How we helped shape the world's first guidelines for child-responsive bonds/sukuk

UNICEF has published the world's first guidelines for child-responsive bonds/sukuk, working with Indonesia's Ministry of Finance and supported by Genesis. The guidelines offer practical, step-by-step guidance for national and subnational governments looking to mobilise dedicated financing for children's rights, sitting within Indonesia's established sustainable bond architecture and aligned with international standards including the ICMA Social Bond Principles.

Indonesia is the natural home for this innovation. The country already has one of the most active sovereign sustainable debt markets in the developing world, having launched the world's first sovereign green sukuk, Southeast Asia's first SDG bond, and the world's first publicly offered sovereign blue bond. The architecture for thematic bonds is established. These guidelines add a child-focussed layer to it.

What the guidelines reveal

First, we know the need is urgent.

Indonesia is home to 85 million children - nearly a third of the population. Investing in children is essential for Indonesia’s future workforce and economic growth. Yet almost 40% face multiple forms of deprivation. Two out of three child-related SDG indicators are off track. Sustainable securities are instrumental to mobilising financing to cover a US$1.7 trillion shortfall for meeting Indonesia’s SDG targets. Mobilising additional financing is essential to address these challenges and accelerate Indonesia's progress towards national development priorities.

Second, child-responsive financing requires more than good intentions.

Child-responsive bonds are not simply social bonds with children mentioned in the impact report. The guidelines establish a specific eligibility test: children must be the direct and primary beneficiaries of every project financed, not incidental ones. A general health infrastructure programme does not qualify. A school immunisation programme does. This distinction matters because it creates a credible, enforceable standard where none previously existed, giving issuers clarity on what counts, and giving investors genuine confidence in the label.

Third, issuers do not need to start from scratch.

One of the most practical contributions of this work is demonstrating how child-responsive securities slot cleanly into existing frameworks (Indonesia's Sustainable Government Securities Framework, the ICMA Principles, and ASEAN standards) rather than requiring a new compliance architecture. At the national level, child-responsive labelling can be integrated into the SGSF immediately. At subnational level, it can be built into municipal bond frameworks as they develop. For corporate issuers, the guidelines provide a template adaptable to any sector. The barrier to issuance is lower than it looks.

Why this matters

The public budget will always remain the main instrument for improving children's lives at scale. That is not changing. But child-responsive bonds/sukuk could be a strategically important addition. They could bring private capital into areas that are often underfunded.

Their potential significance goes beyond the money itself. These instruments could increase the visibility of fiscal policy designed around children. That transparency would help hold everyone (government, investors and agencies) accountable for real outcomes.

For Genesis, this is impact work in action. We helped UNICEF turn the concept of thematic bonds/sukuk for child rights into a practical, usable guide that lays the groundwork for future issuance.

What happens next

The guidelines are the first step, not the finish line. They outline principles, a practical process for selecting child-focused projects, and clear approaches to monitoring, reporting and verification.

Next steps would include a feasibility study, followed by a framework for actual issuance. If that happens  - whether at national or subnational level  -  Indonesia would have a new tool to mobilise financing for child rights. And for the 80 million children who call the country home, that could make a real difference.