The world holds about $486 trillion worth of assets, according to the 2023 Financial Stability Board report.

Yet, there remains an annual funding gap of over $4 trillion for achieving Sustainable Development Goals (SDGs) by 2030, as noted in the 2024 UNCTAD report. This gap must be closed.

As Alfonso Fernandez de Castro, UNDP resident representative in Uruguay, pointed out in a commentary, embracing an ecosystems perspective can unlock the full potential of financing for sustainable development.

Effective financing of TVET industrial attachment can form part of this ecosystem.

Through the ecosystem lens, the acquisition of relevant, context-specific skills and knowledge becomes part of the broader sustainable development stream of action.

SDG-related actions include simple but transformative initiatives such as water conservation, the establishment of resilient irrigation infrastructure, and the installation of solar dryers and cold chain facilities – all of which support resilient rural communities.

With the introduction of dual training and modularised programmes under Competency-Based Education and Training (CBET) in Kenya’s TVET system – where 70 per cent of the time is spent in the industry and 30 per cent in class – industrial attachment becomes a critical component.

Spending more time in the industry better prepares trainees and ensures they are job-ready upon graduation.

Many industries are struggling and are, therefore, unable to absorb technical trainees for industrial attachment.

This underscores the need for innovative financing frameworks to revitalise industry participation in the dual training programme.

The case of the 2024 social impact investment focused on dual education development and sustainable finance roundtable framework in Uruguay offers practical insights for implementing such financing mechanisms.

Social impact investment refers to capital deployed not only for financial returns but also for generating measurable social and environmental benefits.

Clearly, developing green technical skills among youths to drive sustainable development fits squarely within the realm of both social and environmental impact.

Is it possible for resources from global climate financing mechanisms, especially those targeting local climate action, to support local companies willing to offer industrial attachment to TVET trainees?

What about leveraging non-banking financial institutions locally – can they also play a role in this effort?

As I have previously argued in this column, some of the most effective local climate adaptation measures are best implemented by young people with the relevant technical skills.

We need resources to trickle down from global, regional, and national levels to support industrial attachment at scale in rural areas.  

The writer is a UN global food systems Youth Leader, a vocational and technical Trainer, and a communication Consultant