The role of leadership in meeting the SDGs and implementing climate commitments: Climate Finance and Development Finance

The global community is falling behind and running out of time in meeting our shared development and climate goals.  Five years after the onset of the COVID-19 crisis and with only five years left to meet the United Nations Sustainable Development Goals (UN SDGs) and align the global economy with the goals of the Paris Climate agreement, the UN reports that 85 percent of the SDGs are either off track, stagnating or in regression.  2024 was the hottest year ever, resulting in extreme heat, wildfires, hurricanes, and floods that have wreaked havoc on economies and livelihoods and are triggering new waves of migration.  Moreover, income and wealth inequality remain acute.  The compounded impact of global inaction on this agenda is impacting both our economic and political systems, fueling populism, extremism, and the breakdown of the social fabric and ecological integrity of the globe. 

In the 2024 United Nations ‘Pact for the Future’ global leaders committed to scaling up and reforming international financial institutions to make them fit to meet the global challenges of the 21^st century (UN, 2024).  Moving forward, there are two vital opportunities for the global community to revive global efforts to address these urgent challenges–the Fourth International Financing for Development (4FFD) Conference in Spain, and at the G20 in South Africa, each in 2025.  Three outcomes are paramount to seizing these opportunities and to put the world economy back on a sustainable path.  It is essential that the 4FFD and G20 deliver on:  

1. Increasing the scale and quality of finance from Multilateral Development Banks (MDBs) to generate affordable financing for development and climate goals;
2. Enhancing the global financial safety net such that it enables countries to prevent and mitigate the increasing number of shocks in a globalised and climate-constrained world; and
3. Expanding the level of voice and representation of emerging market and developing countries and their citizens in the International Financial Architecture (IFA) to improve the effectiveness and legitimacy of the system

Objectives:

• Synergy between the SDGs and the NDCs: Explore how the Sustainable Development Goals (SDGs) and the Nationally Determined Contributions (NDCs) can be implemented in a complementary manner, maximising climate and development impact.
• Promotion of Climate Leadership: Identify examples of climate leadership across different regions and sectors, highlighting innovative practices and policies that are driving the implementation of the NDCs and the fulfillment of the SDGs.
• Financing for Climate Leadership: Address the financing needs for the implementation of the NDCs, exploring how financial resources, both public and private, can be aligned with the SDGs.
• Strengthen the role of Multilateral Development Banks (MDBs): Identify specific actions to increase affordable financing for developing countries, especially in projects related to sustainable development and climate action.

Facilitator

Adriana Rodríguez. Policy Analyst. Climate Strategy.

Speakers

• Carlos Alvarado. Former President of Costa Rica (2018-2022). Member of Club de Madrid.
• Gonzalo Muñoz. High-Level Climate Champion. COP25.
• María Fernanda Espinosa. Former Minister of Foreign Affairs of Ecuador & 73rd President of the United Nations General Assembly.
• Gene Leon. Former President of Caribbean Development Bank.
• Isabel Ferreria. AYA Institute Brazil.