Academic community is developing a public-private partnership model to close the gap in climate funding

Academic community is developing a public-private partnership model to close the gap in climate funding  | Photo: Ahmer Kalam

The urgency of addressing climate change and achieving the United Nations Sustainable Development Goals (SDGs) has never been more pressing. With global temperatures rising and only five years remaining to meet the 2030 Agenda, the integration of climate action (SDG 13) and partnerships for the goals (SDG 17) is critical.

Climate finance, the mobilisation of resources to fund mitigation and adaptation efforts, lies at the heart of this challenge. Academic contributions are emerging as a vital catalyst in designing innovative financing models, particularly for low- and middle-income countries grappling with escalating debt burdens. By bridging the gap between policy and practice, these efforts offer a pathway to a sustainable global society, addressing a $4 trillion annual SDG financing shortfall and fostering equitable development.

Academic innovation in climate finance

At the Sixth Global Climate and SDG Synergies Conference, convened on 27-28 May 2025 in Copenhagen and reported by the United Nations Office for South-South Cooperation (UNOSSC), academic research took centre stage. Universities worldwide are developing sophisticated models to optimise public-private partnerships (PPPs) for renewable energy projects, a sector critical to achieving net-zero emissions. These models leverage data-driven analytics to align financial incentives with local needs, ensuring investments deliver measurable environmental and social outcomes. For instance, research institutions are crafting frameworks that integrate renewable energy projects with SDG priorities, such as poverty reduction (SDG 1) and affordable energy access (SDG 7).

The Sevilla Financing for Development conference, held in June 2025, underscored the scale of the challenge: emerging markets and developing countries require $2.3–$2.5 trillion annually by 2030 to meet climate goals, four times current investment levels. In 2023, low- and middle-income countries faced record-high debt servicing costs of $1.4 trillion, diverting funds from sustainable development. Academic models address this by proposing innovative instruments, such as green bonds and debt-for-nature swaps, which reduce financial strain while channelling capital into climate-resilient infrastructure. These contributions are pivotal in closing the financing gap and ensuring resources reach vulnerable communities.

Despite their promise, aligning financial models with local contexts remains complex. Equitable distribution of funds is a persistent barrier, as is the need for capacity-building to implement sophisticated financing mechanisms in resource-constrained settings. Yet, the integration of academic expertise into climate finance strategies is an emerging global trend, with universities acting as neutral brokers between governments, private sectors, and communities.

The broader impact on global goals

The synergy between SDG 13 and SDG 17 is evident in the collaborative nature of these academic efforts. Partnerships between universities, financial institutions, and policymakers are fostering a new paradigm for sustainable development. For example, the Expert Group on Climate and SDG Synergies, co-convened by UN DESA and UNFCCC, is set to release three thematic reports in July 2025, focusing on health, biodiversity, and climate finance access for vulnerable communities. These reports, informed by academic research, will guide policymakers in crafting integrated strategies that maximise co-benefits across the SDGs.

Statistics highlight the urgency: over 80% of SDG targets are linked to climate action, yet only 17% are on track for 2030. The promotion of renewable energy, a key focus of academic models, not only reduces emissions but also creates jobs, improves public health, and lowers energy costs, benefiting lower-income groups disproportionately. By 2070, aligning climate and SDG actions could generate $43 trillion in economic output, demonstrating the long-term value of these investments.

The role of academia in climate finance is a beacon of hope, but scaling these solutions requires global cooperation. Policymakers must prioritise integrating academic insights into national climate plans, particularly the enhanced Nationally Determined Contributions (NDCs) due in 2025. Financial institutions should engage with universities to co-develop scalable PPP models, while civil society must advocate for equitable resource allocation.

For those eager to explore further, the UN’s Sustainable Development Knowledge Platform (https://sdgs.un.org) offers comprehensive resources on climate-SDG synergies. The UNDP’s Sustainable Finance Hub (https://sdgfinance.undp.org) provides tools for financing climate and energy targets, including free e-learning courses launched at COP29. Engaging with these platforms can deepen understanding and inspire action towards a sustainable future.