Introduction
The Fourth International Conference on Financing for Development (FfD4) presents a critical opportunity to explore strategies for mobilizing the much-needed financial resources to achieve the Sustainable Development Goals (SDGs). The financing gap has widened significantly over the past five years, now reaching approximately $4 trillion annually at the global level. High debt burdens further limit fiscal space, making it difficult for many countries to allocate necessary resources toward sustainable development. This is exacerbated not only by the decline in concessional finance and Official Development Assistance (ODA), but also by structural challenges including limited economic diversification, underdeveloped financial systems, rising inequality, and conflict and instability in many developing countries.
Objective of the Side-Event
Against this backdrop, UN regional commissions – ESCWA, ECLAC, ECA, ESCAP and ECE – are organizing this high-level side-event which will bring together policymakers and practitioners from multiple regions to exchange experiences, discuss challenges, and explore opportunities in mobilizing finance for sustainable development through innovative instruments such as Green, Social, Sustainability, and Sustainability-linked (GSSS) bonds, debt swaps for financing climate action and SDGs, blended finance, and other mechanisms. The discussions will focus on:
- National sustainable financing frameworks: Sharing recent country experiences in establishing green and sustainable financing frameworks and role of innovative financing instruments in their implementation.
- GSSS bond issuance and post-issuance challenges: Identifying best practices, policy measures, regulatory frameworks, and risk management requirements for issuing and managing GSSS bonds effectively as well as building demand for such instruments.
- Opportunities and challenges of debt swaps: Discussing the opportunities of developing debt-for-climate and debt-for-SDG swaps and exchanging lessons learned in inter-ministerial cooperation, key performance indicators, project prioritization, and civil society engagement.
- Country platforms to improve access to innovative finance: Setting up inter-ministerial mechanisms to develop country platforms and operationalize sustainable financing frameworks, which can improve preparedness for accessing GSSS bonds, debt swaps, and other innovative financing instruments.
- Impact on SDGs and National Priorities: Examining the role of GSSS bonds and debt swaps in advancing sustainable development objectives and addressing country-specific priorities.
Event Document