The United Nations Development Programme (UNDP) and the International Union of Credit and Investment Insurers, known as the Berne Union, have signed a Memorandum of Understanding aimed at strengthening the role of trade and investment insurance in advancing the United Nations Sustainable Development Goals (SDGs). The agreement seeks to improve how export credit agencies and investment insurers support sustainable economic development, particularly in developing and emerging economies.
The partnership was announced in London and is intended to enhance collaboration between public and private sector institutions involved in trade finance, investment guarantees, and risk-sharing mechanisms. According to the organizations, the initiative aims to mobilize greater volumes of private capital toward national development priorities and sustainable investment projects.
The agreement comes at a time when developing countries face an estimated annual SDG financing gap of approximately US$4.3 trillion. At the same time, fiscal pressures are increasing globally and official development assistance levels have declined, increasing the importance of innovative financing and risk mitigation tools to support sustainable growth.
Under the partnership, UNDP and the Berne Union will work together to strengthen the contribution of export credit agencies (ECAs) and political risk insurers in supporting sustainable development. This includes encouraging foreign direct investment through guarantees, insurance products, and risk-transfer solutions designed to reduce investment barriers in higher-risk markets.
The collaboration will also focus on developing joint analytical and programmatic initiatives to mobilize guarantees, reinsurance solutions, and blended finance instruments for sectors aligned with sustainable development priorities. Key areas of focus include clean energy, resilient infrastructure, and sustainable supply chains.
In addition, the two organizations plan to explore regional and country-level initiatives aimed at strengthening enabling environments for sustainable trade and investment. The partnership will also promote knowledge-sharing, sustainability governance practices, and improved impact reporting across institutions involved in trade and investment finance.
UNDP officials stated that aligning risk-sharing instruments with national development priorities can help unlock larger volumes of sustainable investment while supporting inclusive economic growth and climate resilience. The organization emphasized that sustainable finance remains a central pillar of its Strategic Plan for 2026–2029.
The Berne Union highlighted the importance of reducing policy uncertainty and improving investment conditions in emerging markets to encourage greater private sector participation. The organization noted that stronger cooperation between development institutions and investment insurers can help convert upstream policy and regulatory improvements into increased financing opportunities for sustainable projects.
According to UNDP, the organization has helped catalyse more than US$900 billion in SDG-aligned public and private finance since 2022 through support for nationally led reforms, fiscal policy improvements, investment frameworks, and risk-sharing mechanisms.
The Berne Union stated that its members collectively support approximately US$140 billion in long-term capital flows to developing countries each year. The organization works to facilitate international trade and investment by promoting sound export credit principles, strengthening cooperation among members, and supporting risk-sharing arrangements across global markets.
The Memorandum of Understanding establishes a framework for ongoing non-exclusive cooperation between the two organizations. Both parties stated that the partnership reflects a shared commitment to developing more resilient, coherent, and impact-oriented financial systems that support sustainable economic development while addressing social and environmental priorities globally.
