- Political and financial leaders are convening this week (30 June – 3 July) for the UN’s Fourth International Conference on Financing for Development (FfD4) in Seville, Spain.
- Even amid growing economic pressures and geopolitical uncertainty, the conference offers critical opportunities to reaffirm ambition on reforming the international financial system and strengthening multilateral action on climate and development.
- Growing debt stress and fiscal pressure faced by many developing countries will be at the forefront of discussions at FfD4.
- Alongside UN COP processes, FfD is one of the only global forums that can deliver political consensus – giving all member states an equal voice. Countries have signed on to the outcome document – with the exception of the US, which withdrew late in the process. The resulting ‘Compromiso de Sevilla’ reflects the typical non-binding nature of UN agreements and contains few concrete commitments. But it could still be a foundation for progress. We also expect a number of specific and more tangible announcements from governments over the course of the week.
The UN’s 4th International Conference on Financing for Development (FfD4) brings together political and financial leaders at a pivotal moment – a decade on from the Addis Ababa Action Agenda and with COP30 approaching – to discuss what must urgently change to get finance flowing for climate and development goals.
Following tense negotiations last week in Bonn, but positive signals from many governments and non-state actors at London Climate Action Week, FfD provides an opportunity for governments to show there is both a collective will and a plan to take action to support developing countries and ensure a more sustainable and secure future.
Against a backdrop of rising debt burdens and donor countries slashing aid budgets and increasingly aligning aid with national interests, the talks in Seville are a chance to:
- Show that there is a way forward to free up fiscal space in developing countries, including mobilising new debt instruments and a commitment to consider reprofiling lending terms when necessary for development goals.
- Implement targeted regulatory reforms to mobilise private capital, including by bringing the private sector into the centre of development finance by aligning prudential regulation with climate objectives, and use aid to reduce the risks the private sector faces in deploying capital in unfamiliar places.
- Create a more effective delivery architecture for international finance, including using country platforms to align public and private investment around national priorities and strengthening the role of national development banks and sub-national actors.
- Increase the scale of climate finance, including advancing specific measures to accelerate reform of the multilateral development banks (MDBs) and the international financial architecture and rebuilding political will to commit international public finance for climate and development.
- Support Brazil’s COP30 Presidency in advancing the Baku to Belem Roadmap to $1.3 trillion.
E3G’s new report, Getting on the Path to $1.3 Trillion, launched at London Climate Action Week, sets out a long-term vision across these topics for increasing the mobilisation of finance to developing countries, and provides recommendations for what can realistically be achieved in the next 1-2 years.
Rob Moore, E3G Associate Director, Public Banks and Development said:
“Seville is a chance to show that there is at least a will to support development that underpins international security, prosperity and sustainability. What matters is what happens next – how are these warm words turned into real commitments and outcomes.”
Salvatore Serravalle, E3G Programme Lead, Global Macro and Financial Resilience said:
“Seville’s summit is where global voices gather not just to dream of financial reform, but to chart the course and commit to the hard work of making it real – turning a wish list into a work plan for a more resilient future.”
