The University for Sustainability is establishing a Sustainable Development Innovation Fund (SDIF). A fund-of-funds, it will pool resources to scale up proven and / or innovative technologies and services that support sustainable development challenges, by paying for the results achieved. Development Impact Bonds (DIBs) will be used to attract upfront capital and drive performance and innovation. The SDIF will complement other financing vehicles in pursuit of scalable innovation for sustainable development.
How it Works:
The objective of Sustainable Development Innovation Fund (SDIF) is to support sustainable development priorities by harnessing the capacity and capabilities of the University for Sustainability's member universities and research institutes to help achieve Sustainable Development Goal 9: Build resilient infrastructure, promote sustainable technologies and foster innovation. Within its thematic research programme, the SDIF will pool resources to programmatically challenge innovative reearcher to work towards a scalable solution. Typically, impact investors will provide upfront capital and management support to the University's members, and will be repaid by SDIF on the basis of the outcomes achieved. Given the role of governments in setting the the sustainable development agenda, governments will be key partners in this work.
The SDIF will be a large focused pay-for-results project financing vehicle. The structure represents a major shift in how we finance and deliver programs and has a number of core benefits, allowing us to:
The University for Sustainability is currently in the design phase of the SDIF initiative, determining the countries where we will pilot and the education outcomes that are best suited for this financing structure. Over the course of 2019, we will engage stakeholders across government, philanthropy, civil society and the private sector, to ensure that the fund design is robust and will support a strong partnership between these players.
Fundraising efforts will Indicative timeline for the establishment of SDIF begin towards the end of 2020, as we work to raise commitments from aid, philanthropy, and corporate giving. The University has a target launching the first funds in 2021.
Read the concept note for a detailed description of SDIF and its core value proposition