Your excellencies, distinguished colleagues, 

And Your Excellencies Dr Manal Awad, Minister of Local Development for the Government of Egypt; and  

Ms. Eva Granados, Secretary of State for International Cooperation, Government of Spain; and 

Ms. Anaclaudia Rossbach, Executive Director of UNHABITAT. 

It is my honour to open Dialogue 4 on Financing and how we can unlock financing for local actions to accelerate the achievement of the Sustainable Development Goals. 

Before I start, I would like to express deep solidarity with the people of the region of Valencia hard hit by deadly flash-floods this week. 

In times of crisis, local and regional governments are in the front-line to respond swiftly.  

Achieving the global Goals depends on the leadership and empowerment of local and regional governments. Over 60 percent of the SDG targets and 70 percent of climate solutions require direct subnational jurisdictions and actions.  

Finance is a crucial enabler. The financial architecture – globally, nationally and locally – channels and incentivizes investments that can either accelerate or undermine progress.  

The Addis Ababa Action Agenda outlines the need to strengthen the capacity of local governments to generate revenue, unlock private investment, and access international finance mechanisms. 

The New Urban Agenda also highlights the importance of supporting more effective, financing frameworks. 

This session will examine the key challenges and opportunities in this domain, exploring strategies to harness finance for accelerating the localization of the SDGs. 

To this end allow me to put forward three propositions to consider in our dialogue today. 

Firstly, we need new revenue streams and financial instruments that boost the fiscal space for cities to invest in local sustainable development.  

Boosting own source revenues and strengthening the stability and predictability of intergovernmental transfers is crucial. We must also strengthen cities’ access to capital markets and access to international development and climate finance. Innovation in debt instruments, blended finance, guarantees and credit enhancements can contribute.  

Secondly, we must support cities to build capacities for financing for the future. Increasing resource mobilisation and strengthening the planning, budgeting and management of resources requires new and expanded capacities.  

All of this must be built up while equipping cities to coordinate and collaborate within the complex, multi-tiered government structures within which they operate.  

Thirdly, we can support cities to build integrated local financing frameworks that bring these elements of public and private financing together within a holistic approach to finance local priorities. This should build on the ongoing efforts across 86 countries with integrated national financing frameworks. 

Such local financing frameworks set out clear pathways to access, manage and catalyse resources efficiently, mobilizing and aligning public and private capital according to the needs and priorities.  

Continued international support to spur investment is also needed, for instance through carefully structured risk-sharing instruments, including through pushing for effective tax reforms and through a greater role for national development banks. 

The discussions here today can provide much-needed insights and solutions to advance local financing options as we prepare for the fourth International Conference on Financing for Development next year.  

Thank you.