U.N.’s Interim Report on Harnessing Digitalization in Financing of Sustainable Development Goals

September 30, 2019 | Alternative Investments, FinTech, News

“The digital revolution in financial technology (fintech) offers major opportunities to accelerate financing of the Sustainable Development Goals (SDGs)” – Progress report to the UN Secretary-General

On November 29, 2018, the Secretary-General constituted a 17-member task force on Digital Financing of Sustainable  Development  Goals to recommend and catalyze ways to harness digitalization for SDGs and acceleration of their financing.

SDGs address the global challenges, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice. These are targeted to be achieved by 2030.

Data the ‘new oil’ of the global economy

90% of available data today was produced in the last two years. Moreover, its application (digitalization) is reinventing modern products and services through innovations in financial technology (FinTech)

  • Digitalization for SDGs can channel citizens’ savings and financial assets towards the financing of SDGs. Digitalization can help overcome roadblocks in the flow of these resources to their SDG destination.
  • One example is the issue of half a trillion dollars worth of green and sustainable development bonds.
  • Other examples include
    • Use of satellite data for evaluating climate risks
    • Digital tax collection by governments
    • Financial inclusion through digital ID, big data and AI
    • Digitally financed solar energy units
  • Future opportunities include increased mobilization of funds and their better utilization through digital means
  • Digitalization for SDGs could be a catalyst for disruption through financial empowerment of citizens, disintermediation of traditional finance, and collective action by citizens on their finances
  • However, digitalization must be available to all through digital infrastructure. Where it’s already available, there should be adequate checks and balances for unintended consequences. Example: “Digital currencies could take away countries’ ability to manage their own monetary and economic affairs, just as easily as they could smoothen and cheapen payments.”
  • There should be rigorous governance to ensure that the fruits of digitalization do in fact reach the SDG.

“As the digital revolution accelerates, it becomes harder even to define what is ‘a bank’ much less to regulate it,” said co-chair Maria Ramos. “The need for smart financial policies, regulations, and standards has never been greater.”

Future focus areas of the Task Force: Digitalization for SDGs

The task force now intends to identify digital thrust areas for channeling finance to support the achievement of digitalization for SDGs. These areas include boosting the supply and collection of resources, as well as routing to a specific SDG.

Other focus areas include governance innovations, building international fintech collaborations, and measuring the digital financing of the SDGs.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News

Venture Capital/ESG: Adam Neumann Co-Founded Flowcarbon Raises $70M Via VC Funding And Token Sale

Flowcarbon, co-founded by Adam Neumann, known for WeWork, is a climate technology company seeking to formalize the market for carbon offsets on the blockchain. The startup announced Tuesday its $70…

Digital Assets: The Terra (LUNA) Implosion – Sidelights
May 25, 2022     Digital Assets, Latest News, News

One hapless investor lost about 3 billion won ($2.4 million) in the LUNA and UST implosion earlier this month. A Korean social media personality going by the name of “Chancers”…

Artificial Intelligence: AI Could Bring Us Fresh Insight Into Earthquakes
May 25, 2022     Artificial Intelligence, News

Scientists have long held the view that earthquakes are impossible to predict, being random events. But the potential for damage these natural events have, including the loss of life, have…

Digital Assets: Swiss Venture Firm CV VC Launches African Blockchain Early-Stage Fund; Issues African Blockchain Report
May 24, 2022     Digital Assets, News, Venture Capital

CV VC announced Monday at Davos the launch of its African Blockchain Early-Stage Fund to bring the advantages of the blockchain and its own expertise to enable Africa to transact…