Page 41 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

water use or education for children from vulnerable communities. It allows private-sector investors
to understand where the money will be used, while leaving space for ideas on how the investment
could be paid back in financial and/or reputational profit.

The framework of the SDGs reflects an integrated approach to the three dimensions of sustainable
development – people (social dimension), planet (environmental dimension) and prosperity
(economic dimension). Every project taking this approach should aim for its implementation to
trigger positive social impact (e.g. generate jobs), decrease the human environmental impact on
the planet (e.g. reduce CO emissions or improve water quality) and / or contribute to economic
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prosperity. These three dimensions should be used as a project framework.

The three dimensions should be applied to the development project by identifying the impact it will
bring to each. In order to become operational within a project, the framework requires clear and
transparent rules, and enforcement mechanisms. These ensure that all partners and stakeholders
involved in the project are committed, and will adhere to achieving sustainable development as
the goal of the project. The rules must be clearly stated, and the projects must identify the key
partners who will operate within the proposed framework.

Box 9: SDG framework for urban development projects

Recommendation 2: bridge the funding gap by applying the language of the SDG development
framework

Urban development projects in cities result from the needs and ambitions of the communities living
there. However, the financial resources which cities and communities have at their disposal are
usually insufficient to implement transformation projects. Additional financing and funding solutions
are required in order to achieve the necessary level of efficiency and capability to implement the
project.

The needs and ambitions of citizens can be transformed into projects that serve the public interest
and the common good. However, these projects should also be translated into a language

U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects 23