Insights from OECD Report on Aligning Financial Goals with Sustainability Targets

OECD Calls for Stronger Policy Coherence and Budget Alignment to Accelerate Ireland’s SDG Progress

The OECD has released its Policy Coherence Scan of Ireland, urging the country to strengthen the alignment of its budgetary processes and institutional structures with the Sustainable Development Goals (SDGs) to accelerate progress by 2030. The report highlights areas of progress while identifying significant challenges that need urgent attention, particularly in ensuring coordinated governance and more systematic stakeholder engagement.

Ireland’s Progress and Challenges on the Path to 2030

Ireland has demonstrated strong political commitment to sustainable development, underpinned by national frameworks such as the National Development Plan (NDP) 2021–2030, Project Ireland 2040, and the Second National Implementation Plan for the SDGs (2022–2024). The OECD recognises Ireland’s whole-of-government and whole-of-society approach, along with efforts to integrate the SDGs into national policies.

However, translating strategic commitments into coherent implementation remains a challenge. Only 17% of global SDG targets are currently on track, according to the UN’s 2024 Global Sustainable Development Report, and Ireland must take further steps to close the gap between policy ambition and delivery.

Key Findings from the OECD Report

The key findings from the OECD report includes:

1. Budget Alignment with SDG Targets

A central recommendation of the OECD is that Ireland align its budget allocations with specific SDG targets. This would allow a clearer assessment of financial commitments and ensure that public spending is effectively driving progress toward the SDGs. Integrating SDG targets into tools like the Public Spending Code, Infrastructure Guidelines, and Cabinet Handbook would improve policy integration and resource planning.

2. Strengthening Vertical Coherence

Ireland’s local authorities play a critical role in SDG implementation, with much of their activity supported by the NDP. However, the OECD warns that vertical coherence—coordination between national and subnational levels of government—is limited. Many local administrations continue to operate in silos, hindering integrated policy approaches.

Building capacity and clarifying roles for local governments, combined with enhanced interdepartmental collaboration, will be essential for embedding SDGs into local governance structures.

3. Stakeholder Engagement: Structured but Still Ad Hoc

Ireland’s stakeholder engagement—through mechanisms like the National SDG Stakeholder Forum and public consultations—has been praised as a good foundation. Yet the OECD finds that engagement remains largely ad hoc and insufficiently integrated into policy decision-making. A more inclusive, structured, and transparent framework is needed to ensure civil society, private sector, and local government inputs are fully considered in SDG implementation.

4. Monitoring, Evaluation, and Data Gaps

The report calls for stronger monitoring and evaluation systems to track real progress and impact. While Ireland applies SDG global indicators and uses tools such as strategic environmental assessments and regulatory impact assessments, there are still gaps in systematically mapping policy synergies, trade-offs, and transboundary effects.

Ireland has not yet reported on SDG indicator 17.14.1 (number of mechanisms in place to enhance policy coherence for sustainable development), suggesting a need for further development of tracking tools and impact assessments.

Opportunities Ahead: Ireland’s Third National Implementation Plan

As Ireland prepares its Third National Implementation Plan for the SDGs, the OECD sees an opportunity to embed Policy Coherence for Sustainable Development (PCSD) more deeply into governance. This includes:

• Embedding clear mandates and responsibilities for PCSD within government structures.

• Enhancing the integration of SDGs into existing policy instruments.

• Expanding training and capacity-building for local authorities.

• Improving data collection on policy impacts to capture outcomes, not just outputs.

Conclusion: A Blueprint for Accelerated Action

Ireland has made meaningful strides in aligning national policy with the SDGs. Yet, to meet the 2030 deadline, the country must now focus on improving stakeholder engagement, coherence, coordination, and accountability across all levels of governance.

The OECD report offers a blueprint for enhancing sustainable development governance, with practical recommendations that can support Ireland—and other countries—on their journey toward achieving the SDGs.

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