Innovative finance
Reimagining how we fund development
Overview
Financing gaps for sustainable development continue to grow, with developing countries facing an annual SDG finance gap of approximately US$4 trillion, over 50% higher than pre-pandemic estimates. Beyond scale, the challenge is structural: finance often remains fragmented, high-cost, and misaligned with both local delivery and systemic objectives of development – leaving those closest to development challenges furthest from adequate funding.
Across sectors and borders, we test and scale emerging financial models – from crowdfunding and impact investing to tokenization, digital payments and urban finance – to unlock resources for the SDGs. Our work connects public institutions, civil society, tech ecosystems, and funders and investors to design transparent, lower-cost and programmable ways to fund sustainable development outcomes.
Our focus
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FinTech for development
Practical pilots with digital currencies, digital payments and other fintech rails that lower transaction costs and barriers to access and improve inclusion.
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Urban and municipal finance
Advisory and project development support to help cities mobilize capital and new revenue sources for local priorities.
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Alternative finance
Instruments such as crowdfunding, impact bonds and tokenized assets to mobilize communities and impact investors at speed and lower cost.
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Systems and portfolio finance
Tools and approaches that connect financing with portfolio management – so countries can finance what works across climate, inclusion and resilience.
Key initiatives
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The Alternative Finance Lab (AltFinLab) is a flagship UNDP initiative pioneering alternative and innovative finance solutions for sustainable development. It works with governments, civil society, the private sector, and other development partners to test and scale new financing mechanisms – including crowdfunding, impact investing, and approaches powered by emerging technologies – to mobilize resources where they’re needed most.
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The City Finance Advisory Function is a regional advisory and development mechanism that bridges the gap between cities and investors by enhancing local financial capability and aggregating urban development projects into bankable investment portfolios. It functions as an enabler that helps transform municipal visions into mission-driven investment strategies, providing technical support for project preparation and connecting these initiatives with appropriate financing sources from public, private, and multilateral sectors.
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The Digital Financial Inclusion portfolio is a UNDP AltFinLab programme, delivered in partnership with the Stellar Development Foundation, that explores how blockchain and digital payment technologies can improve financial delivery in development and humanitarian contexts. It has analyzed the digital finance ecosystem across 17 developing countries and launched five scale-up-ready pilots using blockchain-based wallets to enable fast bulk cash disbursements, reduce cross-border payment costs, and provide real-time transparency for donors and beneficiaries.
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The UNDP Crowdfunding Academy (CFA) is a global learning programme that equips participants with the skills and tools to design and launch successful crowdfunding campaigns. Through a structured online curriculum, hands-on assignments, expert mentorship, and access to partner fundraising platforms, the Academy guides participants from concept to launch. The CFA has trained civil society organizations (Tadamon), UN agencies, ventures and businesses, and cities and municipalities, supporting them to mobilize resources for community-driven development.
At a glance
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30+
cities supported and over US$3M raised for urban portfolios for green transitions and economic resilience
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US$17.6M
raised through crowdfunding campaigns across 34 countries
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10+
innovative finance instruments tested with partners, including impact bonds, quadratic funding, blockchain-based digital payments, municipal bonds, tokenized incentives
UNDP AltFinLab invites UN teams to apply for the 2026 SDG Blockchain Accelerator
The UNDP Alternative Finance Lab (AltFinLab) has launched an open call for the third edition of the SDG Blockchain Accelerator, inviting UNDP Country Offices and other UN entities to submit development challenges linked to active…
UNDP and the Stellar Development Foundation extend partnership to scale proven digital payment solutions
Building on research across seventeen countries and live pilots in five, the next phase establishes the governance and infrastructure for UNDP country offices to use blockchain-based digital payments as a regular part of programme delivery.
UNDP convenes high-level event in Paris on scaling blockchain for good
The United Nations Development Programme (UNDP) will convene Scaling Blockchain for Public Good, a two-day high-level event bringing together blockchain ecosystem leaders, governments, development organizations, and academic institutions to explore the practical pathways through which blockchain technologies can strengthen public systems and support sustainable development. The programme is organized by UNDP’s Alternative…
UN Blockchain Talks #8 | Money’s New Rails: Stablecoins and the Last Mile of Financial Inclusion
The eighth session of the UN Blockchain Talks used the story of Mariama, a fictional trader in The Gambia, to bring the discussion on stablecoins closer to the realities of last-mile financial inclusion. Mariama runs…
Improving access to funding for municipal projects
Explore practical guidance to help municipalities understand funding options, overcome common barriers and mobilize resources for infrastructure and sustainable development.
Access the report
Get in touch
Drop us an email at innovation@undp.org