Policy Brief

The Potential for SDRs and Reducing Outflows on SDG Progress

The aim of this policy brief is to identify the major barriers to scaling-up financing for the UN Sustainable Development Goals (SDGs) and to quantify the impact of four remedies which could help close massive SDG financing gaps, currently estimated at over $ 4 trillion per year. Our research suggests that the most effective remedy to the current financing challenges for the SDGs is regular SDR allocation according to need between 2025-2030. However, to maximise the impact of these allocations, reducing outflows by reforming the international tax system, measures to minimise tax exemptions, and the provision of comprehensive debt relief are also required.

If these measures were taken in combination, the world would be much closer to achieving several SDG targets. For example, according to our model, by 2030, 100% of people who lack access to electricity would be able to access it, 90% would be able to access clean fuel, 93% basic water, 77% sanitation, and 58% of children who are out-of-school would be in school.

6 Oct 2025

Task Force

Keywords

financingSDGsSpecial Drawing Rights (SDRs)

Author/s

Bernadette O’Hare
The University of St Andrews
(Scotland)
Stephen Hall
The University of Leicester
(United Kingdom)
Michael Masiya
African Centre for Tax and Economic Studies (ACTES)
(Malawi)
Gail Hurley
Senior Consultant on Development Finance,
(Scotland)