Fixing the funding gap

In 2025, ahead of the Fourth International Conference on Financing for Development (FfD4), the OECD released a report on Financing for Sustainable Development stating that in the past ten years, the SDG financing gap has grown by 60% reaching USD 4 trillion. That means – resources are missing where they are needed the most.

Interesting to notice, however, that the global financial assets total over USD 461 trillion, 40% of them coming from private banks. which confirms that the resources needed exist, but prioritise returns over developmental impact. In fact, around 1% of global financial assets could close the SDG financing gap.  

That means that private sector financial flows, that already exist, must be redirected to close the gap, advancing and reaching the SDGs, and addressing vulnerabilities.  

The OECD recognises and highlights the importance of private financial flows, specially through innovative finance, such as blended finance, impact investing and green bonds, to facilitate investment flows into sectors that are critical to sustainable development, “unlocking resources and enabling a more equitable distribution of global wealth in support of inclusive and sustainable growth”. At the same time, rigorous measurement frameworks are needed to ensure a real contribution to the SDG outcomes.

Goparity is at an intersection of these possibilities – through innovative finance instruments, such as crowdlending and crowdequity, and the intention of a community of investors, money is directly supporting organisations that are working to avoid and reduce harmful activities, benefiting people and communities and contributing with solutions to real issues. And to ensure that the funded activities contribute to SDG outcomes, Goparity partnered with the UNDP initiative ALtFinLab to strengthen data and impact metrics framework. Through transparent and clear information, investors have the choice on the destiny of their money.