LocationsBridging the finance-development divide
With global wealth surpassing US$460 trillion, just 1 percent of that could provide enough to achieve all 17 Sustainable Development Goals.
The world is at a critical juncture in financing sustainable development. With only 17 percent of the Sustainable Development Goals (SDG) targets on track and an annual financing gap of US$4.2 trillion, existing approaches are not delivering at the scale or speed required.
It is still possible to achieve the SDGs, but not without adequate financing. With global wealth surpassing $460 trillion, just 1 percent of that could provide enough to achieve all 17 SDGs.
Third Preparatory Committee Session for FfD4
In the lead up to the 4th International Conference on Financing Development in Seville, Spain in June, the recent Third Preparatory Committee (PrepComm) Session in New York convened governments, development institutions, multilateral development banks, civil society, and private-sector partners.
A clear message emerged. Fragmented efforts are failing to deliver results, and development and finance partners must collaborate more closely to reform the global financial architecture so that the benefits of investment are shared with those who need them most.
The 12 UNDP-led PrepComm side events brought together a diverse range of stakeholders to advance new discussions on themes addressed in the FfD4 Zero Draft Outcome Document, such as Integrated National Financing Frameworks (INFFs), climate and nature finance, de-risking mechanisms, tax cooperation, gender equality, financial resilience, and inclusive public-private collaboration.
These discussions ranged from promoting sustainable bond markets through strategic partnerships, to addressing the public finance gap for gender equality through Equanomics, bringing finance partners together to end modern slavery and human trafficking, and working with taxation authorities to strengthen tax audit capacity through Tax Inspectors Without Borders.
Partners also agreed to develop a playbook for collaboration between finance and development institutions to ensure that developing economies meet their sustainability targets.
With more than 600 attendees, the PrepComm events generated deep dialogue and concrete recommendations on aligning national financing with SDG commitments, improving cooperation on tax and financial regulations, expanding innovative financial instruments and mobilizing more capital for long-term resilience.
A call to action towards Seville and beyond
This kind of collaboration must become the norm, not the exception. Businesses and investors also have a crucial role to play, but they need to connect with governments and multilateral organizations to establish the right enabling environment, risk-sharing mechanisms, and incentives to secure social and environmental - as well as financial - returns on investment.
UNDP is committed to bringing these partners closer together. The Fourth PrepComm Session on 30 April and 1 May will advance these discussions and forge new partnerships that pave the way for financing for the SGDs, climate and biodiversity targets.
In line with UNDP’s ambition to promote the investment of $1 trillion in public and private financing towards these goals, we are working more broadly to ensure that the benefits of investment are distributed more equitably and sustainably.
