(1st meeting) Preparatory Committee for the Fourth International Conference on Financing for Development, Second Session

Good morning distinguished delegates, excellencies, dear colleagues. I declare open the second session of the Preparatory Committee for the Fourth International Conference on Financing for Development and call to order on its first meeting. On behalf of my fellow co-chair, His Excellency Ambassador Zefryn Maniratunga, and myself, I would like to take this opportunity to welcome all participants to this second session of the Preparatory Committee for the Fourth International Conference on Financing for Development. We hope you that some of you were able to take advantage of the financing for development dialogues organized yesterday by the Secretariat to discuss evidence-based solution to the most pressing issues to be addressed at the FFD4. We stand at a pivotal moment in our preparatory process, halfway through this journey with nearly seven months to go until the conference in June 2025. This midpoint provides an invaluable opportunity to reflect on our progress and reaffirm our shared commitment to the acceleration of progress in the achievement of the SDGs through this process. The first session and the intercessional meeting provided opportunities for us to identify progress achieved and begin discussions on ways to addressing existing and emerging challenges in the field of financing for development. These discussions have benefited greatly from the multi-stakeholder approach that is characteristic of this process. Through them, we have learned time and again the high expectations deposited in this process, the scale of the challenges ahead of us, but also the opportunities and potential reflected in the breadth of solutions put forward to address them. As we look ahead, it is important to build on these other key milestones, such as the adoption of the Pact for the Future at the United Nations. This landmark agreement underscores the urgency and ambition required in our deliberations and reminds us to the broader context in which our work is embedded. Let us use this momentum to forge a path toward meaningful outcomes at the conference in June 2025. In this vein, I invite my fellow co-chair to lay down the program of work for our session. Ambassador Zefryn, the floor is yours.

Thank you, Mr. Ambassador. Ministers, Excellencies, distinguished delegates, over the next four days, we will have a unique opportunity to build on the existing momentum on discussions and financing for development based on the elements paper that the co-facilitators, Mexico, Nepal, Norway, and Zambia laboriously put together. This paper, aiming to reflect the nearly 300 inputs submitted, will serve as the foundation of our work. Your feedback will guide the co-facilitators in drafting the zero draft of the outcome document of the conference. It is vital that you take advantage of this opportunity to listen to one another, share insights, and engage constructively in discussions. To support this effort, the program of work for this session includes a ministerial scene setter and eight interactive discussions, the latter of which following the structure of the Elements Paper. The ministerial scene setter will set the stage and provide political steering for discussions on the Elements Paper. We are pleased to have a panel with ministers and vice ministers from Colombia, Indonesia, the Maldives, Portugal, Seychelles, Spain, and Zimbabwe to this effect. The interactive discussions will allow for in-depth engagement at the technical level. We are also pleased to highlight the remarkable organization of nearly 60 side events during this session. This level of engagement reflects the continued interest and high expectations surrounding this process. These elements provide additional avenues for collaboration and dialogue, enriching our collective understanding and fostering innovative ideas. As we embark on this session, let us remember that transformational outcomes require constructive engagement and a willingness to find common ground. Whether through sector-specific solutions or systemic reforms, our shared goal remains to accelerate progress toward the Sustainable Development Goals. By working together and building consensus, we can rise to this challenge. In conclusion, we call on all delegations to participate actively, engage thoughtfully, and contribute meaningfully to the work of the Preparatory Committee. The road ahead is challenging, but also filled with immense potential. Let us seize this moment to create a foundation for a more sustainable, inclusive and prosperous future for all. I thank you.

I thank Ambassador Manire Tanga for his statement, and I now invite the Deputy Secretary-General of the United Nations, Her Excellency Amina Mohammed, to make a statement. The floor is yours, Madam.

Thank you, Excellencies Ambassador Manire Tanga and Ambassador Vinas, the co-chairs of our Preparatory Committee for the Financing for Development IV, Her Excellency Ms. Eva Granados, the Secretary of State for International Development, Spain, Mr. Jean-Walid Touzel, US Chief of DESA. Excellencies, welcome to the second session of the Preparatory Committee for the Financing for Development IV. And I have to say it's been a long time since I've been in a room where there's been so much energy. The last time was civil society and gender issues. For this to be on finance, clearly it matters that we do have the means of implementation and the countdown for 2030. So thank you all for bringing that energy into this room. At the first PrepCom in Addis Ababa, in July, we took stock of our progress since 2015 and we set an ambitious tone for the fourth International Conference on Financing for Development. Shortly after the Addis PrepCom, our co-facilitators issued a call for inputs, generating close to 300 contributions, a truly inclusive stakeholder gathering. This reflects the high expectations that you, Member States and other key stakeholders, place on the Financing for Development Summit. These inputs have informed the Elements Paper, which includes proposals to deliver transformative change across the Addis Action areas in Seville next year. It is a truly ambitious reflection of what everyone is expecting, so high expectations and therefore we cannot falter. We all know that the SDGs have stalled and they can only be rescued in the countdown to 2030 that's giving us five years by unlocking the scale and the quality of finance required to power investments, by loosening the grip of debt service that is crippling dozens of countries, and by protecting economies from the external shocks that characterize today's interconnected world. Yet you are all here to maintain the momentum and ensure a high degree of ambition remains. Yesterday's academic day started us off in the right direction with substantive discussions on the latest research and policy recommendations on the international debt architecture, on feminist fiscal policy to meet the SDGs, and on global tax reform. I hope these panels inspire you as you consider the proposals that are being put forward by the co-facilitators. But let me highlight a few. Domestic resources are at the core of development financing and the compact between citizens and states. No country should fall below a minimum of resources raised so that it can meet the core obligations to its people. It is time for us to establish a commitment to support all developing countries to raise their tax to GDP above 15%. We must also do better in mobilising private investment. After ten years of billions to trillions discussions, we still don't see the results at the scale or the impact required. Let's make firm commitments to do better on blending, to focus on impact, to utilise instruments at scale and to align with national priorities. On international development cooperation, we must revive our discussions around and the commitment to effective support. In addition to increasing international public finance, we must do better with what we have. FFD4 also represents an important opportunity to fulfill the vision articulated in the Pact for the Future on the financial architecture reform. Let us address debt with bold ambition and create a debt architecture that truly empowers sustainable development. Building on important reforms to date, next year's conference should lay out clear and actionable roadmap for expanding the capital bases of multilateral development banks. In severe, we must transform special drawing rights to make them more effective for future crisis response and unlock their full potential through rechanneling via the multilateral development banks. Finally, at FFD4, we must pledge concrete actions to strengthen the voice and representation of developing countries in international financial institutions, ensuring that they become genuinely inclusive and more effective. This would be real and transformative change. I urge us all to be bold, push the boundaries, find where we can aim higher, and make sure that your reforms match the scale of ambition that is needed for the 2030 Agenda. Let us honor those commitments for a more sustainable, peaceful, and prosperous world for all. Thank you.

I thank the Deputy Secretary General of the United Nations for her statement and particularly for her presence here with us, which shows the alignment between the Secretariat and the member states on this process and their personal commitment to a positive result at the outcome of this process. I will now invite the representative of the host country of the fourth International Conference on Financing for Development, Her Excellency Eva Granados, Secretary of State for International Cooperation, to make a statement. Madam, the floor is yours.

Thank you very much, Excellencies, distinguished representatives. It is an honor for me to address you on behalf of Spain at this second preparatory session of the fourth international conference on, uh, nuclear disarmament. development, which we will host in Seville next year. Only two months ago, the President of the Government of Spain, Pedro Sanchez, stated before the General Assembly what for Spain are the three essential aspirations for the progress of nations: peace, democracy, and development. And they cannot be attained separately. Today, we are brought together by a will to move forward on the third of these, sustainable development, and particularly how to finance it. Mobilizing the political will of all countries will be crucial because inaction would cost us a lot more. Since Spain was selected to host the fourth conference, we have been working together with the United Nations in an open, inclusive, and transparent process to come to Seville with ambitious and realistic proposals to achieve transformative consensus. The elements paper submitted by the co-facilitators is a good point of departure. Approximately 300 contributions have been received, and they show that there is great interest in achieving a substantial agreement to take new steps in a new paradigm of financing. I wish to thank Mexico, Nepal, Norway, and Zambia for the excellent work they have done. This is a well balanced document which includes concrete and ambitious proposals, several of which coincide with Spain's priorities. I would like to mention a few commitments which we consider are a must on the road to Seville. Some have been submitted by the President, our President of the General Assembly. He spoke about a thorough reform and update of international financial institutions and of the multilateral development banks with more just and inclusive mechanism. He also spoke about addressing the problem of the debt. and mobilizing more sources of financing to guarantee more support for those who need it the most. We must also implement more effective, transparent, and just tax policies to include effective taxation of major wealth, to define global rates, and for the full implementation of the two pillars of the OECD and the G20 the taxation of multinationals as the basis for a future framework convention on international fiscal cooperation. Other measures in this document are also key in our view to move toward the SDGs. For example, the rechanneling of 50% of the 2021 SDGs the clauses of payment suspension for various contingencies, and the follow-up mechanism. During the panel, I will go into details. But a financial agenda that does not incorporate gender equality will not be relevant nor transformative. And I say this because Spain is responsible and it has a feminist foreign policy. In addition to the measures included in the elements paper to ensure a gender perspective, we believe that it is necessary to maintain what is basic in the Addis Agenda and go further to recognize economic justice and the rights of women and girls in the area of financing for development, in mobilizing resources to gender equality, and including measures in the various themes. Uh, in conclusion, we promote, uh, social justice, the fight against hun- hun- hunger and poverty, and defense of public services, mainly with regard to health, education, and decent work. Excellencies, friends, sustainable development is a human aspiration which brings us all together. And it is not just a matter of justice and equity. It is also an investment in more stable, prosperous and inclusive societies. We hope that Sevilla will lead to a global partnership to bridge the gap in financing of sustainable development and to speed up the SDGs. You can count on Spain in this effort and we know that we can count on all of you. Thank you.

Thank you, Secretary of State, for your statement. The Ambassador of Burundi has the floor. Thank you.

Thank you, Ambassador. I now invite the Preparatory Committee to begin its consideration of agenda item three, entitled Adoption of the Agenda and Other Organizational Matters. I invite the Committee to now turn its attention to the proposed organization of work for the second session, which was circulated to all delegations as document A/CONF.227/2024/PC/CRP.2. Are there any comments on the proposed organization of work? I see none. I see no request to take the floor. May I take it that the Preparatory Committee approves the proposed organization of work for its second session as contained in document A/CONF.227/2024/PC/CRP2? on the understanding that further adjustments will be made as warranted during the course of the session? I hear no objection. It is so decided. I now invite the Preparatory Committee to turn to draft decision A/CONF.227/2024/PC/CRP3 entitled dates of the third session of the Preparatory Committee for the Fourth International Conference on Financing for Development, which we have submitted in our capacity as co-chairs. Are there any comments on the draft decision? I see no requests. May I take it that the Preparatory Committee wishes to adopt draft decision A/CONF.227/2024/PC/CRP3? I hear no objection. It is so decided. Are there any comments after the adoption of the decision? Apparently there are no comments. I now invite the Preparatory Committee to begin its consideration of sub-item A of agenda item 4, Preparations for the Conference, organizational and procedural preparations. Under this item, as announced in advance of the session, it is foreseen that the Preparatory Committee take action at the current session on three draft decisions relating to the organization of the Conference, namely, Firstly, the proposed organization of work of the fourth International Conference on Financing for Development, a draft was circulated in document A slash conf dot two thousand conf dot two two seven slash two thousand twenty four slash PC slash CRP four. Secondly, the provisional rules of procedure of the fourth International Conference on Financing for Development. A draft decision was circulated in draft decision A/CONF.227/2024/PC/CRP5. Thirdly, a draft decision on proposed modalities of multi-stakeholder roundtables of the fourth International Conference on Financing for Development. A draft decision was Following comments received from delegations and in order to allow more time to address them, I propose postponing consideration of these documents until later in this session. I invite delegations to submit any comments or questions on the three documents through their Bureau members via the Secretariat to the Co-Chairs by close of business today. Does any delegation wish to take the floor at this stage? I see no requests. We will proceed accordingly. This concludes the opening segment. We will take a brief pause to allow the podium to be rearranged. Please remain seated.

Play all songs of CID.

Play all songs of CID.

Play all songs of CID.

Play song, Sridevi.

Distinguished delegates, as we finished shorter than we had anticipated, we will take a break for two to three minutes. Thank you.

Play all songs of the drama company.

Distinguished delegates, I now invite the Preparatory Committee to begin its consideration of sub-item B of agenda item four, preparations for the conference, substantive preparations, in order to hold a ministerial to consider, we, the co-facilitators, would like to present a document from Mexico, Nepal, Zambia and Norway on the co-elements paper which was circulated. I wish to sincerely thank the co-facilitators for preparing the document and I now invite the representatives of Norway and Nepal to present the document. You have the floor.

Thank you, co-chair. Excellencies, dear friends, it is our great pleasure to introduce the elements paper for the outcome document of the fourth International Conference on Financing for Development to be held in Seville in 2025. We are doing so on behalf of the four co-facilitators for the negotiations of the document: Mexico, Nepal, Norway and Zambia. Allow me at the outset to express our sincere gratitude to all of you, to Member States and other stakeholders, for your excellent contributions to this process. In response to the call for inputs we made at the closing of the first session of the Preparatory Committee in Addis Ababa four months ago, we have received almost 300 substantive inputs in total. Through individual and group submissions, nearly the entire UN membership provided reflections and recommendations for our work. In addition, we greatly appreciate the substantive contributions from the UN system, from international financial institutions, from civil society, academia, and others. These inputs provided us with a very rich set of priorities and proposals reflecting a wide range of perspectives. They were characterized by a high level of ambition underlining to us just how high the expectations are for civil. We hope that the elements paper you have in front of you does justice to these inputs. We have included both high level political commitments and principles, as well as more detailed technical and action oriented proposals that the conference could adopt or take forward. We have erred on the side of ambition, and have put forward ideas and recommendations that would represent real and in some cases transformative change across the action areas. We understand that some of these elements will be challenging from a political perspective, but it is our hope that they will trigger a substantive and detailed discussion in the PrepCom over the next four days. We strongly encourage you to react to the specific proposals contained in the Elements Paper, which will greatly help us in preparing the zero draft of the Outcome Document. We of course also encourage you to let us know about issues we may have missed or not sufficiently addressed so far. It is your reflections and your comments this week that will form the basis for our work on the zero draft. Excellencies, before we introduce some of the substantive proposals, allow us to say a few words about structure. The elements paper follows the chapter headings of the Addis Ababa Action Agenda. We have carefully reviewed your submissions on cross-cutting and emerging issues and have found that they can be accommodated within the action areas that we defined in Addis. This structure also allows us to respect the position voiced by many of you that the FFD4 outcome should reaffirm and build on the Addis Ababa agenda rather than renegotiating it. Within each of these action areas, the Elements paper then identifies three to four major challenges that require our collective attention and action, and then puts forward a range of recommendations on how these could be addressed. We hope that this approach will facilitate an action-oriented outcome that puts forth a limited number of high-impact initiatives and policy reforms to close remaining gaps in the financing for development and address new challenges that have arisen since 2015. And with that, I will pass the floor to my colleague, the PR of Nepal.

Thank you. Co-chairs, USGs, Excellencies, colleagues, dear friends, on the specific proposals, there are, of course, too many to lay out in detail here. but we will be glad to share some overarching reflections. In the global financing framework, we recognize the need to reinforce and build on previous FFD outcomes, starting by reaffirming the Addis Ababa Action Agenda to address the needs of the countries in special situations and cross-cutting priorities such as poverty eradications, gender equality, and good governance, and to address implementation gaps across all 17 SDGs. On domestic public resources, we have identified in our inputs the need to strengthen fiscal systems and capacity support on tax, so that all countries can mobilize at a minimum of basic level of resources to meet their obligation to their citizens. To this same end, we recognize the need to further strengthen the international tax corporations and address illicit financial flows, including by addressing their enablers. And we highlight the potential of public development banks to channel resources to SDG investments. The section on private finance and investment stresses is a red thread, the need to shift systematically to our focus on SDG impact. Starting with creating enabling environment for sustainable development and a new building blocks approach to building financial markets. Focusing private capital mobilizations and blended finance instruments on SDG impact and advancing sustainable financing legislations focused on impact. On international development corporations, we have tried to reflect the many proposals that have called for more, both more quantity and more quality of development cooperation. You will find many ideas to scale up concessional financing and to improve national and global architecture. so that these flows can be delivered more effectively and in line with the national priorities and the needs. We recognize that discussion on trade are particularly fraught right now, understanding that there are still significant differences in the position of member states in this area. The LM's paper puts forward proposals that aim to bridge some of those gaps, while also stressing opportunity to help developing countries integrate more productively into global trading systems. Debt highs emerge as one of the most critical challenges that FFD4 will need to tackle. We have clustered the many inputs and requests in this area into three broad areas. First, strengthening debt crisis prevention, through more responsible borrowing and lending. Second, systematic support for countries that lack fiscal space to invest in the SDGs because of high debt service burdens. And third, debt architecture reform, including for more effective and fair debt crisis resolution. On systemic issues, we have heard many calls for governance reforms. and hence reflect proposal to strengthen voice and representations of developing countries in global economic governance. In addition, there are many specific proposals to close gaps in the global financial safety net and to make better use of SDR in particular. The action area on science, technology and innovation suggests measures to close the remaining digital divide, particularly to invest in digital infrastructure and to better leverage STI for the SDGs. This includes fintech and the potential to further enhance financial inclusion. Lastly, on data monitoring and follow-up, the LMN paper recognized the need to further invest in data and statistical systems. as a basis for evidence-based decision-making. And it contains very specific proposals to strengthen the FFD follow-up process from development of an indicator framework, deeper discussion in the FFD forum, through a multi-year review cycle to strengthen follow-up at the regional and national levels. Excellencies, there are much more that could be said, but now it is our time to listen. We look forward to your reflections and comments over the next few days and assure you that we will do our utmost to reflect those fully in the zero draft of the outcome document, which we intend to publish in mid-January. I thank you.

I thank the distinguished representative of Norway and Nepal.

The preparatory.

Committee will now take a brief pause to allow the podium to be rearranged before the ministerial scene setter. Please remain seated.

Ministers, Excellencies, distinguished delegates, apologies for all the scene setting, but it's -- we need it. I will now invite the Preparatory Committee to begin its consideration of sub-item B of agenda item four. preparations for the conference, substantive preparations, in order to hold a ministerial to consider what are the key financing policy reforms and solutions that the fourth International Conference on Financing for Development should deliver. On behalf of co-chair, His Excellency Ambassador Zephirin Maniradatanga and myself, I'm pleased to welcome you all to this discussion. We are grateful to count on the participation of the Secretary General of the Conference and Under Secretary General for Economic and Social Affairs, Mr. Li Junhua, along with a panel of ministers and vice ministers from both developed and developing countries from various corners of the world, whom we will introduce very shortly. Their input is key to set the stage and provide political steering at this crucial stage of the preparatory process. that is the last moment prior to the preparation and circulation of a zero draft. Their participation is a testament to the expectations deposited in this preparatory process for the achievement of SDGs and more broadly our collective trust in the ability of the multilateral system to deliver transformative results for everyone, notwithstanding the challenging international context. We look forward to their contribution and your engagement in the interactive segment. The moderation will be in the skillful hands of Mr. Navid Hanif, Assistant Secretary General for Economic Development, whom we also welcome. I will first invite the Secretary General of the Conference and then the Secretary General for Economic and Social Affairs, Lee Jun-hwa, to make introductory remarks. And I take the opportunity also to thank him for the enthusiasm vis-a-vis the FFD process and also for the support he has been giving to the co-chairs. Mr. Secretary General, the floor is yours.

Thank you. Mr. Co-Chairs, distinguished ministers, excellencies, ladies and gentlemen, welcome to this ministerial scene setter to kick off this second session of the Preparatory Committee for the Fourth International Conference on Financing for Development. We are at a critical point in our efforts to achieve the sustainable development goals. Financing remain the key. in overcoming the obstacles to realize our all 17 goals. Therefore, it is time to fulfill the commitment to move from billings to tradings that are required to fully finance the 2030 agenda. Urgent action and bold reforms across the financing landscape are essential for achieving success. This session is of critical importance to laying the foundations for an ambitious outcome for our FFD4. The elements paper presented by the co-facilitators is intended to inform the negotiation process. It has been developed based on extensive inputs from the member states, UN entities, international financial institutions, civil society, private sector, academia, and other stakeholders. The paper offers actionable solutions to address the persistent and emerging challenges in financing sustainable development. The proposed commitments and policy recommendations in the paper merit your careful consideration and political guidance. I wish to highlight the issues that require urgent actions given the growing challenges faced by developing countries. LFO will not follow the structure of the elements paper. Key proposals include, first and foremost, growing debt distress, a three-pronged approach to dealing with the debt and the debt sustainability, aiming to reconcile responsible borrowing and lending principles, reduce borrowing costs through coordinated and institutionalized support, and explore the new sovereign debt restructuring solutions to create conditions necessary for scaling up SDG investment. Second, fostering sustainable development ecosystems to support the investment and the development of domestic financial markets to better reorient the private capitals towards the sustainable development. We need to deploy the public capital to mobilize private finance with scale and speed. Third, strengthen domestic resources mobilization by supporting developing countries in achieving a minimum tax to GDP ratio of 15% and implementing innovative global solidarity levies. This offers pathways to enhance the domestic fiscal capacity, However, the ability of the countries to do the DRM effectively would also require a breakthrough on making international cooperation on tax fully inclusive and more effective. We also needed to take the measures to curb illicit financial flows. Fourth, fulfilling and strengthening the ODA commitments. International Development Cooperation could be strengthened by enhancing local currency lending by multilateral development banks, improving coordination at the country level, building on country on the national financing plans, and reforming development cooperation architecture. Finally, governance reforms as a fundamental pillar to build a more equitable international financial system. The reforms also include policy reforms that put the people and planet at the center of the decisions rather than pure physical consideration. They should also lead to faster delivery of services to where these are badly and urgently needed. They are just a few of the transformative ideas presented in the Elements paper. They reflect our collective ambition, but require pragmatic, politically feasible pathways to implementation. I would also like to emphasize that political feasibility does not mean that we ignore the urgency of the needs of the people. We should respond to the demands of the people who are struggling to make both ends meet. FFD4 is about making finance work for everyone everywhere. Today, we turn to you, esteemed ministers, for your guidance on the priorities outlined in the Elements Paper. I urge you to respond very concretely to the proposals contained in the Elements Paper, those you agreed with, those you disagreed with, or want to see them modified, and those areas that in your view are missing, especially where these fall short of responding to your citizens' needs. Your input will guide the discussions over the next four days and help the co-facilitators to present a strong and balanced zero draft of the outcome document for FFD4. Now is the moment for us to formulate robust commitments in Savia that can mobilize the necessary resources and governize the actions. Let us approach today's discussion with a spirit of the partnership and the shared commitment to transformative progress. The stakes are high, but so too is our collective capacity to rise to this moment. This is our opportunity to lay the foundation for a financing framework that is resilient, equitable, and fit for the challenges and opportunities of our time. I look forward to your valuable contributions. Thank you.

I thank the USDG, Lee Jun-hwa, for his remarks. And I'm now pleased to introduce our panelists for the scene setter. His Excellency Mutluli Nkuku, Minister of Finance and Economic Development of Zimbabwe. His Excellency Nadir Assam, Minister for Finance, National Planning and Trade of the Seychelles. Her Excellency Eva Granados, Secretary of State for International Cooperation of Spain. And His Excellency Nuno Sampaio, Secretary of State for Foreign Affairs and Cooperation of Portugal. I will also welcome the following ministerial participants who will join us on the podium in the second part of the discussion. Her Excellency Marta Juanita Villaveces Nino, Vice Minister, Ministry of Finance and Public Credit of Colombia. His Excellency Sainder Kleisain, Deputy Minister for Development Funding, Ministry of National Development of Indonesia. and His Excellency Hassam Miraz, Deputy Minister of Finance of the Maldives. Mr. Naveel Hanif, the floor is ours, is yours to conduct the discussion. Thank you.

Thank you, co-chair. And good morning. I'm honored to join this panel discussion with honorable ministers who have traveled all the way to give us guidance and their political insights. I just want to frame the conversation with three key points. One which was mentioned repeatedly this morning by the keynote speakers, we tend to forget that there is a larger objective of achieving the sustainable development goals, economic transformation and saving the planet. So financing for development, the conversation is not an end in itself. These are the instruments which should be deployed system should be reformed to make sure that this transformation happens. One precondition for that transformation, which we had all studied and agreed in 2015 while adopting the 2030 agenda, is economic growth. In the prospects for growth, let me share some figures with you, do not look very promising. The forecast for next year is 2.8%, 2.9% in 2026. Both are below the averages we had from 2010 to 2019. These are the gross prospects. Actually, short-term outlook in many low-income and vulnerable countries remains less favorable. Growth for the least developed countries is is projected to deteriorate in 2025, making a downward vision from the forecast as of mid 2024. So this is the growth horizon that we are witnessing in the coming years. I think Africa, the growth, we only see some parts of Asia, others are declining. I'm not bringing in the developed countries. So that's the second piece we need to keep in mind. These countries need investment at large scale, affordable, long term, with speed to rebound and get back on track for the 2030 agenda in time to achieve it. Third element, which is captured in the elements paper very well, and I want to thank the co-facilitators for all their efforts. There are three types of proposals presented. One is the world as it should be, what we all wish it to be, fair, equitable, effective, agile, nimble. Second set which are absolute essentials, if we do not deliver, the opportunity to build trust in multilateralism and showing the spirit for collective action may be undermined seriously. And third set of solutions, which can be technical for ministers, but are required to be pursued immediately after the conference ends. So the honorable ministers who have their pulse on the voters, feelings and expectations, we want your views on the elements which you think should be absolute essentials for FFD4 to deliver for you to reassure your citizens multilateralism works, solidarity exists, and we are working to make sure the 2030 agenda is back on track. Our first speaker is His Excellency Minister of Finance and Economic Development, Mr. Mathuli Nyokube. Mr. Minister, you have the microphone. Our

co-chairs, our moderator, thank you for your remarks. Your excellencies here present, and distinguished delegates, ladies and gentlemen, allow me to express my gratitude for the opportunity to contribute to this critical discussion on financing for development. The fourth International Conference on Financing for Development presents a pivotal moment to recalibrate our collective efforts to address the persistent financing challenges that hinder the achievement of our sustainable development goals. The financing gap for SDGs Estimated four trillion US dollars annually demands bold, practical and politically feasible, uh, solutions, it is a sobering reminder of the urgency to revitalize the global, uh, financial, uh, financing framework. established under the Addis Ababa Action Agenda. I wish to underscore three key reform areas for action that the financing for development forum must deliver to make this revitalization a reality. One, the mobilization of domestic resources through fiscal reforms and innovative financing. While external financing is crucial, sustainable development begins at home. Developing countries, including Zimbabwe, must enhance domestic resource mobilization through comprehensive fiscal reforms such as broadening tax bases, combating illicit financial flows, and improving public financial management. Two days ago, I delivered the national budget in Zimbabwe, and I can assure you I was really focused on broadening the tax base. However, Domestic efforts must be complemented by international cooperation to curb tax evasion, regulate transfer pricing, and ensure fair taxation of multilateral corporations. In Zimbabwe, we have introduced the domestic minimum tax for dealing with transfer pricing. I think Zimbabwe and South Africa are probably leading the way on the African continent on this issue. So the Elements paper rightly emphasizes these measures, and the financial development forum must deliver binding commitments to tackle these systemic issues. Therefore, innovative financing tools such as green bonds, diaspora bonds, and blended finance must be mainstreamed to unlock new capital flows aligned with the SDGs. Point number two, transforming the international financial architecture. The global financial system must be restructured to better serve the developed needs of the global south. We must address the growing financing divides between developed and developing countries by reforming multilateral development banks and the international financial institutions, the IFIs, to prioritize concessional financing, debt sustainability and climate adaptation. Zimbabwe, like many other developing countries, faces challenges of rising debt burdens exacerbated by external shocks such as COVID-19 and climate change. Finance for development must secure agreement on a comprehensive debt restructuring framework that includes debt swaps for sustainable development, suspension of debt service in times of crisis and expanded access to special drawing rights for developing countries. Additionally, finance for development four should champion mechanisms to channel long-term private capital through de-risking instruments and credit enhancement measures towards investment in infrastructure, renewable energy and social sectors. My third point is on bridging the SDG financing gap with global solidarity and innovation. Achieving the SDGs requires more than resources. It demands solidarity and innovation. Developed countries must fulfill their longstanding commitments to provide 0.7% of gross national income, GNI, as official development assistance, ODA. Furthermore, we must move beyond aid dependency by leveraging global platforms to establish mechanisms such as an SDG solidarity fund financed through voluntary contributions, taxes on digital transactions, and other innovative measures. South-South and triangular cooperation should also be expanded to foster knowledge sharing, technology transfer, resource pooling among developing countries. The elements paper, uh, focus on such, uh, partnerships is promising, uh, and finance, uh, for development for must institutionalize these, uh, approaches with the global, uh, financing framework. excellences. Achieving the SDGs is a shared responsibility. Zimbabwe reaffirms its commitment to advancing ambitious, pragmatic solutions to bridge the financing gap and accelerate sustainable development. The financial development for must be a turning point. where political will converges with innovative action to create a more equitable, inclusive and sustainable global financing architecture. Let us seize this opportunity to deliver for our people and for our planet. I thank you.

Thank you, Mr. Minister. Your very focused and clear guidance to the elements paper, I really appreciate and your including remarks, ambitious but pragmatic, should guide us. Thank you, Minister. Our next speaker is His Excellency Mr. Nadir Hassan, Minister of Finance, National Planning and Trade, Seychelles. Excellency, you have the microphone.

Thank you. Excellencies, distinguished delegates, ladies and gentlemen, It is an honor to address this esteemed gathering at a moment when our collective resolve is called upon to tackle the challenges and embrace the opportunities of sustainable development. As we meet for the second preparatory committee of the fourth international conference on financing for development, we bear the immense responsibility of designing bold, equitable, and transformative financing framework, one that embodies the aspirations of humanity, particularly for small island developing states like Seychelles and other vulnerable nations. Delivering key financing policy reform and solutions. The fourth International Conference on Financing for Development must serve as a platform for decisive action and practical implementation of financing reforms that promotes inclusivity and sustainability. For Seychelles, the following reforms are critical. Number one, restructuring debt for sustainability. Debt burdens remain a significant obstacle to progress for small and vulnerable economies. Innovative solutions such as debt for nature swaps, climate resilient debt clauses, and state contingent debt instruments can create vital fiscal space for sustainable investment. Integrating these solutions into existing frameworks like the G20 Common Framework will ensure their feasibility. Number two, Enhancing access to climate finance. Reforming mechanism like the Green Climate Fund to simplify access for vulnerable nations is crucial. It is imperative that we advocate for the scaling up of the fund for loss and damage with transport, transparent allocation mechanism and supporting financing instruments like carbon finance, catastrophe bonds, which can empower nations to build adaptive capacity and resilience. Number three, enhancing the voice of developing countries in global tax governance and implementing equitable global minimum tax rates are transformative steps. Combating illicit financial flows and ensuring fair taxation will mobilize additional resources to close financing gaps, a vital action for achieving global equity. We commend the work on those elements. paper and recognize that the policies and action outlined in the provide a roadmap for aligning global financing efforts with the SDGs so as to accelerate the achievement of the SDGs. Number five, blended finance, which de-risk private investment in seeds, can attract funding for critical sectors such as renewable energy, education, and healthcare while ensuring public oversight. Similarly, innovative financing instruments such as blue bonds, green bonds, and SDG-linked bonds offer powerful mechanisms to support climate resilience and biodiversity conservation, aligning with the priorities of nations like Seychelles. We must also recognize the need to strengthen national capacities. Supporting countries in building robust financial management systems ensures effective utilization of resources and fosters alignment with national development goals. Closing the SDG gaps, financing gap demands pragmatic yet ambitious solutions. As such, it is imperative to find politically feasible solutions to bridge the $4 trillion financing gap, and we call upon the FFD4 to focus on the following three areas: scaled official development assistance, developed nations must fulfill commitments to allocate 0.7% of gross national income to ODA with a clear roadmap to mobilize the annual $100 billion in climate finance pledge under the Paris Agreement and recently increased to $300 billion in Baku during COP29. Number two, strengthening multilateral development banks. Increasing the lending capacity of MDBs while ensuring inclusivity and responsiveness to the needs of vulnerable economies will catalyze development. Moving towards resilience-based criteria for concessional financing is essential for SEEDS to access stated support. Number three, public-private partnership. Well-structured PPPs with clear accountability frameworks are vital for leveraging private capital to complement public investment without undermining equity or sustainability. To meet 21st century challenges, the global financial system must undergo a comprehensive transformation to address inequities between developed and developing countries. Developing countries must gain greater influence within global financial institutions. Decision-making structures, such as those of the IMF and World Bank, must reflect global demographic and economic realities. Secondly, advancing long-term financing solutions is key. Extending the tenure of sustainable development financing projects with favorable terms for vulnerable economies ensure they can invest in transformative initiatives without immediate repayment pressures. Long term green financing facilities can empower nations to achieve resilience and growth. Together, we must champion a financing framework that transcends borders, nurtures solidarity, and prioritize the most vulnerable. Let this be the moment where FFDE4 transitions from words to transformative action and from promises to progress. Seychelles, with its vision and commitment, stands ready to partner in this noble endeavor. Let us lead with courage, innovate with purpose, and act with urgency. The future of our planet and its people rests on the decisions we make today.

Thank you. Minister Hassan, for very specific proposals, but you have given us a long list of things that should be done to help countries to fight climate change, which are of course very relevant. Let me invite now Her Excellency Ms. Eva Granados, Secretary of State for International Cooperation from Spain, the host country, over to you.

Thank you very much. Good morning once again to all of you. It is a pleasure to share with you these proposals to revitalize the global financing framework and to implement the Addis Ababa agenda. We need to approve a reinforced framework reflected in a final document which is ambitious and realistic, but also one that includes concrete mandates and to achieve this will be necessary to build consensus. And I am optimistic listening to this morning's statements. We are going to need to build that consensus in the next months as to what we want to achieve in the various areas of the FFD agenda. And we think that this is especially important. It is important for developing countries. because developing countries have greater expectations such as to reform the international architecture, the sustainability of the debt, international tax cooperation. I also think that it is a unique opportunity, and I repeat this, to guarantee that the FFD agenda is also transformative for gender equality. On the policies included in the elements paper which have the greatest potential to speed up SDGs, I've already referred to the measures which Spain believes are important to move forward on the agenda, but I will simply mention now six of the priorities for Spain. Number one. In terms of domestic public resources, the framework convention of the UN on tax cooperation, the national progressive tax systems in taxes on high incomes, green and illicit flows. Also, secondly, to explore innovative effects with regard to the SDGs, sorry, the under chapter, the harmonized clauses of debt suspension as identified in the paper, but in our case we believe that for all creditors, public and private, and it also affects middle income countries. Fourthly, the reform of IFIs to be inclusive and representative and a commitment to achieve gender parity by 2030. Number five, to achieve our commitments of 0.7 percent, as the representative of the Seychelles mentioned, but also aware that ODA will not be sufficient. Also, sixthly, we will need measures to facilitate the effect of mobilization of private financing to develop local capital markets, to use blended financing and to strengthen risk rating agencies. They can help change the international financial architecture to have long-term effects towards sustainable development and to close the gap between developed and developing countries. To change the paradigm requires consensus in many fora and by many actors. International effects, uh, at the United Nations have shown that this organization is an effective platform for government dialogue and among stakeholders on economic and financing policies for development, which lead to new mandates and consensus. But we need to bring together the differences between the UN and the IFIs, promoting coordination and joint work. And lastly, with regard to how to ensure robust commitments to close the financing gap, we have to combine ambition and action and to focus on those things that bring us together and not those that divide us. We must think about impacts. Which can have, uh, concrete actions in Seville without, uh, losing sight of medium, uh, long term solutions. We usually say that Seville does not end in Seville. It should lead to a roadmap for the future. And to implement this roadmap, we must strengthen the follow-up mechanisms of the agenda to ensure that financing commitments that are agreed on will lead to mandates which are supervised effectively. All of this will lead to the need for more spaces coordination between ECOSOC and the IFIs and greater participation of regional perspectives. We must be in a position to follow up the commitments adopted at FFD4. We must carry out the tasks and translate actions on transformative changes to contribute to the SDGs. Thank you.

Thank you so much for presenting your list. It's really very pragmatic and we need to do that and thank you for the focus and follow-up mechanisms. You can't just walk away from CEEA and say things will happen. We should persistently pursue them. And I fully agree with you, CEEA is not the culmination of everything. Few things will be agreed and few things will be set in motion. Thank you so much. Our next speaker is Mr. Nuno Sampaio, he's the Secretary of State for Foreign Affairs and Cooperation Portugal. Excellency, you have the microphone.

Thank you very much. Good morning, Mr. Co-Chairs, Mr. Moderator, Mr. Under Secretary, Minister, Excellencies, distinguished delegates, ladies and gentlemen. As we approach the fourth International Conference on Financing for Development in Seville in 2025, We must focus on key policy reforms to address the urgent gaps in the implementation of the Addis Ababa Action Agenda. We face a world of unparalleled complexity and intertwined challenges, which we have experienced for decades. Geopolitical tensions and conflicts, the increasing adverse impacts of climate change, biodiversity loss and pollution, and persistent poverty and inequity are holding us back in the achievement of the sustainable development goals. We must do more and better so that our citizens may truly benefit from the promise of the 21st agenda to leave no one behind. We have a challenging road ahead of us, let us work together and here also in these four days, building the consensus necessary for the achieve ambitions, innovative and impactful solutions. It is in this spirit that Portugal took on the responsibility to co-chair the Bureau of the Preparatory Committee of the FFD4 together with Burundi and in consultation with our fellow Bureau members, with whom we remain fully committed to success of the preparatory process. Allow me to commend the host country, Spain, and the Secretary of State for Cooperation, Eva Granados, for their cooperation throughout this process, and the co-facilitators, Mexico, Nepal, Norway, and Zambia, for putting together the Elements Paper based on nearly 300 submissions by various stakeholders. We support the clear structure of the women's paper, as well as its action-oriented and forward-looking approach. Political action and focus are required to find areas of convergence for our shared benefit. We must build on the present moment here today and in the future, including following the adoption of the pact for the future. Allow me to focus on three ideas reflected in the element paper. First, we must reform the international financial architecture. The current system is outdated and unfair. We need a more inclusive and global economic government structure with a renewed role for MDBs. Second, We need to strengthen the coherence for development policies and international cooperation, making existing structures more efficient with concrete actions and pragmatic solutions, particularly on gender disparities, poverty, health, education, and climate change. Third. We must further promote the alignment of the private sector with the SDGs, developing innovative financing instruments to attract private investment in SDGs, creating incentives for sustainable investment and blended finance solutions, promoting a shift towards green and blue finance, and reducing investment risks in LDCs, LLDCs and SIDS. There is a need to pursue responsible and creative solutions, such as debt-for-nature swaps with a positive social, economic, environmental, and growth impact. The FFD4 conference is a unique opportunity to reshape the global financial landscape and accelerate progress towards implementing the SDGs. Its success will be our collective success and a testament that the multilateral system can deliver results despite the challenges international context. what has worked together to ensure that the outcome of CVID 2025 delivers transformative change for a sustainable financial system that serves all nations and peoples. Thank you all.

Thank you so much, Mr. Sam, for your again focused IFA reform, poverty, health, education, climate change, and private investment and transformation. of the system. Thank you so much. So ladies and gentlemen, this is the first panel and they have made excellent contributions in steering our discussions, how do we shape the elements paper into a zero draft. We'll take a brief pause to change the podium arrangements, but before we do so, a round of applause for our ministers who came all the way to. Now I request the next panelist to please come to the podium. Thank you so much. Thank you. We are about to resume if you could kindly take your seats. Thank you so much. We have the panelists on the podium. So our first panelist is His Excellency Mr. Oh, sorry, Ms. Martha Honita, Vice Minister, Ministry of Finance and Public Credit of Columbia. Honorable Minister, You have the microphone, please share your thoughts with us on the elements paper. Thank you.

Thank you very much.

A respectful greeting to you excellencies, distinguished delegates, ministers, ladies and gentlemen. For Colombia, it is essential for the fourth international conference on FFD result in commitments. commensurate with the ambition to work on the implementation of Agenda 2030 and the SDGs. Firstly, Colombia recognises the centrality of domestic resources to achieve the SDGs. However, the sustainability of these incomes for the necessary investments depends on conditions at all levels, including international tax cooperation that is effective and equitable. Colombia has decided to play an active role in international discussions on taxation. At the regional level, together with Chile and Brazil, we created the regional platform of tax cooperation, PT-LAC, which discusses mechanisms of tax regional coordination, for example, a possible regional agreement on carbon taxation. Internationally, Colombia has participated actively in the OECD framework and created the And supported the framework convention in, uh, Colombia has proposed creating global taxation to finance the fight against climate change and the loss of biodiversity, taxing the, um, largest, uh, fortunes. Colombia supports progressive tax systems to close gaps of inequality within and between countries. We have also conducted tax reforms to tax the wealthiest ones at the global level in the framework of the convention. These progressive taxation systems should be highlighted at FFD4. We also consider it important to negotiate the convention on equitable tax governance with equal conditions for developing countries in establishing the agenda and decision-making on tax cooperation. Furthermore, it is important to make progress on environmental and climate projects and tax instruments. Colombia has proposed a green tax rule And this is being discussed in Congress. This is something that we should all be able to discuss in our spaces. It would allow for the flow of public resources to projects which seek mitigation and adaptation to climate change and the biodiversity convention, conservation of biodiversity. Secondly, International cooperation for development plays an important role in achieving sustainable development at the global level, including poverty reduction and economic development as established in Agenda 2030. The development of multidimensional and more inclusive criteria to inform access to concessional resources and technical cooperation is critical to ensure that international cooperation resources are more efficiently and justly assigned, taking into account the needs of countries and the complexity of their challenges to achieve sustainable development. In this regard, establishing metrics which go beyond GDP should also be one of the main outcomes of the conference. In addition, we must make progress on reforming the international financing system to guarantee a more just and equitable participation of developing countries within renewed global governance as a fundamental element to lead the efforts. International financial institutions, in particular, particularly the multilateral development banks, must adopt counter cyclical timely policies to expand their capacity to offer credit in favorable conditions to facilitate the necessary liquidity for investments in social projects. One way to achieve this is to increase their capacity to lend and to have products in local currency. The growing debt burden makes it difficult to many developing countries to achieve the SDGs and to make the necessary investments for a just energy transition and to conserve strategic ecosystems that guarantee the delivery of services for the development of all species. Therefore, it is important to make progress on the design and implementation of innovative financing mechanisms such as sustainability bonds, Uh, uh, nature debt swaps and others which must be considered and scaled so as to become solutions to the mobilization of resources in the framework of COP16. and Cali, Colombia, recommendations were made on debt sustainability assessments. These assessments should include the effects of climate change in the macroeconomic and fiscal projections, and also the probable fiscal savings and greater economic stability of investments in resilience and other climate actions. Thank you.

Thank you, Vice Minister. Let me acknowledge Colombia's leadership on the issue of tax. we have really appreciated the role Colombia is playing on this issue. Now let me invite His Excellency Mr. Schneider Sihan, Deputy Minister for Development Funding, Ministry of National Development, Indonesia. Excellency, you have the microphone.

Thank you, Mr. Moderator. Honorable co-chairs, ministers, panelists, ladies and gentlemen, at the outset, Allow me to thank the co-facilitators and the bureau members for the organization of this event. Today's discussion marks a significant step forward in the preparatory process for the next year's fourth International Conference on Financing for Development, or FFD4, in Spain. We must focus on exploring scalable approaches to advance SDGs acceleration and bridge SDG's financing gaps by mobilizing development resources effectively. As we have just passed the midpoint of the 2030 agenda, the window to achieve the sustainable development goals is closing swiftly. The urgency to act has never been greater, and this call cannot be delayed or negotiated. With the SDG financing gap now exceeding $4 trillion annually, Particularly in the global south, we are on a critical crossroad. To close this gap, we must build solid foundations, implement bold actions, and mobilize all available resources to turn our collective aspirations into tangible outcomes. For Indonesia, this challenge is twofold. The first, accelerating economic recovery to achieve the SDGs. while driving sustainable and inclusive development. The difficulties mirror the broader struggles of the global south. However, Indonesia views them not as obstacles, but as opportunities to redesign how we finance the future. Our national priority, as the is clear, to transition towards a green and blue economy. Therefore, together with ASEAN, Indonesia has developed programs like the ASEAN Blue Economy Framework to exemplify our dedication to sustainable development. Green and blue economy initiatives will contribute to securing food, energy, and water for our people while preserving natural resources while accelerating the economy. Additionally, Indonesia leverages faith-based financing mechanisms such as zakat, waqf, and state Sharia securities to support local and national SDGs initiatives, particularly in addressing poverty, education, and public infrastructure challenges at the community level. This integration of local values with innovative approaches reinforces the inclusivity of our development agenda. Yet innovation alone cannot close the gap. We must also interweave innovative financings with traditional and conventional resources, ensuring developed countries uphold the commitment under the Addis Ababa Action Agenda. One step ahead, efforts we take reflect our strong commitment to fulfill our current needs without compromising the needs of our future generations. As a step forward, Indonesia is championing the G20 Bali Global Blended Finance Alliance, or GBFA, a platform established to align on mobilized resources that putting on SDGs goal value more beyond return of money. We invite all nations here to join this alliance and contribute to impactful solutions that drive progress on the SDGs. Again, Indonesia's approach combines innovative financing mechanisms, global collaborations, and a commitment to inclusivity. We firmly believe these pillars are essential to ensuring transformative development. Colleagues, as we look ahead to the fourth International Conference on Financing for Development, the question is not just what are the key financing policy reforms and solutions. The answer is us, our collective commitment. We must support small bridges here and there, creating as many connections as possible to not only mobilize resources, but also to allocate them inclusively. Ultimately, no one is free until everyone is free. Together, let us ensure the resources flow to where they are needed most. I thank you all.

Thank you, Deputy Minister, for your very powerful message on inclusion. Let me invite our next speaker, last from the podium. His Excellency Mr. Hassan Miraz, Deputy Minister of Finance, Ministry of Finance, Maldives. You have the microphone.

Thank you, co-chairs, for giving this opportunity. Ministers and distinguished delegates, good morning. The world has undergone significant changes since member states adopted that agenda in 2015. It's paramount that we align the international agenda on financing for development with the needs and priorities of the developing countries. It is only by doing so that we will be able to ensure a truly sustainable development. To achieve the 2030 agenda and the national development plans and priorities of developing countries, it is essential to address the significant financing gap that exists today. The UN's estimates show that developing countries require between 3.3 to 4.5 trillion US dollars to effectively implement the SDGs and to achieve their national development aspirations. However, current financial commitments fall short of this amount significantly. UN estimates show that the annual funding gap for financing for development is at 2.5 trillion dollars. This disparity between the resources needed and the support provided by the international community undermines efforts to foster economic growth, alleviate poverty and address climate change. To address both the financing gap and capacity constraints, one promising solution is the development of innovative debt financing mechanisms. Debt-for-nature swaps, for example, allow developing countries to reduce their debt burdens by committing to environmental conservation efforts. This approach provides a dual benefit of mitigating financial pressures while promoting sustainability by linking debt relief with environmental preservation and climate resilience. Bridging the financing gap, supporting capacity development, and fostering innovative debt instruments are interconnected strategies essential for achieving the SDGs. By addressing these challenges, The IFIs, MDBs, and our bilateral development partners can create a more supportive environment for developing countries, especially for SIDS. This will enable us to pursue sustainable development pathways while effectively managing our debt obligations and ensuring a more equitable and sustainable future for all.

Thank you.

Thank you, Deputy Minister, for your brevity also. Very sharp remarks and your message is collective efforts address the issues of debt and sustainability and inclusion. So with this, we conclude the interventions from panelists, ladies and gentlemen. Now we'll start interactive discussion, but before we do so, I want to thank the honorable ministers who were here with us at the podium. And let's have a round of applause for them also, and they can take their seats. Thank you. You can go back to your seats. So the co-chairs have guided us that now we will start interventions from the floor. Three minutes for individual speakers and five minutes if you're speaking on behalf of a group of countries. And towards the end, we will also try to see if we could have an exchange of views as Q and A's if that's feasible, if time permits. So our first speaker from the floor is Her Excellency, Ms. Geetu Joshi, Advisor, Department of Economic Affairs, Government of India. Excellency, you have the floor.

Thank you, Chair. India is honored to participate in the second Preparatory Committee session for the fourth International Conference on Financing for Development. a crucial platform for fostering dialogue, convergence, and collective action on financing development challenges. India firmly believes that overcoming these challenges require bold and innovative approaches to resource mobilization, enhanced South-South and triangular cooperation, and an unwavering commitment to equity and inclusivity as highlighted in the Elements paper. More importantly, developing countries should be given the policy space to grow and charter their own development pathways. Imposing standards adopted by developed nations may prove counterproductive as they may not align with the unique challenges and priorities of developing economies. While international financial architecture plays a crucial role in mobilizing SDG financing, ODA remains vital as a public policy tool to address the needs of the poorest populations, thus implementing the SDGs overarching objective to leave no one behind. India emphasizes that fulfilling existing ODA commitments continues to remain a key pillar of the renewed global financing framework, which must build on past progress, address existing gaps, and incorporate stocktaking to ensure a pragmatic and effective design. India also recognizes the catalytic role of MDBs in financing the SDGs. Achieving their ambitious objective of helping countries transform their economies requires enhanced coordination with country platforms serving as effective mechanisms while engaging with client countries. Strengthening the financing capacity of MDBs through implementing capital adequacy framework measures, leveraging financial innovations to attract private capital, and securing fresh capital contributions from donor countries is critical. Despite efforts to mobilize private capital, actual flows to low income and emerging markets for development financing is still a trickle. A key barrier is the stickiness and pro-cyclicality of sovereign ratings by credit rating agencies, which inflate perceived risks and hinder access to affordable market finance, deterring private investment. We believe MDBs are well positioned to engage with rating agencies and address this issue urgently. Chair, we look forward to productive discussions on the critical issues and reaffirm our full support in finalizing the outcome document with a vision for an equitable and sustainable future for all. Thank you.

Thank you, Ms. Joshi. Now let me invite our next speaker, His Excellency Shuaib Al-Zahir, he's the Chief of Technical Office in the Ministry of Planning and International Cooperation of Yemen. Excellency, you have the microphone.

Thank you, moderator, uh, we appreciate the approach presented by the element paper in addressing the financial, uh, challenges, uh, the paper provides a strong foundation for our collective effort towards FFD4. to revitalize the global financing framework and fully implement the Addis Ababa commitments. We strongly support the paper emphasis on complementary measures that goes beyond GDP. We, however, we propose strengthening this by integrating reconstruction needs into financing assessments, establishing coordinated funding mechanism across humanitarian development peace nexus, and enhancing capacity support for domestic resource mobilization. The paper rightly identifies key policies to accelerate SDGs and its achievement. We particularly endorse expanding concessional finance access through multidimensional vulnerability indices and creating an international investment support center with specialized facilities, as well as strengthening development banks' local currency lending capacity. As for bridging the $4 trillion financing gap, we see particular pathways in, one, developing innovative instruments like peace bonds and climate resilient debt facilities and tailored approaches to our country such as green and blue sukuk. Two, implementing systemic approach to debt restructuring. Three, enhancing tax cooperation from works and combating illicit flows. for scaling up blended finance and the standardized simplified access requirement. On transforming the international financial architecture, we emphasize on reforming quota and governance structure and streamlining access to climate and development finance, as well as strengthening the regional development banks and arrangements. We call on an outcome document that builds on, but not dilutes, the ambitions and concrete commitments made in the 2030 Agenda, Addis Ababa Action Agenda and Doha Programme of Action. Yemen will work constructively to translate these elements into concrete commitments at FFD4. Thank you very much.

Thank you. Let me now invite Her Excellency Ms. Martha Joanne, Permanent Representative of South Africa to the United Nations. Excellency, you have the floor.

Thank you, Chair. We are pleased to participate in the second prep com for FFD4. And South Africa is honored to be the first African country to assume the presidency of the G20. Under the motto solidarity, equality, and sustainability, our presidency will focus squarely on the development needs of Africa and the South and will drive the following three high level deliverables, inclusive economic growth, Industrialization, employment and equality, secondly, food security, thirdly, artificial intelligence and innovation for sustainable development. During our presidency, we will strive to implement the Addis Ababa Action Agenda to find a global financing solution that leaves no one behind, including reducing debt vulnerability, injecting FDI into developing nations, and creating consensus on the reform of the international financial architecture. Chair, despite economic growth in the past two decades, as many as eight in 10 workers remain in informal employment in Africa. Addressing this requires aligning all economic policies behind the goals of achieving high employment, decent work, and inclusive economic growth through industrialization and reindustrialization. South Africa will propose the creation of a task force to build a capacity of developing countries to boost productivity in agro-processing, manufacturing and services, and focus on reducing infrastructure gaps and bottlenecks, regional trade integration, and domestic and regional financing, with special emphasis on investment. Chair, despite the fact that we produce more than sufficient food globally, much of the world goes hungry. South Africa will therefore establish a task force on food security, building on the Global Alliance Against Hunger. to address food security at the regional and global levels. Deliverables will also include the launch of the AI for Africa initiative, the creation of a technology policy assistance facility to support the south, and the development and dissemination of accessible AI technology, low resource tools, and new minimal compute resources. the G20 has an important role to play in fulfilling the aspirations of the United Nations, especially in financing for development. South Africa will build on these efforts and successes of previous presidency to champion the development agenda and mobilize support for Africa and the developing economies of the global south. And let me end by stating that most of our priorities are reflected in the elements paper and we look forward to an ambitious outcome. I thank you.

Thank you, Excellency, and we look forward to Africa's, South Africa's leadership of the G20 and the issues that you have highlighted are so germane to the UN agenda as well. So we hope you will break new ground under your presidency. Our next speaker is Ms. Rabab Fatima, High Representative of LDCs and SIDS. She's not here yet. So our next speaker then will be Ms. Mary Beth Goodman, Deputy Secretary General of OECD. You have the microphone.

Excellencies, I would like to extend my thanks to the co-chairs for organizing the second FFD4 Preparatory Committee meeting and to the co-facilitators for their excellent elements paper with the valuable support of UNDESA. As we approach the negotiations phase, let me reiterate the OECD's commitment to achieving an ambitious outcome in Seville. The extensive contributions to the elements paper reflect the critical importance of this topic and the diverse stakeholders and sectors invested in the success of these negotiations. The OECD remains an active participant across all seven action areas of the Addis Ababa action agenda areas. consistently striving for better policies. Furthermore, we are committed to promoting policy coherence for sustainable development, a key aspect emphasized in the Elements Paper and a cornerstone for achieving the 2030 Agenda. We also strongly advocate for the role of data and evidence-based analysis in shaping effective policies. For instance, Through our Creditor Reporting System, we have been compiling and analyzing data from 183 bilateral, multilateral, and philanthropical development finance providers for over 60 years. This data is essential for understanding where the finance goes, what purposes it serves, and what policies it supports, all on a comparable basis. We therefore welcome the Elements Paper emphasis on increasing investments in data and statistical systems, as well as on strengthening the measuring and monitoring of resources mobilized for developing countries from multiple sources, building on the comparative advantages of established platforms like the CRS and an additional platform that we host at the OECD called the Total Official Support for Sustainable Development, TOSD. This was called for in the Addis Ababa Action Agenda, and we are very happy to be expanding the support with now over 150 countries reporting their data. In preparation for the FFD4 agreement, the OECD is working on a package of concrete deliverables. These include advancing the beyond GDP agenda by reforming the ODA graduation process to better account for vulnerabilities and ensure smoother transitions. Secondly, accelerating progress on the effectiveness agenda by strengthening the global partnership on effective development cooperation, upholding the main effectiveness principles such as country ownership, coordination, results orientation and mutual accountability, which is now even more important than ever. Thirdly, intensifying efforts to mobilize private finance for sustainable development, while advocating for reforms in OECD countries to align financing with the SDGs. Additionally, enhancing domestic resource mobilization by improving tax systems and intensifying the fight against illicit financial flows. Sixthly, continuing collaboration with UN partners. through the Integrated National Financing Framework Facility to establish a platform that matches technical assistance, capacity building, and institutional development with the needs of countries. We are also looking at the issues surrounding debt distress and unlocking private financial flows to better allow support for our partner countries in the global south. We look forward to engaging in constructive discussions in the coming months and remain dedicated to supporting our members and the global community in delivering a bold and impactful outcome in Seville. Thank you very much.

Thank you, Ms. Gutmann. And the list of deliverables is very impressive. And we really believe the capital exporting countries can also help by adopting some legislation to move the capital where it is badly needed. So that will be very welcome steps that you are just suggesting that you will bring to Seville. Thank you so much. Our next speaker is from the European Investment Bank, Mr. Rafal Rybacki. Over to you.

Thank you very much. Excellencies, ladies and gentlemen, the European Investment Bank, the EU bank, is contributing to worldwide development by reinforcing our focus on impact. We are committed to exploring innovative financial models that unlock resources at scale. We are delivering on five key actions. Number one is long maturities and favorable financial conditions. We refer to it as concessional financing. Number two, innovative instruments such as debt for climate conversion and climate resilient debt clauses. Number three, continued support to countries facing debt challenges. Number four, helping to deepen financial markets, notably through the global green bond initiative. And number five, boosting impact through technical assistance and blending with EU grants. We refer to this as lending, blending, and advisory. Looking ahead to the fourth international conference on financing for development in Seville, we see a strong need for collective actions. MDBs and the United Nations, But also the broader system of public development banks, development partners, philanthropies, and the private sector needs to leverage their collective resource and expertise to make a real difference. This will pave the way for a stronger, more inclusive multilateralism. And the European Investment Bank is playing our role. Thank you very much.

Thank you, Mr. Rebachi. Let me now invite Ms. Mia Seppo, Assistant Director General for Jobs and Social Protection from the International Labor Organization, Mia, please.

Thank you very much and big thanks to the chair for giving ILO the floor. We must accelerate our efforts to achieve universal social protection as outlined in SDG target 1.3. This is not only because social protection is a human right, it is also because of its well-documented role in preventing poverty, reducing inequalities, contributing to climate change adaptation and mitigation, and enhancing social peace. Today, 52.4% of the global population is effectively covered by at least one social protection benefit. While this marks an improvement from 42.8% in 2015, significant disparities remain across countries and population groups. Most alarmingly, in the 20 countries most vulnerable to climate change, the population covered by at least one social protection benefit is below 9%. In low and middle income countries, the financing gap to achieve a social protection floor for all is estimated at 3.3% of their GDP annually, or US$1.4 trillion per year in absolute terms. However, to progressively mobilise the necessary resources to close the coverage gap, countries must set realistic short term targets that will get us there. The target that the ILO and the USP 2030 Global Partnership propose is to prioritise public investments to extend social protection coverage to at least two percentage points per year. Our World Social Protection Database shows this rate of progress is realistic based on the trends we have seen over the past decade. Please join us for the ILO USP 2030 side event on achieving universal social protection, which is taking place today at 1:15 in conference room 9. Thank you.

Thank you, Ms. Seppo, for your intervention. Now we have two speakers from civil society. First is African Forum and Network on Debt and Development, AFRODAD. You have the floor.

Thank you very much, Your Excellencies, representatives from multilateral institutions, the media, and comrades from civil society. I speak on behalf of the African Forum and Network on Debt and Development and the CSO FFD Mechanism. Thank you for the opportunity. The origins of the Financing for Development Initiative and its first conference in Monterrey in 2002 are rooted in the systemic asymmetries defining the international financial and monetary architecture, which cannot be resolved on the national terrain and reveal their steep social and economic costs through recurrent crises. In this regard, I wish to join in the commendation to the co-facilitators for meticulously wading through over 300 submissions towards the elements paper and providing us with an outline of proposals of what will support progress towards the SDGs and more importantly, restore trust in the multilateral system. Distinguished members, during the first preparatory committee in Addis Ababa earlier this year centered around the impact of the deepening debt crisis in Africa and developing countries more broadly on the SDG agenda. This message has been buttressed during the recent World Bank annual meetings and the recent multi-stakeholder meeting held here in New York in October 2024. The debt crisis is a development crisis that if not checked will soon become a human crisis. and with increasing number of countries, particularly in Africa, paying more in debt service interest payments than on social investments like education and health, is symptomatic of an international system that is working for profits and shareholder returns and not people. In essence, we have designed a system that is presently mortgaging future lives and livelihoods for creditor loyalty and accessing global international markets, and has been mentioned by the president of the General Assembly earlier this year Nations should not gamble with their people's future. Therefore, the putting together of the Elements paper is about us being bold in times of crisis. So first, governments need to bring back decision-making power to the United Nations General Assembly, building on a window offered by the FFD process and inspired by the Monterrey Consensus, and develop member state-centered institutional solutions and new normative frameworks resulting in a new governance ecosystem. This is echoed by the message by from the Republic of Zimbabwe of being pragmatic in how we look at reforming the global financial and economic architecture. Second, the Africa Group and the Group of 77 must continue to lead the way in restoring trust in the multilateral system. Like you have done under the UN Framework Convention on Tax, We implore you through the work, through the clarion call that was made in Addis Ababa for the call of the multilateral legal framework sovereign framework on sovereign debt, now referred to as the UN Framework Convention on Sovereign Debt. This call is consistent with the opening session today that seeks to address the debt crisis that is crowding out critical finance for investment in SDGs. The Republic of Indonesia mentioned some of these elements of what a framework convention on sovereign debt would look like. For example, responsible borrowing and lending, fiscal space for investment in SDGs, and reform of the debt architecture. Third and finally, the key focus of the UN financing for development process should be on international cooperation. Governments should focus on promoting international tax cooperation to address the systemic issues at the global level, including through the negotiation of a UN framework convention on international tax cooperation. in terms of ensuring that national tax systems are progressive, effective and gender just. This is an issue which all governments should commit to. FFD4 should therefore protect and enhance the integrity and comprehensiveness of the UN Framework Convention on International Tax Cooperation. In conclusion, as has been iterated this morning, Addis Ababa is not the end, nor is severe the beginning. But rather, this is a continuation of a journey that embodies more democratic economic governance dispensation under FFD4, and more importantly, an opportunity to restore trust in the multilateral system and emphasize human dignity over profit-driven interventions. Thank you very much.

Thank you, Afrodite. Our next speaker is Ms. Stefania Bazzoni from the Council of Europe Development Bank. Ms. Bazzoni.

Thank you. Thank you very much. And thank you to the co-host for convening this meeting and to the co-facilitators for the very good element paper. The Council of Europe Development Bank, the CEDEP, is delighted to be here today, both as the Social Development Bank for Europe and in its capacity as the new chair of the group of heads of multilateral development banks. The group welcomes the LMN paper and its many references to the MDBs, which play a crucial role in the international financial architecture, leveraging their resources and expertise to help countries meet their development priorities and the sustainable development goals. We also welcome that the LMN paper reflects the MDB commitment to evolve into a better, bigger and more effective system as laid out in the EADS viewpoint note published early this year. As part of this commitment, the MDB groups has already delivered concrete results. They have identified additional lending headroom, provided more climate financing in particular to low and middle income countries and adopted measure to increase… to increase co-financing and reduce transaction costs for the borrower. MDB are committed to continue to deliver and in this context, the MDB group looks forward to actively engaging with the UN and other stakeholders to identify how we can better address implementation gaps towards the MDB and these SDGs and achieve a successful conference in Seville. MDBs will engage individually according to the governance and process and jointly as a group as appropriate. Thank you very much for your attention.

Thank you, Ms. Bazzoni, and we truly appreciate the way MDBs came to the UN in September to share their vision, and we are expecting FFD4 really accelerate the implementation of the viewpoint that they have all agreed to pursue. Let me now invite our next speaker, Ms. Federica Diamanti from IFAD, Associate Vice President for External Relations. Ms. Diamanti.

Thank you, thank you, Mr. Chair. On behalf of IFAD, the International Fund for Agricultural Development, I would like to thank the co-chairs and Deza for laying the ground towards Seville. This is a very exciting moment for IFAD, given the unique nature We have a soul of UN agency, but we also have a body of IFI, and we have a rating agency, like we are rated by credit rating agencies, and we really feel that this moment is for us an unique moment to bridge the gap between the IFI's community and UN. And this is just to take on board the urgent call by the Secretary of State of Spain that we need to bridge the gap and IFAD offers its unique nature to really make a difference. we really believe that we need to build a new narrative made on opportunities. Um and we really need actions to work across the multiple spectrum of the SDGs. So we need very strong actions able to take on board the challenges on number of SDGs and this what IFAD is doing and this is what IFAD wants to bring to this table. We believe that investment in agri-food system precisely complements to the role of multilateral development banks as well as the Rome-based agencies, and we really can make a difference as a broader community. successful transformation of food system can unlock economic growth and create new jobs. They can fuel sustainability and regenerate economy ecosystems, but also reduce poverty and hunger and ultimately bringing more peace and stability across the world. So the element paper is a very good starting point, but there is more. There is scope for having more prominent role for agri food system financing. There are three areas critical for effort first on finance as saying before we need to have ifis coming together with public development banks and the finance in common in South Africa will bring us and the communities of all p pds and regional and multilateral development Banks together um and we also need to harness private capital flows we heard everyone around the table saying that we need to cap like to mobilize more private capital and this is what actually ifa does through its financial instrument and with Mission aligned private investor uh we also should align and to maximize the value and impact of remittances and diaspora investment. And Zimbabwe Minister made it very clear on diaspora bonds. And also here, IFAD would like to bring its expertise at the table. Second, we need to really work on enabling environment for policies, infrastructure, rules and regulation, but also for inclusivity to have opportunities for whole. And there is a third area which has been mentioned and is about data and measure. And also in that respect, we really make a work, uh, an important work together with colleagues of the World Bank, uh, by, uh, with the three FS, uh, to track financial flows to food systems. And also this is part of the concrete solution to help targeted investment and foster mutual accountability. To close, let me reiterate that IFAN wants to support member states and development partners to ensure existing finance do more, do better, and on top opportunities bring together more and diverse partners at the table. So our offer is here and we are very keen to be here and to work together toward a successful conference in Seville. Thank you.

Thank you, Ms. Giannanti. Our last speaker, CSO, it's the European Forum on Debt and Development, Euro-Dad.

You have the floor, madam.

Good morning, excellencies, distinguished member states, colleagues. I'm Maritza Romero. I belong to the European Network and Civil Society. Thank you for this opportunity to address you.

What is at stake is the ability of the international community to transform a global system that is currently not working for people and the planet. As it was mentioned earlier in this room, the next year will be five years away from reaching the 2030 milestone. And the world is still facing multiple crises, debt, inequalities, the climate crisis. It is an historical opportunity. FFD4 should be about systemic reforms to correct historical imbalances. The reaction of the civil society FFD mechanism to the elements paper argues that the document missed concrete proposals to establish UN intergovernmental processes, legal frameworks, norms, and standards on financing for development. Nice words do not help unless there are concrete actionable intergovernmental processes to turn them into concrete progress. Three key remarks. Firstly, FF4 should agree on broadening the normative role of the UN in international development cooperation, agreeing on a UN convention on international development cooperation. We are encouraged by the inclusion of a section entitled Reform the Global Architecture, yet the proposals under this heading do not match its ambition. They restate the status quo, which is not democratic, weak on representation, and outdated. There are welcome references in this session of the LMN paper, but they should be operationalized through the convention that I refer before. FFV should not be a place to restate unmet commitments on official development assistance. Secondly, there is a need to rethink and transform the international financial architecture for development. Specifically, there is a need to agree on a UN intergovernmental process to address the whole ecosystem of institutions to better cater for the needs of financing on the basis of an agenda focused on socioeconomic transformation, the fight against inequalities, and the right to development. FFD4 should be a place to reclaim the role of the UN as global norm setter on global economic governance. FFD4 should not endorse decisions taken by a small group of countries elsewhere. Thirdly, the section on private finance is very weak. It does not reflect the need for a transformative approach. The proposals show an over reliance on private capital mobilization, which deepens existing strategies that have not delivered on commitment made in 2015. Millions in public finance won't deliver the trillions needed for development and climate goals, and private finance will not deliver for the least developed countries. There is a need to restore state capacity to regulate in the public interest, and FFD4 should provide the right framework and processes for that. The Elements Paper includes a reference to a global regulatory framework for the asset management industry. FFD4 should go one step further, establish a UN global regulatory framework to adequately regulate and supervise the asset management industry. FFd4 should not be a place to further elevate the power of private investors. Civil society remains open and very keen on actively engaging in this process. Thank you very much for your attention.

Thank you, Eurodad, for your intervention. I had mentioned if we get some time, we will go ahead with Q and A's and I have been advised by the co-chairs, we could invite the ministers and vice ministers, the state secretary that they are still in this room. If they wish to respond to the intervention we have heard from the floor. Coaches, I think the ministers are not going to respond. So let me quickly capture the key points. First of all, thank you everyone for your presence, your engagement, and your very thoughtful remarks, starting with the Secretary General of the conference, who also very eloquently mentioned the five things that CEA has to deliver. We had a very nice mix of themes which permeated every presenter's presentation and themes which are very specific to country needs coming from SIDS, coming from LDCs. So let me capture for you themes which were common to almost all interventions. First and foremost is the architectural changes. Every speaker mentioned those. They might have different take on which aspects, governance, policy orientation, operations, working as a system, but this was a theme which was mentioned by almost every speaker. Second theme which emerged, and that is the issue of debt. Both is prevention, its solutions which are desperately needed by many countries, and then architectural changes in the long run. Third issue is investment. concessional finance, private investment, deploying public capital to facilitate private investment. So this is the third theme which almost every speaker mentioned. And I think it requires urgent attention in the FFD4 decision making process. Fourth, and this is also which was mentioned in different forms, it's the International Development Corporation, ODA, commitments should be met. South South cooperation has immense potential. But one speaker emphasized and this is in the elements paper very clearly mentioned international development cooperation framework is outdated. It does not capture the reality of current development cooperation flows. The could deliver one or initiate work on this. A conversation which should happen under a universal platform, but where every provider should sit and develop a framework where developing countries burden is lessened. The reporting requirements, different indicator frameworks they have to deal with really undermine the impact of such cooperation. So that's the theme which was mentioned in very different perspectives, but definitely needs attention at FFT4. These are themes which were in every intervention. And of course, climate change, climate finance, overarching poverty, hunger, but these are, we all know, captured in the sustainable development agenda that we have to achieve in the next six years. Three things which also stood out, which I want to really emphasize since the monetary consensus, IMF, the World Bank, WTO, They have always been working with the UN very actively and they always search for solutions depending on their governing structures, but they are very keen to find solutions for challenges that are confronted in pursuing development. The call is becoming louder. We should work as a system much better than we have done so far. And I think their follow-up mechanism can break new ground. I do not know what it would look like, but it can certainly be strengthened. Second emphasis, which is again on the structural collaboration and MDBs are leading on that, but that's also a model which others can follow. There are many other institutions and finance in common is a clear message how public development finance institutions can come together to work with private finance to make the money go where it is badly needed. Lastly, and this is something where I think consensus should build now, every chapter needs something groundbreaking, all in data technology. So all seven chapters should have something which is new. We should not go below Monterrey, below 2030 agenda. There was also a message loud and clear. So let's focus on the elements paper as the leaders mentioned, it has wide range of proposals. It's a menu which has been given to you to choose from, but some essential nutrients should be part of the outcome document in every chapter. So this is what my understanding of the conversation is. Once again, thanks to the ministers and all of you for your engagement. And I'm really honored co-chairs, you gave me the opportunity to be part of this conversation and looking forward to even more productive meetings in the coming days and leading to the conference in June. Over to you.

I thank Mr. David.

Hamelin, the moderator, for the expert manner in which he has led the debates. I also thank all of the participants for their substantial and valuable contributions. We have thus come to the end of our program of work for this meeting. The Preparatory Committee will reconvene this afternoon at 3:00 p.m. to hear general statements under agenda item 5. Detailed information on the programme of the Preparatory Committee is available on the FFD4 website. Thank you for your participation this morning. The meeting is adjourned.