UNDP agrees with recommendation 6. Increasing the levels of quality funding (un-earmarked and lightly-earmarked resources) forms an important part of the overall UNDP resource mobilization strategy. It aligns with the funding compact and the mutual commitment between Member States and the wider United Nations development system towards increasing the share of regular resources and thematic and pooled funding.

In support of the next strategic plan, UNDP will continue to emphasize the importance of flexible and predictable funding, noting its alignment with the funding compact. This includes efforts to encourage multi-year pledges and agreements, as well as contributions to thematic and pooled funding. In line with the management responses to the evaluation of UNDP development cooperation in middle-income countries (DP/2020/22) and the evaluation of UNDP support for climate change adaptation (DP/2021/7), UNDP will factor the broader topic of the allocation of programme funding to countries in its engagement with the Executive Board on the integrated resources plan and integrated budget, 2022-2025 and its midterm review.

In line with the evaluation’s recommendation and as part of the design of the new strategic plan, UNDP is taking concrete steps to shift from a project-driven approach to fundraising and advocacy at the portfolio level, supporting efforts to attract better-quality funding that is less projectized and less transactional. UNDP has developed a portfolio acceleration protocol that has been rolled out to 40 offices and should continue to leverage it as a strategic asset. UNDP will explore using new and existing mechanisms and platforms to mobilize and channel funds to strategic initiatives as opposed to small individual projects. These strategic initiatives or “portfolio offers” in areas of work that best demonstrate the UNDP comparative advantage will be shaped by broad-based consultation with partners who share common priorities, while meeting UNDP strategic and corporate objectives.

In 2019, UNDP established the SDG Finance Sector Hub to bring coherence and scale to its work on financing for the Goals. UNDP supports countries with tailored service offers to advance financing for the Goals across different development contexts including fragile and conflict-affected countries and small island developing States. The service offers include flagship initiatives such as integrated national financing frameworks to align public financing to the Goals; “SDG Impact” to bring in the private sector; the Insurance and Risk Finance Facility to build resilience from national to local levels; and exploring the potential of digital finance with UNCDF.

Evaluation of the UNDP Strategic Plan, 2018-2021

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