Addressing the Missing Linkage in Sustainable Finance: The ‘SDG Finance Taxonomy’

Christoph Nedopil Wang, Mathias Lund Larsen, Yao Wang

Research output: Contribution to journalJournal articleResearchpeer-review


Achieving the United Nation’s (UN) Sustainable Development Goals (SDGs) is said to require USD 5–7 trillion of investments in areas such as health, education, environmental protection, and infrastructure. While several frameworks exist to mobilize and to some extent report on sustainable finance, stakeholders have no agreement how to identify SDG-aligned projects and report on relevant impact indicators. Targeted at investors and governments to drive sustainable investment in China and across the globe, the UNDP SDG Finance Taxonomy launched in June 2020 provides a unified taxonomy of activities for sustainable finance that incorporates all 17 sustainable development goals (SDGs). In doing so, the taxonomy provides a clear pathway for identifying SDG-aligned projects for financing, reducing transaction costs, and is compatible with existing frameworks.
Original languageEnglish
JournalJournal of Sustainable Finance & Investment
Issue number2
Pages (from-to)630-637
Number of pages8
Publication statusPublished - 2022
Externally publishedYes

Bibliographical note

Published online: 26. august 2020.


  • Sustainable development goals
  • Sustainable finance
  • Development finance
  • Financial taxonomies
  • Capital mobilization

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