10. The purpose of this standing operation procedure is to introduce the 1% coordination levy and provide guidance on informing, collecting, and reporting on the levy.
Introduction to the 1% coordination levy
20. The basis for the 1% coordination levy is United Nations General Assembly Resolution 72/279 (May 2018) on the repositioning of the UN development system, which emphasized that "adequate, predictable and sustainable funding" "is essential to delivering a coherent, effective, efficient and accountable response in accordance with national needs and priorities." It came into effect on 1 January 2019.
Application of the 1% coordination levy
30. A contribution agreement is potentially subject to the levy if all the following conditions are true:
- a member entity of the UN Sustainable Development Group receives the contribution;
- the contribution will fund development-related activities;
- the contribution is tightly earmarked to a single entity programme or project, and the contribution is from a single funding partner.
40. Contribution agreements that meet the above conditions will be subject to the levy unless
one of the following conditions is true:
- the purpose of the contribution is to fund activities that the United Nations has classified as Humanitarian Assistance*, Peace Operations**, or to counter illicit narcotics and crime, or Global Agenda and Specialized Assistance***;
- the contribution is from a global vertical fund;
- the contribution is from a UN entity to another UN entity;
- the contribution is from international financial institutions (such as the World Bank, development banks, etc.);
- the contribution is for an entire entity country programme, without earmarking within the country programme;
- the contribution is to a project or programme funded by multiple funding partners where funds are co-mingled;
- the contribution is to UN inter-agency pooled funds, including joint programmes, or to agency-specific thematic funds;
- the contribution is "in-kind";
- the contribution is from a programme country, whether to their own programme or another country's programme, or the overall contribution agreement is for less than US$ 100,000.
* Note: Humanitarian Assistance activities include material or logistical assistance provided for humanitarian purposes, typically in response to humanitarian crises, including natural and man-made disasters.
** Note: The Peace Operations category comprises activities including but not limited to deploying civilian, police and military personnel meant to help countries torn by conflict create conditions for lasting peace. For the purpose of this guidance, activities to counter illicit narcotics and crime are considered Peace Operations.
*** Note: The Global Agenda and Specialized Assistance refers to activities that (a) address global and regional challenges without a direct link to development and humanitarian assistance and peace operations, or (b) support sustainable development focusing on long-term impact in non-United Nations programming countries.
Additional information resources
50. Detailed operational guidance is available at the
UN Sustainable Development Group's Coordination Levy Operations Guidance webpage:
- Coordination Levy Operational Guidance
- Coordination Levy Frequently Asked Questions
- Simplified Checklist to Determine Levy Application
