Investing in UNCDF
Said simply, core resources are fundamental to positioning UNCDF to plan for strategic, integrated country presence in the world’s Least Developed Countries (LDCs) in order to bring a range of tools to help governments achieve their Agenda 2030 Commitments, as well for the implementation of the Doha Programme of Action (DPoA).
UNCDF relies on core resources to position itself for strategic, integrated country presence in the world's Least Developed Countries (LDCs), where it can bring a variety of tools to assist governments in meeting their Agenda 2030 Commitments and implementing the Doha Programme of Action (DPoA).
More specifically, UNCDF's core funding supports three broad programmatic areas:
Core resources allow UNCDF to pilot and test innovative new models. UNCDF’s current core funding seeds the innovations that will be the flagship programmes of the future.Learn More
Core resources fund the organizational backbone, ensure the highest standards of transparency and accountability, enable rigorous monitoring and evaluation, assure retention of high-quality staff, and provide seed capital.Learn More
Core resources allow UNCDF to maintain on-going country presence. Our experience shows that we need 12-18 months to develop a new programme, secure government and stakeholder support.Learn More
Contributions to regular resources provide a foundation for UNCDF’s ability to innovate, ensure maximum presence in the LDCs and provide robust support to the UN system.
When seen from the perspective of the organization's operational units, core funding is the most essential source of revenue to these units, which include the following:
Day-to-day responsibility for evaluation in UNCDF lies with its Evaluation Unit, which reports directly to UNCDF's Executive Secretary and works according to multi-annual Evaluation Plans that are aligned with the Strategic Framework. Responsibilities include:
Managing and conducting evaluations according to relevant UN quality standards.
Supporting the elaboration of well-defined results frameworks to facilitate the evaluation of programmes and activities.
Ensuring the dissemination of evaluation findings and lessons.
Tracking management responses and follow-up to agreed evaluation recommendations.
Contributing to developing evaluation capacity within UNCDF and beyond.
Reports directly to UNCDF's Executive Secretary and works according to multi-annual Evaluation Plans aligned with the Strategic Framework.
The Finance and Management Services unit works to enhance the institutional effectiveness of UNCDF through operational solutions, the development of management policies, prescriptive content, and the overall management of all operational, resource management and financial aspects of the organization.
The Finance and Management Services unit oversees:
Ensuring the accountability of the UN Capital Development Fund and its Executive Secretary.
Providing advisory and transactional services.
The Finance and Management Services unit is responsible to steer the institutional effectiveness.Integrated Results and Results Matrix
The Partnerships, Policy and Communications unit leads on the interagency, donor and external relations for the organization, spanning several capacities:
Mobilization of resources, including both core and non-core resources.
Development of partnerships, as well as productive ties with both internal and external donors.
Engagement with other UN agencies in the United Nations system.
Harmonization and alignment of UNCDF priorities with the International Agenda.
Strategic advocacy and communications.
Creation of new innovative finance vehicles and instruments.
The Programme Management Support Unit provides direct, daily support to the organization through a variety of key functions:
Develop harmonized and agreed upon joint indicators and targets with UNDP.
Facilitation of knowledge building and knowledge sharing, and existing platform deployment and maintainance.
Maintaining Power Platforms Applications, deploying automatic tools, ERP and provide support.
From the standpoint of the organization's activities, core funding is the most crucial source of income needed to maintain operations and create innovative work
Least Developed Countries Investment Platform
UNCDF manages the loans and guarantees portfolio on its balance sheet (e.g. BRIDGE Facility)
UNCDF issues revolving financial instruments (loans and guarantees) to meet demand for collaboration with other UN agencies
As a center of excellence on innovative development finance works with many development partners like Luxembourg, NORAD, GAC, SDC, NDF, US Development Finance Corporation, Sida, SDC, the Netherlands, Rabobank Foundation, EU (EFSD+)
How Core Funding supports Financial Innovation
UNCDF allocated $7.5 million in core funding to sustain its financial innovation activities.
As of 2022, UNCDF has been able to mobilize $85 million with $7.5 million in core funding.
UNCDF has secured $15 million in future commitments to continue its work on financial innovation.
To realize its vision and Strategic Framework, UNCDF builds a culture that leverages digital and other types of innovation and encourages integrated approaches that are responsive to the priorities and opportunities of the LDCs.
Local Climate Adaptive Living Facility (LoCAL) and Climate Disaster Risk Insurance
Early support with core funding allows UNCDF to invest in new areas and expand programmes to become global.
Seed Funding enables an UNCDF to support early-stage ventures to finance its first steps, and to take a vision from idea to reality.
UNCDF has a track record that donors trust and allows it to expand programmes beyond its initial stage with strong partners (e.g. European Union, Sweden, Green Climate Fund, the Adaptation Fund, New Zealand, Australia, India, UN Development Partnership Fund, and Luxembourg)
How Core Funding supports Climate Finance
UNCDF allocated $2 million in core funding to support our climate finance activities.
As of 2022, UNCDF has been able to mobilize $167 million with $2 million in core funding.
A pipeline of projects has produced $12.7 million in future commitments.
UNCDF provides a standard and internationally recognized country-based mechanism to channel climate finance to local government authorities in LDCs, contributing to countries’ implementation and achievement of the Paris Agreement commitments.
Increasing resilience in LDCs by supporting an energy transition agenda that emphasizes decentralized, renewable and clean energy projects and products that drive green growth
An investment component to improving the energy access market through off-balance sheet investments.
UNCDF promotes access to finance across energy value chains, from customer to enterprise to larger investments.
Global Off-Grid Lighting Association and Clean Cooking Alliance support the strengthening of decentralized energy markets.
How Core Funding supports an energy transition agenda with decentralized, renewable and clean energy finance
UNCDF allocated $618K in core funding to support its climate energy finance work.
As of 2022, UNCDF has been able to mobilize $36 million with $618K in core funding.
A pipeline of projects has produced $3.2 million in future commitments.
UNCDF increases resilience in LDCs by supporting an energy transition agenda that emphasizes decentralized, renewable and clean energy projects and products that drive green growth. Net-zero emissions energy solutions that expand energy access and value addition are key elements of this approach.
An inclusive market development approach that includes migrants, refugees, women, SMEs, and supports policymakers.
UNCDF engages at the country level to meet market and stakeholder needs.
UNCDF relies on customer-centred research and design with the market players to ensure that our interventions is fit for purpose.
UNCDF positions itself as an early-stage investor to de-risk opportunities that can be scaled up by institutional financial partners at a later stage.
How Core Funding supports remittances and digital economy development
UNCDF allocated $810K in core funding to support its inclusive digital economies work through remittances, policy and advocacy work.
As of 2022, UNCDF has been able to mobilize $34 million with $810K in core funding.
A pipeline of projects has produced $21 million in future commitments.
UNCDF promotes digital economies that leave no one behind. It aims to equip people to use innovative digital services in their daily lives that will empower them and contribute to achieving the Sustainable Development Goals.
These countries need capital to invest in infrastructure and human development to build institutions, establish market systems, support entrepreneurship, harness the potential of youth and achieve basic standards of living for all.
Investing in UNCDF means meeting the demand for innovative financing solutions, expanding presence to all 46 LDCs in this Decade of Action, ensuring stronger (senior) representation on UN Country Teams for strategic financing expertise, and expanding UNCDF's cutting-edge expertise on emerging finance models that can work for the LDCs.Why invest in UNCDF? What does UNCDF offer?
The UN Capital Development Fund is committed to being transparent about how core contributions are used and how they benefit communities around the world.
Our partners can feel confident that their contributions are used responsibly and effectively because we have developed rigorous standards for accountability and transparency. Our website provides information about our programmes and how we use these funds.
UNCDF expands its role as the United Nations flagship catalytic financing entity for the LDCs to include strengthening financing mechanisms and systems for structural transformation.
UNCDF combines its Sustainable Development Goal financing capabilities, instruments and sector expertise with the wider development and operational capacities of the United Nations development system to deliver more comprehensive and impactful support for the LDCs.
UNCDF continues to build partnerships with private and public actors to achieve greater results and development impact and unlock additional resources.
Our team of professionals and specialists can address your questions and provide detailed information about the organization
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