The SDG Accelerator Fund

Slide Note

The SDG Accelerator Fund aims to establish a replicable financial facility that links key actors and utilizes blockchain technology to support SMEs in achieving the Sustainable Development Goals. With investments between $100,000 to $2.5 million per venture, the fund promotes cost-effectiveness, transparency, and SDG impact. The project benefits SMEs by providing financial investments and facilitating inclusive and sustainable industrialization. Technical assistance, grants, and capacity building are provided to support SMEs in integrating circular economy practices and promoting gender mainstreaming.

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  1. The SDG Accelerator Fund

  2. Summary Information Summary Information Objective Objective: Establish a replicable SDG Accelerator Fund to unleash SMEs potential for contributing to achieving the SDGs pilot with Circular Economy on initially 2-3 countries Main Main challenge challenge: Reduce SDG9 financing gap for SMEs Proposed Proposed solution (a) Create a financial facility that links key actors and allows for the scaled-up impact and financial flows towards SMEs (b) Utilize innovative blockchain technology to minimize administrative requirements and maximize transparency and trust (c) Target SMEs with investments between 100,000 2.5 Million USD per venture solution: Priorities Priorities: Cost-effectiveness, project volume, increase transparency and SDG Impact Key Key actors experts actors: UNIDO, SMEs, impact investment brokers, tokenization partner, and financial

  3. Project Benefits Project Benefits SMEs Receive Financial Investments SMEs Receive Financial Investments - Development outcomes are met - Industrialization is made inclusive and sustainable SDG Impact Scaled SDG Impact Scaled- -Up Up - Alignment of 2030 Agenda - Financial Innovation in UNIDO Circular Economy Circular Economy Promoted Promoted

  4. Technical Technical Assistance Assistance & Grants & Grants Grants & Grants & FIN Instruments FIN Instruments Impact Impact Measurement Measurement & Verification & Verification Impact Impact Investors Investors Leveraged Leveraged Private Private Finance Finance Circular Economy SMEs Financing Sources Accelerated SDG Achievement Service Streams

  5. 1. Technical Assistance & Grants 1. Technical Assistance & Grants UNIDO s UNIDO s SME SME know know- -how how: offer tailored solutions to a host of SME services Capacity Capacity Building cycle using a grant facility Building: offer capacity building to suitable SMEs during the project life- Technology Technology Transfer impact investment Transfer: inclusive and sustainable industrial development through Circular Circular Economy business models Economy: assist SMEs with integrating circular economy practices into Gender Gender Mainstreaming Mainstreaming: promote gender sensitivity and mainstreaming

  6. 2. Impact Measurement & Verification 2. Impact Measurement & Verification 1 1. . Committed CommittedImpact Impact is Tokenized is Tokenized Private Private Permissioned Permissioned Blockchain Blockchain UNIDO & UNIDO & Executing partner Executing partner SMEs SMEs 2. 2. Verified Impact Verified Impact Tokenization Tokenization Institutional Investors Institutional Investors Brokers Brokers 4 4. Final Notification . Final Notification

  7. 3 3. Leveraged Private Investment . Leveraged Private Investment Collaborate Collaborate with assess SME investments and commitment to SDG impact with partner partner to to establish establish an an SME SME assessment assessment mechanism mechanism: To Identify Identify impact effects of existing stakeholders impact investment investment broker broker intermediaries intermediaries: To leverage network Promote Promote investments investments in in SMEs market ventures as needed SMEs: To allow intermediaries the flexibility to

  8. Chronology of Streams Chronology of Streams Assumptions Assumptions: assessment mechanism has been created 1. SME readiness for impact investments enhanced with a grant facility 2. SMEs meeting pre-requisites apply for investment product created by Brokers (impact investment) 3. Assessment of portfolio returns, including potential impact, and risks are marketable 4. Financial investments are brokered 5. UNIDO tokenizes committed impact 6. SMEs deliver impact 7. UNIDO verifies impact (SME portfolio assessment tools to be identified) 8. UNIDO tokenizes verified impact 9. Blockchain transfers verified token to institutional investors

  9. Project Structure Project Structure IMPACT IMPACT Contribution to acceleration of SME investments for circular economy transformation within the 2030 agenda OUTCOME OUTCOME An innovative programme for scaling up SDG impact in a cost-effective manner is prepared OUTPUT 1 OUTPUT 1 OUTPUT 2 OUTPUT 2 A pilot SDG Accelerator Fund is established Innovative financial instruments and technologies are developed for UNIDO s TC ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY Identify suitable partners to agree on the framework for the pilot Fund Consolidate project framework with assigned roles and responsibilities Conduct an assessment for SDG Token and blockchain Propose a work plan to introduce the Grants policy and procedures