Earmarked contributions are funds that are earmarked by the funding partner to be used in specific countries, in specific projects or to a specific theme or sub-programme. The main purpose of earmarked contributions is to enable expansion and replication of results of UN Environment Programme's (UNEP) core work, including building capacity in more countries and with more partners. In 2023, UNEP received US$ 502.1 million in earmarked contributions.
Soft earmarking
While earmarked contributions allow Member States to report on priority issues based on their respective governments’ agenda, "soft earmarking", targeted for example at the sub-programme level, gives UNEP more flexibility in targeting funds to where they are needed the most. It also reduces time and effort spent on programme support by simplifying administrative procedures and reporting requirements. In 2021, softly earmarked funds from Finland, Norway and Sweden represented only around eight per cent of all earmarked funds.
Corporate funding agreements
Corporate funding agreements are generally multi-year agreements with partners providing funds that support the delivery of UNEP's programme of work at a sub-programme level and/or across sub-programmes. These agreements are designed to promote long-term stability and to strengthen the cooperation between partners at a more strategic and cross-cutting level.
Some types of corporate funding agreements include:
- Softly earmarked funds are funds that are provided (mostly) at a sub-programme leveI. Current agreements are with Norway, Swedish Sida and Finland.
- Cross-cutting tightly earmarked funds are funds that support multiple sub-programmes through specific projects. Current agreements are with China and US EPA.
- Hybrid funds consist of both core funding to the Environment Fund and earmarked funds for specific projects. Current agreements are with Israel and Monaco.
The European Commission has also taken the lead in providing sufficient funding by having multi-year agreements with UNEP.
