several initiatives aim to inject and catalyse investment into quality, sustainable infrastructure and foster partnerships that facilitate lower-cost financing in developing countries. From 2013 to 2020, China invested more than USD 731 billion globally, launching the Belt and Road Initiative International Green Development Coalition in 2019 to align with the SDGs, for example, though carbon-intensive projects, including coal-fired power plants, continue to be financed (Nedopil, 2024[32]). The Blue Dot Network, announced at the 2021 Group of Seven summit, focuses on promoting high infrastructure standards, good governance and climate resilience through private investment in developing countries (OECD, 2024[33]).

Strengthening FDI qualities enhances sustainable development and supports the green and digital transitions

Foreign investment significantly contributes to sustainable development. But not all countries, population segments and territories benefit. Globally, over 10 million new jobs were created from greenfield FDI over 2019-23, 6.4 million of them in developing and emerging economies. Women are filling many of these jobs: foreign firms have a bigger share of female workers than domestic companies. However, most of these new jobs are not senior management positions and are often in low-wage sectors (OECD, 2022[34]). Furthermore, the job creation intensity of FDI (i.e. the number of jobs created per million USD invested) is declining, including in developing and emerging economies, with adverse long-term impacts on the crucial role of FDI in providing much-needed jobs and incomes (OECD, forthcoming[35]).

It is important to ensure that FDI not only brings financial capital but also contributes to local economic development, environmental sustainability and social progress. By linking domestic firms to multinational enterprises, FDI can serve as a conduit for domestic firms to access international markets and integrate global value chains (OECD, 2022[36]).

Foreign investment also is rapidly shifting to sectors such as renewable energies, semi-conductors and ICT, activities that have lower job creation potential yet are crucial for the green and digital transitions. For instance, in developing and emerging economies, greenfield FDI in renewables has increased from USD 3.3 billion in 2003 (0.8% of total greenfield FDI) to USD 175.4 billion in 2023 (24.3% of total greenfield FDI). Nonetheless, FDI in fossil fuels still amounted to 12.7% of greenfield FDI in 2023 (OECD, forthcoming[35]). Swift policy intervention is required to reap the benefits of FDI for both sustainable and inclusive growth and the green and digital transitions. This includes orienting financial incentives to the right activities and population and rapidly adapting the workforce to emerging skills in demand by multinational enterprises, including through better reskilling and/or upskilling incentives to firms (OECD, 2022[36]).

De-risking hinders the development of safe, affordable cross-border payment systems and limits access to international financial markets

De-risking, the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid rather than manage risk, can have severe consequences for developing countries. The total number of active correspondent banks fell by 29% during 2011-22 (Bank of International Settlements, 2023[37]). De-risking can raise the costs of remittance transfers, the largest source of external finance for many low- and middle-income countries. Addressing de-risking requires international co-operation to help countries meet global financial integrity standards, enhance their reputation in international markets, deter financial crime, increase capital inflows, and expand access to financial services for individuals and businesses, including trade finance. Such international co-operation needs to go hand in hand with safeguards to prevent sanctions evasion.

Extending the investment horizon can support long-term sustainable development goals

Commercial creditors usually provide loans with short-term maturities and high interest rates, inhibiting long-term investments and increasing liquidity risks in developing countries (Sachs et al., 2023[38]). Short-term profitability should not come at the expense of long-term productive and sustainable investment. Enhancing the availability and quality of ESG disclosures can encourage investors to make more long-term investment decisions. Moreover, there is room to better integrate sustainability into financial institutions’ mandates and operations. A World Benchmarking Alliance (2023[39]) assessment of 400 financial institutions found that in 2022, only 37% had disclosed long-term net zero targets and that just 2% of commitments had been translated into interim targets for the institutions' financing activities, with only 1% of these backed by scientific evidence.

Annex 3.A. Domestic and International Private Business and Finance

Annex Table 3.A.1. Assessment of the action area: Domestic and international private business and finance

AAAA paragraph	Commitment	Specific target or objective	Matching Sustainable Development Goal (SDG) target (where available)	State of implementation or progress made since 2015, using selected SDG or other relevant indicators (proxies)
35	Calls on all business to engage as partners and invest in areas critical to sustainable development, including foreign direct investment (FDI) in countries most in need and long-term financing.	No	No SDG targets agreed by private sector actors. Target 12.1 Implement the ten‑year Framework of Programmes on sustainable consumption and production patterns, all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries.	Private sector actors have not formally agreed to the SDG targets and indicators framework. However, many networks and groups have helped strengthen partnerships with the private sector to align activities with the SDGs. These include the UN Global Compact, the UN Global Investors for Sustainable Development Alliance and the UN Principles for Responsible Investment (PRI), among others. (For a more comprehensive assessment of performance for SDG 12, see https://sdg12hub.org/ and Chapter 12 in https://unstats.un.org/sdgs/report/2024/extended-report/Extended-Report_Goal-12.pdf). SDG indicator 12.1.1 Number of countries developing, adopting or implementing policy instruments aimed at supporting the shift to sustainable consumption and production. As of 2023, 63 UN member states reported 516 policy instruments to accelerate the shift to sustainable consumption and production. Of these reported policies, 49% are national roadmaps or strategies (UN, 2024[40]). Between 2015-20, countries stepped up their adoption of policy instruments with 34 economic and fiscal instruments (up from 16 in 2015); 160 macro policy instruments (up from 51 in 2015); 81 regulatory and legal instruments (up from 37 in 2015); and 72 voluntary schemes (up from 30 in 2015) (UNEP, 2024[8]). FDI to developing countries, including countries most in need (UNCTAD) Over 2015-23, world FDI dropped from over USD 2.0 trillion to USD 802 billion. Inflows to ODA-eligible developing countries declined from USD 338 billion in 2015 to USD 286 billion in 2023. Over the same period, FDI inflows to least developed countries (LDCs) dropped from USD 37.6 billion to USD 31.3 billion, although LDCs’ share of the total increased from 1.8% to 2.4%. Likewise, the volume of FDI to landlocked developing countries declined from USD 25.1 billion to USD 24.3 billion. However, FDI to small island developing states rose from USD 6.4 billion to USD 8.3 billion (UNCTAD, 2024[41]). FDI Qualities Indicators The FDI Qualities Indicators examine the contribution of foreign businesses to productivity and innovation, job quality and skills, gender equality, and green growth. Globally, over 10 million new jobs were created from greenfield FDI over the years 2019-23 – 6.4 million of them in developing and emerging economies (OECD, forthcoming[35]). Foreign investment is rapidly shifting to sectors such as renewable energies, semi-conductors, and information and communication technology, activities that have lower job creation potential yet are crucial for the green and digital transitions. For instance, in developing economies, greenfield FDI in renewables has increased from USD 3.3 billion in 2003 (0.8% of total greenfield FDI) to USD 175.4 billion in 2023 (24.3% of total greenfield FDI). Nonetheless, FDI in fossil fuels still amounted to 12.7% of greenfield FDI (OECD, forthcoming[35]). Investment gap and flows to sectors essential to the SDGs The SDG financing gap for infrastructure reached USD 2.2 trillion in 2022 (UNCTAD, 2023[42]). Between 2015-23, investment relevant to sustainable development in developing countries has varied by sector. The number of projects in infrastructure grew by 40%, in renewable energy by 76% and in health by 22%. However, the number of projects over the same period fell by 6% both in water, sanitation and hygiene and in agrifood (UNCTAD, 2024[43]).
36	Develop policies and/or regulatory frameworks for the quality of finance and alignment. Promote and create an enabling environment for inclusive and sustainable investment, including competition policies.	No	n.a.	Official development assistance (ODA) in support of private sector development Between 2015-22, ODA to economic infrastructure and services grew from USD 41.6 billion to USD 45.2 billion and ODA to production sectors increased from USD 15.8 billion to USD 20 billion, together accounting for 22% of total ODA The banking and financial services sector, for instance, received USD 5.8 billion and USD 6.4 billion of ODA support in 2015 and 2022, respectively (OECD, 2024[44]). Number of countries that are members of the International Competition Network The International Competition Network has grown from 15 founding institutions in 2001 to over 140 members from nearly 130 jurisdictions (Competition Policy International, 2020[45]) (ICN). The OECD Competition Trends database contains information about competition trends since 2018 for 77 jurisdictions along 34 variables (OECD, 2024[46]). OECD DAC Recommendation on Untying Official Development Assistance DAC members agreed to untie ODA to LDCs, Heavily Indebted Poor Countries, other low-income countries, and International Development Association (IDA)-only countries and territories in the DAC Recommendation on Untying ODA (last amended in 2018) and the 2022 OECD Untied Aid progress report. Effective private sector engagement in development co-operation: Kampala Principles Assessment part of the Global Partnership for Effective Development Co-operation monitoring exercise The Global Partnership for Effective Development Co-operation (2023[13]) covers four issue areas: the state of policies, inclusive dialogues, the quality of private sector engagement and the ease of partnering. The Kampala Principles Assessment (KPA) findings can be used to inform multi-stakeholder dialogues in participating countries with relevant evidence, identify and overcome bottlenecks for collaboration, and improve co-ordination among development actors, thereby building trust between public, private and civil society partners. By demonstrating the impact of public-private collaboration, the KPA can lead to greater investment, uptake and scaling up of such partnerships. OECD Recommendation and Policy toolkits on the Policy Framework for Investment and FDI Qualities See paras 35 and 37. Investment promotion: see para 46.
37	Promote business while protecting labour rights and health standards (ILO). Encourage sustainable and responsible business models and practices (Global Compact) and impact investment. Harmonise initiatives, identify gaps and strengthen compliance including on gender.	No	Many targets of SDG 8 are relevant, including the following: Target 8.8 Protect labour rights and promote safe and secure working environments for all workers. Target 12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.	Many indicators associated with SDG targets are relevant, including the following: SDG indicator 8.8.2 Level of compliance with labour rights. The estimated number of children in child labour stood at 160 million worldwide at the beginning of 2020, that is almost one in ten of all children worldwide and one in four in sub-Saharan Africa (UN, 2024[47]). While the long-term global trend is decreasing, global progress against child labour has stalled since 2016. Global estimates indicate that 50 million people were living in modern slavery in 2021,10 million more than in 2016 (ILO / IOM, 2022[48]). Data on fatal and non-fatal occupational activities show significant progress over decades. The global average for SDG indicator 8.8.2 on national compliance with fundamental labour rights (freedom of association and collective bargaining) in 2022 stood at 4.81. For the period from 2015 to 2021, the situation in 43% of countries worsened by 0.55 points and in 35% it improved by 0.51 points. The number of international migrant workers has been growing continuously and reached 169 million in 2019 (UN, 2024[49]). SDG indicator 12.6.1 Number of companies publishing sustainability reports. In 2021-22, 73% of the companies included in the Refinitiv database, which covers data from over 10 000 mostly large public companies across the world, published sustainability reports and the number of companies doing so has tripled since 2016. This growth was observed in all regions in 2022. Latin America, Africa and Oceania demonstrated continuous progress while Europe, Asia and North America have the largest share of companies reporting on sustainability (UN, 2024[40]). Other forms of sustainability reporting by private sector actors The PRI network comprises over 4 000 investors managing USD 121 trillion. The Sustainable Stock Exchanges Initiative involves more than 100 stock exchanges to enhance environmental, social and governance transparency. The Global Compact includes more than 20 000 companies in over 160 countries (PRI, 2023[50]; SSE, 2024[51]; UN Global Compact, 2024[52]). OECD FDI Qualities indicators Job creation intensity of greenfield FDI (the number of jobs created per USD 1 million invested) is higher in non-OECD countries than in OECD countries. Between 2019 and 2023, 2.6 new jobs were created per USD 1 million invested in non-OECD countries compared with only 1.8 new jobs per USD 1 million in OECD countries. Job creation intensity declined over the past decade, including in developing economies, with important adverse impacts on job creation and incomes. This decline results from a shift in FDI to sectors with lower job creation potential such as renewable energies and semi-conductors (OECD, 2024[53]). (For a more comprehensive assessment of performance on SDG 8 and other relevant targets, see https://ilostat.ilo.org/data/ and The UN SDGs 2024 Report, https://unstats.un.org/sdgs/report/2024/ , chapters 8, https://unstats.un.org/sdgs/report/2024/extended-report/Extended-Report_Goal-8.pdf and 12, https://unstats.un.org/sdgs/report/2024/extended-report/Extended-Report_Goal-12.pdf ).
38	Ensure that the policy and regulatory environment promotes financial market stability and financial inclusion (e.g. address risk mitigation side effects). Promote incentives for long-term performance and sustainability and reduce volatility.	No	n.a.	Global sustainable bonds issuance and inflows in sustainable investment funds Between 2018-23, global sustainable bonds issuance surged from USD 227 billion to USD 872 billion. While funds for SDG investment through sustainable finance products in global capital markets are still growing, the pace is slowing. Sustainable bonds showed marginal growth in 2023, while inflows in sustainable investment funds dropped by 60% (UNCTAD, 2024[4]).
39	Work towards full and equal access to formal financial services for all including through strategies, regulation, institutional support, innovative tools, peer learning and experience sharing (see Alliance for Financial Inclusion), capacity development, and mutual collaboration.	Yes Full and equal access to formal financial services for all.	Target 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.	SDG indicator 8.10.2 Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider. Financial inclusion has steadily advanced with more than half a billion people gaining access to formal financial services between 2017-21. Global bank account ownership rose from 51% in 2011 to 76% in 2021, notably increasing by 30 percentage points in developing countries to reach 71% in 2021 (Demirgüç-Kunt et al., 2022[54]). SDG indicator 8.10.1 (a) Number of commercial bank branches per 100 000 adults and (b) number of automated teller machines (ATMs) per 100 000 adults. While the number of commercial bank branches in the world declined between 2015-21 (from 15.0 to 13.7 per 100 000 inhabitants), it increased in LDCs (from 4.8 to 5.9 per 100 000 inhabitants). Regional disparities remain with a 4.1 ratio in sub-Saharan Africa. The number of ATMs per 100 000 inhabitants grew from 64.6 to 63.9 globally and from 12.4 to 10.8 in sub-Saharan Africa (UN, 2024[49]).
40	Ensure that adequate and affordable financial services are available to migrants and their families. Support national authorities to remove obstacles, increase co-ordination among regulatory authorities, and exploit new technologies for financial literacy and inclusion and data collection.	Yes Reduce the average transaction cost of migrant remittances by 2030 to less than 3% of the amount transferred. Ensure that no remittance corridor requires charges higher than 5% by 2030.	Target 10.c By 2030, reduce to less than 3% the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5%. Target 17.3 Mobilise additional financial resources for developing countries from multiple sources.	SDG indicator 10.c.1 Remittance costs as a proportion of the amount remitted. The cost of sending remittances from the Group of Twenty (G20) was 6.5% on average in 2023, higher than the global average (World Bank, 2023[55]). In 20% of remittance corridors, transfer fees remain above the 5% target (World Bank, 2023[55]). SDG indicator 17.3.2 Volume of remittances (in US dollars) as a proportion of total gross domestic product (GDP). Global remittance volumes have grown to an estimated USD 831 billion in 2022, including USD 647 billion to developing countries. The cost of sending remittances remains high. The global average cost of sending USD 200 decreased from 7.7% in 2015 to 6.2% in 2023 but is still more than double the SDG target of 3% (IOM, 2023[56]). Smart Remitter Target (SmaRT) indicator (WB) In 2023, the global SmaRT average cost – the cost that a savvy consumer with access to complete information could pay in each corridor – was 3.41% (World Bank, 2024[15]). Share of digital remittances In 2023, digital remittances accounted for 30% of total transactions. Mobile money was 35% less expensive than a bank transfer and the most cost-effective instrument to send remittances (World Bank, 2023[57]).
41	Commit to give women and girls equal rights and opportunities to those enjoyed by men, including through undertaking needed legislation and administrative reforms and encouraging the private sector to advance gender equality. (Reference to the UN Women Empowerment Principles and Global Compact.)	No	Many SDG 5 targets are relevant as are gender-specific targets in other SDGs.	Many indicators associated with SDG 5 targets are relevant as are other gender- specific indicators for other SDGs. As of 2022, 13% of the indicators used to assess progress are assessed as very far from the targets for 2030 set out under SDG 5, and 15% are far from target. Only 48% of the data needed to monitor progress on SDG 5 are available (UN Women, 2022[58]). Almost half of the 95 countries surveyed by UN Women and the UN Department of Economic and Social Affairs in 2020 continued to restrict women from working in certain jobs or industries, and women represented only 28% of managerial positions in the workplace (UN, 2024[7]). (For a comprehensive assessment of performance for SDG 5 and other relevant SDGs, see https://data.unwomen.org/features/are-we-track-achieve-gender-equality-2030). See also reference in para 37 on SDG 8 tracking.
42	Encourage philanthropic giving, co-operation with other actors, increased transparency and accountability, alignment with national priorities, and impact investment.	No	n.a.	Private Philanthropy for Development (OECD) Between 2015 and 2022, private philanthropy for development grew from USD 3.5 billion to USD 9.9 billion, a 185% increase, and 48 philanthropic organisations now report their co-operation with developing countries. This increase was largely due to improved data coverage (OECD, 2024[59]).
43	Encourage lending to micro, small and medium-sized enterprises (MSMEs). (List of multiple measures and capacity building, ref. to IFC and new investment vehicles such as blended finance, new debt funding structure, risk mitigation instruments.)	No	Target 9.3 Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services and including to affordable credit, and their integration into value chains and markets.	SDG indicator 9.3.1 Proportion of small-scale industries in total industry value added. MSMEs make up over 90% of all firms, account on average for 70% of total employment and represent 50% of GDP worldwide. The small and medium-sized enterprise finance gap is estimated at USD 5.7 trillion or USD 8 trillion when informal enterprises are included (IFC, 2024[60]). SDG indicator 9.3.2 Proportion of small-scale industries with a loan or line of credit. Only 16.9% of small-scale industries in sub-Saharan Africa and 17.4% in LDCs have access to loans or lines of credit compared with 45.4% in Latin America and the Caribbean (UN, 2024[47]).
44	Develop domestic capital markets, including long-term bonds and insurance. Strengthen supervision, clearing, dispute settlement, risk management, regional markets and local currency lending. Enhance international support and capacity building.	No	n.a.	FSB NBFI Report Between 2015-22, the stock of global assets under management grew from USD 310 trillion to USD 455 trillion, with the share held in developing countries also growing from 17% to 21% (FSB, 2023[1]). ODA to financial sector ODA to banking and financial services remained stable over the 2015-22 period, growing from USD 5.8 billion to USD 6.4 billion. During the COVID-19 crisis, the ODA response triggered a spike in support to this sector, which peaked at USD 10.9 billion (OECD, 2024[44]). WBA Financial System Benchmark An assessment by the World Benchmarking Alliance of 400 of the world’s largest financial institutions, including multilateral development banks, found that in 2022 only 37% disclose long-term net zero targets. Of these commitments, only 2% have been translated into interim targets applied across the institution’s financing activities and only 1% are backed by scientific evidence (WBA, 2022[61]).
45	Encourage investment promotion and prioritise sustainable and transformational projects through financial and technical support and capacity building. Use insurance, investment guarantees (ref. to MIGA) and other new instruments to incentivise FDI to countries most in need.	No	Target 17.5 Adopt and implement investment promotion regimes for LDCs.	SDG indicator 17.5.1 Number of countries that adopt and implement investment promotion regimes for developing countries, including LDCs. Among the 50 countries with established outward foreign direct investment (OFDI) promotion mechanisms, only 18 developed economies (58%) and 5 developing economies (26%) have put in place at least one instrument specifically designed to encourage OFDI in developing countries, including LDCs (UN, 2024[62]). OECD Investment Promotion Agency Network Created in 1995 by the UN Trade and Development and 50 investment promotion agencies (IPAs), the World Association of Investment Promotion Agencies (WAIPA) has 133 members in 2024. For their 2020 report on the state of IPAs in the world, the WAIPA and the World Bank surveyed 162 IPAs (WAIPA, 2023[63]). In 2016, the OECD created the Investment Promotion Agency Network, which includes 51 adherents to the 1976 OECD Declaration on International Investment and Multinational Enterprises; five of the adherents have become part of the IPA network since 2015 (OECD, 2024[64]). Multilateral Investment Guarantee Agency (MIGA) guarantees In FY2023, MIGA issued a record USD 6.4 billion in new guarantees across 40 projects to support USD 8.6 billion in total financing (from private and public sources): 27% of gross issuances went to IDA-eligible (lower-income) countries, 19% went to fragile and conflict-affected countries, and 28% of the total guaranteed investment of the projects contributed to climate finance (MIGA, 2023[65]). OECD Policy Framework for Investment and FDI Qualities Indicators, Recommendation and Policy Toolkit. The OECD FDI Qualities Recommendation calls on governments to facilitate and promote investment for sustainable development opportunities by addressing information failures and administrative barriers. Governments should: raise public and stakeholder awareness on impacts of investment on sustainable development. improve the link between investment promotion and sustainable development objectives, including in the areas of quality infrastructure, skills development and regional development improve the link between investment facilitation activities and sustainable development objectives, including by taking measures to make procedures for obtaining authorisations and permits transparent and ensure that they are efficiently managed and by enhancing business linkages between foreign investors and domestic firms.
46	Resolve to adopt and implement investment promotion regimes for LDCs. Offer financial and technical support (including for project and contract preparation, dispute resolution, risk insurance and guarantees). (Ref. to MIGA, enabling environment.) Reduce financing gaps in countries most in need. Encourage use of innovative mechanisms and partnerships.	No	Target 17.3 Mobilise additional financial resources for developing countries from multiple sources. Target 17.5 Adopt and implement investment promotion regimes for LDCs. Target 17.9 Enhance international support for implementing effective and targeted capacity building in developing countries to support national plans to implement all the SDGs including through North-South, South-South and triangular co-operation.	See paras 35 and 36. SDG indicator 17.3.1 Additional financial resources mobilised for developing countries from multiple sources. See para 54 in Annex 4.A. SDG Indicator 17.5.1 Number of countries that adopt and implement investment promotion regimes for developing countries, including LDCs. Building on the Addis Ababa Action Agenda, the 2022 Doha Programme of Action for LDCs aims to adopt and implement investment promotion regimes for LDCs. Capacity development programmes for IPAs and investment promotion in LDCs were subsequently created involving major related institutions. The UNCTAD annual World Investment Report contains analysis of investment policy trends, including on dispute resolution and international investment agreements, among other themes (UNCTAD, 2024[4]). SDG Indicator 17.9.1 Dollar value of financial and technical assistance (including through North-South, South-South and triangular co-operation) committed to developing countries. See paras 56 and 57 in Annex 4.A. Share of ODA in external financing flows LDCs remain largely dependent on ODA and remittances, which represent, respectively, 61% and 29% of their external financing flows compared with 12% and 12%, respectively, in other developing countries. Private financing flows (FDI and other private flows at market terms combined) represent only 1% of total external flows in LDCs compared with 22% in other developing countries (OECD, 2022[66]).
47	Imbed resilient and quality infrastructure investment plans in national strategies, strengthen the domestic enabling environment, and provide technical support for creating pipeline of projects (ref. to African Union Programme for Infrastructure Development in Africa AU-PIDA). Encourage long-term investment, including from institutional investors and through adequate standard setting.	No	Target 9.a Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, LDCs, landlocked developing countries and SIDS.	See paras 35 and 36. SDG Indicator 9.a.1 Total official international support (official development assistance plus other official flows) to infrastructure. Total official flows from all donors for infrastructure in developing countries reached USD 68.2 billion in 2022, an 11% increase since 2015 that is mainly due to greater flows for banking and financial services. However, as a percentage of total official flows, flows to this sector trended downward from 21% in 2015 to 17% in 2022 (UN, 2024[47]). Total Official Support for Sustainable Development (TOSSD) (Pillar 1) amounted to USD 21.4 billion in 2022 for energy infrastructure, USD 23 billion for transport and storage, and USD 2.3 billion for communications. Mobilised private finance for these three sectors amounted to USD 8.4 billion, USD 8.1 billion and USD 3 billion, respectively (TOSSD, 2024[67]). A number of programmes and pledges for infrastructure development have been made. During its first Priority Action Plan (2012-20), the African Union Program Infrastructure Development for Africa (PIDA) developed 16 066 kilometres of roads and 4 077 kilometres of railway lines; established One-Stop Border Posts; and developed 7 gigawatts of hydroelectricity power production and 3 506 kilometres of transmission lines. An estimated USD 360 billion is required to implement all PIDA projects by 2040 (African Union Development Agency - NEPAD, 2023[68]). The quality of infrastructure standards has also progressed, for instance with the Blue Dot Network.
48	Build capacity to enter into public-private partnerships, including with regard to planning, contract negotiation, management, accounting and budgeting for contingent liabilities. Give careful consideration to the appropriate structure and use of blended finance instruments.	No	Target 17.17 Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.	SDG Indicator 17.17.1 Amount in US dollars committed to public-private partnerships for infrastructure. No data submitted since 2016. Size of the blended finance market Between 2014-23, the blended finance market comprised 85 deals per year on average, with a median annual financing total of USD 15 billion. Climate blended finance transactions account for about half (49%) of the blended finance market in terms of deal count and 57% of aggregate financing, most of it in renewable energy (Convergence Blended Finance, 2024[69]). See also data on private finance mobilised by official intervention included in Chapter 3 and in para 54 of Annex 4.A.
49	Promote both public and private investment in energy infrastructure and clean energy technologies including carbon capture and storage technologies. Substantially increase the share of renewable energy. Enhance international co-operation to provide adequate support and facilitate access to clean energy research and technology; expand infrastructure and upgrade technology for supplying modern and sustainable energy services to all developing countries, in particular LDCs and SIDS. (Ref. to UN Sustainable Energy for All, Power Africa, NEPAD Africa Power Vision, Global Renewable Energy Islands Network of IRENA.)	Yes Double the global rate of energy efficiency and conservation with the aim of ensuring universal access to affordable, reliable, modern and sustainable energy services for all by 2030. A call for action on the recommendations of the UN Secretary-General’s Sustainable Energy for All initiative, with a combined potential to raise over USD 100 billion in annual investments by 2020, through market-based initiatives, partnerships and leveraging development banks.	Beyond the three explicit targets (7.3, 7.1 and 13.a), many SDG 7 targets are relevant. Target 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services. Target 7.3 By 2030, double the global rate of improvement in energy efficiency. Target 13.a Implement the commitment undertaken by developed country parties to the United Nations Framework Convention on Climate Change (UNFCCC) to a goal of mobilising jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalise the Green Climate Fund through its capitalisation as soon as possible. Target 12.a Support developing countries to strengthen their scientific and technological capacity to move towards more sustainable patterns of consumption and production.	Beyond the indicators associated with the three explicit targets, many indicators associated with other SDG 7 targets are relevant. (For a comprehensive assessment of performance for SDG 7, see https://trackingsdg7.esmap.org/ by IEA, IRENA, UNSD, World Bank, WHO). See also https://unstats.un.org/sdgs/report/2024/extended-report/Extended-Report_Goal-7.pdf. SDG indicator 7.1.1 Proportion of population with access to electricity. In 2022, 91% of the world population had access to electricity compared with 84% in 2015, although there remained large disparities across regions: of the 685.2 million people in the world still lacking access to electricity in 2022, 569 million were living in sub-Saharan Africa (UN, 2024[6]). SDG indicator 7.1.2 Proportion of population with primary reliance on clean fuels and technology. In 2022, 74% of the global population had access to clean cooking fuels, but 2.1 billion people still relied on polluting sources such as charcoal and wood. While the access deficit has decreased from 36% to 26% since 2015, it is projected that 1.8 billion people will still lack access to clean cooking by 2030 if current trends continue (UN, 2024[6]). SDG indicator 7.3.1 Energy intensity measured in terms of primary energy and GDP. In 2021, primary energy intensity improved by 0.8%, below the 1.2% five-year average and far short of the 2.6% SDG 7.3 target. To meet the 2030 goal, annual progress of about 4% is needed between 2022 and 2030, a milestone aligned with the International Energy Agency's Net Zero Roadmap. The slow progress reflects the moderate pace of post-COVID recovery , with energy consumption rising by over 5%, the largest increase in 50 years (UN, 2024[6]). SDG indicator 13.a.1 Amounts provided and mobilised in US dollars per year in relation to the continued existing collective mobilisation goal of the USD 100 billion commitment through to 2025. In its seventh progress assessment towards the UNFCCC goal, the OECD found that in 2022, developed countries provided and mobilised USD 115.9 billion in climate finance for developing countries, surpassing the annual USD 100 billion target for the first time (OECD, 2024[30]). SDG indicator 12.a.1 Installed renewable energy-generating capacity in developing and developed countries (in watts per capita). The global installed renewable energy-generating capacity grew from 250 watts per capita in 2015 to 424 watts per capita in 2022. Capacity in sub-Saharan Africa remained well below this level at 39 watts per capita in 2022 compared with 28 watts per capita in 2015. To meet the target of doubling global progress on energy efficiency by 2030, global investment in energy efficiency would need to triple by 2030 (UN, 2024[40]). Global renewable energy share in total final energy consumption Between 2015-21, the global renewable energy share in total final energy consumption grew from 16.7% to 18.7%, with large disparities across regions. For instance, the share was just 32.3% in Latin America and the Caribbean but 69.9% in the sub-Saharan Africa region (IEA, IRENA, UNSD, World Bank, WHO, 2024[70]). FDI in renewables versus fossil fuel investments In non-OECD countries, greenfield FDI in renewables has increased from USD 3.3 billion in 2003 (0.8% of total greenfield FDI) to USD 175.4 billion in 2023 (24.3% of total greenfield FDI). In non-OECD countries, FDI in fossil fuels still amounted to USD 91.7 billion in 2023 (12.7% of greenfield FDI).

Note: The data points are mainly drawn from the UN’s Sustainable Development Goals Extended Report 2024 and its statistical annexes. Trend data in are in constant USD 2015 prices unless otherwise indicated.

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Notes

← 1.  The potential reduction is the authors’ estimate based on the volume of remittances in developing countries (excluding China) in 2023 and the difference between the current world transfer cost (as a percentage of the amount transferred) and the UN SDG target.

← 2. The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are recommendations addressed to multinational enterprises by governments for aligning their activities with sustainable development and conducting due diligence to avoid adverse impacts on people and the planet. Fifty-one countries have adhered to the Guidelines as of 2023.

← 3.  In the Recommendation, last amended in 2018, DAC members agreed to untie ODA to LDCs, Heavily Indebted Poor Countries, other low-income countries, and IDA-only countries and territories. See https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-5015.

← 4.  The OECD DAC defines blended finance as “the strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries”. See https://doi.org/10.1787/9789264288768-en.

← 5. Authors based on World Bank, World Development Indicators, https://databank.worldbank.org/source/world-development-indicators/preview/on (accessed 25 July 2024).

← 6.  The major reporting standards consolidated by the ISSB are as follows: the Task Force on Climate-Related Financial Disclosures; the Climate Disclosure Standards Board, which included the Carbon Disclosure Project; the Value Reporting Foundation, which housed the Sustainability Accounting Standards Board; and the International Integrated Reporting Framework.