(3rd informal meeting) Preparatory Committee for the Fourth International Conference on Financing for Development, Third Session

Good afternoon everybody. May I ask you to find your seats so that we can start? We have not yet finished the reading of the chapter on domestic resource mobilisation, I have to look. So paragraphs 30 to 32, we still have a list of speakers for that one. We will finish that list of speakers and Ambassador Alicia will read us through that. But once that is finished, we will continue with going straight onto the chapter called Private Business and Finance. And we are really lagging behind time-wise. So that means we sent you some changes to the structure of the meeting during the lunch break. You will be, when we get to the next chapter, we'll keep the system now for the remaining speakers here, but when we get to the next chapter on private business investments, We will ask you to share your comments on the full chapter, not only half the chapter at a time, but the full chapter. Increasing the time available to groups to seven minutes to cover the full chapter and to individual states to four minutes covering the full chapter. That way, we hope we will be able to finish the reading of that chapter by six o'clock tonight. So let's see if this is doable. But for now, I'll give the floor to Ambassador Alicia and we continue on the reading of the paragraphs 30 to 32 that we did not finish before lunch. Thank you very much, and it's my pleasure to give the floor to the delegation of Burkina Faso, please. Speaking on behalf of LDCs. You have the floor, Burkina Faso, and afterwards, Guatemala.

Thank you. As you said, I'm delivering these comments on behalf of the LDCs. aligning with the remark made by G77 and China. And our comments are as follows. First, on international tax cooperation, emphasize the critical importance of strengthening LDCs voice and representation in international tax and decision-making processes, and stress the need for dedicated capacity building to enable LDC effective participation in dialogue and implementation of resulting agreements. On illicit financial flow, we call for enhanced global cooperation on tax evasion, trade misvoicing, and return of stolen assets based on Doha Programme of Action. We emphasize the disproportionate impacts of the illicit financial flows on LDC economy and call for enhanced international cooperation and support in strengthening our capacity to prevent and combat these international financial flows. Request a commitment. to enhance financial regulation capacity, including for multinational cooperation operation and supports EDCs and other countries in special situation to mitigate, to negotiate, sorry, the contracts and manage resource revenue transparently based on the AG report. on the Doha Programme of Action 2024. On the national development banks, we call for enhanced international support in establishing and strengthening national public development banks in LDCs, including through technical assistance and concessional financing.

In conclusion, we believe

this addition will significantly strengthen the outcome document's ability to address the unique challenges faced by LDCs in mobilizing domestic public resources for sustainable development. We call for the alignment of fiscal system with the SDGs and ensure that all new mechanism have clear commitment for balanced representation and inclusion, and the commitment has a commensurate level of global support. We look forward to working constructively with all partners to realize these ambitious yet necessary commitments and to further discussion during the informal negotiation. I thank you.

I thank the distinguished representative of Burkina Faso. I give the floor to Guatemala, then to Saudi Arabia, and then Switzerland. Guatemala, you have the floor.

Thank you very much indeed for giving me the floor. Our delegation wishes to say that tax systems, tax policies, and public expenditure should serve to reduce structural gaps which disproportionately affect vulnerable populations. Moreover, the inclusion of climate criteria in financing strategies reflects a clear commitment to sustainability and resilience in our economies. Guatemala reaffirms its commitment to continuing to make progress on those key thrusts. We call for those principles to translate into tangible actions with effective follow-up mechanisms. Regarding paragraph 31, we wish to bring to the attention of the committee the fact that, although the outcome document seeks to create a commitment to combat illicit financial flows, it is vital that we encourage states to fully implement the United Nations Convention against Organised Transnational Organised Crime. We should refer to Palermo and its protocols. We should also refer to active participation in its review mechanism. This convention is a key tool to strengthen international cooperation in the fight against money laundering, corruption and tax fraud and other practices which undermine tax systems and erode domestic resources. Without staunch commitment commitment to that international framework, efforts to avoid illicit financial flows and to improve financial transparency will continue to fall short of need. That will limit developing countries' ability to mobilise domestic resources effectively. Consequently, we urge us to ensure that in the outcome document we clearly reflect that commitment. We should guarantee that states adopt binding concrete measures to prevent, detect and sanction financial crimes which hinder sustainable development. Finally, it is important to underscore that Guatemala hails efforts made by the co-facilitators in the outcome document to welcome the active participation of women as a prerequisite for sustainable development. Thank you.

I thank the distinguished representative of Guatemala. And now I give the floor to Saudi Arabia, followed by Switzerland and then India.

Thank you, Madam co-facilitator.

we find it prescriptive and top down and as such we request its entire deletion. in paragraph thirty one we request to add a new point that focuses specifically on combating illicit financial flows. it should read as follows we will promote measures to deny safe havens to iffs and exhort all countries to take effective steps to prevent IFF from entering their jurisdictions. I thank you.

Thank you. Saudi Arabia, Switzerland, you have the floor.

Excuse me, I want paragraph 30 and international tax cooperation and innovative taxes. We would like to include a reference to the ongoing negotiations on a UN tax convention and to the need for a fully inclusive and effective international tax architecture which is founded on consensus-based decision-making. We also have some suggestions for streamlining the sub-paragraphs of para 30 and provide them in writing. On para 31 and illicit financial flows, we support the comments made by the EU. In addition, we suggest introducing a reference to the ADIS process and asset return and the 2030 agenda in sub para D. Switzerland co-organizes this process together with Ethiopia and UNODC and would like to anchor this process on a global level. Furthermore, we suggest deleting sub para E. Exploring the need for multilateral mediation mechanism is, in our view, not necessary since many platforms already exist. Lastly, and most importantly, we would like to introduce a new subparagraph where we commit ourselves to ensure that confiscated assets are returned to the benefit of the populations of the countries of origin. We will provide language also on this one. On para 35, We would like to suggest more reference to the work of OECD. For instance, we would like to introduce a new sub para A citing recommendations one and two of the OECD recommendations on foreign direct investment qualities for sustainable development. In sub para B, we would also like to add a reference to the African Union OECD Africa virtual investment platform. Since the zero draft provides too little language on the quality of investment, we suggest adding some language in subpara c. Still on para 35, we would like to add a subpara on impact linked finance, which refers to linking financial rewards for market based organizations to the achievement of positive social outcomes. Impact link finance is a highly effective way aligning positive impact with economic viability and lies at the intersection between blended finance, impact investment and result based finance. Last but not least, we would like to introduce a reference to TOSSD, the total official support for sustainable development in para M. On para 36 sub para A, we suggest introducing a reference to outcomes based financing mechanisms, thank you very much.

Thank you. I would like to remind all distinguished delegates that we are still working on the chapter on domestic public resources, paragraphs 30 to 32. Now, I would like to give the floor to India, followed by the United States and Iceland. India, you have the floor.

Thank you, Chair. India is actively participating in the negotiations of the UN Framework Convention on International Tax Cooperation. We support an inclusive and effective international tax framework that ensures a fair allocation of taxing rights. We have the following suggestions on the text. On para 30B, it must be ensured that companies, including MNEs, pay taxes to countries where economic activity occurs, value is created, and revenues are generated. On para 30D, we recognize that greater cooperation among countries on international tax matters would help address longstanding issues of base erosion and profit shifting. In para 30e, we suggest deleting this last line on extending reporting obligations to high net worth individuals. Considering that the discussion on taxation of high net worth individuals is still at a very nascent stage and will be taken up in the future at the UN Framework Convention on International Tax Cooperation, it is important that our focus at present should remain on broadening the access of country-by-country reports to developing countries with reduced cost. In para 30H, we would like to underscore that it is premature to include any references to global solidarity levies or specific innovative taxes. These levies also violate the principle of CBDRC and equity enshrined in the Paris Agreement. At this time, no commitment should be made to enact or strengthen taxes targeting HNIs, particularly in the context of international cooperation. In para 31, we would like to emphasize the need for international cooperation and commitment to timely information sharing and combating financial crimes. On paragraph 32, India recognizes the crucial role of national development banks in leveraging additional resources. By utilizing innovative financial instruments such as green bonds, credit guarantees, and blended finance, NDBs provide patient capital and mitigate risks. However, existing regulatory frameworks by failing to recognize their unique liability structures and developmental mandates restrict their ability to take necessary risks for transformative development projects. Furthermore, MDBs face stiff competition from commercial banks, leading to higher funding costs. Ensuring access to long-term funds at competitive rates will enable MDBs to maximize their potential as powerful engines of inclusive and sustainable growth. Chair, we will be submitting our written comments. Thank you.

Thank you very much, India. Now I give the floor to the United States, followed by Iceland and then China.

Thank you. We believe paragraph 30 should be significantly shortened and reframed. We believe the section should primarily focus on the central role of domestic resource mobilization. The current text does not take into account our longstanding objections to several of the tax policy commitments outlined and preempts negotiations that are meant to occur outside the FFD4 process. We find the scope here to be too broad and vague. For example, we cannot commit to addressing all companies, and we do not understand the reference to a wide range of assets with regards to beneficial ownership or what is meant by regulating professional service providers. Finally, we cannot agree to the creation of costly new mechanisms and processes. Thank you.

Thank you. Now Iceland, you have the floor, followed by China, then Japan.

Thank you, Madam co-facilitator. We appreciate the constructive language on the topic of international tax cooperation and innovative taxes. Strong international tax cooperation is integral to fighting tax evasion and avoidance. We would like to highlight the importance of responsible tax behaviour in relation to the use of tax haven jurisdictions as well as intermediary jurisdictions, which we suggest adding a reference to. It is vital that untaxed income is brought into developing country economies from offshore tax havens and intermediary jurisdictions. We also welcome the reference in section G para 30 to international tax cooperation frameworks such as the two pillar solution as well as the negotiations on a UN framework convention on international tax cooperation. Thank you.

I thank the distinguished representative of Iceland and now I give the floor to China, then Japan, then Indonesia. China, you have the floor.

Thank you, co-facilitator.

As taxation falls under countries' sovereignty, it is not advisable to overstep their sovereignty by requiring them to introduce uniform innovative taxes. Countries should, in line with their own circumstances, independently determine how to mobilize revenue for sustainable development. Therefore, we suggest deleting the word "innovative taxes" from the heading of paragraph 30 and deleting subparagraph 30h. Second, regarding subparagraph, China supports providing more support and assistance to developing countries in implementing tax transparency standards. We nonetheless maintain that further simplifying certain standards and conditions should be premised on ensuring data confidentiality and information security. China supports the effective taxation on ultra-high net worth individuals,

on the premise of fully respecting countries' tax sovereignty.

At present, without sufficient discussion among parties on this topic, there is no broad consensus on reporting of the taxation of high net worth individuals. We suggest deleting the last sentence of this subparagraph, which reads, "We will also consider extending reporting obligations to high net worth individuals." Third, with respect With respect to subparagraph f, as most developing countries are only starting to establish beneficial ownership registration at a national level, we should fully respect the reality of each country and follow a step-by-step approach towards establishing and exploring a global beneficial ownership registry. We suggest saying instead, discuss the need of establishing a global beneficial ownership registry.

I thank you.

I thank China and now the delegate of Japan, you have the floor, followed by Indonesia and then Madagascar.

Thank you, Chair. On paragraph 30a, we are concerned that voice and representation is unclear given that all jurisdictions have equal voting rights in the current international forum. The perceived inequality likely stems from developing countries struggling to build capacity for proactive participation in the international tax architecture. To enhance inclusive and effective international tax cooperation, we propose replacing voice and representation with that strengthen their participation in existing forum. On 30B. This sentence does not fully align with the existing principle of international taxation and suggests the inauguration of the discussion on reallocating taxing rights. We could not agree to such discussion without ensuring consensus-based decision-making process. On 30C, inclusive and effective international tax cooperation as envisioned by the UN Framework Convention on International Tax Cooperation should be based on consensus decision-making and this should be clearly stated. On 30E, we could not agree with this paragraph, grace periods for full reciprocity under automatic exchange of tax information or further simplifying certain standards and conditions are not acceptable. As OECD standards ensure effective exchange of information while protecting data security, it is not a feasible option to provide information to jurisdictions that do not meet these standards. Also, we have a concern on further evaluating the creation of central public database for country by country report as disclosure of CBCR information is not meant for public disclosure, this sentence should be deleted on 30F. We are concerned about this part as well because a global beneficial ownership registry is totally different system from the exchange of information as currently implemented in tax treaties, which is based on the foreseeable relevance. A careful discussion is needed and its conclusion here is premature. On 30H, maintain on a voluntary basis is our line as tax sovereignty should be respected in deciding whether to introduce Innovative taxes for sustainable development, this principle also applies to global solidarity levies on 31D as a detail of the pilot initiative for innovative approaches remain unclear, we place a reservation on the current wording and seek further clarification, lastly, 31E as the current wording. present challenges for our support, we request its deletion. If the multilateral mediation mechanism refers to mechanism of mediating individual cases between two countries by a third party, it would not be suitable for asset recovery cases, which often rely on judicial judgment by courts as well as discretionary administrative decisions. It also raises confidential concerns. I thank you.

Thank you. I give the floor to Indonesia, followed by Madagascar and then Argentina.

Thank you, co-facilitators. On paragraph 30, we are of the view that the element on increasingly digitalized economy could add important substance in this paragraph. We believe that the rapid digital transformation of the global economy has created unprecedented opportunities, but at the same time, it has also exposed significant gaps in our international tax framework. It is our view that we need to adequately capture the value created by digitalized business that operate across multiple jurisdictions without a significant physical presence. The missing element potentially results in tax-based erosion for many countries, particularly developing economies. Therefore, we believe that adding the element will help ensuring fair taxation in the digital era that can contribute to stronger domestic resource mobilization, reduce inequalities in tax collection, and provide much needed fiscal space for countries to achieve their SDGs. On paragraph 32, we thank the co-facilitators that the zero draft also highlights the importance of national development banks' roles in resource mobilization to support sustainable development. We wish to underscore some additional sectors to be included in the areas where we would like to seek the role of the national development banks will play more, as reflected in the last paragraph, in the last part of paragraph 32. In this connection, we wish to add connectivity as well as water and sanitation. Thank you.

I thank Indonesia, and now Madagascar, you have the floor, followed by Argentina and then Bangladesh.

Thank you, Chair. We echo the statements and comments made by G77. and the Africa Group, amongst others, regarding Article 31 paragraph 31 on illicit financial flows. We insist on the importance of international cooperation, the implementation of regulations and the use of technology to fight against IFFs. we should improve the recuperation of illicit financial flows and bolster countries' capacities to do so while fostering transparency and the return of assets. Consequently, we propose the addition of a phrase in the first section of this paragraph. The phrase reads as follows We reaffirm our commitment to strengthening international tax cooperation, namely between developing countries, to combat illicit financial flows, and we call upon IFIs to support developing countries by emphasising the sharing of best practices and national ownership. As regards paragraph 32, we recognise the crucial role played by national public development banks in financing sustainable development. They bolster capacity and they tailor their mandates to regulatory frameworks in order to support long-term projects that are aligned with the SDGs. At the same time, they support innovative approaches tailored to specific risks. We also propose an addition here to 32a. We would add the following phrase: "We call upon financial partners to particularly support LDCs to implement and promote national development banks and cooperative banks to better invest in sustainable development goals. Thank you. Thanks to you, Madagascar.

Argentina, now you have the floor, followed by Bangladesh and then the Russian Federation.

Thank you very much, Madam co-facilitator. Regarding references to negotiations on the international convention on tax cooperation, Argentina wishes to issue a reservation on its national position. Elsewhere on paragraph 30 sub para A, Argentina is not in a position to consider the adoption of information exchange on a country by country basis regarding high net worth individuals. Thank you.

Gracias. Thank you. Then Russian Federation and then Singapore. Bangladesh, you have the floor.

In the national capacity, we would like to suggest the following in the paragraph 31E, We would like to emphasize the necessity of a UN-led mechanism to ensure asset recovery and return. Paragraph 31e should suggest the following revision: We will establish a UN-led multilateral mediation mechanism to resolve challenges related to asset recovery and return. We would also suggest adding an additional subpara stating the commitment to agree on a common set of anti-money laundering standards. Thank you, Chair.

Thank you. Russian Federation, then Singapore, then Colombia, please.

Thank you very much, Madam Chair.

In paragraph 30a, we propose in the first sentence to set it out as follows, English.

Ensure that international tax cooperation framework is inclusive and beneficial to all parties and not politically motivated.

Uh, we think that, uh, the proposal on accounting, which is set out in, uh, paragraph 30E, that, uh, they can, they're liable to, uh, to undermine the commercial confidentiality regime and could there, should therefore be deleted, uh, paragraph 30F. In order to avoid duplication and contradiction of over doubling of efforts, we need FATF 20, 24 and 25 initial individual ownership framework need to be agreed upon. And we will provide this, we submit this proposal to the coordinator. Paragraph 30G, we propose that this be deleted because the effectiveness of this mechanism is something which is dubious and contentious. Paragraph 30H, we propose that the wording be deleted, the following wording be deleted, including in the form of global solidarity levies, that this be deleted. And the fact that there's an absence of the relevant apparatus. Paragraph 31C, this needs to be amended for the full implementation of the United Nations Convention Against Corruption. Given that the convention contains inter alia provisions which are recommendations, the proposal of the full implementation is inaccurate here. There is a need to use the wording full implementation of the obligations under the UNCAC, UN Convention against Corruption. We propose the deletion of the effective and efficient those words vis-a-vis the implementation of implementation review mechanism because it is unclear what the purpose here and what the sense behind the meaning behind this is. Para 31D, the words sustainable and transparent practices for should be deleted because this practice violates the sovereign right of states for the in terms of assets. What is unclear is what is meant by pilot initiatives for innovative approaches. And we propose that this wording be deleted from the text. And we propose the deletion of paragraph E, 31E, vis-a-vis the multilateral mediation mechanism, because this is an idea,

the microphone has been cut off. I thank the distinguished representative of the Russian Federation, and I give the floor to Singapore, then Colombia, and then the Republic of Iran. Singapore, you have the floor.

Thank you, Madam co-facilitator. On 30, Singapore supports the call for careful analysis Uh, which we think should be the basis for all our efforts to strengthen international tax cooperation on 30E, uh, we have concerns about the recommendation for grace periods for full reciprocity. We believe that full reciprocity is a key principle in international agreements to ensure fairness and that all parties benefit from the arrangements. Granting differentiated and lower standards for some countries will create an uneven playing field and introduce the potential for regulatory arbitrage and open avenues for tax avoidance. On 30F, we would propose the phrase, or alternative measures, after the proposal for a global beneficial ownership registry. which we believe widens potential options to be considered to enhance tax transparency, as it is unclear the scope of covered assets under the envisioned global beneficial ownership registry, how it would work, especially who would have access to the registry, and what would be the safeguards around information usage. We are concerned about unregulated beneficial ownership information, which could lead to unintended consequences on privacy, security, and the potential misuse of beneficial ownership information exposing beneficial owners to risk of identity theft, fraud, kidnapping, blackmail or violence. On paragraph 30 we would propose the deletion of the word implementing prior to innovative taxes to align better with the voluntary nature of this paragraph, given the lack of clarity on what these taxes might be, as some of the delegations have already alluded to. On paragraph 31 we would like clarity on the specific aspects of the current exchange of information framework that are lacking. If the issue is the lack of to leverage these existing mechanisms, we propose replacing the phrase lack of exchange of information and low capacity in with the phrase leveraging exchange of information mechanisms. Thank you.

Thank you. And now I give the floor to Colombia and then Iran and then Algeria, please.

Thank you, Chair. On paragraph 13, we welcome literal B and request the principle of significant economic presence to be reflected. On literal C, Colombia reaffirms its commitment to international tax cooperation and supports the reference to advance the United Nations Framework Convention on International Tax Cooperation. Regarding literal E, Colombia recognizes the value of automatic exchange of information, simplified standards, and strengthened country by country reporting of multinational enterprises as crucial tools to combat tax avoidance and illicit financial flows. However, to enhance transparency and accountability, it is also necessary to extend reporting obligations to high net worth individuals. Given the distinct nature of this issue, Colombia suggests addressing it in a separate provision within the document. On literal age, Colombia acknowledges that global solidarity levies can contribute to addressing global challenges equitably. However, ensuring mandatory compliance for all participants country is crucial to prevent distortions in capital mobility and investment flows, particularly for developing countries, Colombia suggests at paragraph 30 I. Underscoring the importance of ensuring that the voice of developing countries are adequately represented in global tax discussions, the negotiation of the UN Tax Framework Convention represent a key milestone to address this need. In parallel, as existing fiscal policy frameworks remain in place, Colombia calls on existing tax forums such as those led by the OECD. to advance reforms that effectively reflect the interests of developing nations on equal footing and to constructively contribute to the development of the United Nations Framework Convention on International Tax Cooperation. On paragraph 31, Colombia welcomes the effort to tackle illicit financial flows and calls to concrete action in this regard. Additionally, regarding paragraph 31, little, literal E, Colombia reserves its position on this provision until further, further consultation are conducted. Regarding paragraph 32, literal A, Colombia emphasizes the critical role of national development banks in mobilizing resources for sustainable development. To maximize their impact, it is essential to ensure affordable financing and expand the range of financial instruments available to reduce credit risk and financing costs. Tools such as first loss capital guarantees and insurance mechanisms can enhance the ability to these institutions to leverage additional resources and promote inclusive development. And finally, I request a space to return to paragraph 29K, Chair. Colombia stresses that the 15% tax to GDP ratio should be considered indicative as fiscal realities vary across countries. Increasing tax revenue does not necessarily require higher rates but can be achieved through more efficient tax expenditures and improved compliance.

I thank the distinguished representative of Colombia, and I give the floor to the Islamic Republic of Iran, followed by Algeria and then Chile.

Thank you, Chair. We align with comments delivered on behalf of G77 and China. In our national capacity, I would like to highlight the following points. In paragraph 30G, we propose including financial assistance and capacity building for developing countries and redirecting the focus from the two-pillar solution toward ensuring that developing countries receive adequate support to actively engage in the ongoing negotiations under the UN Framework Convention on International Tax Cooperation. In paragraph 31B, We support the reference to an ECOSOC special meeting on financial integrity. We suggest that the scope of the meeting be expanded to include developing norms and standards. We ask for deletion of the reference to FATF reference, FATF standards in paragraph 31F, as these standards are not intergovernmentally agreed and are politically motivated. Also, it categorizes countries in a discriminatory manner. I thank you.

I thank you, and I now give the floor to Algeria, then Chile, then the United Kingdom, please.

My delegation aligns itself with the comments made by the G77 and China, as well as the African Group. In addition, we would like to add the following in our national capacity. Paragraph 30, regarding international tax cooperation, the current language and voice and representation of developing countries must be significantly strengthened. We call for explicit language ensuring equal voting rights for developing countries in international tax matters.

The two-pillar solution, while a step forward, must be modified to ensure developing countries receive their fair share of revenues. We propose adding language that

guarantees technical assistance and capacity building programs for developing countries to effectively implement and benefit from these new tax rules.

Also, we propose adding specific

commitments for capacity building, including, one, establishing a dedicated funding mechanism for tax capacity building in developing countries. Two, setting clear targets for technical assistance and technology transfer.

Three, creating specific support mechanism for digitalization of tax administration.

Concerning illicit financial flows in paragraph 31, The current text inadequately addresses the responsibilities of developed countries as destination countries for IFFs. We propose stronger language requiring developed countries to proactively share information with developing countries,

provide technical and financial assistance for anti-IFF measures, expedite asset recovery processes with preferential treatment for developing countries.

We stand ready to work constructively with all partners to incorporate these crucial elements into the text. I thank you.

I thank Algeria and I give the floor to Chile, then the United Kingdom and then South Africa. Chile, you have the floor.

Thank you, Madam Chair. Since it's our first time taking the floor, we would like to thank the co-facilitator for the elaboration of this zero draft, which we believe is an excellent starting point for our discussions. We will submit more detailed comments in writing for both these and previous sections. On paragraph 30, we align ourselves with the statement made by Angola on behalf of the G77 and China, and would like to add the following on national capacity. We welcome the recognition of the negative impacts of base erosion and profit shifting on domestic revenue collection, particularly for developing countries. We also support the reference to the importance of strengthening international tax cooperation as a way to build an inclusive and effective international tax architecture to support domestic revenue mobilization and a fair distribution of taxing rights, in line with recent discussion on a United Nations Framework Convention on International Tax Cooperation. In that sense, we support the reference to this process on subparagraph c as the most recent intergovernmental discussion on these matters. We also welcome the reference to other existing experiences such as the two pillar solution on sub paragraph G. Thank you. Sorry. And also on 38, we support the commitment to work towards international tax cooperation framework that is beneficial to all parties considering the characteristic of developing countries and supporting the exercise of their taxing rights for a truly inclusive and effective international tax architecture. And on the other hand, we recognize the importance of tax progressiveness and taxation of high net worth individuals and welcome the proposal of creating a mechanism for reporting obligations, though we believe that we can explore expanding our commitment in this sense with measures such as creating a registry that allows for better transparency and information sharing among countries.

Thank you.

Thank you. United Kingdom, now you have the floor, followed by South Africa, then Jamaica.

Thank you so much. On 30e, we suggest clarifying that strengthening country-by-country reporting means increasing access for developing countries. The language later in this paragraph would risk creating a two-tier system and undermining carefully crafted tax transparency principles, which rely on consistent application of global standards, and we ask for this language to be reviewed. On 30, the UK believes that connecting existing registries is a more efficient solution than creating a new global register. On 30, we first need to develop before we implement innovative taxes, and we stress the importance of the voluntary nature of these, as currently in the text. On 31, We should add opaque structures of ultimate beneficial ownership to highlight the importance of globally advancing high quality, up to date and accessible beneficial ownership data across jurisdictions to tackle both illicit finance and corruption. This is a key action in fostering greater financial transparency and accountability. We could be more explicit about work on combating illicit financial flows and the importance of ensuring that existing and new development finance delivers its intended impact

as we strive to reduce the funding gap for development and prevent financial leakage.

This would not only restore public trust but also investor confidence. On 31a, we want to strengthen regulatory regimes. On 31b, we cannot support this proposal due to the large number of mandated financial themed meetings already held at the UN. We suggest that for every new meeting proposed at the UN, one meeting that is no longer needed is removed from the schedule to free up space for delegations to properly engage in constructive conversations. 31d, we ask for clarification from the co-facilitators on what they view as the barriers to asset recovery and what is meant by capacity building initiatives.

Thank you so much.

I thank the distinguished representative of the United Kingdom. And now I give the floor to South Africa, followed by Jamaica, and then Kiribati. South Africa, you have the floor.

Thank you. Like Algeria stated, we also support technical assistance and capacity building programs to help developing countries benefit from the newest international tax cooperation frameworks, such as Pillar Two. of the inclusive framework, which could generate a lot of revenue in the interim while a, a, a UN tax convention is being negotiated. Uh, I, I note, we note that the language in H on the global solidarity levies is very guarded and, uh, uh, we, we, uh, can support it as, uh, drafted, even though, uh, at the last PrepCom we expressed some concerns. Then with regard to the section on illicit financial flows, we appreciate the bold proposals from the co-facilitators. We were asking ourselves whether they were bold enough, but I think the lively reaction has answered that question. And then on national development banks, we wanted to say that they don't receive the necessary levels of resources needed to make real development impacts. So it's very important in our view that the section also addresses how new national development banks will be capitalized and how funding to NDBs can be scaled up. Thank you.

Thank you very much, South Africa. Jamaica, you have the floor, followed by Kiribati and then the Republic of Korea.

Thank you, Madam co-facilitator. Jamaica aligns with the statements delivered by the G77 and China and EOSIS. Jamaica believes that developing countries must have the opportunity to actively shape the reform of the international tax architecture. As such, we support the INC process for international tax cooperation. We wish to underscore the importance of increased capacity building support for SIDS to implement tax reforms and combat tax avoidance. Jamaica also supports the strengthening of national development banks and emphasizes the need for technical support for these banks. Thank you.

Thank you, Kiribati. You have the floor, followed by Korea and then Canada.

Thank you, Madam Facilitator. Kiribati aligns with the positions shared by AOSIS and LDC and would like to add the following in our national capacity. On paragraph 30B, we acknowledge the points emphasized in the text to ensure that all companies, including multinational enterprises, pay

taxes where economic activity occurs and value is created.

However, we stress the need for more action-oriented language that goes beyond principles. In this vein, we call for the inclusion of commitments to provide targeted technical assistance, capacity building programs and resource support to help countries to effectively implement and enforce these tax measures. This will ensure that the principles of international tax cooperation are not only aspirational but also achievable for all. With regards to 30G, we appreciate references on the provision of technical support and we propose a balanced approach emphasizing that technical assistance will be tailored to the unique circumstances of each country to ensure that they can fully benefit from the international tax cooperation framework, such as the two-pillar solution, while respecting each state sovereignty and addressing their specific challenges. On paragraph 32, CDB acknowledges the important role of national development banks in mobilizing resources to support sustainable development.

The ability to channel financial towards critical

sectors, foster inclusive growth and bridge funding caps is important, especially for countries with limited access to international capital markets. Equally important is specific strengthening of the capacity of these institutions to significantly enhance efforts to achieve sustainable development goals, particularly in war-torn economies. Thank you.

I thank you, and I now give the floor to the Republic of Korea, then Canada, then Australia.

Thank you, Madam co-facilitator. I would like to raise a point in paragraph 30 regarding the pre-built fully inclusive and effective international tax architecture, while the intention behind the fully inclusive is clear, the term fully may also be ambiguous in its scope and feasibility. In practice, achieving absolute inclusivity in international tax cooperation might be challenging due to varying national capacities and policy priorities. To enhance clarity and realism, I suggest modifying the phrase to building a more inclusive and effective international tax architecture. This adjustment acknowledges the ongoing progress and efforts. With regard to paragraph 30e, I hope that the content is reconsidered, as there is not enough discussion on establishment of a central public database for multinational cooperation and the reporting obligation for high net worth individuals by country. I thank you.

I thank you. And Canada, now you have the floor, then Australia, then Burkina Faso.

Chair, Canada is not supportive of the proposals in 30E to simplify reciprocity under automatic exchange of tax information. Canada values reciprocity under automatic exchange of tax information for sharing information, but that simplification of certain standards and conditions could negatively impact confidentiality standards, which would be problematic in most cases. We also recognize the role of the global forum in standard setting and wonder if this proposal would be duplicative. Additionally, Canada is not in a position to make country by country reports public as they exist to assist tax administration in risk assessment for transfer pricing, nor do we see the benefit in creating country by country reports for high net worth individuals. With regards to 30F, Canada is supportive of enhancing beneficial ownership transparency but feel the establishment of a global BO registry may be problematic. Besides being technically complex, the scope is too widely defined to be considered a transparency standard and it presupposes capacities at the national and subnational levels which may not fully reflect the realities. It is also duplicative of efforts currently undertaken by the OECD. Canada will submit proposals for textual edits.

Canada

proposes the deletion of 30H as we are not supportive of earmarked global levies and have outstanding questions on the desirability of using dedicated tax instruments to finance global initiatives. Thank you.

Thank you. Australia, then Burkina Faso, then Peru. Australia, you have the floor.

Thank you, Madam Chair. With regarding 30B, Australia recognizes the importance of international tax cooperation. There is a significant body of work being undertaken on this issue in other forums such as the OECD and we caution against duplicating or detracting from efforts. Regarding paragraph 30e, support for developing economies to maximize their accessibility to exchange of information also needs to be balanced against ensuring appropriate confidentiality and safeguards. This is important so as not to erode overall confidence in the EOI framework. On 30F, it's important to note there are already several international standards dealing with beneficial ownership, including the Financial Action Task Force. In this regard, if the reference to a global beneficial ownership registry implies a single register, this would go further than existing international commitments on beneficial ownership to date, and Australia does not support this. On paragraph 31, Australia emphasises that the standards being referenced should expressly be mentioned. In this case, it should mention the Financial Action Task Force requirements for countries to regulate designated non-financial businesses and professions and international corporations. These FATF standards are the internationally agreed standards relating to confiscation of assets as implemented by over 200 jurisdictions. Efforts to improve the effectiveness of asset recovery arrangements should focus on the best implementation of existing standards And not on the creation of new frameworks, bodies or mechanisms. On paragraph 31C, we fully support language regarding implementation, the UN CAC and implementation review mechanism. On 31D, we would like to see the inclusion of in line with international obligations in this paragraph to ensure consistency with and encourage the effective implementation of the UNCAC, UNTOC and FATF standards. Australia does not support language around barriers to asset recovery and return as countries should take steps themselves to address challenges rather than amending existing mechanisms that are globally accepted as best practice. On paragraph 31e, Australia recognises substantial persistent challenges that countries face in combating illicit financial flows. It's important that we ensure consistency with the FAT standards as the internationally agreed standards relating to confiscation of assets as implemented by over 200 jurisdictions. Thank you.

Thank you. Burkina Faso, you have the floor, followed by Peru and then Brazil.

Thank you, Madam co-facilitator.

Burkina Faso aligns itself with the statement delivered by G77 and the Group of Least Developed Countries. In our national capacity, we wish to make a statement on paragraphs 30 and 31, where we strongly support the emphasis made by G77 on countering illicit financial flows. and the position on fiscal transparency. The 2023 data for the Global Partnership for Effective Cooperation for Development reveals underuse, which is alarming, of national public finance systems. In this regard, we propose concrete measures to tackle this challenge in order to enhance the use of national systems for public management, public resource management, and cooperation.

We propose that there be a

priority adoption of a program with budget modalities, as well as to enhance national leadership in the coordination of operation efforts of the technical and financial partners, as well to harmonize applicable financial procedures for development projects. And now with respect to countering illicit financial flows, We propose reform of, uh, systematic tax exemptions, so which compromise, uh, domestic resource mobilization and to build a national, uh, control over and financial regulation capabilities. Turning to paragraph 32, we applaud the emphasis on the national public development banks, but we propose expansion of the vision to include all financial institutions for development.

These institutions are motors

and engines in long-term resource mobilization, specifically for the financing of critical infrastructure, as well as development of renewable energies. and agricultural transformation, as well as inclusive industrialization practices in order to ensure, and we propose the establishment of harmonized assessment and results monitoring framework to improve coordination of interventions and to ensure more effective resource mobilization. To conclude, we support the better efforts to tackle challenges faced by developing countries. specifically those who are particularly vulnerable when it comes to domestic resource mobilization for sustainable development. We welcome constructive work alongside all partners during informal discussions. Thank you.

Thank you very much, Burkina Faso. Peru, Brazil, and Cuba, you have the floor, starting with Peru.

I thank you. Thank you, co-facilitator, for giving me the floor. I wish to refer to 30c. We suggest here the inclusion of a paragraph related to the issue of the early protocol on the convention of international tax cooperation related to tax on income related to the provision of cross-border services in an increasingly digitised and global economy. Regarding 30a and 30f, we would like to have more detail regarding these possible commitments in particular whether this involves the creation of new standards and how these would interact with those already established within the OECD. Moreover, we would emphasize the importance of avoiding duplication of efforts and technical assistance. if new standards were to be created to help developing countries implement them? Thank

you.

Thank you, Colombia. Brazil, you have the floor, followed by Cuba.

Thank you, Chair. With regards to international tax cooperation, there's a need to have an enabling international environment so that domestic resource mobilization It can be achieved, so, uh, this will be crucial to create the fiscal space, uh, debt stability and enable investments, uh, in the SDGs. It's no coincidence that we have this tremendous concentration of wealth in the private sector and a huge fiscal, uh, lack of fiscal space and debt in the developing world. So, uh, tax should be, uh, paid, uh, just to support a para, a 30B, uh, where, uh, most lateral, uh, company should pay taxes in the countries where the economic activities occurs and the value is created and not at headquarters. Uh, this creates very unbalanced, uh, uh, conditions for developing countries, we also support, uh, the language, uh, in 30E, uh, regarding the, uh, country by country reports and also the extension to high net worth, uh, individuals. Equally, 30F, we also support the language on beneficial ownership transparency and strengthening domestic issues and on having a global beneficial ownership registry. This can be achieved through means that does preserve the safety of the beneficial owners while also providing the transparency necessary for taxation. We also support language on illicit financial flows and the realization of a meeting in 31b to address financial integrity. On 30d, we also support the enhancing of transparency practices for asset recovery and return. This is an outstanding issue, it's very relevant for developing countries. Regarding national banks, we agree, uh, the role that they should play, they have tremendous role, Brazil has a, a very significant development bank, the BNDS, which has a, uh, has, has, uh, contributed significantly to the achievement of SDGs in Brazil to advance in their achievements, we would however, in, uh… 32C suggest the addition of national, so we commit to define national regulatory requirements that reflect national development banks development focused mandates. That it's clear that these will be developed in the states where these banks exist and where they have their activities and not through a process here at the UN. So the rules defining Brazil's national banks should be defined by Brazilian authorities. Thank you.

Thank you, Brazil. Cuba, you have the floor, followed by Tanzania and then Yemen.

Thank you, Ambassador. Good afternoon.

In this section, there are a number of issues that we are very supportive of. Conceptually speaking, this is important for developing countries, and I know everyone is aware of the parallel discussion on international taxation. But we have a particular comment on paragraph 30f, the last line of that subparagraph where it refers to implementing transparency standards. We have questions and doubts about which standards or who would define the standards and how they would be monitored. So perhaps we see two options. Notwithstanding any clarification that the chair, that the facilitators or any other delegation might, might want to offer, but we can either delete the last line. of subparagraph F or add an upon request safeguard so that you implement the standards or you are helped in implementing the standards if you request them or something like that. But other than that, we are supportive of the section. Thank you.

Muchas gracias, Cuba.

Thank you very much, Cuba.

To Tanzania, followed by Yemen and then Sierra Leone. Tanzania, you have the floor.

Facilitator, we offer our comment on the following, para 30 should address fairer distribution of tax, taxing right, advocating for a revision of outdated international tax rules that currently do not favor developing economies. Second, while we appreciate the commitment to strengthen the representation of developing countries in global tax governance, we urge for more than mere consultations. Paragraph 38 should explicitly call for meaningful participation of developing nations in global tax rule-setting bodies, ensuring their interest and perspective are reflected in decision-making process. We suggest improvement on para 30 by reflecting the negotiation of a UN framework convention on international tax cooperation to be truly effective. There should be a tax ruling setting authority transition to a more inclusive UN-led framework rather than relying predominantly on existing forums where developing countries have limited influence. Additionally, while the document acknowledges the significance of technical assistance, we urge for paragraph 30 to have a broader scope that not only strengthens compliance with existing frameworks but also empowers developing countries to actively shape global tax standards. Moreover, in paragraph 38, the innovative taxation mechanisms should particularly focus on digital taxation is a crucial avenue for enhancing domestic resource mobilization in the developing economy. I thank you.

Thank you, Tanzania. And now I give the floor to Germany and then Sierra Leone.

Thank you, Madam Chair. Yemen aligns itself with the G77 and China and the LDC statements and offers the following specific comments on our capacity. So on Article 30, in paragraph 30A, we request deletion of framework reference and focus on ensuring international tax cooperation benefits all parties. We also call for the addition of on equal footing regarding participation. Uh, we support paragraphs 3B, C, D, uh, as currently drafted in paragraph 30E, we propose adding countries facing specific challenges to the listing. We propose strengthening language from evaluating to establishing regarding global beneficial ownership registry. We also, uh, propose including clear implementation mechanism in paragraph 30G, we request additional, uh, addition of financial assistance, we request shift focus from two pillar solution to support developing country participation in UN tax convention negotiation. On article 31, in paragraph 31A, we support current text but request clarity on standardizing regulatory regimes. Uh, in paragraph 31B, we suggest expansion of ECOSOC special meeting scope to include norm meetings, also to add peer review mechanism and include coordination of financial integrity action, we also request, request ECOSOC to determine meeting modalities. Uh, we also support paragraph 31D as drafted in paragraph 31F we request deletion of FATF standard reference on article 32, uh, in paragraph 32 the introduction we request adding while respecting national circumstances and development priorities in paragraph 30A we suggest removing perspective elements on bank capacities. and to add reference to international support mechanism and include technical assistance provision. In paragraph 32b, we propose focusing on concrete support measures rather than general commitment. In paragraph 32c, we request clarity on regulatory requirement reference. Additionally, we support the group of 77 and China's call to strong framework for concrete capacity building measures. Yemen stands ready to provide specific textual proposals. Thank you.

I thank you, and I now give the floor to Sierra Leone, followed by Pakistan, please.

Thank you, Madam Chair. Sierra Leone aligns itself with the statement made by G77 and China, the African Union Group, and the LDC Group. On our national capacity, we appreciate the fact that the document underscores the importance of national development banks to sustainable development. And we think that, especially for countries that do not have access to international capital market, this is really crucial. It is on that note that we call for a review of the language in paragraph 32A. So for the first part, instead of saying we encourage countries with development banks to reinforce their capacities, it could read as we call on countries with development banks to reinforce their capacities. The second part of that paragraph says that call on countries without development banks to establish such institutions. We are suggesting that it should read as, we commit to provide support to countries without development banks to establish such institutions. We think this is really important and Sierra Leone is ready to submit a written statement on this. Thank you so much.

Thank you. Pakistan, you have the floor.

Thank you, co-facilitator. In paragraph 30, a we request that the reference to frameworks be deleted and the focus be on ensuring that international tax cooperation is beneficial to all parties in order to ensure their participation on an equal footing. we support paragraph thirty b c and d in paragraph thirty e we propose the addition of countries facing specific challenges. in the listing and suggest that the paragraph contain an outright commitment to establishing a global beneficial ownership registry rather than simply further evaluating. In paragraph 30G, we request the addition of financial assistance and request the paragraph's focus be shifted away from the two pillar solution to instead the provision of support for developing countries to meaningfully participate in ongoing negotiations on the UN Framework Convention on International Tax Cooperation. In paragraph 31b, we support the reference to an ECOSOC special meeting on financial integrity. We suggest that the scope of the meeting be expanded to include developing norms and standards, undertaking peer review, coordinating action on financial integrity, and developing and exchanging best practices. Furthermore, we propose requesting ECOSOC to determine the modalities for this meeting. We support paragraph 31 and we ask for deletion of the reference to FATF standards in paragraph 31. Thank you.

I thank you. And now I'm going to give the floor to the International Chamber of Commerce, followed by the African Administration Forum, Yes. So the International Chamber of Commerce, you have the floor, please.

Thank you, Madam Chair.

We appreciate the opportunity to provide input also on.

Paragraph 30, and we also thank you for giving us the floor again.

As ICC, we recognize the importance of international tax cooperation and acknowledge the recent important developments in this area.

Out of the negotiations for the UN tax framework convention and its two early protocols, we would like to reiterate that for the business community, the primary goal for.

This new UN initiative should be to mitigate inconsistency, announced tax certainty, and stabilize this international tax system.

This can only be achieved if any of the solution adopted can count on the broadest buy-in from countries. As also indicated in paragraph 28 of the zero draft, in a globalized world, a stable and conducive international economic environment is essential for realizing the full potential of domestic public policy and resources.

Clear and consistent tax rules across.

Jurisdiction provide certainty for taxpayers regarding their tax obligations and compliance obligation, fostering a more favorable investment climate for sustainable.

Development.

Conversely, unilateral, uncoordinated, inconsistent tax measure risk acting as barriers to trade and sustainable investment.

Which are crucial for achieving the sustainable development goals?

For all these reasons, more specific reference to tax certainty in paragraph 30 would be welcome.

We also welcome the reference to the importance of careful analysis of the implication of international tax cooperation in paragraph 38. We believe that any international tax policy frameworks and rules, both in the context.

Of the UN Tax Committee of Experts or the UN Tax Framework Convention and its protocols.

Should be backed by comprehensive and thorough research that can provide countries with data and evidence on the.

Implication of such policy before introducing them in their own countries.

Tax policy is not just a necessary means of raising government revenues, but should encourage sustainable.

Growth and development through investment in jobs, infrastructures, and technology, which promotes free trade, sustainable investment, and fair competition.

We believe the tax.

System should support a level playing field among all businesses, ensure the elimination of double taxation, and simplify administrative processes. The implication of such international tax framework and policy should thus not be only looking at the revenue collection component, but also at trade and investment aspects. Moreover, we are fully supportive of inclusive multilateral processes. However, we believe in a stable international tax framework can only come from building an inclusive approach from all.

Stakeholders participation, which includes governments, but the taxpayer as well.

Working, reflecting stakeholder participation and involvement in the UN tax framework convention negotiation would be also welcome. I thank you.

I thank you. And I now want to give the floor to the African Tax Administration, followed by IFAD.

Thank you, Chair, for the opportunity. The African Tax Administration Forum appreciates the opportunity given to us to share our perspective. On international tax cooperation, we strongly believe that the times present a rare opportunity to help effectively address gaps and inequalities in global rules and suggest that the language be strengthened in paragraph 30C to read as follows. We welcome the establishment of the Intergovernmental Negotiation Committee to negotiate a United Nations Framework Convention on International Tax Cooperation and commits to engage in the negotiations with a view to securing an outcome that is inclusive, effective, and efficient, and supports the efforts of members to raise sufficient resources to fund sustainable development goals. Secondly, Chair, on capacity building. On paragraph 30G, we believe that the paragraph would benefit from more impactful language and removing the word demand-based and to expand the scope to more frameworks. We therefore suggest that it reads, we will provide developing countries with technical assistance and capacity building programs to ensure they benefit from all international tax cooperation frameworks. And thirdly, the combating of illicit financial flows is critical to effective collection of taxes for development, and we do suggest an addition of a new subparagraph g to paragraph 31 that reads as follows, we will seize the opportunities of the negotiation on the UN framework in international tax cooperation to explore how such a framework could be utilized in tackling the tax aspect of illicit financial flows. I thank you, Chair.

Thank you, and I want to give now the floor to civil society. I have civil society six, which is Tax Justice Network Africa and Society for International Development. You have the floor.

Thank you very much, Madam Chair. I'm speaking on behalf of the CSFFD mechanism.

Under the section on international tax cooperation and innovative taxes, we wish to note, as has been mentioned severally, that during the last two years we have seen a truly historic breakthrough in international tax.

Cooperation with the terms of reference for a new UN framework convention, as well as the two early protocols.

Just last week, the organizational session of the UN tax convention negotiation was successfully completed, and the process is now ready to move forward. Against this background, a general comment on paragraph 30 as a whole is that there is reference to international tax cooperation frameworks in plural. The FFd4 should be clear in protecting the agreed TORs of the UN Framework Convention and not allow for any misinterpretation of this mandate. It's also important to recognize the agreed decisions that were made in the INC, such as on decision-making. There should be no attempt to reverse this within the FFD negotiations, as has been suggested by certain Member States.

On paragraph 30.

We align with the Africa Group, Palau, Guatemala, among others, that the language should be stronger and call for the.

Replacement of the words engage constructively with support. In reference to 30G, we also agree with the Africa Group and recommend the deletion.

Of the reference to pillar two.

This paragraph is highly problematic and seems to ignore the very important discussions that have taken place on this issue during the negotiation.

Of the terms of reference for the UN Framework Convention. Global South countries have expressed strong concerns with the two pillar proposals, both from an effectiveness and inclusiveness perspective. It's also worth noting that there is currently no consensus among Global North countries themselves on whether to implement the two pillar proposal. In relation to 30H, we want to underline that.

Issues that have been covered by the terms of reference should not be renegotiated here in the FFD process.

Any global tax proposals, including solidarity level levies, should be developed in an inclusive and universal.

Forum, and when these are negotiated, the language should include the conducting of tax incidents analysis to assess the tax burden.

Under illicit financial flows in paragraph.

31f, we agree with the Africa Group and other Member States and recommend the deletion of the reference to FATF as it is an OECD housed body that does not allow all developing countries to participate in an equal footing and has resulted in the unfair blacklisting of developing countries.

Thank you very much, Madam Chair.

I thank you. And I'm going to give now the floor to the next representative of civil society and then five, which is Transparency International. And then IFAD and Yemen, you will have the floor. So civil society five, Transparency International, you have the floor.

Thank you, Chair. I hereby speak on behalf of Transparency International and the civil society FFD mechanism. We see that the zero draft of the outcome document recognized the significant importance of transparency of the real or beneficial owners of corporate vehicles and global assets and the professional service providers who establish them as a key policy reform to support sustainable development and integrity and economic governance. Beneficial ownership transparency is a vital concept to address financial secrecy and prevent illicit financial flows, natural resource crimes, corruption, and international tax abuse. We welcome that the zero draft explicitly mentions beneficial ownership registers on paragraph 30F, but it does not mention that they should also cover other corporate vehicles, such as trusts, nor increase transparency of high value assets, such as real estate and luxury goods. BO data should be verified, publicly accessible and interoperable so that it can easily be used by competent domestic and foreign authorities, civil society and the media in uncovering illicit financial flows. Additionally, we celebrate that the zero draft commits to designing a beneficial ownership global asset register on paragraph 30F, which again should have access public asset to vital assets such as vessels, lands, real estate, and other assets that can be misused for all types of illicit financial flows. This holds significant potential to tackle natural resource crimes such as illicit logging, fishing, and mining, while also unveiling hidden wealth and supportive progressive tax policies. FFD4 should stress that beneficial ownership and the global asset register should be included and discussed within the negotiations for a UN tax convention in an inclusive and transparent manner, incorporating experts' view from governments, academia and civil society organizations. The zero draft recognizes the vital status of automatic information exchange in tackling hidden bank accounts. and that it has not benefited all countries, in particular developing countries, due to political constraints and excessive compliance burdens. We ask to make actionable commitments in FFD process to address this within the UN tax convention negotiations. Finally, we are encouraged to see a strong call to action in paragraph 31A to regulate and hold accountable the enablers of illicit financial flows. And emphasis of the establishment of effective supervisory frameworks in opposition to current self-regulatory bodies is key to events integrity measures that serve an equitable and just financial system. Thank you.

I thank you and I give the floor now to IFAD.

Our contribution is related to the paragraph on national public development banks. At EFAD, we welcome the outcome document's focus on public development banks, particularly at the national level, as catalytic actors able to leverage their balance sheets

and deploy innovative tools for development outcomes.

We encourage recognition of the potential for national PDBs to work with other development banks at all levels, collaborating as a system, taking advantage of their transformative potential when working together. This is particularly important in the agricultural sector, where PDBs provide nearly two-thirds of formal agricultural financing. In that regard, we suggest recognition of the work of the Finance in Common network, a global network of all public development banks, of which IFAD is an active partner. Thank you.

Thank you, IFAD. And with this, we have finished this section. I will pass over to Ambassador Merele to continue with the next section. Thank you.

Thank you very much, Alicia. And As we said initially, uh, we will then start reading the section on domestic and international private business and finance, where we invite comments on the full chapter, uh, at this time. As was a message through the lunch break, we will give groups seven minutes and individual states four minutes for the whole chapter, and we have 90 minutes in which to do it. So let's start with the representative of the Philippines on behalf of the group 77 and then the representative of Angola on behalf of the Africa Group, if I've gotten this right. So Philippines, you have the floor.

Thank you, Ambassador. The group thanks the co-facilitators for taking into account the group's initial inputs. The zero draft has more balance than the elements paper. The mention of reforms at the global level in paragraph 33 and global enabling environment in paragraph 35 are welcome. Attaining the right balance between national and global actions is critical for the group. We reiterate our position that private resources may not be suitable for all sectors and countries and thus not a substitute for traditional ODA. The group reaffirms that private international capital should complement and be aligned with national development plans and priorities, and this can be better reflected in the text upfront. Although there is a call for all blended finance to be aligned with national sustainable development priorities and industrialization strategies and promote country-led ownership, this should apply to all forms of private capital mobilization. We support the section on remittances in paragraph 34 and call for its strengthening, as it largely repeats language from Addis. This can be done by reaffirming the positive contribution of migrants to the sustainable development of countries of origin, transit and destination. We also wish to see more operational and action-oriented text that not only seeks to reduce the costs of sending remittances, but also maximizes their impacts on sustainable development on the ground. We underscore that remittances in no way replace ODA, FDI and other financial flows such as climate financing. Regarding innovative risk sharing instruments in paragraphs 34, 35 and 36, we would appreciate more information on their effects in developing countries, good practices. We note some progress of governments in efforts to de-risk investments and develop local markets, and we'd like to see more concrete examples of successful mechanisms that can be emulated. We appreciate that MSMEs and their access to affordable credit are reflected in paragraph 34 and look forward to more concrete actions to provide institutional and financing support for MSMEs in developing countries. We recommend that capacity building for developing countries be enhanced through concrete programs and targets, possibly on financial inclusion and health, digital technologies and entrepreneurship. On the call to scale up FDI, the group underscores this should apply to all developing countries in paragraph 35a. FDI should be geared towards structural transformation, diversification of economies, generating higher value products and decent jobs in developing countries, and help to attain development through bankable projects and infrastructure and other goals. We would like to see more concrete actions outlining what developed countries should do to facilitate a large scale investment push including regulatory changes and de-risking. We believe that actions in 35b to improve information investment opportunities in developing countries through partnerships should be expanded, made more ambitious, and not only focus on the SDG Investment Forum. We appreciate points on reform of credit ratings agencies in paragraph 35, as well as in the debt section. We appreciate actions directed at MDBs, in 35G on IDA that provides finances to crowd in private sector investments in low-income countries, in 35H on establishing pools of catalytic capital with simplified and transparent access requirements and development of repositories of guarantee instruments, and 35I on enhanced technical assistance to help developing countries prepare and support high impact infrastructure projects. However, We should establish a private capital mobilization target to increase the PCM ratio by 2030 to serve as a performance indicator to assess MDV's effectiveness in attracting private investment. We also suggest that concrete targets to increase pools and access to catalytic seed capital for structural transformation be included in the text. A paragraph in this section should be added calling for financial and technical assistance to developing countries to develop bankable projects. We wish to caution against the narrative that the private sector will naturally fill in the development financing gap and unmet commitments if developing countries take on the main burdens to attract private capital through domestic regulatory reforms. The private sector can, must, and does play a role. But despite reforms, many countries still do not see the needed increase in private capital. Hence, we also caution against prescriptive and conditional actions and one-size-fits-all approaches. Paragraph 36 contains recommendations on sustainable finance legislation, adoption of standards and governance frameworks that need more detailed assessment, including considering unintended consequences on developing countries. Noting the need to rephrase paragraph 36 and its sub-bullets, we do not wish to create even more barriers for developing countries. In conclusion, success of this section depends on enactment of concrete measures to stimulate private capital flows that support developing countries' national development, country-led plans and programs at the needed scale, speed and quality. Thank you, co-chairs.

I thank the representative of the Philippines and now give the floor to the representative of Angola on behalf of the Africa Group and to be followed by the representative of Madagascar. Angola, you have the floor.

Thank you and good afternoon, madam co-facilitator. The African Group aligns itself with the statement delivered on behalf of the G77 in China and we wish to add the following. Paragraph 34 should include a reference to providing capacity building support for developing countries and African countries to strengthen our institutions. Regarding to paragraph 34, SMEs, which form the backbone of African economies,

face persistent financing gaps despite their significant contribution to employment and GDP.

Development of alternative credit scoring models using digital footprints and transaction data can help overcome traditional collateral constraints. The paragraph should call for digital finance services and fintech solutions to be leveraged to expand SMEs access to working capital and growth financing. On paragraph 34, it is Remembering in some African countries remittances represent over 20% of their GDP. However, Africa is home to some of the most expensive remittances corridors with the average

cost of sending remittances around 80.5%. Africa will benefit immensely from reducing of these transaction costs.

Paragraph 35h and i, there should be a clear recognition that a significant portion of these resources should be allocated to Africa. Currently, there's only a vague of reference to i, impact infrastructures, projects in countries in special situation.

Regarding to the section on

FDI, we request an additional bullet calling for development of more innovative de-risking instruments such guarantees and first loss provisions. Project preparation remains a key roadblock to crowding in private sector finance into sustainable development projects in Africa.

We thus request an additional paragraph in 35 committing to support the development of projects from

the very early stages of the project preparation life cycle and to assist developing countries in developing projects as the necessary scale that replicable through dedicated projects

preparation facilities with significant concessional resources.

The implementation of a digital payment corridors should be added as a way to reduce transaction costs. Development partners should commit to the creation of enabling regulatory frameworks for new remittances, back financial products including diaspora bonds

and securitization of remittance flows. The integration of remittance channels with domestic financial system can enhance their development impacts through investment vehicles tailored to the diaspora investors.

Thank you.

I thank the representative of Angola and now give the floor to the representative of Madagascar on behalf of the LDCs to be followed by the representative of the European Union. Madagascar, you have the floor.

Thank you, Ambassador. The group of LDCs align itself with the statement made by the Philippines on behalf of the G77 and China. We appreciate the draft's recognition that private investments in sustainable development has not met expectations, contributing to a widening SDGs investment gap. For LDCs, this gap is particularly acute. We support the inclusion of language on the need for systemic change at both national and global levels to better align private sector activity with sustainable development objectives. However, we believe this section could be further strengthened to address the specific needs and challenges of LDCs. We propose the following additions and enhancements. On capital market development, we call for increased support to develop domestic capital markets in LDCs, including through technical assistance and capacity building. This should include support for issuing green bonds, social bonds, and other innovative financing instruments aligned with sustainable development. As of 2022, only a handful of LDCs have issued sovereign green bonds. We need dedicated assistance to develop the necessary regulatory frameworks and market infrastructure. On risk management and local insurance markets, we emphasize the importance of developing comprehensive risk management and insurance markets in LDCs. This is particularly crucial for smallholder farmers and SMEs to protect against climate impacts and other shocks. We request specific commitments from development partners to support the creation of affordable and accessible insurance product in LDCs. Regarding MSMEs and access to credit, the draft rightly highlights the need to expand access to affordable credit for MSMEs. For LDCs, we stress the importance of strengthening the entire MCME ecosystem. including the local banking sector. We call for dedicated capacity building programs and enhanced local currency financing options for MSMEs in LDCs. On digital public infrastructure, we strongly support the inclusion of language on leveraging digital technologies for financial inclusion. For LDCs, we call for specific commitments to support the development of digital public infrastructure, including digital ID systems, payment platforms, and data exchange frameworks. This is essential for expanding access to financial services and fostering innovation in our economies. Regarding remittances, we appreciate the commitment to reduce remittance costs to less than 3% by 2030. However, we urge more ambitious actions for LDCs where remittance costs remain significantly higher than the global average. We call for targeted interventions to bring remittance costs for LDCs below 3% by 2027, including through support for digital remittance solutions and enhanced competition among money transfer operators. On foreign direct investment, we note with concern that LDCs receive only less than 2% of global FDI. To address this To address this, we call for developed countries to implement tax incentives and risk mitigation mechanism for the companies investing in productive sector in LDCs. Enhanced technical assistance to LDCs for investment promotion and facilitation, support the LDCs to negotiate fair and balanced investment agreement that protect policy space for sustainable development. We strongly urge full and timely operationalization of the International Investment Support Center for LDCs as called for in the Doha Program of Action. This center is crucial for providing technical assistance and investment related support to LDCs. On blended finance, while we appreciate the inclusion of blended finance in the draft, we note with concern that only six to 7% of blended finance currently flows to LDCs. We call for a specific target to direct at least 50% of blended finance to LDCs by 2030. Additionally, we urge development partners to increase the use of local currency lending in blended finance transactions to mitigate currency risk for LDC borrowers. Enhance support for microfinance institutions in LDCs to expand their reach and impact. Ensure blended finance initiatives are aligned with national development priorities and promote country ownership in LDCs. Besides these comments, we propose the inclusion of the following additional elements in this section. Enhanced capacity building for LDCs to negotiate complex contracts, particularly in extractive industries and infrastructure projects. Commitments to address the specific challenges faced by landlocked LDCs and small island LDCs in attracting private investment. Support LDCs to leverage diaspora finance through innovative instruments and platforms We call for stronger language and de-risking in line with the Doha program of action, which commits to incentivize additional financing and investment in quality, reliable, sustainable, and resilient infrastructure and facilitate efforts to channel long-term sustainable investment to LDCs. We also highlight the importance of referencing the commitment to increase deployment of digitally enabled and fintech solutions that can be directly linked to livelihood improvement and economic activities, especially in remote low demand areas to help close to access gap and bridge the last. last mile. Last week, we called for strengthening the following elements already present in the draft. More concrete commitments on reducing the cost of capital for investment in LDCs, including through enhanced use of guarantees and other risk mitigation instruments. Specific targets for increasing the share of long-term patient capital flowing to LDCs.

Stronger commitment

Thank you, Mr President. I thank the representative of Madagascar and give the floor to the representative of the European Union, to be followed by the representative of Yemen.

Thank you, Excellency. I'll try to run through these quickly.

This is a very

important part of the documents, and we strongly support references to the need to mobilize additional private capital, as it's clear that the public sector alone will not be able to match the huge financing needs to address global challenges. And in particular, we appreciate the focus on addressing investment barriers to establish conducive environments for attracting private investors and promoting the development of innovative financial solutions and risk sharing instruments. So in paragraph 33, we would strengthen the language on an affirmative role for de-risking through innovative instruments. In paragraph 34, we would stress that the business environment and investment climate play crucial roles in the development of a country's domestic financial sector, and that reforms, development of capital markets, and measures that improve market liquidity are important part of the business enabling environment. In paragraph 34a, we would -- we have some suggestions to add a more complete listing of the actors. In paragraph 34b, we would suggest to focus more on common principles as one size does not fit all. So to refer to building blocks of an effective and enabling environment, which would include commitment to promote legislative and administrative reforms towards gender equality in access to ownership and control over land and the means of production inputs and so forth. 34 we would suggest a reference to innovation in the interest of having really systemic change so that public funds end up being really made best use of and that they rise up to their potential. 34 we would suggest a new bis on the use of guarantees. And 34e ter, we have a suggestion on how to lower cost of remittances and the placement there would be flexible, but that's where we suggested. On paragraph 34f, it's important to recognize the scope and mandate of international standard setters, market authorities, and regulatory and prudential regulators to avoid unintended consequences in financial and capital markets. and international discussions on prudential frameworks and regulation need to be held in the appropriate standard setting bodies. So we have a deletion to suggest there. Paragraph 34G, we would add a reference to people with disabilities. And in paragraph 34I, we don't think it's appropriate to harmonize necessarily, but rather refocus on interoperability so that we don't fall on lowest common denominators. So to phrasing it to foster interoperability of rather than harmonizing regulatory frameworks. We would also add to that same paragraph an invitation to the World Bank to where work is ongoing on remittances to suggest concrete actions on how these costs could be lowered. And we have a new 34 J to encourage member states and international bodies to ensure conducive environment to harness potential of all types of social and solidarity economy entities. Then on paragraph 35. We would add to recognize that public finance alone is insufficient and that it should play a dual role.

So mobilizing funds from.

Private sources for sustainable development, but also helping to address systemic barriers to national and international private investment. in a structural manner. So beyond investment, the risking, there's a need to incentivize catalytic and systemic action through support for design and implementation of the right kind of financial and sectoral policies, regulations and environment enabling systems. With a view to the same objective here, we would also call for language on more language on public private partnerships with shared ownership including mechanisms that share risks and rewards in a proportional and successful way.

We have a few.

Questions on paragraphs 35a, b, and d, so we will be asking a few clarifications on those. We would also ask to add a reference to technical assistance in 35b and Some edits also to 35D. In 35D, it might also be beneficial to refer to investment in social infrastructures and particular attention to LDCs and fragile contexts. We strongly support paragraph 35F. It's in line with the preferences from investors and makes it easier for donors to manage guarantees. 35G, we would prefer to delete this paragraph as we don't agree with singling out the IFC. And with that deletion, the rest of the paragraph just doesn't make sense in relation to IDA. So that paragraph is the only one that so far that we've completely suggested to delete. 35H, we would add language inviting MDBs to continue exploring use of innovative financial instruments, including portfolio guarantee platforms. And 35 I, the need for MDBs to provide coordinated technical assistance for project preparation is reflected in the G20 roadmap for bigger, better MDBs. And so we have some suggestions to add language on in that respect. 35 K, which is on credit ratings. So we might suggest to refocus the paragraph on promoting transparency. I mean, we have concerns on any suggestions to reevaluate credit rating methodologies. So we have suggestions in that paragraph. I think I have a few more comments.

I realize I'm running out of time.

But I do hope that it's appreciated that we have coordinated our positions and there are not 27 other delegations waiting to take the floor on this. So I will leave it at that.

But we have some additional comments we'll send to you in writing. Thank you.

Thank you very much. I now give the floor to the representative of Yemen to be followed by the representative of Cuba. Yemen, you have the floor.

Thank you, Madam Chair. Yemen aligns itself with the statements delivered or to be delivered by the Group of 77 and China and the less developed countries, and offers the following comments on our capacity. On Article 33, we welcome the recognition of global reform, but we request clear statement that private resource cannot substitute for ODA. Uh, addition that private finance must align with the national development plans, uh, recognition that private finance is not suitable for all sectors, uh, deletion of evidence shows as unspecified, clarity on not meet expectation reference, addition of reference to developing countries constraints. Deletion of evidence shows as it's specified, clarity on not meet expectation reference, addition of reference to developing countries constraints, deletion of vague references to growing interest, addition of concrete measures to address high financing cost, specification of misalignment issues. Article 34 and paragraph 34a, we suggest maintaining sequential approach but adding flexibility to it, including international support mechanism clarifying as appropriate criteria in paragraph 33B and C we propose adding according to national priorities deletion of prescriptive policy framework elements clarification on model framework reference addition of specific capacity building measures. We support paragraph 34D as drafted in paragraph, uh, 34F to H regarding MSMEs and financial access. We support current language but need stronger implementation mechanism and concrete programs for capacity building as well as including specific targets for financial inclusion. On remittance, 34I, uh, 34I, we support cost reduction target. We request addition of concrete measures beyond cost reduction and possible adding reference to remittance not replacing order in paragraph 35 in, uh, 35 in the introduction, we request strengthening the language on obstacles faced by developing countries, adding concrete measures to address information availability and clarifying. Official sector efforts reference in paragraph 35A, we request extending FDI's commitment to all developing countries, add language on structural transformation and economic diversification, include reference to decent job, uh, creation in paragraph 35. and E, we support expansion of investment information sharing. We request more ambitious partnership frameworks. We need concrete targets for catalytic capital. In paragraph 35G and paragraph 35G to I, we welcome the MDB provisions, but we request specific targets on increasing catalytic capital and we support technical assistance, but we need implementation details. Article 36, in paragraph 36, the introduction, deletion of recent surge, reference without data, clarity of voluntary framework, addition of developing country perspectives. In paragraph 36, paragraphs 36 D to G, we express concerns about descriptive sustainable finance legislations. We request removal of one-size-fits-all approaches. We need detailed assessment of proposed standards. We support the interoperability of taxonomies, but we request flexibility in implementation, capacity building, and recognition of different starting points. Yemen stands ready to provide any text proposals for this. Thank you.

I thank the representative of Yemen and now give the floor to the representative of Cuba to be followed by the representative of South Africa. Cuba.

Thank you, Madam Chair. Well, my delegation aligns its comments with those already made by the G77 and those that will be provided later by EOSIS. In national capacity, I would like to add several points. First, in paragraph 34b, we request clarity on why is a model framework necessary? Who would elaborate this model? Would it be the UN? It is important to understand why a generic model framework is needed to create enabling environments for investment in sustainable development. particularly in light of the diverse context and priorities of different countries. Investment strategies, in our view, should be adaptable to the uniqueness of each country, such as economic structure, resource availability, social context, and development priorities. So the question arises whether a one-size-fits-all approach would be feasible or should it be more effective to provide guidance tailored to different national contexts. Second, In our view, national legislation also plays a critical role in shaping how investments are made and ensuring they contribute to long-term development goals. A clear understanding is needed on how the model framework would work in tandem with existing national laws and regulations and whether it might impose constraints that are at odds with the local context. Third, we would like to see a greater link on the contribution that paragraph 34H could do to the closing of the digital divide where you are mentioning the leveraging of emerging digital technologies. So in our view, this needs to go line in line with the goal of bridging the divide that currently exists. On fourth place, we would like to emphasize the need to remove obstacles to remittances. My country is currently facing problems in that regard because of the U.S. economic, commercial, and financial blockade. Currently, we cannot use Western Union, for example, for Cuban persons to send remittances to their country of origin, to their families. So this has a huge impact on families. So we would like to see language on not imposing, uh, obstacles to the natural flow of remittances. When it comes to, and finally, when it comes to paragraph, uh, 36, uh, my delegation would also like to request clarification regarding the transposition of international standards. We would appreciate further details on how these ISSB and the GRI standards would be carried out at the national level, specifically on how these standards would be adapted to national context with the varying regulatory, economic, and institutional capacities. How will consistency be ensured, and what support will be provided to countries that may face challenges in implementing these standards? Thank you.

I thank the representative of Cuba and now give the floor to the representative of South Africa to be followed by the representative of Palau. South Africa.

Thank you for a generally good chapter. We have a few suggestions. On paragraph five, the question here really is to the action points. listed match up to the robust action promised in the Chapeau about strengthening the global enabling environment for long term private investments, and we suggest it's important for development partners to play a more strategic role in providing catalytic capital to crowd in private sector involvement into projects. So we propose an additional bullet point committing to the provision of first loss capital to improve risk return profiles. and thus incentivize others to invest and for more innovative risk sharing and de-risking instruments such as guarantees and insurance, which are vital in mitigating investment risks and attracting private capital to development projects. A key priority for FDI should be the strengthening of regional integration through infrastructure development. We believe that investing in fewer, larger and more transformative regional operations that are specifically targeted at important sectors will result in greater impact. In paragraph 35D, we believe that for the private sector to be crowded in effectively, we need to see clear commitments for higher leveraging ratios in blended capital. We would like to see a call to significantly increase the mobilization ratio of finance mobilized from public sources by 2030, we note that this is also a recommendation of the FFD4 business steering committee, on paragraph 36E. We worry that this language might result in mixed messaging at a national level, potentially introducing three different regulatory standards to be implemented, national, ISSB, and GRI. This would create uncertainty in financial markets. We would propose that this language be reviewed to ensure that it allows for a national country-driven approach to transposing the international standards at a national level. On paragraph 35G on the interoperability of taxonomies, It would be useful to get a sense of what this would entail as it is unclear to us how this would work. And then finally, we support the calls that have been made for an additional bullet point on assistance with bankable project preparation. And we note that especially early stage project preparation is an area that's neglected in the international architecture. Thank you.

I thank the representative of South Africa and now give the floor to the representative of Palau on behalf of the AOSIS, to be followed by the representative of Guatemala. But Palau, you have the floor.

Thank you. Thank you, Ambassador, for giving me the floor. And on chapter two, AOSIS does not have many comments. Maybe like the colleagues before us, we do have a few questions and seeking some clarity on some of the proposals that we see in the zero draft. But let me also take the opportunity to thank you and all of the co-facilitators for giving us the room and the space to present the diverse views of the developing countries, especially for SIDS, given that this is usually a space and a topic that SIDS are often not included in when we are discussing reform of the international financial architecture. So we certainly appreciate how the co-facilitators are conducting the work of the PrepCom and giving us the space to express our views. Turning to paragraph 34, EOSIS would like to request from the co-facilitators further clarity Specifically on the proposal regarding the development of a model framework, it would be useful to get a sense on whether there is a specific actor in mind for developing this model framework. Is this a domestic or international model framework? Pending the responses to these inquiries, we believe that this proposal and its objective can be made much clearer. On paragraph 34b, EOSIS would request explicit reference to disaster and climate change impacts and to add to the end, uh, promote approaches that mitigate future risk and improve insurance coverage. we believe that insurance markets must take into account the frequency and scale of hazards and improve coverage without undue burden on the poorest and most vulnerable. Approaches should also be focused on building resilience and mitigating future risk at the same time. On paragraph 34f, MSMEs access to support should not only be limited to affordable credit as access to grants and other financing instruments can support their development. Therefore, we would request to replace affordable credit with affordable financing to broaden the tools that are available to MSMES. And on paragraph 24J, EOSIS fully and strongly supports this paragraph and would like to strengthen it further. The paragraph should call upon institutions to also restore correspondent banking relationships in cases where such services have been stopped. In addition to technical assistance programs, which we definitely wish to see retained in the text, we'd also like to add capacity building to countries in need. Lastly, the paragraph should also reflect the need to prevent the loss of such correspondent banking relations and services that negatively impact developing countries. On paragraph 35, ELSA strongly supports 35A and the reference to the various mechanisms to support the LDCs, LLDCs and SIDS, in particular the SIDS Center of Excellence. We wish to further strengthen this paragraph by calling for the timely establishment and support for all of these mechanisms. On paragraph H, EOSIS proposes replacing the word standardized with harmonized, which is the term usually used when we're referring to simplifying procedures for accessing funding. And on paragraph I, We request that the reference to countries in special situations is unpacked to read specifically LDCs, LLDCs, and SIDS to lend more clarity to the paragraph given that some MDBs may not use the nomenclature of countries in special situations. Turning now to paragraph 36. On paragraph 36, I think similarly to previous delegations, We would also appreciate the co-facilitators clarification on what is meant by we will transpose at national level the standards of the ISSB and of the Global Reporting Initiative in parallel, given that these are two separate bodies and it's not entirely clear how we would reconcile this approach. And then on paragraph G, we'd also request further clarification on the proposal regarding the development of a roadmap for the interoperability of taxonomies, particularly the reference to the efforts of the UNFCCC COP29 presidency. It is EOSC's understanding that there is no work on this explicitly under the UNFCCC and another way of such efforts. In this regard, we would be grateful for any further information on this. including if there is a source for this language as well. And then lastly, with your indulgence, Madam Ambassador, my delegation would also be grateful for the co-facilitator's guidance on when we can possibly expect responses to these inquiries, given that we may have to consult further on these and possibly revert if necessary. But that being said, thank you very much for giving me the floor.

I thank the representative of Palau, and I now give the floor to the Vice Minister for Foreign Affairs of Guatemala, to be followed by the representative of Saudi Arabia. But you have the floor, Your Excellency.

Thank you very much for giving me the floor. Guatemala aligns itself with the statement made on behalf of G77 and China. I wish to thank the co-facilitators for including and recognizing the importance of remittances within financing for development. Guatemala is supporting the campaign of the International Day for Family Remittances 2025 with the support of IFAD because we recognise the contributions that migrants make to their families, communities and country of origin. It is crucial to explicitly recognise this transformative potential, that is that of remittances, in the development of beneficiary countries. This is particularly true in rural areas where remittances can contribute to financial inclusion and economic resilience. If it were to recognise the fundamental role of remittances in developing countries, the outcome document of the conference would become more greatly aligned with international instruments and as such would provide crucial momentum to achieve the SDGs. We support the proposal made to increase efforts to reduce transfer costs of remittances as well as to increase the digitization of transfers and to promote financial literacy so that remittances can become a tool for productive investment and sustainability. Moreover, regarding paragraph 35c, Guatemala would suggest moving the section on diaspora investment to the section on mobilizing private capital for sustainable development because in our view, that investment cannot be classified in accounting as foreign direct investment. We must seek to ensure that remittances have a greater impact on developing countries. We should support, therefore, the private sector so that they can offer financial services linked to digital remittances in order to increase the savings base, investments and insurance, including for climate resilience. All of the above is what we should bear in mind while at the same time recalling that remittances are private capital and cannot be considered as a substitute for ODA nor one for climate finance. Thank you.

I thank the Vice Minister for Foreign Affairs of Guatemala and now give the floor to the representative of Saudi Arabia to be followed by the representative of India. Saudi Arabia please.

Thank you, Madam co-facilitator.

On paragraph 34, we suggest to actively incentivize private sector participation through structured impact investing, ESG aligned financing, and blended finance mechanism that maximize financing for sustainable development. The private sector must play a more prominent role in mobilizing resources for high impact projects that accelerate the SDG process. On paragraph 34 as well, strengthening domestic financial markets is a more sustainable approach than external reliance. While the draft highlights MDB support for local currency lending, a greater emphasis should be placed on developing strong domestic financial markets, expanding local debt markets and encouraging long-term financial stability through diversified financial instruments. Enhancing domestic bond markets and strengthening central bank collaboration to stabilize exchange rate volatility should be prioritized over dependence on external financing mechanism. On paragraph 36, we suggest emphasizing that sustainability disclosures should be voluntary and adaptable to national context. In points D through G, we caution against prescriptive and conditional actions and one size fits all approaches. They contain recommendations on sustainable finance legislation, adoption of standards, and governance frameworks that need more details assessment, including considering unintended consequences on developing countries and so noting the need to rephrase paragraph 36 and its sub-bullets. And with particular regards to 36e and 36f, we would like to register that current climate risk assessment does not consider the different transitions approaches, pathways and timelines. Additionally, current sustainability disclosures frameworks often have prejudice and negative perceptions towards energy manufacturing and financial institutions thus affecting their financial valuations and yielding distorted market messages.

Also in

36 any global taxonomy should consider the different national circumstances and should be negotiated by all members and be inclusive. I thank you.

Thank the representative from Saudi Arabia. I now recognize the representative from India, followed by representative from Liechtenstein. India, you have the floor.

Thank you, Chair. Establishing an enabling environment, ensuring fair competition and fostering public private partnerships can bridge the financing gap and accelerate sustainable development by unlocking additional private capital and leveraging innovative financing instruments. We would like to share the following recommendations for your consideration. On paragraph 34, it may be ensured that nothing in the document in any way creates or appears to create any rights, obligations, or expectations with respect to investment policy, liberalization of investment, or related market access. In paragraph 34, financial health being a broad concept extending beyond the scope of financial inclusion may be replaced with financial inclusion. In para 34H, DPI may not be characterized as an emerging technology as it is widely recognized as an innovative digital technology solution. Coming to paragraph 35, a key impediment to EMDs access to international markets is the poor sovereign ratings from the credit rating agencies. The credit rating agencies continue to exhibit stickiness in EMDs ratings and are very slow to account for improvements that the EMDs make in their policy landscape. Enhanced engagement with credit rating agencies is therefore of utmost importance to improve the flow of private capital to development financing. This aspect should be suitably incorporated in para 35K. On paragraph 36, the MSME sector being the backbone of economic activity in developing countries requires additional incentives, access to capital, and capacity building initiatives to effectively adopt and achieve sustainability targets. Additionally, the compliance burden on early stage startups and MSMEs must be acknowledged when advocating for legislative interoperability. This should be clearly reflected in this section. Secondly, we support impact investment as a tool to leverage private capital by combining concessional and philanthropic capital to de-risk investment, given the diverse range of projects and approaches among. small island developing states, LDCs and EMDs, impact measurement standards should avoid overly prescriptive one-size-fits-all approach and instead must accommodate country-specific circumstances. In para 36e, we underscore the importance of the ISSB standards in providing mechanisms to address proportionality and promote interoperability. It is crucial to preserve flexibility in implementing these standards to account for country-specific circumstances. We call for the text to reflect the same. We emphasize that while some alignment and interoperability in sustainable finance policies and regulations is desirable to attract international finance, imposing standardized approaches should be avoided given the diversity of national circumstances and development priorities. Accordingly, para 36 should be suitably rephrased. I thank you.

I thank the representative of India. I now recognize the representative from Liechtenstein who will be followed by the representative from Indonesia. Liechtenstein, you have the floor.

Thank you very much. Since this is the first time my delegation takes the floor, I would like to express our thanks to the co-facilitators for all the work they've put into the zero draft. In this chapter, we particularly welcome subparagraph 34 with its emphasis on women and marginalized groups. In this context, we would welcome a reference to survivors of trafficking and other forms of exploitation, as they are at a particular risk for exclusion from financial services. Financial inclusion is furthermore known to reduce vulnerability to those crimes, as well as having wider systemic benefits by better protecting households from economic shocks. We also recognize the importance of digital technologies for financial inclusion as outlined in subparagraph 34H. Thank you.

Thank you very much. I recognize the representative from Indonesia and then Canada. Indonesia, you have the floor.

Thank you, Chair. We align ourselves with the intervention delivered by Philippines on behalf of the G77 and China and to add following points and our national capacity. On para 34, we wish to include blue bond alongside other types of bond that have been mentioned. We have seen increasing contribution from the initiative, including to close the financing gap. On the point of access to financing, remittances and correspondent banking relationship, we thank the co-facilitators to include remittances. We wish to underscore the importance of financial literacy and enhance access to financial services. to improve financial inclusion and obtain maximum benefit from the initiative, including to attain financial health. We also support the efforts to reduce remittance costs. On foreign direct investment, particularly on paragraph 35a, we support the proposal to scale up FDI in developing countries. We are of the view that the listing of initiative could be expanded to include all developing countries. On paragraph 35d, We are of the view that the notion of the first sentence should be reformulated to maintain a positive tone in its overall context. We believe that quantity and degree of leverage are still of importance, while also share the needs to call for higher quality outcomes, focusing more on sustainable development. Therefore, our suggested edit to the first sentence to become, we call for the scaling up of blended finance in terms of quantity and its impact to the sustainable development. We believe that catalyzing both aspects in terms of quantity and quality conveys the messages more appropriately. On paragraph 35f, Indonesia welcomes the proposal to enhance blended finance as means to address the financing gap. We note the idea on standardization of blended finance instruments to create effective and replicable structures. However, given the diverse economic conditions, regulatory frameworks and development priorities across countries, We would like to seek further clarification on why standardization is necessary and how can it accommodate country specific needs and avoid limiting flexibility in structuring financing solutions. Thank you.

I thank the representative from Indonesia. And I'll give the floor to the representative of Canada, who will be followed by Japan, then Armenia. Canada, you have the floor.

Thank you, Chair. Canada requests that references to active participation in 33 be replaced with full, equal and meaningful. This is in keeping with previously agreed language to describe the standards for women's and girls' participation in institutions, processes and decision-making in addition to education and employment. It is critical that women have an equal seat and voice in all fora. It is necessary precursor for women's and girls equitable access to and control over the resources and benefits of development, as well as the promotion and protection of their human rights. Canada welcomes the inclusion of anti-corruption measures in 34B as tackling corruption must engage both the public and private sectors. We are supportive of the text in 34C, but propose the addition of gender bonds. Gender bonds, which present both corporate and sovereign issuers the opportunity to channel resources towards gender equality objectives, have emerged as a promising instrument for financing initiatives aimed at advancing gender

equality and the empowerment of women and girls.

Canada welcomes the text in 34F. We're also supportive of 34G, noting the inclusion of financial literacy, but suggest the addition of improved financial products and services. As outlined in the text, access is not the only roadblock for the inclusion of underserved populations in financial systems. The financial products and services offered also need to be designed for these groups and their needs. We are supportive of the text in 35D, but suggest reframing leverage as an essential component of mobilization. The purpose of private capital mobilization is to leverage additional resources for greater impact, not rather than or either or. We are supportive of 35F, but would propose strengthening the text by replacing supporting efforts with promote. We also recognize the efforts of the Hamburg Sustainability Platform in this regard. Canada welcomes the inclusion of MSMEs in 35G. We propose altering the language in both 35H and I, for example, with explore establishing or work towards establishing. We also request additional information on 35I from the co-facilitators to better understand what this commitment would entail and how it would be applied in practice. Canada welcomes the text in 35J, particularly as we've already undertaken efforts in this space. Lastly, Canada suggests clarifying the language in 35K with regards to reevaluating credit rating methodologies. This is not something that stakeholders can control as credit ratings are provided by external agencies. We would propose the reference to rating methodologies be removed if it's referring -- if it's in reference to rating agencies. We are supportive of the text in 36F, but propose a slight alteration, for example, by replacing will adopt with we will work towards. Canada welcomes the text in 36G, encouraging sustainable finance and the interoperability of sustainable finance standards. Thank you.

I thank the representative of Canada. I now recognize the representative from Japan. And then we'll have Armenia, so Japan, you have the floor.

Thank you, Chair. Thank you, Chair. On paragraph 35, the paragraph should highlight the need for technical cooperation in formulating master plans, feasibility studies, and capacity building for partner governments. Japan is ready to provide specific language on these points. On 35H and I, it says the pools of catalytic capital and the pool technical assistance platform, it's remaining unclear and we place a reservation to seek further details on this. On 35K, we have shown concern here. Financial regulations were developed to maintain financial stability, particularly after the global financial crisis. Any discussion of the relationship with sustainable development should be entrusted to relevant international forum, such as the G20, FSB and standard setting bodies to avoid any unintended consequences. We should avoid messaging implying a review of existing financial regulations, which can undermine efforts to implement international financial reforms such as Basel III. On paragraph 36, recent legislative developments on sustainable finance are still in early stages across many jurisdictions. At this stage, comparability should be prioritized over interoperability to support regulatory development without hindering progress. On 36a, While we recognize the importance of accelerating impact investment, mainstreaming impact investing strategies and innovative financing instruments lacks clarity and consensus. Without clear definitions and mechanisms, commitment is difficult. Also, as it is unclear which initiative belongs to which jurisdictions, we cannot welcome them. On 36B, sorry. Although we acknowledge the importance development sustainability rating and impact evaluation methodologies, we cannot yet welcome scaling and adapt- adaptation as there has not been sufficient discussion of how to measure quality or credibility, which is necessary for assessment on 36D. We request the removal of language related to urging regulators and instead strongly suggest the welcoming the ongoing efforts by international initiatives such as G funds and NZBA. On 36E, we have strong concerns on this paragraph. The statutory disclosure framework should be considered to meet the informational needs of investors. However, the cost of imposing a disclosure burden on entities based on the double materiality disclosure framework may exceed the benefit of meeting the information needs of investors. We should consider single materiality as a standard, and it's not acceptable the reference to double materiality. In addition, although it is acceptable to state that we will continue our consideration on including external audit provisions, it is premature and difficult to commit to the inclusion of this. On 36F, Regarding stewardship, no global consensus exists on impact elements, so we suggest modifying the phrase to align with the international agreement. In addition, market of green and impact products is nascent, so we should not excessively intervene through new regulations. Finally, on 36G, we have concerns with this paragraph as it appears to promote the interoperability of all regulations relating to sustainable finance. To make this paragraph more realistic and feasible, we suggest that we promote greater comparability based on each jurisdiction's regulatory frameworks. I thank you.

I thank the representative of Japan. I now recognize the representative of Armenia, followed by, uh, Uruguay. So Armenia, you have the floor.

Thank you, Chair. We have just two comments on this section. We would like to express our support to paragraph 34e and h, respectively, on demand-driven technical assistance and capacity development programs for domestic financial sector development, on MDB's assistance to developing countries in fostering business-friendly environments for sustainable development, as well as leveraging emerging digital technologies, including digital public infrastructure in developing countries and countries in special situations. Once again, we would like to stress the importance of middle-income countries to be reflected in these paragraphs. We overall support paragraph 35 on foreign direct investments, and we are particularly happy to see the call for timely establishment of the international investment support center for LDCs to harness technical assistance and investment-related support, the infrastructure investment financing facility for LDCs, and the center of excellence reflected in this subparagraph. Thank you.

Thank you very much. I now recognize the representative from Uruguay, and then we'll have Colombia and then the Russian Federation. Uruguay, you have the floor.

Thank you very much, dear co-facilitator. We appreciate your work, your drafting this section, which we view positively. We align with the statement delivered by the Philippines on behalf of the G77, and we'd like to add some elements on our national capacity. We agree definitely on the significant need to forward leverage the private sector's contribution to sustainable development and support the promotion of enabling environments for business and investments to align with sustainability objectives as outlined in paragraph 34. We also support that increasing women's active participation in the workforce and in leadership position drive, uh, in economic growth and foster sustainable development, perhaps in line with some of other comments, we, uh, benefit from, uh, strengthen this language as well. On paragraph 34C, we strongly support the idea of creation of new domestic investment vehicles and the use of green social and sustainability link bonds. It is a priority to Uruguay, uh, that FFD4 includes a clear call for the development and use of innovative financing mechanisms, accession, accession tools for some developing countries to finance development policies and large projects, including those on critical transitions. Especially considering the high cost of capital, capitals and limited fiscal space we face, actually I think we have addressed how the document can be strengthened in terms of, uh, specific measures to reduce cost of capitals. On another note, the text has a strong focus on global mechanisms, while little references to regional financial institutions. Strengthening regional development banks and investments funds can foster partnerships between countries and investors while facilitating, uh, tailor financing solutions and capacity building for specific regions, uh, therefore we considering pro- proposing language in this regard. Then when addressing the subsection accessing, access to financing, we welcome and support the language on expanding access to financial services, particularly for women, and consider these an important elements to address financial inclusion and would like to keep it in the text. We also see positively paragraph 35B under foreign direct investment section to strengthen existing spaces for developing countries to discuss national sustainable development plans with private investors. In our view, FFD4 needs to ensure, uh, and scale up partnerships. On paragraph 35 I under private capital mobilization for sustainable development, we support the call on MDBs to provide enhanced technical assistance and a coordinated manners to developing countries and we would like to keep it in the text. And finally, we think that there is a space to strengthen the text with regard to the risking tools which can encourage private sector participation in sustainable development investments. We can explore Uh, in this regard, the inclusion of elements such as, um, PPPs, private, private, uh, public private partnerships for infrastructure, uh, financing under the section private capital mobilization for sustainable development impact. I thank you.

I thank the representative of Uruguay and now recognize the representative from Colombia and then we'll have the Russian Federation. Colombia, the floor is yours.

Thank you, Chair. On paragraph 35F, Colombia notes that the current draft primarily focuses on nonprofit private sector investment, sorry, on for-profit private sector investment with limited reference to philanthropy and nonprofit contributions. Given the scale of private wealth worldwide, the nonprofit sector holds significant potential on closing the SDG's financing gap. Additionally, we express concern that measures to channel foreign direct investment towards energy security, renewable energy, and energy transition pathways are completely missing from the document. Investment in SDG7 account for half of the SDG financing gap, as estimated by UNCTAD. We request the co-facilitators to introduce concrete actions to stimulate sustainable energy investment in developing countries, including measures to lower the cost of accessing capital. In 35i, we welcome the reference to provide support in the design of bankable projects but highlight that this should not apply solely to infrastructure projects but also to other SDGs ensuring a broader approach to financing sustainable development. Regarding paragraph 36e, Colombia supports the harmonization of sustainability disclosure standards to promote transparency, accountability, and alignment with sustainable development goals. However, we emphasize the need for flexibility and adopting international frameworks as different jurisdictions may determine the most suitable reporting standards based on their regulatory and economic context. Recognizing multiple sustainability reporting frameworks will all allow countries to implement best practices while addressing their national needs. To reinforce this perspective, Colombia will submit a text proposal. On paragraph 36G, Colombia underscores the importance of ensuring that taxonomies reflect the local realities and priorities of each country, ensuring the relevance to national sustainable development objectives. Interoperability should not lead to rigid standardization, but should instead facilitate alignment on key principles, classification systems, and methodologies while allowing for necessary flexibility in implementation. Colombia will submit a proposal on this section. Thank you, Chair.

I thank the representative of Colombia. I now recognize the representative from the Russian Federation, who will be followed by the representative of the People's Republic of China and then Paraguay. Russia, you have the floor.

Thank you very much, Mr. co-facilitator.

In paragraph 34G, the term marginalized groups should be replaced with those in vulnerable situations, which is actively used in Agenda 2030. And with respect to 34, the term vulnerable groups should continue on as per the text. On the activity, there's a need to pay attention to financial sustainability, including credit rating and the status of preferential creditor. We support the reference to national ownership and first and foremost, the focus of national priorities and goals. Unfortunately, some sub-paras here are very much prescriptive in nature with respect to decisions that need to be taken at the national level. For paragraph 35F, we believe that it would be wise to include a proposal for the recommendations on standardization and the use of blended financing, which would help to enhance the standardization of mechanisms, instruments, and approaches. For 35G, it is equally important for the IFC to use its own resources. Furthermore, we advise that the document not include questions of support for venture capital raising due to the high risk of these projects and the lack of succession and coordination for strategies in this area. For 35K, at the present juncture, we wish to reserve our position on the proposed wording. For 36, we do not support identification of discriminatory practices on a gender basis, and we

propose that this be deleted.

Furthermore, in subsections D, E, F, and G, for paragraph 36, we see in the proposed wording possible excessive burden placed on developing countries. Furthermore, the draft contains repeated mentions to financing of local currencies, 34, 38, and 48, and this is an issue which should be given more of a priority, which should be prioritized more in this document. Thank you very much for your attention.

Thank you very much. I now recognize the representative from the People's Republic of China and then Paraguay. China, you have the floor.

Thank you, co-facilitator. China aligns itself with the statement delivered by the Philippines on behalf of G77 China. I would like to share the following comments with the room. First of all, the private sector plays an important role in the financing for development. Expanding and mobilizing private sector financing should be done in line with the national conditions and identified priorities. So as to avoid interfering with domestic policies, private sector financing is a supplement to, not a substitute for ODA commitments. Second, in paragraph 34b, Countries have different national conditions with various different stages of development. It is difficult to formulate a unified policy framework standard universally applicable to all situations. Therefore, with regard to the last part of the para, we suggest the deletion of "we encourage development of model framework towards this end". My third point on 34h. Emerging technology, digital technologies have a wide range of application. It is best not to single out one particular concept in order to avoid generalisation. My fourth point with regard to 34, paragraph 34, this paragraph contains many suggestions on sustainable financing legislation, standard setting, information disclosure and governance framework. They merit further discussion in depth by all states. Relevant suggestions should be given on the basis of respecting the national conditions of each country. It is ill advised to make a fastened hard and fast rules and adopt a one-size-fits-all approach with regard to developing countries so as to avoid creating barriers in their efforts for FFD. My fifth point with regard to 36e, regarding the language on sustainability disclosure, we would suggest the use of the consensus language found in relevant G20 document. That is, we support the International Sustainability Standards Board, other qualified international and regional organizations and groups, as well as national regulatory bodies to work together in an open and inclusive manner on enhancing the comparability, interoperability and proportionality as appropriate of the sustainable finance disclosure standards.

Thank you, sir.

I thank the representative of the People's Republic of China. I now recognize the representative from Paraguay and then the Holy See and then Iceland. Paraguay.

Thank you, co-facilitators, sir. Regarding the promotion of innovative financing instruments such as, for example, green bonds or sustainability bonds, In our view, these and other tools seek to mobilise capital at a large scale to address global challenges such as climate change and biodiversity loss. At the same time, they encourage financial returns as well as social and environmental benefits. In this connection, we wish to underscore that in the design of these tools, we should not see the equalisation of the obligations and capacities borne by developed and developing countries. Rather, we must recognise the structural which set these two groups of countries apart. These include limited financial capacity and limited capacity to attract investment on the part of least developed countries. We should also recognise the historic responsibilities of developed countries in environmental protection and the fight against climate change. Moreover, we believe other significant risks should be avoided, such as, for example, the possible exclusion of SMEs in developing countries from accessing credit if their projects do not meet sustainability criteria established in international fora. They should not be excluded from such action without taking into account the specific particularities and needs of these countries, and these criteria do not do that. These dynamics exacerbate structural inequalities, hampering equitable participation in the benefits of financing for sustainable development. Consequently, we urge co-facilitators to incorporate all language which allows there to be a clear distinction between the obligations and capacities of developing countries and developed countries. Climate issues should We should avoid climate issues being unduly instrumentalized as conditions upon which accessing international finance rests. Lastly, we emphasize that international resource mobilization cannot nor must it substitute the financing commitments and obligations of developed countries towards developing countries. Thank you.

I thank the representative of Paraguay. I now give the floor to the representative of the Holy See, who will be followed by the representative from Iceland. the floor.

Thank you, Mr. co-facilitator.

We are thankful to you and to the other co-facilitators for your hard work on this chapter.

On 34B, we had a similar question to that posed by other delegations this afternoon

on the development of a model framework.

As is, we are concerned by the potential confusion around this and so would appreciate greater clarity

so that we can assess such a proposal accurately.

In paragraph 34, we would suggest adding reference to financial products alongside expanding access to financial services.

Moreover, we would suggest replacing the language on marginalised groups with those in vulnerable situations.

We warmly welcome the language on remittances in paragraph 34. We are particularly pleased to see a concrete target on reducing remittance costs to less than 3%.

However, as mentioned by others this afternoon, we believe that the paragraph could be further strengthened.

including by explicitly outlining the critical role migrants play in achieving sustainable development, adding language on promoting financial literacy

and expanding access to financial services for migrants, and finally by clarifying that remittances are not a substitute for ODA.

Thank you.

I thank the representative from the Holy See. I now recognize the representative from Iceland and then Zimbabwe, then the UK. Iceland.

Thank you, Mr. Co-facilitator. We appreciate para 33 on domestic financial sector development, enabling environments and access to financing. In particular, we would like to emphasize the point that increasing women's full, equal, and meaningful participation in the workforce and in leadership positions can drive significant economic growth and foster sustainable development. We would also like to highlight that developing domestic financial sectors and capital markets is a crucial aspect of leveraging the private sector more broadly to achieve sustainable development. And we welcome the constructive language on this. In this regard, We would like to highlight an example from our own experience. Last year, Iceland became the first country in the world to issue gender bonds as a way to leverage capital market financing for projects conducive to gender equality.

This is.

An example of innovative financing that we suggest to add to the list of thematic bonds in para 34C. Thank you.

Thank you very much. I thank the representative of Iceland. I now recognize the representative from Zimbabwe, who will be followed by the representative from the United Kingdom. Zimbabwe, you have the floor.

Thank you, Chair, for giving me the floor. Since this is my first time to take the floor, let me take this opportunity to thank the co-facilitators for putting together.

A zero draft, which is a good starting point for our negotiations.

Chair, my delegation aligns with the comments made by the Africa Group and those made by the Group of 77 and China.

In addition to the above comments, Zimbabwe is of the view that in paragraph 34b, The document should also consider how to create an enabling environment to improve access to finance for African countries. In this regard, at least 10% of ODA should be linked to the capacity building to support strong country systems.

With regards to remittances, the target of reducing remittances costs to less than 3% is indeed welcome development. reduction in the cost of remittances will enable many countries in the global south to leverage these remittances towards investment, thus helping us move closer to the realization of SDGs and indeed as well as realization of our respective national development objectives. I thank you.

I thank the representative of Zimbabwe. I now recognize the representative from the United Kingdom, who will be followed by the representatives from Australia, then the Philippines. United Kingdom.

Thank you, Chair. Overall, the UK strongly welcomes this chapter, but we would like to see bolder actions and increased ambition. Our specific suggestions On para 34, we support the language to strengthen enabling environments for business and investment. We support the need to address regulatory and policy constraints, and we strongly welcome a focus on country platforms to align investments behind national plans. On para 34B, whilst policy frameworks can follow a set of common principles, they should always be bespoke and specific to the jurisdiction in question. We should also include a reference to protect media freedom. On 34 we support the reference to financial access and financial health for women and marginalised groups. On para 34 we would like to add references to open banking and finance. Before we turn to paragraph 35, we would like to add a new paragraph here which highlights the role that public markets can play in delivering development and climate finance at scale, complementing private markets while addressing key barriers that investors face. We will share specific text here. On paragraph 35A, we would like to request more detail on the International Investment Support Centre for the Least Developed Countries. On paragraph 35, we would like to include language on increasing the use of guarantees where appropriate. On paragraph 35, we would also like to include a new paragraph which calls on the multilateral development banks to increase their crisis preparedness and response toolkits, to improve the shock responsiveness of the international financial system and to expand the availability of pre-arranged finance for vulnerable countries. Again, we will share specific text for this. On paragraph 35K, we would recommend rewording this paragraph to firstly explore the impact on credit rating agencies. We would also like to add a new paragraph under 35, which would focus on the financing gap to achieve gender equality and the role that private capital can play to support this. Again, we will share specific text. And finally, on 36E, we would like to remove the language on sustainability disclosure legislation and double materiality. Thank you.

I thank the representative from the United Kingdom and now recognize the representative from Australia.

Thank you, Chair. We welcome the texts on the importance of unlocking private finance. We know that public finance alone cannot address the SDG financing gaps and we strongly support strengthening the enabling environment for private business and finance and use of innovative finance to mobilize impactful private investment for sustainable development. Regarding para 34 we support the mentioning of access to gender and marginalised groups including access to financial services and markets. In 34 we recommend the addition of language on ensuring this is done with enhanced cyber security and data protection measures to protect people's rights. Australia welcomes a reference to correspondent banking relationships in para 34J and emphasizes the importance of access to finance to support inclusive development. Regarding this, the outcome document must address the broader context of correspondent banking relationship withdrawal to prevent the disconnection of developing countries to the global financial system. This is explicitly linked to noncompliance in anti-money laundering and counter-terrorism measures. This introduces the real possibility of a reduction of access to essential banking services with disproportionate impacts on local banks. The text should reflect that relevant institutions must support corresponding banking relationships, scaling up on existing global efforts and developing alternative mechanisms to ensure developing countries facing poor compliance can continue to access cross-border transactions and the global financial system, and that technical assistance must be targeted to support developing countries in adequately implementing the Financial Action Task Force standards and addressing anti-money laundering and counter-terrorism risks. Regarding para 35, the FFD4 outcome should support investments to build financial system enabling infrastructure in small island developing states, including digital identification, payments infrastructure and digital solutions to enhance broader financial system resilience. 35d, Australia strongly supports private capital mobilisation for sustainable development, in particular through blended finance. We support the comments by Indonesia and Canada on the focus on leverage and impact. However, we question the reference to industrialisation strategies in this para and suggest its deletion since it is made redundant by reference to national sustainable development strategies. On 35F, we strongly support efforts to standardize blended finance instruments to create effective and replicable structures for different country contexts. We support expanded use of blended finance drawing on pools of catalytic finance capital established by MDBs, as mentioned in 35G. However, if we are to successfully turbocharge private finance's contribution to development, We need a strategy for scaling up impactful private finance mobilization and identifying indicators and markers to support a pathway to mobilizing a meaningful but feasible amount a year in private finance. We would like to see more ambition in the text to achieve this, including for appropriate institutions such as MDBs to develop feasible strategies for scaling up private capital mobilization for sustainable development through use of innovative financing instruments, including blended finance and drawing on pools of catalytic capital.

Thank you.

Thank you. We are four minutes to the top of the hour, and so we need to be a bit more efficient in our interventions. Uh, however, we have been informed that, uh, the interpreters will give us an additional 10 minutes, they've been gracious enough, we're most grateful, thankful to them, um, so now I give the floor to the Philippines, who will be followed by the United States, Philippines.

Thank you, Ambassador, we align with the statement of the G77 in China and have the following comments in our national capacity. Regarding the sequential approach in 34a, it may not be applicable to all countries and capture the different nuances and local environments. The same could be the case with the model framework mentioned in 34b. On 34c, we would appreciate more evidence-based analysis that the innovative instruments cited are beneficial for developing countries. In d, The risk management tools mentioned should not create more burdens and debts for developing countries and therefore more information on their efficacy would be appreciated. In 34e, it would be important to specify who will implement this action and how technical assistance and capacity building will be provided. Furthermore, supporting business environments in developing countries should not just be for the MDBs. In 34F, citing the MSMEs is very good, but it remains unclear who will implement this action and how it will be attained. We recommend a target for increasing international support for MSMEs in developing countries, including reducing the cost of lending to them. We have similar questions on 34G and H. A financial inclusion strategy to increase digitalization and access to financial services could be appropriate here. In 34I, We should include the positive contribution of migrants to sustainable development, as many have mentioned today, including on rural development. We also wish to see more operational and ambitious language. In 34j, we would like to ask which are the relevant institutions being referred to. In paragraph 35, we think there should be a clear statement that FDI should support national development plans and structural transformation of developing countries' economies, technology transfer and skills development. 35 seems a bit misplaced in this section and we'd like to ask which relevant agencies are being referred to. It might be good to have a dedicated subsection on remittances and diaspora investment in this chapter. In 35, the same standard of blended financing may not work for all countries as different countries require targeted and special approaches. On G, we would appreciate more information on the work of the IDA private sector window. In H, we'd like to ask what is the status of the pools of catalytic capital and if we can include targets for them. The issue of guarantees could be separated and strengthened in a new bullet. On 35I, our comment is to achieve scale, we should look beyond standalone projects. to multi-year comprehensive programs or portfolios, and this is linked to the international cooperation section. On K, we support the reform of credit ratings agencies, but think that there could be a need to separate the issue of capital requirements for guarantees. Paragraph 36, the statement to ensure interoperability of sustainable development legislation seems a bit sweeping and therefore in 36B, the promotion of standards and ratings may inadvertently disadvantage private enterprises in developing countries. In 35C, we suggest more action-oriented language on the UN Global Compact. With its vast network of partners worldwide, it has potential to mobilize private capital for the SDGs. on the standards and legislation may overtly burden developing countries and are not a guarantee that the private capital flows will increase. We think there should be more incentives and support for developing countries in this paragraph and seek clarification of transition planning. We would also appreciate more information on the ISSB and GRI and if these standards have been intergovernmentally discussed. We'd also like to ask about the reference to the COP29 presidency and global interoperability framework.

I thank the representative of the Philippines and now give the floor to the representative of the United States.

Thank you. On paragraph 34, we appreciate the text focus on enabling environments and feel this is important for the balance of the text. On paragraph 35, we believe the outcome document should refrain from calling on the MDBs or their governing bodies to undertake specific actions or seek to influence decisions or processes that are the purview of their governing bodies. This includes decisions about MDB resources, financing terms, instruments and allocation, which cannot be decided through FFD4. On paragraph 36, we maintain this is not an appropriate venue for discussions or commitments on financial regulation. We cannot agree to texts that suggest regulators have a mandate to align regulatory frameworks to promote sustainability goals. It's not the role of official, the official sector or United Nations to intervene in the specific methodologies and or practices of private credit rating agencies. Thank you.

I thank the representative of the United States. I think we have a chance to include maybe one more, SE Pakistan. Are you ready?

Thank you, co-facilitator. We align with the statement delivered by Philippines on behalf of the G77 and China. It is clear that the private sector has not delivered as per expectations. When we consider investment barriers, we must consider barriers at the global level, whereas the current chapter has an overwhelming focus on domestic measures. We support the reference in paragraph 33 to global enabling environment. In paragraph 34b, we request the deletion of the second and third sentence, as there is a selective approach to the listing of factors for a business enabling environment with an overwhelming focus on the domestic aspect. In paragraph 34c, we believe that there should be more evidence that these financing instruments work for developing countries before we give a broad mandate to implementing them. So we request its deletion. We support paragraph 34 in particular the need to review the possible unintended consequences of regulatory and prudential frameworks on MSME lending in developing countries and explore the use of MSME carve-outs. In paragraph 34, we propose that the standard 2030 agenda formulation of people in vulnerable situations be utilized instead of marginalized groups. Under 35, We believe that we should explore establishing an investment readiness accelerator under UN auspices to scale up investment related support for all developing countries. Current proposals in the text excludes some developing countries. We fully support 35G and cannot accept its deletion from the Rev 1 without the opportunity for more rationale and feedback. The need for the international finance cooperation to scale up the use of the International Development Association private sector window is key, and hence we request for the retention of this paragraph in REV1. We fully support 35i on the proposal for MDBs to provide enhanced technical assistance in a coordinated manner, including through the establishment of a pooled technical assistance platform, to help developing countries, particularly countries in special situations, originate, prepare, and support high impact infrastructure projects. We believe that proposal for a pool technical assistance platform is one of the most action oriented proposals in this entire section. We suggest strengthening 35I in the following three ways. First, we need a timeframe for this call. Second, we believe that the UN, through its development system and country offices, could also play a role with MDBs in providing such support. So this paragraph should have a reference to the UN system as well. Third, instead of focusing on just single projects, we suggest to consider whether this platform could support developing countries in preparing portfolios of high impact infrastructure projects. Moreover, we suggest that middle income countries be added to the listing. We fully support 35K. We do not just need transparency, but rather we need to work with stakeholders to reevaluate credit rating methodologies and existing financial regulation. Hence, the proposal made to refocus this paragraph on only transparency without any evaluation is not acceptable. In paragraph 36, we are still considering the various proposals in its subsections. However, we are concerned that the subsection on sustainable business and legislation could burden developing countries. without necessarily mobilizing private investment. We fully share the concerns raised by IOSCOs and other delegations on paragraph 36e on International Sustainability Standards Board and the Global Reporting Initiative and on the taxonomies. Thank you.

Thank you very much. And I recognize the representative from Iran.

Thank you, Chair. Regarding domestic and international private business and finance, besides our alignment with G77 and China's statement, we are a few of importance of following two points. First, ensuring the balance between international commitments to improve access of developing countries to private finance and foreign direct investment flows with the national imperative to ensure a dynamic domestic business environment. and reiterating the need for a certain international cooperation to explore the full range of policy tools to overcome impediments to private investment for sustainable development as the commitment to take steps to ensure and improve access of MSMEs to finance. I thank you.

Thank you very much. And then our last speaker for today is actually Brazil. Brazil, are you ready? Thank you.

Thank you. Sorry, Chair, I didn't know we'd make it. So Brazil would like to make a few comments on the text. We align ourselves with the language proposed by the G77 and China and we'd like to make some comments in our national capacity. So there's been a lot of expectations with regards to the private sector mobilization and a lot of frustration as well for investments in the ODA of the ODS, of SDGs. And the reason is simple. Those that administer private funds have a fiduciary obligation with their investors to seek a profit, and that is not always the case. with SDGs. So that is part of the reason that there is this expectation, this frustrated expectation with regards to private finance. I'd like to move into the text and propose a few language edits if I may. So with regards to foreign, with regards to para Pardon me. Oh, Shura is going to come in tomorrow. With regards to para 34, so it's necessary, we would like to propose at the caput while strengthening the regulation for private sector and corporations that generate social, economic and environmental negative externalities. With regards to para 34b, we would like to suggest at the end, including a monitoring mechanism towards this end. With regards to e, at the end we would like to suggest, while protecting the rights of the people and territories in vulnerable conditions, including indigenous people and local communities, With regards to remittances, we'd like to recall, as mentioned by other colleagues, that remittances are resources that migrant workers send to their families. So we should focus on reducing cost of remittances, but not consider this a substitute to ODA or say, oh, these are resources that can be used by states. So it's up to those families to decide how those resources should be used. With regards to a para 34, we would like to suggest the inclusion of the following language. We commit to expanding access to affordable cross-border financial services and inclusive growth, especially for migrants and their families, reducing remittances cost. We will support national authorities in strengthening regulatory coordination and ensuring faster, cheaper and more secure transfers through a competitive and transparent market. With regards to the issue of foreign direct investment, we would like to suggest text for item D. We call for transparent, official and accountable blended finance initiatives. With regards to para K, we would like to keep the language on the credit rating methodologies. the, we would also suggest, we'll submit further language through writing. Thank you, Chair.

Thank you. Thank you very much. Just one minute before we release the interpreters. Just want to announce that we shall continue tomorrow morning. The following list of first three speakers for tomorrow shall be as follows, International Chamber of Commerce, IFAD, and then UNDP. So that's International Chamber of Commerce, IFAD, and UNDP. We have received a very rich set of comments, questions, suggestions from all of you, and we really appreciate the input. We listened very carefully to everything that you have been saying, and there were a few questions for clarity, clarifications, and things of that nature. We just wanted to let you know that we shall look at the various questions that have been put before the COFAX, and we shall revert to you after the PrepCom is completed. Having said that, I just want to point out that the Preparatory Committee will meet tomorrow at 10:00 AM, like I said, starting with the first three speakers, and then we'll continue with the same section right here in this conference room, and we'll hear remaining speakers on the chapter on domestic and international private business and finance. followed by comments on International Development Cooperation. I thank you very much.