Mobilizing Private Capital for the Sustainable Development Goals

This paper reviews financial instruments and regulatory strategies aimed at mobilizing private investment for achieving the 2030 Sustainable Development Goals. 

Using a theoretical framework that emphasizes raising the marginal productivity of capital, it applies Robert Merton’s functional finance approach to evaluate five key tools: guarantees, public-private partnerships, syndicated loans, sustainable finance contracts, and climate/banking regulations. Although these mechanisms have improved private investment mobilization, the total remains well below the levels required to meet SDG targets. 

To scale efforts, the paper underscores the need for greater data sharing, academic research, and public communication—areas where multilateral development banks like the World Bank already play a leading role.