As Prepared for Delivery

Good afternoon. I am privileged to have the opportunity to participate in Stockholm+50. Before I get into my remarks, I want to use my time to extend my deepest appreciation on behalf of myself and the entire UN Capital Development Fund to the people of Sweden. UNCDF has always been able to rely on the Government of Sweden to perform its mission of serving as the UN’s flagship catalytic finance entity for the world’s 46 LDCs. And we know that this is only possible when the government has the support and sanction of the Swedish people. To the point, delivering sustainable development requires global leadership. And global leadership requires a globally minded population willing to embrace this leadership role. This defines the Swedish people. So, once more, thank you to the people of Sweden.

Stockholm+50 reflects the seriousness of our global responsibility to steward the planet towards a healthy, environmental future. But Stockholm+50 also represents how the pursuit of a healthy environment can serve as a driver for practically every development theme that defines the SDG agenda. Of course, rhis is why one of Stockholm+50’s pathways towards a healthy planet is rebalancing resource use for greater equity and promoting gender equality. In this vein, blended finance is also seen as a driver for the achievement of practically every development theme that defines the SDG agenda.

The topic we are focusing on today is hardly new nor hardly discussed. Blended finance has been an oft-discussed item among development finance actors, institutional investors, and policymakers at all levels of government. And the truth is so much of the conversation has centered around how we can—finally—optimize the full potential of blended finance so that we can unlock private capital in support of SDG achievement in the geographies where the needs are greatest. As an organization that sees itself as a hybrid economic development agency and financing agency, UNCDF fulfils its unique capital mandate by complementing traditional grant-making and technical assistance with an increased and mainstreamed use of its financing capabilities and instruments—this, of course includes blended finance.

In terms of optimizing blended finance as an instrument of innovative finance, UNCDF can bring two important elements to the table. By leveraging our ability to directly deploy concessional loans or guarantees into any level of private or public sector project—something unique within the United Nations Development System (UNDS)—UNCDF can demonstrate that investing in last mile settings creates positive development outcomes that can be commercially viable and scalable with the right blend of instruments and support. We can also provide pipeline of bankable projects that can advance SDG achievement in last mile markets.

Today’s session allows UNCDF the opportunity to present two powerful demonstrations in two projects. One project is the NAMA Facility, a joint UNCDF-UNDP project to support renewable energy production that has the potential to remove over 300,000 tons of CO2 over the lifetime of the project. And a portfolio guarantee mechanism that facilitates easier access to finance and affordable financing, capacity building, financial literacy, and business development skills trainings for women entrepreneurs in PNG.

By the end of today’s session, my hope is that all of you will understand UNCDF’s distinct value proposition from three specific standpoints—from the standpoint of financial instruments, namely blended finance; from a country standpoint, considering we are advancing SDG achievement in Africa, Asia and the Pacific; and from a thematic sector standpoint, spanning clean energy and women’s ecnomic empowerment among other SDG thematics.

And this leads to my call to action. We often hear the call to the private sector to become an active, intentional and robust agent for sustainable development. To finally and fully embrace the path of stakeholder capitalism. This of course remains the case. But my call to action today is specifically directed at the stakeholders who do not comprise the private sector—governments at the local, regional and central level; non-governmental organizations; philanthropic organizations; international finance institutions; development finance institutions; and, yes; the United Nations.

If we are going to continue asking the private sector to increase its appetite for promising projects in often overlooked or riskier markets, then the actors outside of the private sector need to increase its appetite for embracing the risk and innovation that comes with embracing innovative financial solutions. Even if we do not have the agility of the private sector, we can still possess the openness to new instruments, new capabilities, and an even greater willingness to play a significant role in acting as a de-risking partner for the private sector; whether through concessional finance, technical assistance or engagement with local and central governments.

Thank you.