Investment platforms and instruments can play a critical role in addressing the challenges to channeling resources to countries and sectors most in need. New platforms and instruments need to tackle specific market failures and spur the engagement of relevant stakeholders to be effective. For example, new instruments can strengthen risk sharing between the public and private sectors in situations where financial markets do not provide solutions. Such instruments will:
- boost financial returns for investment with positive externalities;
- increase the supply of financing (either directly or through financial institutions); and
- manage risks through diversified portfolio approaches.
The GISD Alliance is working on the development of new platforms and instruments to facilitate transaction-oriented investor engagement. The platforms will provide insights, data and evidence on SDG-aligned investment opportunities building on national development needs and policy priorities, for example in sustainable infrastructure.