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Publication of an expert report on Innovative Financing for Health - November 2020

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The COVID-19 pandemic has demonstrated the need for a diversified toolkit to effectively finance health systems and services in the short, medium and long terms. The impact of the crisis on the official development assistance budgets and domestic resources has shed light on the potential of innovative financing for development: it offers both crisis response capacities and additional resources to meet the huge development financing gap increased by the crisis.

The study on “Innovative financing mechanisms for Health: Mapping and Recommendations” realized by the think tank Thinkwell, on behalf of the Ministry for Europe and Foreign Affairs as permanent Secretariat of the Leading Group on innovative financing, analyzes 42 major innovative financing initiatives that address SDG 3 on Health, across 5 categories :

- Results-based financing

- Catalytic funding

- Impact investing

- Socially responsible investing

- New channels of taxation.

The report provides a review of their performance and lessons learned to help donors and development financial institutions strengthen the use of innovative financing to achieve better health outcomes. The revitalization of innovative financing for health will require the promotion of mechanisms to leverage private sector funding and solidarity contributions.

4 December 2020

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