UNDP reports record-high funding in 2022

UNDP reports record-high funding in 2022

UNDP has reported a record funding achievement of US$4.8 billion in 2022. Its recently published annual report shows that the organization has reached and impacted the lives of over 25 million individuals worldwide, thus making a difference in promoting sustainable development. The report also acknowledges the instrumental role of the contributors, with Japan taking the lead among the notable supporters of UNDP’s mission.

In 2022, the United Nations Development Programme (UNDP) delivered a substantial amount of US$4.8 billion, the highest funding level achieved in the last decade. This significant financial contribution enabled the UNDP to support developing countries in their pursuit of the Sustainable Development Goals (SDGs) across various critical areas, including poverty reduction, resilience building, governance, environment, energy access, and gender equality. The newly published UNDP annual report highlights some significant milestones, such as providing access to basic services for 25 million individuals in over 170 countries, supporting 11 million people in crisis situations, facilitating sustainable energy access for 4.6 million people, and implementing gender-responsive recovery solutions in 46 countries.

UNDP’s work in 2022 focused significantly on three main areas: nature, climate, and energy. The organization’s nature portfolio, valued at US$3.2 billion, is the largest among all the UN agencies. Furthermore, UNDP has successfully implemented financing amounting to US$292 million from 12 International Financial Institutions (IFIs) across 43 countries in five regions. Notably, 67% of this financing was directed towards fragile and conflict-affected countries and situations. In the realm of debt restructuring and thematic bonds, UNDP has collaborated with over 40 countries, resulting in a remarkable contribution of over US$11 billion towards the achievement of the SDGs and climate action by the end of 2022.

The latest report also reveals that while last year UNDP’s core funding experienced a 9% decrease, with contributions amounting to US$591 million compared to US$648 million in the previous year, UNDP’s innovative financing approach saw significant growth in other areas. Notably, third-party cost-sharing saw a remarkable 14% increase, with contributions rising to US$1.92 billion from US$1.68 billion in 2021. Additionally, funding windows dedicated to specific thematic areas experienced a significant increase with contributions reaching US$119 million, marking a substantial 42% increase from the US$84 million received in 2021. This indicates the growing emphasis being placed on addressing targeted issues that are critical to sustainable development, such as gender equality, climate action, and poverty eradication.

Fig.1. Funding windows

Source: UNDP Annual Report 2022

UNDP’s latest report also highlights the pivotal role of its partners in driving progress throughout the year. The report reveals that 10 key contributors, including the United States, Sweden, Japan, Norway, Australia, Italy, Luxembourg, Austria, Iceland, and Spain (returned), significantly increased their contributions to UNDP’s regular resources. Notably, Japan topped the list of contributors in 2022 with funding of US$389 million, closely followed by Germany with US$375 million. The European Union as a whole provided substantial support with a funding contribution of US$362 million. As a comparison, in 2021, the United States led the list of top funders with US$400 million and Germany ranked second with US$378 million.

The report highlights that this collective effort by the international community demonstrates the shared dedication to advancing the SDGs and supporting UNDP’s overarching mission. UNDP also points out the long-term commitment of six prominent countries, including Sweden, Switzerland, Australia, Luxembourg, New Zealand, and Turkey, as they have made new multi-year pledges to contribute to UNDP’s regular resources, further reinforcing their support for the organization’s initiatives.

Fig.2. Top 2022 UNDP funding partners

Source: UNDP Annual Report 2022