Summary

International investment flows remain insufficient to meet the financing needs for achieving the Sustainable Development Goals (SDGs), according to a new working paper by the United Nations Conference on Trade and Development (UNCTAD). The authors examined the role of public–private partnerships (PPPs) in mobilizing capital for sustainable infrastructure, drawing on a dataset of 150,000 projects implemented between 2000 and 2024. The annual infrastructure financing gap in developing countries stands at USD 4.3 trillion, while investments in renewable energy alone require an additional USD 2.2 trillion each year. Despite the significant potential of PPPs, their current contribution remains far from adequate to close the gap. Ten developing countries — including Brazil, Viet Nam, India, the Philippines and Chile — account for 60% of all PPP projects. Most developing economies, particularly in Africa and among least developed countries, remain weakly integrated into global investment flows. UNCTAD also notes substantial sectoral asymmetry. Renewable energy dominates the PPP portfolio (70%), whereas social infrastructure — including healthcare, education, water supply and sanitation — represents less than 20% of all projects. Key obstacles to PPP expansion include operational and financial risks, as well as insufficient or ineffective regulatory frameworks in investment-recipient countries. The report recommends establishing simplified and predictable regulatory frameworks for PPPs and strengthening coordination with multilateral development banks.