Policy Brief n°6 : Innovative Financing for Development

This Policy Brief provides a definition of innovative financing for development, and outlines the four principle types of instrument used, including existing examples of mechanisms already in place. One section is dedicated in particular to France’s innovative financing tools and policies.

Innovative financing mechanisms (IFMs) provided around around 80 billion euros for development between 2000 and 2013. Less than 10% of this funding led to an increase in ODA however. In France, a tax on airline tickets generated over 2 billion euros between 2007 and 2017, and a separate tax on financial transactions raised 1.6 million euros between 2013 and 2017.

After an overview of the history of innovative financing, this Policy Brief provides a definition of the key instruments and the four principle types of mechanism. After a specific section on France, the Brief concludes with the need to ensure that innovative financing remains complimentary and separate to existing ODA funds.

You can download Policy Brief n°6 in French here. An English translation is forthcoming.

Documents to download

Note d’analyse n°6 : Les mécanismes de financements innovants du développement