(4th meeting) Preparatory Committee for the Fourth International Conference on Financing for Development, Second Session

Good afternoon. It is 3 p.m. so I call to order the fourth meeting of the second session of the Preparatory Committee for the fourth International Conference on Financing for Development. So before we begin the interactive dialogue this afternoon, as announced this morning, we will hear the remaining speakers on interactive dialogue one, domestic public resources. Speakers who wish to participate in the following interactive discussion on domestic and international private business and finance, are invited to press the microphone button now so that we can see the number of speakers and adjust the time limit as necessary. I remind the three remaining speakers of this morning's session that the time limit for them is two minutes and 30 seconds and it will be strictly enforced. I now then have the pleasure of giving the floor to the distinguished representative of Financial Transparency Coalition. You have the floor and to be followed by the representative of FAO.

Thank you, Chair. My name is Agustina and I hereby speak on behalf of Open Ownership and the Civil Society FFD mechanism. We welcome the submissions from governments that have recognised the significant importance of transparency of the real or beneficial owners of corporate vehicles and assets as a key policy reform to support sustainable development and integrity in economic governance. With that in mind, we were disappointed to see the very scarce commitment in the Elements Paper on strengthening international tax cooperation and beneficial ownership transparency, or both. Both are vital concepts to address financial secrecy and prevent illicit financial flows, corruption and international tax abuse. We therefore urge you to include in the zero draft explicit language on implementing high quality, centralised and standardised beneficial ownership registers covering companies and other corporate vehicles, such as trusts. where information is verified and up to date and a wide range of actors have timely access to it. It is of vital importance that FFD4 stresses this should be also included within the UN tax convention. We additionally recognise and celebrate that the Elements Paper commits to designing a beneficial ownership global asset register and we support its incorporation in the zero draft. This holds significant potential to unveiling hidden wealth and supporting progressive tax policies. it must also be included and discussed within the negotiations for a UN tax convention in an inclusive and transparent manner, incorporating expert views from governments, academia and civil society organisations. Finally, the zero draft should recognise that current standards on automatic information exchange have not benefited all countries, and in particular not all developing countries, due to political constraints and excessive compliance burdens. It should therefore commit to addressing these gaps in the negotiations towards a UN tax convention, strengthening automatic information exchange. Up to date information should be accessed in a timely, accurate and standardised manner, including direct access by foreign tax authorities to the information they need without unnecessary burdens to ensure effectiveness of their tax domestic systems. Thank you.

I thank the representative of the Financial Transparency Coalition and I now give the floor to the distinguished representative of FAO to be followed by the representative of IFAD. So FAO you have the floor please.

Thank you, Chair. FAO would like to highlight that several trillion dollars are needed to meet SDG targets 2.1 and 2.2, and even greater amounts may be needed to transform agri-food systems and prevent and mitigate food crises. It is crucial that FFD4 takes bold action to address this gap, given that food crisis is one of the overlapping crises. Domestic public resources will play a crucial role in addressing this specific gap. The 2024 State of Food Security and Nutrition in the World highlights that public spending on agriculture per capita is very low and not steadily growing in low-income countries and lower middle-income countries, where food insecurity is more serious. Take into account that public spending on agriculture is only a fraction of public spending on food security and nutrition, enabling the increase of domestic public resources to SDG2 is absolutely crucial. At the same time, FAO considers that there is a significant potential associated with reallocating and reorienting public domestic spending in agriculture towards more profound transformative effect on agri-food system, addressing structural inequalities and reaching the most vulnerable low-income farmers. Some of this reallocation needs to take place within countries, but some could result from increasing official development assistance flows to lower middle income countries and low income countries where little money is available to meet fundamental food security and nutrition investment needs. I thank you.

I thank the distinguished representative of FAO and I now give the floor to the distinguished representative of IFAD. You have the floor.

Mr President, we welcome the inclusion of a section on strengthening national public development banks in the Elements Paper. We find that this is an important recognition of the important role that national PDBs have for strengthening domestic public resources in developing countries.

In this context, it is also

important to recognise that the PDBs have an important role in agri-food system financing, which is a topic that we believe should receive increased attention in the FFD process and the outcome document. This is due to its important role in advancing many SDG goals, such as on poverty and hunger. IFAD is currently hosting an initiative called the Agri-PDB Platform, with strong support from IFAD, bringing together PDBs from more than 90 countries to share knowledge, best practices and innovative solutions.

This is a collaborative process and work that can be scaled up further.

In conclusion, on PDBs, it is important that their capacity to mobilise private capital through their balance sheets is strengthened, and measures in this regard should be identified during the FFD process. Thank you.

I thank the distinguished representative of IFAD, and that was the last speaker of interactive discussion number one. I now invite the committee to continue its consideration of agenda item 4b, to hold its second interactive discussion on domestic and international private business and finance. I would like to remind speakers of the time limit of right now, three minutes for interventions in order to give all those wishing to speak the opportunity to take the floor, and we will see if this holds through the meeting. So, as you all know, in order to keep track of time, a countdown clock is visible on the screen to alert speakers when it is time to conclude their statements. The microphone will be automatically activated when the time limit has elapsed. Speakers on behalf of groups should inform the Secretariat in order to be given precedence in the order of speakers. And with that, I now give the floor to the distinguished representative of the Philippines, speaking on behalf of the Group of 77 and China, to be followed by the representative of Argentina. Philippines, you have the floor.

Thank you, Chair. Good afternoon. The G77 and China thanks the co-facilitators for their work on this section of the elements paper. We take this opportunity to emphasize the group's submissions on domestic and international private business and finance in preparation for the zero draft. The FFD4 outcome document should reaffirm that flows of private international capital, particularly foreign direct investment, along with a stable international financial system, are vital complements to national development plans and policies and public financing for sustainable development. FFD4 should address development financing gaps and the low levels of foreign direct investment faced by landlocked developing countries, small island developing states, many middle income countries and countries in conflict and post conflict situations. In this regard, there is an urgent need to enhance transparency and reform of credit ratings agencies to help increase opportunities for developing countries to access long term private investments and credit flows for sustainable development and to have fair credit ratings for all. FFD4 must scale up support for financial inclusion and capacity of developing countries, including in mobile banking, digital payments, platforms and tools, e-commerce, microfinance, and entrepreneurship. FFD4 should also reaffirm the importance of remittances, which do not replace ODA, FDI, and other financial flows for development. and therefore enhance efforts to reduce remittance costs to less than 3% of amounts transferred by 2030. Actions likewise need to be taken to strengthen support for entrepreneurship, innovation, and MSMEs in developing countries through access to financing facilities, markets, technology transfer, and capacity building, among others. We also see that FFD4 can help improve information on investment opportunities through deeper partnership between the private sector, investors, governments, development banks, and development institutions. The group recognizes that while the mobilization and enumeration of private sector resources may ensure additional flows of development finance, these are not suitable for all sectors and countries and are thus not a suitable substitute for traditional ODA. We emphasize the need for more innovative risk sharing and de-risking instruments, which are vital in mitigating investment risks and attracting private capital for development projects. In conclusion, Madam Chair, the G77 China will continue to engage constructively in deliberations with a view to shaping a robust and impactful FFD4 outcome document for developing countries. Thank you.

I thank the distinguished representative of the Philippines and I now give the floor to the distinguished representative of Argentina, to be followed by the representative of Germany. Argentina.

Thank you very much, Madam Chair. Very good afternoon to you, colleagues. The Argentine Republic considers that Agenda 2030 for sustainable development is composed of legally non-binding aspirations that each state in the exercise of its sovereignty has the right to interpret and pursue freely. On this basis, the Argentine Republic reserves its national position in all those paragraphs with reference to the 2030 agenda and its sustainable development goals. This reservation also extends to all those paragraphs that go against the guiding principles of the protection of life, liberty and private property, and also to those referring to gender. Argentina also recalls that it dissociated itself from the pact for the future. We make this remark at this time, but we believe that it applies to all sections in the elements paper document as a whole. For example, there is a section that refers to aligning financing and private business with the SDGs, which could represent a contradiction to economic freedom and the non-binding nature of the SDGs. In this regard and in the context of what I have just said, Argentina will closely examine the future zero draft. I thank you.

I thank the distinguished representative of Argentina and I now give the floor to the distinguished representative of Germany to be followed by the representative of the United Kingdom. Germany.

Thank you very much. Well, Germany welcomes the elements paper as a valuable contribution to ongoing discussions on private sector mobilization for the SDGs. Public resources are not enough for closing the financing gap. We need broad alliances to tackle today's challenges. Those private sector and private capital mobilization are one of Germany's priorities. Since 2015, there have been many initiatives mobilizing private investment. Yet private investment has been insufficient for closing the financing gap. Therefore, Germany aligns itself with the Elements Paper on scaling blended finance instruments through standardization. Standardization reduces complexity and cost of such instruments and makes them replicable in various contexts. The HSP announced at this year's Hamburg Sustainability Conference aims at taking standardization and enhanced cooperation into practice. Investments also depend on the availability and transparency of data, which allows private investors to better assess risks and opportunities in countries. We underscore the importance of initiatives such as the Global Emerging Market Risk Database, but highlight that more work needs to be done. We also would like to point towards the Hamburg Data Alliance launched at the Hamburg Sustainability Conference in October. We would like to also highlight initiatives for data access and transparency, which must include all relevant stakeholders rather than merely institutional investors. Another important element to align private investments with SDGs are interoperable sustainable finance frameworks. Germany welcomes initiatives such as the International Sustainability Standards Board, which incentivizes the private sector to adopt more responsible forward-looking business models, mobilizing private investment for sustainable activities. There's also a need to develop local financial systems and to foster enabling environments for private investment. Accessible, resilient, and stable domestic financial markets are important drivers of economic growth and wealth creation. Local capacity development and risk mitigation instruments, but also local currency financing, are key for facilitating the flow of capital into SDG and climate projects. This is largely reflected in the Elements paper. Um, we would suggest to broaden the scope of financial system development beyond banks to include all financial institutions, also digital financial service companies, microfinance institutions and leasing and factoring business may all play a significant role in local financial systems and complement banking services. F54 offers a unique opportunity to address persisting challenges to mobilizing private investment for the SDGs. We need to collaborate on standardization, capital mobilization instruments, on making risk and impact data available to private investors, and on the interoperability of sustainable finance frameworks. Finally, we need to work towards…

And I thank you.

I thank the distinguished representative of Germany and give the floor to the distinguished representative of the United Kingdom to be followed by the representative of Saudi Arabia.

United Kingdom.

Thank you, Chair. Mobilizing private finance at far greater scale is essential if we are to deliver our development and climate goals, and the potential is vast. Shifting just a fraction of the 98 trillion held by institutional investors could be truly transformative. The UK thanks the co-facilitators for the suggestions on this agenda in the Elements paper. We know that there is no silver bullet and that action is required on multiple fronts, from mobilising investors to building the pipeline of bankable projects to deepening domestic capital markets. But we must go further. Systemic change is required to give more confidence to the system and to help it absorb shocks and tackle both real and perceived risks to investment in emerging and developing markets. There are three key areas where we see potential to go further. Firstly, public markets are underemphasized despite their vast potential to unlock institutional investment in EMDEs. FFD4 presents an opportunity to explore public markets more deeply, something we are already doing through the UK's mobilist program, which supports EMDEs to list products on global stock exchanges. Secondly, the lack of accessible, reliable data remains a crucial barrier to investment. While we've seen some real progress on GEMS data, more must be done, which is why we were pleased to launch the Hamburg Data Alliance with Germany last month. Third and finally, we welcome the element papers focus on SDG impact, but emphasize the need for specific tools to ensure finance aligns with national priorities. FFD4 should scale up investments like thematic bonds and funding models for SMEs and women-led businesses, addressing critical financing gaps. The UK is committed to working with all partners to advance this agenda and ensure financial systems are fit for the challenges ahead. Thank you, Madam Chair.

I thank the representative of the United Kingdom. You were finished, yes?

Yeah.

And I now give the floor to the representative of Saudi Arabia, whilst reminding everybody that the speakers list is now closed if we are to get through today's list. So Saudi Arabia, you have the floor, to be followed by the representative of India.

Thank you, Chair. We'd like to raise three important points that apply not only to this section, but the elements paper as a whole. Building on our previous comments, any recommendation of a top-down nature in this document defies its core goal, that is ensuring financing for development. Additionally, any call for global taxonomy should take the different national circumstances, the bottom up in nature and should be negotiated by all members and to be inclusive. On the private sector accountability, the private sector is not a party in international agreements or frameworks and therefore cannot be accountable to them. the private sector is only accountable to the governments of the jurisdictions within which they operate. Thank you.

I thank the distinguished representative of Saudi Arabia and I now give the floor to the distinguished representative of India to be followed by the representative of Australia.

Thank you, Chair. Private sector financing serves as a catalyst in bridging the SDG financing gap by providing innovative solutions, technological rigor, and vital capital. Despite the widespread focus on the agenda, the actual flow of private capital to low income and emerging markets for development financing is still a trickle. The stickiness and pro-cyclicality associated with sovereign ratings for low income and emerging market economies limit their access to affordable market finance. Global coordination is needed to ensure that the sovereign rating agencies rectify fundamental problems in their rating models so that private sector gains confidence to fuel the much needed capital in EMDs. And we look forward to recommendations around this important aspect in the outcome document. For developing countries, what is important is the cost of capital. The MDBs, development finance institutions, and regional development banks can play an important role in accelerating private investment in sustainable projects by offering measures such as de-risking, credit enhancement, guarantees, and local currency investment to reduce the high cost of capital in developing countries and attract long-term investment. Additionally, to create a more enabling environment for private financing, it is crucial to streamline regulatory processes, enhance legal protection for investors, and ensure fair competition and promoting financial inclusion through digital technology and financial literacy. Moreover, strengthening support for entrepreneurship, innovation, particularly for MSMEs in developing countries, in terms of improved access to financing markets, technology transfer and capacity building remains crucial to fostering private investment. We welcome the ongoing efforts at the UN and support the call for increased investment flows to developing countries for financing their development. Thank you.

I thank the distinguished representative of India, and I now give the floor to the distinguished representative of Australia, to be followed by the representative of Antigua and Barbuda. Australia, please.

Thank you.

We see FFD4 as the.

Platform to bring together all sources of development finance to achieve all the sustainable development goals. Development must be for all, by all. and scaling up private business and financing is essential to bridging financing gaps in developing countries. We must incentivize the private sector through actions that build partnerships, transparency, knowledge sharing, and trust. We strongly support development of domestic financial markets that increase access to finance. At the same time, we must focus efforts on the scale up of catalytic capital. Governments and MDBs need to take on more risk and act as anchor investors to crowd in private investment. Australia supports efforts to identify and promote standardised blended finance products that are proven to be effective and are replicable and will help to mobilise blended capital at scale. Our experience demonstrates that there is demand from developing countries for new and innovative blended finance tools. And we must make calls for scaling up existing mechanisms that are crowding in more finance from the private sector. It is equally important to increase access to banking services in developing countries, especially in the Pacific. Correspondent banking relationships have declined, impacting economic resilience, growth and financial inclusion. We must and can turn this around, including by building upon the outcomes of the Pacific Banking Forum earlier this year, and promoting sustainable access to the global financial system for SIDS. Institutional capacity building and technical assistance will be critical to implementing the correspondent banking relationship roadmap, including through the World Bank's Pacific Strengthening Correspondent Banking Relationships project. We look forward to continuing the work with you to deepen private partnerships to enable development outcomes.

Thank you. I thank the distinguished representative of Australia, and I now give the floor to the distinguished representative of Antigua and Barbuda, to be followed by the representative of the European Union.

Thank you, Madam. I align this intervention with that of G77 and China, but wishes to offer additional views in our national capacity. Only 13 of the 39 SIDS have a sovereign credit rating. which is a significant barrier to accessing affordable finance. High borrowing costs linked to climate vulnerability are further compounded by an unfair credit rating system that doesn't fully account for climate resilience. Therefore, Antigua and Barbuda proposes reforming credit rating methodologies to include resilience investments and climate risk. These two criteria will help lower cost and attract private investments in SIDS. Bonds, green bonds, and blue bonds must be tailored specifically for countries like Antigua and Barbuda. This will encourage private investors, as private investment is key within this section of the Elements Paper. This is important because a layered approach of issuing these bonds can help alleviate financing burdens while focusing on long-term resilience, infrastructure investments, and projects such as storm-resistant housing and renewable energy. Leveraging private finance for investment in SIDS is a perpetual problem, but there are important opportunities for FFD4 to produce greater support from the private sector in the renewable energy and other sectors that SIDS can pursue. Development finance institutions can support SIDS to leverage private finance and investment in renewables. But as stated in the ABAS, countries like Antigua and Barbuda and other states will need targeted support to develop the right policy, legal and regulatory frameworks, as well as to develop appropriate technologies to our context in order to attract sustainable financing from the private sector. Thank you, Madam.

I thank the distinguished representative of Antigua and Barbuda. And I now give the floor to the distinguished representative of the European Union, to be followed by the representative of the United States of America.

Thank you, Chair. We welcome the focus of the Elements Paper on incentivising, mobilising and scaling up private finance catalysed by public resources to achieve the SDGs and the Paris Agreement. To reach scale and impact, we would put even more emphasis on innovative financial instruments such as use of proceeds, thematic bonds, and structures such as public private investment vehicles aiming at crowding in institutional investors. The EU Global Gateway supported by EFSI plus guarantees and blending, as well as initiatives such as the Global Green Bond Initiative, are geared to do just that. Through these initiatives, the EU aims to reducing the cost of capital for sustainable investments, notably by covering the part of the financial risk that private investors are not willing to take. We also welcome the focus of the Elements Paper on conducive enabling environment for private investment. This is extremely important to address the perceived risks of investors. One case in point is sustainable finance frameworks. More than 50 sustainable finance taxonomies have been developed worldwide, most based on economic activities. The priority of today is to enhance interoperability between these taxonomies worldwide rather than developing a global SDG taxonomy based on objectives. We welcome the strong focus in the Elements Paper on financial inclusion and expanding access to financial services for MSMEs, women, youth and marginalised groups. The proposed sequential approach is welcomed, recognising the growing importance of impact investing to expand this asset space. Our value-based approach on the Global Gateway stresses the need for adequate tools to measure the development impacts, including on decent job creation. The EU strongly supports an economy that works for people by basing our efforts on data and evidence for impact. Local currency financing is one of the most important challenges for private investors. The EU supports initiatives to address foreign exchange risks and high hedging costs, in view of fostering increased local currency financing. Finally, sustainable and responsible corporate behaviour is a must for the EU. Development of accompanying measures to support market players to keep up high standards in this respect is key. The EU has already developed a strong framework of support in this regard and stands ready to share its information and experience on this. Thank you very much.

I thank the distinguished representative of the EU and I now give the floor to the distinguished representative of the United States to be followed by the Islamic Republic of Iran.

Thank you. Thank you to the chair and the co-facilitators. The United States is actively working to unite development partners and private investors to support sustainable development.

We urge the UN to redouble its work to support developing countries in establishing the kinds of conditions that foster this private sector investment. This work will help us both reach the sustainable development goals and better access the untapped potential for increased FDI in developing countries. Strengthening the enabling environment, including policies supporting accountability, good governance, anti-corruption, environmental sustainability, and the rule of law, is an essential precondition to attracting high-quality investment, and we are pleased to see this reflected in the Elements Paper.

We commend.

The practical suggestions that reflect the requests we often receive from developing country partners, such as capacity building and technical assistance for the development of domestic banking sectors. We appreciate the recognition that financial inclusion, particularly for women and marginalized groups, is critical, and we support leveraging emerging digital technologies toward this end. We recognize the critical role of multilateral development banks and development finance institutions in catalyzing private capital and the efforts underway to strengthen their capacities, including greater use of guarantees. Given the extensive existing network of institutions established to support international investment, we urge further coordination to ensure we not exacerbate fragmentation and further duplication of services with the creation of new investment support or investment financing facilities. We do not believe it is the role of the United Nations to make recommendations for changes to credit rating methodologies, including in the FFD4 outcome document. We strongly support creating a bigger pipeline of investment ready projects, including by building on existing partnerships. One example of how we are accomplishing this is the Blue dot Network that the United States launched together with partner countries and the OECD. The Blue dot Network is aimed at advancing robust standards for global infrastructure and mobilizing.

Investment for projects in developing countries.

We support transparency and expanded data collection and reporting, but have concerns about the burden of additional reporting requirements for small countries already struggling to comply with existing frameworks. On sustainable finance, we support greater interoperability as a general goal, but also recognize that financial and market regulators have different mandates. and jurisdictions and may have different and longstanding legal regulatory and fiduciary requirements for firms. We must avoid overly prescripted recommendations. Finally, thank you once more to the facilitators for this wonderful product.

Thank you very much, the distinguished representative of the United States. I now give the floor to the Islamic Republic of Iran, to be followed by the United Republic of Tanzania.

Thank you, Madam Chair, for the floor. Madam Chair, my comments refer to the morning session and also this session. On morning session, on section one, on gender issues budgeting, we propose that the caveat of national needs and circumstances be added in this section, as different countries have different priorities. On the sub item on fossil fuel subsidies, we propose that do not single out in just one areas, just we can propose a listing, we can go with the listing or deleting, uh, uh, just a single issues. And we also, on international tax cooperation, we ask for the deletion of some paragraph E, G, and H. And then on H and G and H, we agree with the.

Delegation of Egypt that there is no.

One size fits for all, and then we ask for the deletion of that one. As the FFD is an intergovernmental process, we do not support any reference to OECD and FATF.

The reason is that one, they are not intergovernmental.

Processes and then as not the UN agencies and then we do not support any reference to that one.

And then on G20, we believe that that is not an inclusive one and then we wanted.

To ask for the deletion of the paragraph that refer to these three areas. On combating illicit IFIs, we wanted to ask for the deletion of the section A that is also referred to the FATF, we do not support that one. And then on this section, we support the of the role of the United Nations in developing cooperation.

Thank you.

I thank the distinguished representative of Iran, and I now give the floor to the distinguished representative of the United Republic of Tanzania, to be followed by the representative of South Africa.

Thank you, Chair. Tanzania aligns with the global community in recognizing the transformative role of private business activity, investment and innovation as engines of productivity, inclusive growth and job creation. These principles deeply enshrined in the Addis Ababa Action Agenda highlight the indispensable synergy between a vibrant private sector and sustainable development. Today, our discussion focuses on charting actionable strategies to revitalize private sector development, aligning it with the sustainable development goals. In this context, we acknowledge the evolving landscape of global investment. While foreign direct investment and trade have transformed significantly over the years, the 2008 financial crisis exposed disparities in investment distribution and a shift toward digital and asset-light production models. Worryingly, the SDGs investment gap has widened from US dollars 2.5 trillion in 2015 to over four, U.S. dollar four trillion today with critical sectors like energy and infrastructure particularly affected. Tanzania is committed to addressing these challenges. For less developing countries, the pace of private sector investment remain insufficient. As we adapt to structural shift in global economy, Tanzania prioritizes innovation, technology, and sustainable industrial policies. We aim to foster sustainable finance practices through robust legislative framework, incentive for green and inclusive business and models, and expanded access to financing for small and medium enterprises. In conclusion, Tanzania is resolute in its vision for sustainable future built on strengthened collaboration. Bridging the SDG investment gap demands innovative mechanism like public-private partnerships and blended financing supported by effective regulatory reforms. It is in this regard the FFDE4 must accelerate effort to channel investments into sustainable development, fostering equitable growth and resilient economies for the betterment of all. Together we can make this possible. Thank you.

I thank the distinguished representative of the United Republic of Tanzania. And I now give the floor to the distinguished representative of the Republic of South Africa to be followed by the representative of Yemen.

Thank you. While we support the need for strengthening the pull factors in developing economies, Uh, for example, creating an enabling environment to attract investment, it will also be important to reflect on the push factors in developed economies that would encourage investment and finance to flow where it's needed. Uh, a question we need to ask is what regulations need to be changed to remove impediments to finance flows that currently hinder investments in markets considered high risk? I, I suggest we could look at our own business steering committee's recommendations in, in this regard, the GISD alliance. Uh, once again, we want to emphasize that while the mobilization of private sector resources is critical, it is important that it is not treated as a substitute for traditional ODA. With regard to the list of actions under private capital mobilization, it would be important for the list to also call for the deployment of new financial instruments, particularly non-debt instruments, policy-based guarantees, and options that do not require sovereign guarantees. These instruments should focus on taking first, first loss risks on investments. In addition, we need approaches that facilitate scaling up through interventions that help bridge the gap to commercial project viability, that mitigate risks, finance first of its kind projects, and support technical assistance work. Co-facilitator blended finance has not delivered as expected. Tossed figures for 2022 count just 62 billion mobilized. For the private sector to be crowded in effectively through this instrument, And if we are to get the trillions we were promised, we need to see clear commitments in the outcome documents for higher leveraging ratios at MDBs and DFIs. The blended finance model has also been criticized for entailing an unbalanced distribution of flows, revenues, and risks, with large and emerging developing countries receiving the bulk of flows, revenues mostly accruing to private investors, and the risks unduly borne by the IFIs and developing country governments. Finally, while we open to establishing new facilities, we feel we should be careful of already scarce resources being used to finance operations that are already carried out by existing institutions such as MDBs, regional development banks, et cetera. And we feel we should also be calling for enhancing support for these institutions such as the IDA and the African Development Fund. I thank you.

I thank the distinguished representative of South Africa. And I now give the floor to the distinguished representative of Yemen to be followed by the Russian Federation.

Thank you. Yemen welcomes the attention given to private sector financing in the elements paper and offers the following perspective based on our national experience. Yemen offers perspective based on our concrete experience with private sector development, where our private sector has demonstrated remarkable resilience, contributing 78.7 of GDP since 2015, with 25% of enterprises maintaining operations despite challenges circumstances during the active and non-active conflict. On developing domestic financial market, Yemen has observed that effective private sector engagement requires comprehensive ecosystem development. Our central bank has undertaken several reforms to enhance financial sector stability and inclusion. However, building robust domestic capital markets require long term support and graduated approaches that recognize varying national circumstances. Regarding financial inclusion, Yemen has privatized financial inclusions through innovations while ensuring consumer protection. Mobile money, for example, and digital financial services have proven particularly effective in reaching our largely unbanked population, even in challenging situations. The proposed international investment support center should consider these successful models while addressing remaining infrastructure gaps. Regarding infrastructure development, Yemen envision a major role for local and diaspora private investment throughout public private partnership. However, this requires expanded guarantees, mechanism and political risk insurance from multilateral development banks. The global infrastructure facility could provide valuable transaction support in this context. Yemen support the, the proposed measures for strengthening domestic private sector development through enhanced access to finance for small and medium enterprises, our experience shows that combining financing with technical support produces more sustainable outcome. Regarding the proposed regulatory framework, Yemen emphasizes the importance of ensuring there are adaptable to different market conditions while maintaining robust standards. Regulatory harmonization should not create undue implementation burdens for developing financial markets. Our collaboration with regional partners and multilateral development banks has highlighted the importance of coordinated capacity building support. Yemen remains committed to working with all partners to create an enabling environment for private sector development that serves sustainable development objectives. Thank you.

I thank the distinguished representative of Yemen. And I now give the floor to the distinguished representative of the Russian Federation, to be followed by the representative of Uruguay.

Thank you, Madam Chair. We know that the role of private businesses in investment is indisputable. The potential for private financing is massive. It can help provide necessary funding. However, attempts to portray them as the only source of development funding, we believe, is inappropriate. FFD4 should pave the way for removing obstacles to private investments, including when it comes to infrastructure in developing countries. We believe it's important in this section to speak about creating favorable conditions at all levels to stimulate investment. We should create a robust mechanism that will increase the attractiveness of investment, reduce and prevent risks, and use private investment to raise greater funds from more sources. These elements, however, we would like to note here certain non-consensus expressions For example, about the dimension of the contribution of private investment toward attaining the SDGs, credit ratings, and sustainability standards, that is unacceptable to us. We believe it's kind of productive as well to include in the final documents provisions from 3A and B about the adoption of legislation on sustainable businesses and finance, as well as disclosure of information about sustainability, manage sustainable development, and compatibility with legislation on sustainable financing as well as creating global taxonomy for SDG financing. These proposals, we believe, would add additional obstacles for already weak global economic growth, including in developing countries, and they should be viewed in the broader context, including taking into account the requirements of developing countries and ensuring adequate amount of climate financing. including these -- placing these losses on the responsibility of developing countries is unacceptable. We condemn the use of green protectionism, and we oppose provisions that could lead to the creation of discriminatory conditions for businesses and that would reduce fair competition. In addition, we believe that it would be helpful to view the issue of the negative impact of unilateral coercive measures on climate financing in developing countries. Thank you.

I thank the distinguished representative of the Russian Federation and I now give the floor to the distinguished representative of Uruguay to be followed by the representative of Indonesia.

Thank you very much, Madam Chair. We thank the co-facilitators for the elements paper. We align ourselves with the G77 and China and we make the following remarks on national capacity for Uruguay. Strengthening business environments to encourage and scale up private sector investments holds crucial potential in terms of mobilizing and complementing financing for sustainable development. In this context, we wish to highlight five crucial elements. Firstly, We support expanding the use of innovative financing mechanisms such as sovereign bonds linked to sustainability indicators, green bonds and social bonds as additional methods to allow countries to invest in reforms and sustainable development projects. However, these should be considered supplementary measures and complementary to ODA mechanisms. Secondly, we believe that there is room to promote access to financing mechanisms for development banks that could include positive incentives for countries to meet standards related to environmental, social, and governance indicators, ESG. Regarding the section on capacity building, while we consider it could be strengthened, for instance, under promoting technical cooperation, for short term and medium term technical support to developing countries for the development and monitoring of innovative financing mechanisms, to give an example. Also, under increasing long term private investment of the SDGs, these should apply to all developing countries in order not to restrict or breakdown this financing. And fifth and final, we welcome concrete actions that call for investments in digitization in developing countries, including in infrastructure. The fourth FOD conference should focus on concrete measures to reduce the digital gaps between and within countries and ensuring that developing countries can leverage the potential of digitization for sustainable development. Thank you.

I thank the distinguished representative of Uruguay and I now give the floor to the distinguished representative of Indonesia to be followed by the representative of Paraguay.

Thank you, Chair. Supporting domestic and international private business and finance, both at the domestic and international levels, is crucial to improve the enabling environment for their contribution to help achieving the ambitious targets of the SDGs. Our delegation wishes to highlight two points to add perspectives from what have been presented in the elements paper. First is developing local capital markets. We recognize that a holistic approach is needed to develop these markets, one that addresses the needs of all stakeholders, including local businesses, investors and government entities. On the supply side, this includes enhancing the capacity of local businesses and developing robust financial infrastructure like trading platforms. The improvements on the supply side will inevitably generate the appetite for demand both by local and global investors, which stimulates the capital market to diversify its offerings. Introducing innovative financial products such as green bonds, sukuk and social impact bonds will attract investors interested in sustainable and socially responsible investments. The above mentioned policies require a supportive enabling environment. We must strengthen and expand various instruments within the framework of cooperation between government and business entities. This is particularly crucial in areas of regulatory reform, governance and institutional capacity to ensure that the capital market remains accessible, efficient and inclusive for all. Second, we must also turn our attention to the millions of businesses in the informal sector which are often overlooked but are key drivers of economic activity, particularly in developing countries. Hence, the empowerment of informal sectors must also be at the center of this priority issue. One way is to enhance and improve access to financial services by expanding credit availability and support mechanisms that boost the credit worthiness of underserved sectors. We could strengthen microfinance institutions and provide targeted financial products that cater specifically to these communities. It is also essential to promote the formalization of MSMEs through technical assistance in financial reporting, access to credit, and capacity building for entrepreneurship, as well as encouraging financial inclusion. The government could introduce targeted incentives and regulatory support to help these businesses transition into the formal economy, ensuring their participation in national and global markets. This will inevitably help economic growth. Empowering small businesses and informal sectors is not just a necessity, it's an opportunity to unlock untapped potentials. To conclude, we wish to reiterate that fortifying both domestic and international business and finance landscapes is pivotal for fostering robust economic environments capable of advancing the SDGs. Thank you, Chair.

I thank the distinguished representative of Indonesia. And I now give the floor to the distinguished representative of Paraguay, to be followed by the representative of Spain.

Thank you very much, Chair. Paraguay has made great efforts to move towards a stable and predictable climate for investment. And we have achieved this following deep reform that has enabled modernization of public finances. At the same time, this has made it possible to build solid institutions to foster development and macroeconomic growth. This acknowledgement places Paraguay as a reliable and attractive place for investment and can drive quality jobs and development for all sectors of the society. This would allow us to move forward more strongly on the sustainable development pathway. However, it's also a reality that in Paraguay, like in many developing countries, companies and the state continue to have difficulties in mobilising financing for sustainable development in the long term, which continues to be scarce. Also, access to financial services that are affordable, especially for SMEs, also faces significant obstacles, especially in those countries with special circumstances. We should therefore have international support to overcome existing barriers and consolidate achievements to date. there needs to be greater foreign direct investment, especially in LLDCs and SIDS. Also, we should generate mechanisms for financing and investment in infrastructure that strengthens physical and digital connectivity. Multilateral actions and private actors should also promote conditions that facilitate favorable access to sustainable financing and also technology transfer and building capacity of the institutions. We are convinced that such investments will drive inclusive and sustained economic growth, they will generate quality jobs and will contribute to reducing social inequalities. I thank you.

I thank the distinguished representative of Paraguay and give the floor to the distinguished representative of Spain, to be followed by the representative of Pakistan.

Thank you very much, Chair. One of the goals that inspired the third conference in Addis Ababa was being able to join up mechanisms to move from minister billions. The highlighted the need to have the private sector in terms of further mobilization of funds and to look beyond merely quantitative goals. The financing gap is still quite significant for the SDGs and we shouldn't forget about the qualitative aspects and also the participation of the private sector. This is why it's so important we reactivate the efficiency agenda and focus on alignment and policy coherence for sustainable development in all areas of financing. We should agree on the regulatory frameworks and the standards to ensure the private sector effectively contributes to pursuit of the SDGs. This is why we should have innovative tools in terms of due diligence and also climate responsibility. The element papers include many aspects that we support, such as a combined effect focusing on impact and also work on interoperability of legislation between countries. We should also strengthen local markets and the local economy. Measures should be adapted to each country and the diversity of the private sector. We should also support science, technology and innovation and ensure that there are beneficial links between sustainable development and ODA and the role of multilateral development banks in terms of risk mitigation. The private sector should also contribute to mobilising resources. Allow me to highlight the importance of the private sector in social dialogue. We cannot have ecological and social transformation without a lively social dialogue based on shared responsibility. Spain supports strengthened social dialogue for a fair transition towards low-carbon economies globally. Dialogue, cooperation, and responsibility in environmental sustainability is the path that we should take together ahead of Seville. I thank you.

I thank the distinguished representative of Spain and give the floor to the distinguished representative of Pakistan to be followed by the representative of the South Centre.

Thank you, co-chairs. We would raise three broad points on the section. First, we believe this section in the elements paper contains an overemphasis on domestic enabling environments without a corresponding focus on the international enabling environment, such as, for example, the high cost of capital faced by developing countries. Thus, we would support references to the need for reforming credit rating agency methodologies in this section, while understanding there may be some overlap between the debt section in this regards. Moreover, whenever we refer to enabling environments, it must be specified that we are referring to enabling environments at all levels. Second, we believe that many developing countries require assistance to put in place tailored strategies and policies to attract investment so as to reduce reliance on old international investment agreements. Thus, in the section on FDI, we would support a greater emphasis on reform of international investment agreements and concrete recommendations for enhancing support to developing countries in this regards. Third, developing countries require capacity building support to design bankable projects. We would propose setting up an infrastructure investment facility under UN auspices to aid developing countries in project preparation. This idea could build upon the proposal for a pooled technical assistance platform already contained within the Elements Paper. We will submit our full comments on this in writing. With regards to some specific comments on the element papers, the differentiation in this section between developing countries and countries in special situations is unclear. This is an issue we see throughout the elements paper. We recommend accommodating a full listing of developing countries in the cross-cutting section of the document and not repeating it selectively throughout the outcome document as a whole. We request removal of references to marginalized groups. The 2030 agenda formulation of people in vulnerable situations should be consistently used. We believe that the references to an international investment support center for LDCs and infrastructure investment financing facility for LDCs is perhaps not well placed in the outcome document. These are mandates already provided for in these countries respective programs of actions. Thus, the FFD4 document cannot take credit for initiatives already agreed to in other UN documents. We also believe that the conference provides an opportunity for making the investment fair more impactful, and we would look favorably on ideas for further strengthening the SDG investment fair in the zero draft of the document. The reference to gender-based price differentiation is also unclear, and we request its deletion. I thank you.

I thank the distinguished representative of Pakistan and now give the floor to the distinguished representative of the South Centre, to be followed by the representative of the World Bank.

Thank you, Chair, for giving us the floor.

The South Centre is an intergovernmental think tank of developing countries that supports sustainable development in the global South. Madam Chair, in order to attract sustainable foreign investment, developing countries have focused on enhancing their infrastructure and scaling human capital to foster green industries and diversify their exports. F54 should help strengthen these efforts that address investor alignment with national climate and sustainable development priorities, which in turn help to create a resilient and attractive landscape for FDI. Harnessing private finance for sustainable development requires a multi-pronged and systemic approach. The international community should take steps towards reforming sovereign credit trading systems, mobilizing development finance institutions, and adopting innovative digital financial solutions, which can expand access to capital for countries, individuals, and enterprises. These measures should also help reduce barriers to accessing concessional financing and catalyzing private investments in green and sustainable initiatives.

Developing and least developed countries must be provided with the necessary.

Support and technical expertise to strengthen their project pipelines, enhance regional collaboration for cross-border initiatives, and implement robust risk mitigation and monitoring systems. These steps can promote project viability, increase investor confidence, and support national sustainable development, especially in.

Areas of high priority like climate adaptation and renewable energy.

Aligning business and finance with the SDGs requires further accountability from enterprises through initiatives such as mandatory ESG reporting and penalizing of greenwashing. By adopting green finance taxonomies and providing clear guidelines, governments can enhance transparency and deter misleading green claims for businesses. Finally, Madam Chair, we would like to stress that the outcomes of FFD4 should provide a clear and strategic direction to firms, investors and and development finance institutions on the issues of infrastructure, initial finance, and strengthening of technical capacity, which can further help developing countries to attract high quality investment for the sustainable development.

I thank you, Chair.

I thank the distinguished representative of the South Centre, and now give the floor to the distinguished representative of the World Bank, to be followed by the representative of OHRLS. World Bank, please.

I'm pleased to provide a few remarks on behalf of IFC, the private sector arm of the World Bank Group and the largest development finance institution with a global mandate focused exclusively on the private sector. So let me start by thanking the FFDE4 co-facilitators for the Elements Paper and Spain for hosting the FFDE4 conference next summer. I would like to pick up on three important themes. One, mobilization of private capital. Two, blended finance. And three, the importance of responsible private investments. As the Elements Paper points out, we have achieved progress since Addis in mobilization of private capital. But capital is not flowing into developing countries at the scale needed to address the enormous development challenges that many countries face. To underline the progress, let me emphasize that mobilization made a critical contribution to IFC's record results in fiscal year 2024. We committed $56 billion, of which $22.5 billion were raised from partners, and this was up 50% from the previous year. To continue this growth, we're developing new platforms and expanding existing tools and partnership to reach new investors. We've launched a new World Bank Group guarantees platform. We are deepening local currency markets, and we're working toward the launch of a securitization platform, all important issues for financing of development. On blended finance, we had the pleasure of providing a financing brief to the process that highlights how blended finance can help de-risk and create new markets. The paper highlights the need to have sufficient concessional funds available for blending, and how transparency is the foundation of our practice. Finally, on the importance of responsible private sector investments, let me underline that it's not only about volume of investments. It's also, as others have underlined, it's about impact, quality, and inclusion. In this regard, I would like to highlight the very well-known IFC performance standards on environmental and social sustainability. Separately, I would also like to highlight the highly ambitious World Bank Group 2024 to 2030 strategy and the recent IFC roadmap 2030 for gender equality and economic inclusion. We have noticed Spain's inspiring words as host on inclusion and in particular on gender equality and private sector development. Let me end by saying that we look forward to the road ahead to Seville and that IFC stands ready to support with expertise, ideas and advice and build new partnerships, which is very high on the agenda for the World Bank Group. Thank you.

I thank the distinguished representative of the World Bank. I now give the floor to the distinguished representative of OHRLS, to be followed by the representative of Virginia Gildersleeve International Fund. You have the floor.

Mr. President, Excellencies, distinguished colleagues, let me start by congratulating the co facilitators for developing a substantive elements paper which incorporates some of the most important priorities for financing the sustainable development of the least developed countries. The paper rightly acknowledges the need to scale up foreign direct investment to all three of the groups, the Office of the High Representative for LDCs, LLDCs and SIDS supports. To illustrate, in 2022, the share of FDI to LDCs reached just less than 2% of global flows. LLDCs received just 1.54% and the SIDS received 0.6% of global flows. For each group, most of the FDI was received by just a handful of countries. I would like to focus now specifically on the proposal in the Elements Paper to establish an International Investment Support Centre for LDCs. This was one of the so-called Doha deliverables from the Doha Programme of Action, and the concepts underpinning it also appeared in the Addis Ababa Action Agenda. The recent Secretary General's report on this matter explores some of the structural challenges that make it difficult for the existing assistance to be effectively absorbed by the countries themselves. For example, investment related assistance and capacity building support is available to the LDCs from over 50 UN agencies, international organisations, multilateral development banks and development partner agencies. However, in most cases, this assistance is supply-driven rather than demand-driven, and is often not provided on the same medium to long-term time scale that is needed to support the investment cycle. The SG report supports the establishment of a transformative international investment support center for the LDCs. To quote, it suggests the center should do so by engaging with individual countries in partnership with their technical assistance providers, for long-term planning, coordination, implementation, and monitoring and evaluation of a country's tailored strategic FDI plan for better, more effective cultivation of FDI and its benefits towards achievement of the SDGs. We believe the proposed IISC is something the FFD4 process should seriously consider as it explores the solutions and reforms that will have the most impact for the countries.

Which are the furthest behind, which are the LDCs?

As always, our office is available to Member States for any further clarification on this important deliverable. Thank you for your attention and support.

I thank the distinguished representative of the OHRLLS and give the floor now to the distinguished representative of Virginia Gildersleeve International Fund, to be followed by the representative of UNODC.

Excellencies, distinguished delegates, greetings. I speak on behalf of Virginia Gildersleeve International Fund and the NGO Committee on Financing for Development, where I serve as chair. The committee congratulates the co-facilitators for the comprehensive elements paper and its action-oriented recommendations. Building on our written input, I offer a few points on the role of artificial intelligence in financial inclusion. We recommend that the elements paper explicitly consider the fact that AI driven models, while attracting substantial investments and collaborations, may inadvertently create new barriers deepening financial exclusion for vulnerable populations if left unaddressed. An inclusive financial sector is vital for the sustainable growth of economies, ensuring access to financial services for all, regardless of their income level, gender, or geographical location, which is key to reducing poverty and fostering shared prosperity. However, as digital transformation is leading to rapid changes in the financial services industry, driven by artificial intelligence, the internet, and cloud technology, there are critical risks we must address, including algorithmic bias, digital exclusion, and inaccessibility, which undermine the goals of inclusive finance. Despite advancement, 1.4 billion people remain unbanked, facing structural barriers such as racial and gender bias, which financial technology innovations have yet to significantly address. As we look to the future, we must ensure that AI, while offering significant promise, is fully leveraged to reach the unbanked and underbanked populations. This requires closing the digital divide, advancing financial and digital literacy, and investing in safe, inclusive digital public infrastructure. FFD4 must proactively shape policy framework that ensures AI develops as a trustworthy, equitable, responsible, and beneficial technology while also mitigating risks that have hindered other technological innovations in the past. Thank you, Chair.

I thank the distinguished representative of the Virginia Gildersleeve International Fund. I now give the floor to the distinguished representative of UNODC, to be followed by the representative of the International Trade Union Confederation.

Thank you very much, Ms. Chair. Excellencies, dear colleagues, the UN Office on Drugs and Crime took note with appreciation of the issuance of the Elements Paper, which includes several direct references to corruption across the text, as well as the UN Convention against Corruption, or UNCAC, of which UNODC is the guardian. The UNCAC, which 191 parties provides the only global framework for addressing corruption. Its implementation review mechanism offers valuable insights into challenges and good practices, and implementing its outcomes can help better mobilize and safeguard financing for development. UNODC would like to take this opportunity to recall some takeaways of its policy brief, including as it refers to domestic and international private business and finance. To mitigate risk, for investors and establish an enabling environment that attracts FDIs, it is essential to introduce preventive anti-corruption measures such as codes of conduct, robust human resources management, conflict of interest policies, whistleblower protection, and internal control and audits. It should be complemented by strong foreign bribery legislation and incentives and rewards for companies that act ethically. By ensuring strong anti-corruption measures such as corporate transparency, the use of structured, interoperable data sets and reporting mechanisms that not only prevent and mitigate losses before they occur, but also enable us to rapidly trace and recover stolen assets wherever they are located, we can better safeguard financing for development. In this regard, UN EDC is convening its fourth international expert meeting on asset return and sustainable development next week from the 11th to 13th of December in Addis Ababa to build upon the progress made in past meetings of the series of this meeting in the area of asset recovery and sustainable development. as well as to consider how to best share good practices on asset return so that they can be taken into account in multilateral dialogues and processes. UNODC looks very much forward to the outcome of this meeting, and I thank you very much for your attention.

I thank the distinguished representative of the UNODC, and I give the floor to the distinguished representative of the International Trade Union Confederation. To be followed by the representative of the IOM, International Organization for Migration.

Thank you, Chair.

I represent the International Trade Union Confederation, which represents almost more than 200 million workers worldwide. And I speak here on behalf of FFD CEO's mechanism.

In our view, the FDI outcome document should.

Include clear commitment to set regulatory framework that align private investments with development objectives and SDGs, including SD8 on decent.

Work. Such.

Framework must ensure that private investments comply with ILO standards on decent work, responsible business conduct and due diligence, ensure the respect for human and labor rights along the entire supply chain through independent monitoring and interest mechanisms. Moreover, it is imperative for the FFD four outcome document to include a strong commitment to move towards the adoptions of abiding UN treaties on multinationals and human rights. The UN guiding principle on business and human right are equally relevant when it comes to the innovative financing vehicles such as blended finance. there are increasing concern about the growing relevance of blending in development cooperation strategies to the detriment of a public based ODA in the absence of a consistent evidence. on the added value of blended in terms of development impact, increased accountability and transparency mechanisms are knitted through binding criteria for eligibilities and compliance with international labor, physical, environmental standards. In this regard, we welcome South African statement on blended from early today according to which, I quote, A key concern is the focus of development, developed countries on offloading their obligations to make public sector finance available to developing countries by inappropriately crowding in the private sector.

Sectors.

Finance private sectors resources are not suitable for all sectors and countries and thus not substitute uh for traditional ODA end of quote moreover we need to facilitate skills development and access the macro the finance for micro small and medium enterprises that will enhance their job creations potentials and could contribute.

To the formalization of informal economy when complemented with the right incentives and enforcement measures.

In conclusion, we want FFD4 to be up to the challenge of subcharging the SDGs in it must guarantee the alignment of private finance.

With the development objectives as well as ambitious investment in decent work agenda. I thank you.

I thank the distinguished representative of the International Trade Union Confederation and give the floor to the distinguished representative of IOM, to be followed by the representative of Development Alternatives with Women for a New Era. IOM, you have the floor.

Thank you, Chair. Today, there are over 281 million international migrants globally, including 169 million migrant workers who represent almost 5% of the global labor force. Their contributions to development finance are profound. Migrant remittances last year exceeded FDI and ODA combined, financing health, education, and local economic development and empowerment of household, particularly female-headed households, in countries of origin. Research shows that every 1% increase in immigration can boost GDP in destination countries by 2%. Furthermore, the presence of migrant communities can increase trade flows between countries. However, there are many barriers in leveraging the full potential of these contributions. They include high cost of sending money, lack of financial and digital inclusion, restrictive regulatory frameworks, and monopolies of some remittance corridors, amongst others. Addressing these challenges will require a range of initiatives such as promoting financial literacy, digital inclusion, and advancing enabling regulations. These are highlighted in the joint policy brief developed by IOM and IFAD, and we appreciate that the Elements Paper recognizes many of them. Further consideration could be given to the engagement of diaspora communities so that their economic contributions and investments can be leveraged for sustainable development. In this regard, IOM, together with IFAD and UNDP, co-host a working group under the auspices of the UN Network on Migration and will soon be issuing the guidelines for effective diaspora engagement, as shared in the IOM-IFAD joint side event yesterday. IOM remains committed in collaborating with all stakeholders to harness the power of migration towards FFD and the 2030 Agenda. Thank you.

I thank the distinguished representative of the IOM and I now give the floor to the distinguished representative of Development Alternatives with Women for a New Era, to be followed by the representative of Society for International Development.

Thank you, Chair. I will deliver my speech in Spanish.

The section on private financing lacks a perspective on gender equality, and I wish to highlight three particularly problematic areas. The creation of a favorable business environment cannot be a an excuse for concentrating power and wealth in the hands of a few individuals to the detriment of the real economy and sustaining life. It cannot also be an excuse for multinationals and the wealthy to avoid fair contribution to a rule of well-being. should be a direct link to fulfillment of human rights and the rights of women and international standards for decent work, gender equality, and building a care society. The lack of international cooperation in this area exposes the vast majority of the countries of the South to negotiating in disadvantageous circumstances. which has negative consequences in terms of human rights and actually deepens the gender divide. Thirdly, we should be extremely cautious when we promote combined financing and PPPs. These are not a solution for all countries, and in this regard, we welcome the comments of South Africa. These are not a solution for all sectors either, promoting blended financing in areas linked to social reproduction is also particularly problematic. We cannot always cover the needs of society when we call for private financing to cover the deficits in public financing for essential services. The recovery mechanisms actually break down access to services and deepen inequalities in coverage and worsen broader inequalities is also very costly for states. It limits the fiscal space that they have. It specifically affects women who are overrepresented in the most vulnerable layers of society economically. Before talking about scalability and replicability of these mechanisms, we must review exhaustively and independently by the United Nations, the outcomes in terms of sustainable development and the repercussions of this on work, on tax, and the impact on women and diversity. This would allow us to shed light on how we can apply rigorous governmental regulation to private powers to ensure that these are fully taken into account. The speaker's microphone is cut off.

Distinguished representative of Development Alternatives with Women for a New Era and give the floor to the distinguished representative of the Society for International Development to be followed by the representative of IFAD.

Thank you, Madam Chair. I extend gratitude to the co-chairs for the element paper. In our review, the section on private finance in the element paper is quite challenging. We feel that it's weak and problematic as well. It fails to reflect the need for the transformative approach that should guide proposals to be agreed at F4. With this, I would like to highlight four key areas of concern. Firstly, the proposal shows an over reliance on a private capital mobilization, including by using public institutions and scarce public resources to subsidize the private finance with a strong focus on quantity. Here, quality should be prioritized over quantity. We feel that the private ca- capital mobilization should not be promoted without the necessary connection, uh, with a policy agenda, aim to expand fiscal and policy space for the structural transformation of countries in the global south. We welcome the reference of the group of 77 in China as they under- underline the need. to support structural transformation and to enhance the productive capacities for building diversified, resilient, and sustainable economies that can generate decent and productive employment. Secondly, the proposals under this section must recognize that the private sector is not a homogeneous entity. Multinational corporations are not the same as domestic micro, small, and medium enterprises, as such, differentiated strategies are needed for each each of them as part of an expanded policy space to promote sustainable industrial policies across the global south. A sectorial approach is also needed as it's critical to protect essential public services like education, social protection, health, and water and sanitation from further privatization and financialization. Thirdly, MDBs are increasingly seen mainly as institutions that create markets and to mobilize private finance, which is a concerning approach again. We support Egypt in calling for a concrete proposal on reform policies and practice of the MDBs. We call for FFP to establish a UN intergovernmental process to review and transform the public development bank ecosystem starting from the role of the MDBs. The rethinking must be guided by the comprehensive assessment of the need of the global south countries to promote socioeconomic transformation. Fourthly and finally, it would be important to emphasize the need for regulating the financial sector to ensure that financial market resource support the real economy and economic transformation. FFD should establish a UN global regulatory framework to adequately regulate and supervise the financial institutions, including the non-banking financial institutions.

I thank the distinguished representative of the Society for International Development and I now give the floor to the distinguished representative of IFAD to be followed by the representative of the Netherlands who will be the last speaker of this session. So IFAD you have the floor.

Thank you so much, Madam Chair. Let me start by congratulating you facilitators for the excellent element paper. And we really welcome the three segments of this section, particularly on private sector financing, private capital mobilization, and the private capital flows like remittances and diaspora. Let me just highlight some few points as IFAD we believe are of detrimental importance. When it comes to private sector financing, The focus here in the element paper is a bit more on local financial market. This is absolutely key and we are strongly supportive, but we think there is scope to enhance also big narrative here on the local private business. And of course, one of the segment we extremely care is smallholders and small scale farmers. And that part could be further enhanced in the element paper. Uh, on the private capital mobilization, uh, we super support the section as if it also we are innovating ourselves to be able to assemble more finance, uh, and to mobilize more private capital. And we see that there is hope also working together, and this is like something the colleague before mentioned in terms of public development banks, but there is a lot to do, and we will be on board to also have some more additional commitment in that respect. In terms of private capital flows, I mentioned this when it comes to remittances and diaspora. We support the element paper, we support the section there. Just a little comment is on differentiating actions needed on remittances and action needed on diaspora investment. When it comes to remittances, financial inclusion is the first action, number one. Of course, cost of remittances is key, but financial inclusion is important equally. And for the diaspora investment, actions are more in terms of schemes that can make the difference in terms of how we can transform when it comes to investment on the ground. We are happy to work together to provide suggestion and we support you co-facilitators throughout the run-up to Seville. Thank you.

I thank the distinguished representative of IFAD and I will give the floor to the distinguished representative of the Netherlands.

Thank you, Madam Chair. And thanks to the co-facilitators for the excellent element paper as a start of these discussions. The Netherlands has long championed the increase of private resources for development and has actively contributed with tangible and visible initiatives. So we consider the fact that a separate section on private capital mobilization has been included to be a positive feature of the Elements paper. And although blended finance might present a solution, we see disproportionate attention is is given to its potential role because we also know the limitation blended finance also requires scarce ODA. And that's why we advocate for more attention to a broader approach focused on systemic innovation without the use of ODA. The Netherlands supports improving the investment climate in developing countries, including through developing local financial markets and improving access to finance, including financial inclusion. In this vein, the Netherlands actively engages the private sector, impact investors, innovative parties and development banks. However, to properly include the private sector in the mix, Projects to invest in are needed, and we still lack a pipeline and proposals to further a pipeline into which private parties can invest. So we hope that the F4 process can lead up with more proposals in this direction. And to do so, we see also a role for the private sector itself, both large and small, to be facilitated into the process. In particular, SMEs are an engine of development and require attention in our considerations, but it's better to hear from them directly. Financing SMEs, both international and national, requires specific instruments. They often end up in between the sticks, too big for microcredit, too small for DFI financing, with a risk profile that's difficult to assess. So more attention needs to be placed on their role in the FFD4 process. And there are good initiatives like the Good Growth Fund or the FMO market creation platform that can help us bring on the experiences that we need in that regard. Thank you.

I thank the distinguished representative of the Netherlands who was the last speaker on this topic. Thank you all very much for your engagement and contributions. We will now take a very short pause in order to switch the chairs around on the podium. So please remain seated. We'll be ready in two minutes. Distinguished delegates, now we will proceed And now I will invite the committee to hold its third interactive discussion on international development cooperation. I now would like open the floor for the interactive discussion. Delegations wishing to intervene should press the microphone button at this stage. Speakers on behalf of groups should inform the secretariat in order to be given precedence in the order of speakers. I would like to remind speakers of the time limit of three minutes for interventions in order to give all those wishing to speak the opportunity to take the floor. In order to assist with time management, a countdown clock is visible on the screen. The microphone will be automatically activated when the time limit has elapsed. And now, I would like to give the floor to the distinguished representative of Pakistan, to be followed by the representative of Tanzania. So Pakistan, you have the floor.

Thank you, co-facilitators. Speaking on behalf of the G77, allow me to highlight a few priorities submitted by the group in its elements paper. On ODA, the group is pleased to see the reflection of OTA targets and the references to concrete and binding timeframes for achieving existing ODA targets. We look forward to their further elaboration in the zero draft. We had also requested a recognition of the trillions in unmet ODA commitments and believe this aspect has to be further strengthened when elaborating the zero Lastly, we had proposed a transparent and multilateral process for agreeing on a common understanding of parameters and objectives of ODA flows. In this regard, we look with interest on the proposal for an enhanced transparency framework in the Development Cooperation Forum. However, we reiterate our proposal for a multilateral process. On MDBs, we had highlighted the need to implement capital adequacy framework recommendations, increasing their financing capacity and scaling up concessional finance and grants. We are pleased to see many of these aspects reflected in the draft and look forward to their further elaboration in the zero draft, in particular on the aspect of sustainable pathways for replenishing concessional finance windows. We believe the text needs a further emphasis on the need to revise the trend of increased concessional loans at the cost of grants. We appreciate the reference to considering measures beyond GDP to expand access to concessional finance. However, we believe this needs further refinement and elaboration in the zero draft. Moreover, we must move beyond simply reiterating a request for MDBs to present options to improve access to concessional finance, but rather provide specific guidance through F54 in this regards. On international development cooperation, we are pleased to see the focus on enhancing quality and impact on halting and reversing aid fragmentation on adhering to the principle of country ownership, on accelerating the untying of aid, and on promoting local procurement. In general, we support the strengthening of the role of the UN and development cooperation, however, we are still considering the various proposals put forward in this regards. Lastly, the group reiterates its position submitted in the elements paper that the FFD4 outcome document must maintain the distinction between climate and development finance and focus on development finance. If you would permit me, co-chairs, if I could make a few remarks in my national capacity. Thank you.

Yes, please go ahead.

In my national capacity, I would add the following remarks. We support the reference to a concrete and binding timeframe for ODA targets, but believe the zero draft should provide an estimate timeframe, for example, by 2026, and provide for a mechanism to monitor progress in this regards. On the enhanced transparency framework, the mandate should not be to harmonize concepts and standards only, but to improve the methodologies used in measurement of non-UN standards such as TOST. On the section on South-South and triangular cooperation, there must be a reference to the core principles of this cooperation as elaborated in BAPA. The reference to increasing quantity of South-South cooperation is inappropriate. South-South cooperation is a voluntary endeavor by developing countries and not an obligation. On the relationship between financing for environmental considerations versus development financing, we are unable to accept the entirety of section three as drafted. There are several issues in there which are difficult for our delegation to accept in the context of FFD, namely the reference to complimentary targets for climate and development agendas and the reference to vulnerable countries, which is not consistent with the formulations used under the UNFCCC. Moreover, while we see the need for simplification of climate and environmental funds, we do not believe FFD can mandate a process in this regards. Most concerning, the entire section on climate contains no reference to the principle of CBDR, nor to the obligations of developed countries to provide climate finance. We cannot accept a section which will lead to double counting of climate and development finance, nor one which takes the conversation on climate finance out of the context in which is negotiated under the UNFCCC. On reforming the international development cooperation architecture, we believe that the process of agreeing on fundamental attributes for effective development cooperation must be a multilateral intergovernmental one. We support the references to strengthening the development cooperation forum, but believe the aim must be to make it an intergovernmental body. The reference to an expert technical group focusing on coherent financing of development, climate and humanitarian needs is not acceptable to our delegation. We request for its deletion. Thank you.

I thank the distinguished representative of Pakistan. And because we have already 40 delegations who have requested the floor, we would have to limit each intervention to two and a half minutes, please. And now I give the floor to Tanzania, followed by Brazil.

Thank you, Madam Chair. Madam Chair, International Development Cooperation remains vital for advancing global peace, economic growth, and social stability. It is a partnership rooted in mutual respect and shared responsibility aimed at addressing disparities and integrating developing nations into the global economy. While acknowledging the progress, we have deep, we have a, We are deeply concerned by the persistent shortfall in ODA, which stands at only 0.37% of donor country GNI, far below the agreed target of 0.7%. This gap undermines the ability of LDCs to address critical priorities such as healthcare, education, and infrastructure development. particularly amidst growing of global challenges like climate change and pandemics. We call upon our development partners to honor their commitment and support the establishment of all enhanced transparency framework within the UN Development Cooperation Forum. Madam Chair, the financing gap for addressing climate change and biodiversity remains critical. But adaptation finance available so far is not sufficient for the, uh, climate vulnerable nations. Therefore, we think FFD4 must establish a mechanism to mobilize resources that align in the climate and development agendas while also ensuring transparency in order, ODA and climate finance reporting. These mechanisms should incorporate outcomes from international agreements, including those aimed at reversing biodiversity loss by 2030. Multilateral cooperation development banks must also enhance their support to developing countries, particularly through concession financing and tailored assistance for smooth transition from the LDC category. the FFD4 outcome document should advocate for reforms to the development cooperation architecture, ensuring its fit for purpose in addressing rising demand and evolving global.

I thank the distinguished representative of Tanzania and Brazil, you have the floor, followed by Morocco.

Thank you.

Madam Chair, Brazil considers that the elements paper has presented a balanced approach.

On international development cooperation, in particular ODA and climate finance. We support establishment of an enhanced transparency framework in the UN as a means to.

Harmonize concepts and standards related to data sources utilized to monitor SDG targets. My delegation endorses incorporating complementary criteria to measure development that go beyond GDP as outlined in the LM's paper. There is an undeniable link between this issue and the promotion of developing countries' access to development finance and other forms of allocation of development cooperation. In preparing the conference's draft outcome document, we recommend using development instead of progress to set a direct link with the very nature of the conference in Seville. In addition, we believe that the multidimensionality of development is an essential factor to be considered when discussing additional metrics and, to that end, be reflected in the draft outcome document. On climate and biodiversity finance, we stress that three key elements, one, climate finance and biodiversity finance stem from two different international regimes, the UNFCCC and the CBD, and should be treated separately while avoiding double counting. Two, the section on increasing the volumes should be updated to better reflect the provisions of the relevant regimes. In particular, regarding references to the so-called most vulnerable needs and priorities of developing countries and the principles of adequacy, predictability, and additionality of finance. Three, while we support the overall approach under subsection B on the simplification of access in light of the G20 report on the assessment of the climate vertical funds, We need to be cautious on how to reflect the need for additional entities for channeling climate and nature finance.

Thank you.

I thank you and I give the floor to Morocco on behalf of middle income countries. Thank you.

Thank you, Madam Chair.

I have the honor to deliver these.

Comments on behalf of the like-minded group for middle income countries composed of Armenia, Belarus, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Lebanon, Mexico, Namibia, Panama, Peru, the Philippines, Uruguay, and my own country, Morocco. First, the section on international development cooperation in the FFD process has always been the space where an emphasis is made on the specific challenges facing middle-income countries and how revamping international development cooperation is a priority and a necessity to support mix in their development path. We note with concern that the current text of the element paper lacks the expected emphasis on the specific challenges facing MIX. Two, this section is also the space where we expect to emphasize the importance of the call upon the UN development system to advance the elaboration of a specific interagency system-wide response plan for middle-income countries. This plan aims at better addressing the multidimensional nature of sustainable development and will be key to inform financing policies and access to finance for inclusive support to middle-income countries. Three, this section should also include a clear call to strengthen the commitment to integrated national financing framework as the primary sovereign and country-led financial planning tool at the country level. On beyond GDP, the language limited to consideration is not ambitious enough given the large scale and importance of this process that has matured over time. We expect to give a political momentum during FFD4, especially after the recently agreed mandates of the Pact for the Future regarding the Beyond GDP process. FFD4 is the opportunity to build consensus on going beyond the statistical exercise of this process and rather acknowledging that taking into account the multidimensional aspects of development and challenges of developing countries will guarantee a fairer and more inclusive development cooperation and access to development finance including concessional finance and technical assistance. I thank you.

I thank the distinguished representative of Morocco speaking on behalf of like-minded group on middle income countries. And I now give the floor to the Republic of Korea, followed by Yemen and then South Africa.

Madam Chair, thank you for giving me the floor. As we deliberate on a renewed global financing framework, it is imperative that we ensure financial resources are utilized effectively to deliver tangible impact on the implementation of the SDG. This challenge is not new. Indeed, these concerns are deeply intertwined with with the establishment of the Global Partnership for Effective Development Cooperation, GPDC, which is founded on four core principles. Country ownership, focus on result, inclusive partnerships, transparency and mutual accountability. These principles align closely with our targeted actions outlined in the element paper, particularly in section C on page 10, titled, Reform the Global Architecture. Key efforts under this section include monitoring the delivery and impact of development cooperation, enhancing accountability of all relevant actors, and promoting coherence across development efforts. In this context, Korea will propose carefully crafted languages for additional targeted actions drawing on the GPEDC principles during the preparatory process for the FPD4 conference. This endeavor seek to strengthen strategic coordination, address fragmentation and foster greater synergy in our collective effort to achieve the SDGs. Furthermore, three months after the FFD4 conference, Korea will host the 8th GPDC Forum in Seoul. providing an opportunity to deepen dialogue on the effective use of development resources and reform our shared commitment to impactful development cooperation. My delegation reserves right to provide its comment on other elements of the paper. Thank you for your attention.

I thank you. And Yemen, you have the floor, followed by South Africa and India.

Thank you, Chair. Yemen's concrete consideration of the element paper section on international development cooperation is informed by our unique perspective as a country facing complex challenges. While we support the paper's emphasis on ODA commitment and quality, our GPEDC monitoring results demonstrate critical gaps. The current 0.37% ODA GNI level requires not just reaffirmation of the seven target but concrete implementation mechanism. The declining share of country programmable aid is particularly concerning for countries like Yemen. We strongly support the paper's proposal to accelerate the channeling of SDRs through the multilateral development banks. However, this must be coupled with accelerated implementation mechanism to ensure timely access for countries facing urgent development needs. Regarding climate finance, we emphasize the need to address the increasingly complex and fragmented architecture, climate finance must remain additional to, but not a substitute for development assistance. Access to climate fund needs simplification, particularly for vulnerable countries, with increased grant-based adaptation financing. The linkages between climate and development finance must be strengthened while maintaining their distinct role. We strongly endorse the proposed enhanced transparency framework within the UN Development Cooperation Forum, However, this framework must integrate humanitarian development peace nexus approaches and address aid fragmentation. Specific provisions for countries in complex situations and mechanism to strengthen development effectiveness monitoring are essential. The paper's provision on development effectiveness principles need strengthening through enhanced use of country system reversing the current declining trend. Multi-year flexible funding framework that bridge humanitarian and development efforts are crucial alongside strong mutual accountability mechanism and greater emphasis on local institution capacity. Regarding multilateral development banks, we support the proposed reforms but emphasize the need for more flexible instruments adapted to fragile context and enhance local currency lending. Specific measures for reducing borrowing costs must be coupled with integrating innovative financing mechanism, including Islamic finance instruments. Thank you.

South Africa, you have the floor, followed by India and Burkina Faso.

Thank you. South Africa strongly supports grant-based and non-debt creating financing. Concessional loans contribute to a country's debt load. We would like to see a clear commitment in the FFD outcome document to reversing the trend of increased concessional loans at the cost of grants. We do not support the call for a process to look for opportunities to consolidate vertical climate funds. The climate funds under the financing mechanism of the UNFCCC are established with specific mandates and governance structures. Developing countries have an interest in protecting these funds in terms of the voice that they hold in these funds. Recommendations coming out of the FFD process must not undermine the governance structures and frameworks of these funds. We need to rather be calling for the ambitious capitalization of these funds aligned to the new collective quantified goal decision. A missing element from the reforming development cooperation architecture section of the paper is the need for development partners to make efforts to streamline and harmonize their respective application monitoring and evaluation and reporting criterias, which result in very high transaction costs for developing countries. On establishing a process to determine measures of development impact to guide the allocation of development cooperation, our concern is that this approach might put at risk the country owned and led approach. Decisions would then be made based on an impact assessment that is informed by measures decided upon outside of the country context, instead of being informed by country plans and priorities. It would be very important to be very clear on how these would be balanced. We also have concerns with committing to using country platforms. While country platforms are a useful tool in the development finance toolkit, they are not the only tool available. Country platforms should not become a prerequisite or condition for accessing finance. It must remain a country's prerogative to use whichever of the various tools are available to it and aligned with its national priorities. I thank you.

Thank you. India, you have the floor, followed by Burkina Faso and France.

Thank you, Chair. Bridging the substantial financing gap for the SDGs requires transformative actions to strengthen international cooperation and partnerships. In this context, we highlight the following points. First, ODA remains a central pillar of development financing. We urge developed countries to fulfill their ODA commitments, ensuring that allocations align with recipient countries' specific needs, development stages, and national development plans and strategies. Second, we advocate for improving quality, impact, and effectiveness of international cooperation by reducing fragmentation and accelerating the untying of aid for more stable and predictable concessional funding. Indices like multidimensional vulnerability index are not universally adopted, and therefore tying them to the determination of concessional finance, as mentioned in the elements paper, may be premature. Thirdly, we should aim for broader access to concessional financing for MDBs, development financial institutions and philanthropic capital which can leverage long-term affordable private capital, particularly for infrastructure and social sector projects through blended finance structures. Fourthly, scaling up MDB lending capacity involves strengthening capital adequacy frameworks and fresh capital infusion to provide timely support to developing countries by increasing and optimizing long-term concessional finance, including lending in local currencies and scaling up country-owned and driven innovative mechanisms. Furthermore, enhancing coordination across the MDB ecosystem is crucial for addressing development financing challenges. Ensuring broader representation, voice, and participation of developing countries in MDB governance is also essential. South-South and triangular cooperation, coupled with regional and multilateral cooperation, are crucial for bridging the North-South divide. Leveraging the support of developed countries is essential to facilitate the exchange of best practices, expertise, and grassroots innovations within the global south. Thank you.

Thank you. Burkina Faso, you have the floor, followed by France and the United Kingdom.

Madam Chair, Burkina Faso has supported the elements of the paper on international cooperation development and would like to make several comments. Ladies and gentlemen, after nine years of implementation of the SDGs, we are forced to acknowledge that we are very far from attaining the various goals that we have set for ourselves. The many shocks that the international economy has encountered has hampered optimal financing for sustainable development. My country, Burkina Faso, is a beneficiary of ODA. having received an amount of 2.08 billion US dollars in 2023. However, these flows remain inadequate in light of our growing needs for financing due to the security and humanitarian crises. The assessment of international cooperation carried out in 2023 as part of the Global Partnership for Effective Cooperation for development indicates mixed results in the use of national systems by donors. This disconnect poses serious problems for coordination and coherence of interventions. With regard to the current levels of debt, given these high levels, it is crucial for donors to abide by the instruments in effect in the various countries. Thus, in the current context, we actively support strengthening frameworks for financing transparency, especially through the TOSD, which has the multidimensional approach especially relevant. South-South and triangular cooperation play a growing role, and we encourage the extension of this cooperation through the conceptual framework of the UN and the data provided by the TOSD for improved understanding of development financing flows. Far-ranging reforms of the financial architecture throughout the world are necessary in order to improve access to long-term predictable and concessional financing. As underscored by the countries of G77 and China, international cooperation, that is a responsible international cooperation, plays a key role in the implementation of the 2030 Agenda and the resolution of various crises. is therefore crucial for reforms to take into account the specific vulnerabilities of developing countries.

Thank you. France, you have the floor, followed by the UK and Guatemala.

Thank you, Madam Chair. This chapter of international development cooperation is crucial for the discussions that will lead us to this goal. We believe that it is crucial to measure all flows for international public goods, and TOSDI is a very useful tool to do so. When it comes to climate financing, financing for biodiversity and ecosystems, an integrated approach is needed to address the urgency of the crisis. And these are the commitments made by the Paris Pact People on the Planet, which France supports. and the goal of which is to ensure that no country has to choose between eradicating poverty and protecting the planet. We support strengthening the functioning of multilateral banks, public development banks. This will be crucial for enhancing the impact of financing for attaining the SDGs. The work carried out by FIX, has helped us to identify the path we should follow. We also need multilateral development banks to mobilize for the concessional financing in order to support LDCs. When it comes to reforming international financial architecture, we highlight four priorities with the goal of creating a bridge between the positions of developed countries and developing economies. First of all, we would like to pursue the reform process of multilateral development banks. Secondly, it's crucial to consolidate the legitimacy of governance of international institutions by improving the representativeness. Thirdly, we must implement commitments made to mobilize special drawing rights in favor of countries that need it the most. And lastly, it is crucial to maintain the mandate of international financial institutions while encouraging dialogue with the UN system. Thank you.

I thank the distinguished representative of France. Now I give the floor to the distinguished representative of United Kingdom, followed by the distinguished representative of Guatemala.

Thank you, Chair.

I am the UK's Executive Director to the World Bank, which I hope demonstrates the importance that the UK attaches to international development cooperation for a successful FFD4 process. We want to see an outcome document which addresses climate, nature and development challenges in an integrated way, supporting change to the international financial system which delivers a stronger deal for developing countries. We welcome the suggestion in the elements paper that climate and biodiversity finance be increased, particularly in light of the NCQG agreed at COP29. The UK continues to highlight the importance of mobilising finance from all sources and maximising the co-benefits of addressing climate, nature and development challenges together, and agree that this should be anchored in national ownership and national plans. We also welcome efforts to reduce systemic fragmentation across climate finance initiatives and the efforts on South-South and triangular cooperation. We are pleased to see proposals for MDB reform, including successful implementation of the capital adequacy framework review. That said, the UK considers there is further we can go. We want to see action to increase levels of disaster risk finance in response to crises, building systemic resilience which will support the poorest and most vulnerable communities. We also want MDBs and DFIs to significantly scale up their private capital mobilization activities, including through reforms to their business models. We look forward to working in partnership with all stakeholders to further ensure an ambitious outcome to the FFD4 process. Thank you, Chair.

I thank the distinguished representative of the United Kingdom. I now give the floor to the distinguished representative of Guatemala, followed by the representative of Argentina.

Thank you, Chair. In a world where over 700 million people live in condition of extreme poverty, representing 8.5% of the global population, and where developing countries face an annual financing gap of approximately $4.2 trillion to achieve the sustainable development goals, international development cooperation stands as an indispensable mechanism to address these global challenges. Guatemala, as part of this reality, is committed to maximizing the impact of international cooperation and promoting new modalities of collaboration that respond to the needs of our times, which must be reflected in the final document we will adopt.

In Seville.

We recognize the historical role of official development assistance as a key source of financial and technical resources, particularly in areas such as poverty.

Reduction and the development of basic infrastructure.

However, it is also evident that this assistance alone will not be sufficient to bridge the development gaps we face. Therefore, Guatemala advocates for strengthening and diversifying cooperation modalities, emphasizing the importance of South-South cooperation and triangular cooperation as essential complements. The mobilization of resources to combat climate change, protect biodiversity, and conserve ecosystems is critical.

Guatemala, as one of the 10 most vulnerable countries to climate change.

Requires adequate financing to implement mitigation and adaptation projects. We urge multilateral development banks and the public development banking system to prioritize these investments and ensure they are accessible to developing countries. Guatemala reaffirms its commitment to being an active partner in the international community, promoting inclusive and effective cooperation that not only addresses current challenges, but also lays the foundation for long-term sustainable development.

Thank you very much, sir.

I thank the distinguished representative of Guatemala. Now I give the floor to the distinguished representative of Argentina, followed by the representative of the European Union.

Thank you, Chair. Good afternoon. In this section, the elements paper talks about climate, environment, biodiversity, and ecosystems for Argentina. climate and environmental finance should be addressed within their respective forums rather than being linked to negotiations on development finance. We stress the importance of keeping negotiations within their respective multilateral frameworks and we recall that any call for climate and environmental finance must be new, additional and different to official development assistance. The elements document presents a worrying trend in that development assistance is subsumed and limited to climate action without addressing other legitimate development priorities. In turn, the document omits the differentiation between developed countries and developing countries as to who should provide the financing. This submission raises further concerns due to the lack of the mention of the CBDR principle and respective capacity. Of great concern is also the general tendency of the elements document to not mention developing countries in general and instead focusing only on a certain group of countries to the detriment of developing countries in general. Also of concern is the proliferation of concepts to define countries such as vulnerable countries or countries with special vulnerabilities that do not enjoy multilateral agreements and the scope of which is unknown. Thank you.

I thank the distinguished representative of Argentina. I now give the floor to the distinguished representative of European Union, to be followed by the representative of Egypt.

Thank you, Chair. International development cooperation and official development assistance remain essential for achieving the SDGs. The development effectiveness agenda should be revitalized and country ownership further strengthened. The EU is a strong supporter of an effective UN system. However, proposals for broadening the normative role of the UN and international development cooperation and for strengthening the Development Cooperation Forum may risk leading to fragmentation and duplication. ODA should remain a major source for financing, especially for the poorest, fragile and conflict affected countries. Optimizing concessional finance to support vulnerable partners, including some middle-income countries, remains crucial, including with a clear allocation framework and without risking availability for the poorest countries. Further, there should be a strong emphasis on ODA's key role to catalyze other public and private sources. Recalling the ODA targets is welcome, but their timeframe is already given through the 2030 Agenda, so setting binding timeframes beyond that is unnecessary. The EU wants to underline its willingness to build long-term, inclusive and mutually beneficial partnerships by proposing an integrated offer to our partner countries. Robust and streamlined concepts and standards on SDG 17.3.1, TOSST and ODA are important, however, we should build on progress and develop existing transparency frameworks before establishing new ones. Sustainable development, climate, environment and biodiversity challenges are interdependent and require mobilisation of public and private finance at domestic and international level. References to climate finance instruments should be fully aligned with the related officially agreed decisions. The elements paper should also have underlined more the critical role of ODA in building partnerships in fragile and conflict affected settings. It is needed to prevent and mitigate crises, build resilience, preparedness and addressing immediate needs. In view of climate finance instruments, we call for a careful approach on the use of debt for nature swaps as we would need to be more experienced to establish.

I thank the distinguished representative of European Union. I now give the floor to the distinguished representative of Egypt to be followed by the representative of Armenia.

Thank you, Chair. In the ODA section, we acknowledge the references to the ODA targets and the proposals of having concrete and binding timeframes for achieving existing ODA targets. We stress the need for a transparent and inclusive multilateral process for agreeing on a common understanding of parameters and objectives of ODA flows. On the section on financing for climate, biodiversity, and ecosystems, we reiterate our position that addressing climate finance in this platform contradicts with and duplicates the work under UNFCCC and SPARS agreement. There are comprehensive negotiating tracks within the UNFCCC that address climate finance in all its aspects, including adaptation finance, loss and damage, as well as a transparency mechanism in this regard. On the issue of addressing financing for climate, biodiversity, and ecosystems together, it's generally important to respect the mandates and architectures within the three Rio Conventions, UNFCCC, CBD, and UNCCD. We must avoid mixing the elements and the finance provided through the mechanisms of each of the three conventions. We are in no position to agree to a process that can lead the way to a double counting exercise. In the section reforming the international development cooperation architecture, we appreciate that there is a large number of positive, ambitious proposals and hope that going forward we see these proposals in the zero draft, particularly on reducing fragmentation, accelerating and untying of aid, and aligning development cooperation flows with developing countries' priorities, needs, and plans. Under the section entitled Reforming the Global Architecture, in subpoint B, we would ask for the deletion of the reference to coherent financing of development, climate, and humanitarian needs. The focus in the document should remain on financing development. I thank you.

I thank the distinguished representative of EIZIP. I now give the floor to the distinguished representative of Armenia. to be followed by the representative of the Russian Federation.

Mr. Chair, at the outset, Armenia would like to express its gratitude to the co-facilitators for presenting an action-oriented elements paper, which will provide solid basis for the outcome of the fourth International Conference on Financing for Development. It is commendable to see a comprehensive set of proposals in the elements paper aimed at transforming and further improving the international development cooperation, especially for the benefit of countries in special situations. which are particularly vulnerable in the face of global interlink crisis of today. As a landlocked developing and middle-income country, Armenia emphasizes the need for the FFD4 outcome document to ensure that the the diverse and specific development needs of LLDCs are properly considered, while outlining further commitments to enhance development financing for their structural transformation, infrastructure development and transition to climate resilient economies. It is important that the development cooperation and financing frameworks to be outlined in the FFD4 conference prioritize and contribute to the implementation of targets, commitments and actions of the new program of action for LLDCs to be adopted the General Assembly. Mr. Chair, against the backdrop of a fragile global economic system, continuing impact of climate change, and the rise of geopolitical tensions, the middle-income countries require special attention of the UN development system and international financial institutions to strengthen their national capacities for domestic resource mobilization and access to different external fundings. There is a need for tailored approaches and elaboration of a comprehensive set of criteria going beyond GDP per capita, especially when it comes to facilitating access to concessional financing. Furthermore, the FFD4 conference and its outcome document provide a milestone opportunity to reiterate the need for the UNDS to advance the elaboration of a specific interagency comprehensive and system-wide response plan for middle-income countries in line with the mapping exercise conducted by the Secretary-General and deriving from his recommendations. Dear colleagues, we hope that these discussions will inform and support the elaboration of a better response to the current and emerging development challenges and to build back better and leave no one behind. I thank you.

I thank the distinguished representative of Armenia. I now give the floor to the distinguished representative of Russian Federation, to be followed by the representative of Philippines.

Thank you, Chair. To ensure economic growth and development, we need long-term, predictable, sustainable financing. Official assistance for development has these characteristics. Reduction of the volume of ODA going toward developing countries while seeing an increase in resources of donor countries is of concern. And implementation of obligations remains a priority task. For our part, we continue to give aid to countries in need through multilateral and bilateral channels. In this section, we'd like to see an assessment of the effect of UCMs on the provision of assistance to developing countries. Our experience has shown that sanctions not only restrict the possibility of providing assistance through bilateral means, but also through international organizations. Due to a lack of the ability to transfer national contributions to projects to eradicate hunger and poverty, it also includes issues with delivering aid to developing countries. like to remind you that new forms of accountability, for example, through ODA for sustainable development, they must not be obstacles provided to those. We note the importance of financing in order to combat climate change and improve climate adaptation. So we remind you that the Addis Ababa Plan of Action notes the central role played in this issue of the UNFCCC, as well as the COPs of the UNFCCC. When it comes to reforming international development banks as one of the key forms of credit and loans for development goals, we believe it's very important not to forget about ensuring financial stability of these banks themselves. In particular, ensuring effectiveness of the cooperation for development, we believe it's important that this assistance should not be a key factor in effectiveness. Thank you.

I thank the distinguished representative of Russian Federation. I now give the floor to the distinguished representative of Philippines to be followed by the representative of Switzerland.

Thank you, Chair. We align with the statements of G77 and China and the like-minded group of middle-income countries. While the Elements Paper outlined what has already been achieved in the area of international development cooperation, it has also made known of the still unmet commitments and the need to do better and more. Thus, it is imperative that we renew our collective commitments and efforts to finance and address the pressing global challenges of poverty, inequality and climate change through FFD4. We wish to highlight that external support and assistance plays a catalytic role in addressing development gaps in our country, and that while the country continues to top financing for this, we still rely on multilateral development banks to provide better and concessional lending terms. MDBs increasing their financing capacity and maximizing their impact is then a must. While ODA reached $223.7 billion in 2023, we remain concerned that this represents only 0.37% of donor countries GNI, which is far below the 0.7% target. FFD4 must address such unmet commitments and we also urge donor countries to do the same, setting a binding timeframe to ensure predictability. Moreover, we emphasize the importance of aligning ODA with their national development priorities to ensure complementarity and avoid duplicity of efforts and financing from development partners. As a disaster prone and vulnerable country, we underscore the need for increase and additional concessional climate finance to support adaptation and mitigation efforts. This should be on top of ODA, should be as readily available as ODA, and must not come at the cost of ODA. Given the increasing need for both development and climate finance, FFD4 must present options and recommendations to create new and additional grant base or highly concessional finance, And then that creating instruments, FFD four must also support the operation, operationalization and streaming of measures that go beyond GDP building on the mandate in the pack for the future. A paradigm shift in the development cooperation is needed to take into account the special challenges facing middle-income countries. We look forward to clear commitments from MDBs and donor countries in the IFFD4 to scale up financing for sustainable development, ensuring resources allocated effectively. Thank you.

I thank the distinguished representative of Philippines. I now give the floor to the distinguished representative of Switzerland, to be followed by the representative of Colombia.

Thank you, Chair.

Let me highlight four points.

First, we welcome that the Elements Paper notes a broad consensus on the need to put development effectiveness back at the top of the agenda. To close the financing gap for the SDGs and to achieve the 2030 Agenda, Switzerland is convinced that development effectiveness and its four principles are a key element. The principles, which are, one, ownership of development priorities by developing countries, two, results orientation, Three, inclusive development partnerships. And four, transparency and reciprocal accountability put forward and observed by all. To have the desired impact, the monitoring of development effectiveness needs to be improved. In this context, we would like to mention the fourth round of the heavily revised GPDC monitoring, which is currently underway, and its results should be partially available in the run up to the FFD4. Switzerland has a longstanding commitment to development effectiveness. It served as a co-chair of the Global Programme for Development Effectiveness, GPDC, until 2022 and has continued its commitment ever since. Second, further untapped potential we've seen shifting from traditional input-based methods of international development funding to outcome-based financing mechanisms. which can be used to drive efficacy and accountability for results. Switzerland is actively involved in the elaboration of guidelines for outcome-based financing. Third, we also welcome the importance that the Elements Papers attaches to the shortcomings of the development cooperation architecture. We need to find solutions to curb the increasing fragmentation and to streamline and harmonize procedural and policy requirements. This will help to facilitate accessibility and reduce transaction costs. And finally, a word on MDBs. The MDBs are mentioned prominently in the Elements Paper, and rightly so. They provide the lion's share of development financing. Switzerland is a staunch supporter of the ongoing reform and the recommendations of the G20 Capital Adequacy Framework Review that will enable the MDBs to become better, bigger, and more effective to address current global challenges such climate change, pandemics and fragility. We strongly encourage MDBs to work as a system to continue harmonizing their policy frameworks, methods, standards and data to focus their incentive on impact rather than volumes.

I thank the distinguished representative of Switzerland. I now give the floor to the distinguished representative of Colombia, to be followed by the representative of Australia.

Thank you. International development assistance plays a critical role in achieving the SDGs globally, including poverty reduction. Economic development as per Agenda 2030 ODA should be maintained as one of the main sources of assistance for developing countries. We should strengthen its role as a catalyst and its efficient use in order to further mobilize the necessary resources. Multidimensional criteria and more inclusive ones to gain access to concessional loans is critical to ensure that international cooperation resources are assigned more efficiently and fairly, taking into account the needs of societies and their complex challenges in achieving sustainable development rather than their income and revenue levels. Metrics that go beyond GDP should be one of the main outcomes of the conference. Such metrics should take into account exogenous and endogenous factors that affect development, such as multidimensional poverty, inequality, insecurity, and multidimensional vulnerabilities. In the area of vulnerability, Colombia recognizes progress in this discussion at the UN through the development of a multidimensional vulnerability index, MVI. This is a milestone in measuring exposure to external shocks that affects the ability of developing countries to achieve sustainable development. Nevertheless, in order for this index to be truly inclusive and to reflect the vulnerabilities of all developing countries, it should incorporate improvements and also other solutions will have to be considered to reflect endogenous vulnerabilities. We should also make decisive progress towards reform of the international financial architecture in order to enable more equitable and fairer participation of developing countries in the renewed global governance as a crucial way of ensuring the reforms undertaken are correct. We should also work on multilateral development banks. Their role should reflect the urgent needs of humanity, such as climate change, the loss of biodiversity, poverty and inequality. Capitalization of the MDBs should enable progress. I thank you.

Representative of Colombia. I now give the floor to the distinguished representative of Australia, to be followed by the representative of Antigua and Barbuda.

Thank you, Chair.

Australia's comments are focused on three quick points. FFD4 is an opportunity to prioritize the core commitment of the 2030 agenda, leaving no one behind. Achieving this requires developed and developing countries to unite in addressing legitimate frustrations, fostering partnerships, and focusing efforts on creating a global financing framework that accelerates sustainable development. FFD4 must address climate action, gender equality, disability rights and equity, and disaster risk, as the Elements Paper emphasizes. Second, strengthening the effectiveness of development cooperation is essential. The impact of each dollar spent is just as important as the total amount of development finance mobilized. three, we must consider regional context, noting the Pacific where countries face mounting risks and face significant hazards through strengthening donor collaboration and ensuring effective support by using country systems and promoting locally led development initiatives. Thank you, and I look forward to discussing these important issues with everyone here this week.

I thank the distinguished representative of Australia. I now give the floor to the distinguished representative of Antigua and Barbuda, to be followed by the representative of Belgium.

Thank you, Chair. On finances for climate, biodiversity and ecosystems, FFD4 must ensure simplification and administrative barriers and alignment with national priorities forces in accessing climate, biodiversity and ecosystem financing. COP29 failed to produce the commitments on climate finance. FFD4 represents an opportunity to allow new commitments and access to climate finance. There's an opportunity for us to simplify and speed up access to international climate finance for SIDS. In particular, I'm stipulating minimum annual funding allocations for countries like Antigua and Barbuda. On MDBs, SIDS reliance on foreign-dominated debt has increased their vulnerability to currency risk. Encouraging MDBs to offer more local county lending products will help alleviate these risks. Channeling SDR allocation through MDBs could enhance concessional financing for climate-related projects, particularly in the context of resilience investments. This strategy would help address both the liquidity needs and vulnerability issues faced by SIDS. SIDS rank poorly in digital infrastructure needed to overcome isolation and connect citizens, business, and economies in global value chains. What is required in FFD4 is to support our banks in order to increase investment in telecoms, accelerate financial inclusion, mobile payments, e-commerce, and provide guarantees and equity. On reforming the International Development Corporation architecture, Antigua and Barbuda, like other SIDS, exhibit unique vulnerabilities that are often not captured by traditional metrics. The use of the MVI, which demonstrate that SIDS have similar vulnerabilities to LDCs, provides a comprehensive view of our needs. In particular, the need for concessional grants and loans to fund resilience building and protect ecosystem. Currently, the elements paper is devoid of this reality for countries like Antigua and Barbuda. The MVI should be used as a tool to unlock predictable concessional finance for resilience building. All finance flows for resilience should be consistent with vulnerability levels, And the current framing of MVI in the elements paper restricts the MVI to the discussions of graduation. Additionally, the MVI should be included in the IFIs performance-based allocation systems in the assessment of cooperative needs and is one of the two PBAs components.

The second component-- I thank the distinguished representative of Antigua and Barbuda. I now give the floor to the distinguished representative of Belgium. to be followed by the representative of Poland.

Thank you, Chair. Ladies and gentlemen, Belgium aligns with the statement on behalf of the EU and its member states. Our approach to international development cooperation is grounded in the principles of mutual benefits, long-term partnerships, and a firm focus on reducing inequalities both within and between countries. First, we reaffirm the importance of ODA through the continued efforts by traditional donors, and while encouraging non-traditional donors to enhance both the quantity and quality of their support. We believe that ODA should be utilized strategically to catalyze transformative change, focusing on building core capacity systems and institutions in partner countries. This involves not only increasing the share of budget support, but also establishing enhanced transparency frameworks that align with tasks and other relevant standards. Second, in addressing climate change, Belgium recognizes the necessity of expanding international climate finance beyond traditional sources. We propose a two-layered approach. The first layer focuses on public funding and private investments mobilized through government interventions, particularly focusing on LDCs and SIDS and on adaptation. The second layer aims to catalyse broader climate investments, both globally and locally, while overcoming systemic barriers that hinder access to private capital as faced by developing countries. Third, collectively multilateral development banks have a significant role to play through their financial capacities and ability to provide knowledge, policy advice and support global convening. They can play a key role in coordination efforts and in maximizing development impact. Belgium fully supports the concept of value for money, aiming at efficiency and effectiveness within the international financial architecture and emphasizing results-oriented implementation and improved institutional collaboration in order to achieve impact at scale. Fourth, Belgium is committed to reforming the architecture of international development cooperation. We believe FFD4 presents a unique opportunity to foster and increase inclusivity, ownership and impact. By promoting holistic country platforms that align with national development plans, we can improve the efficiency of development cooperation.

I thank the distinguished representative of Belgium. I now give the floor to the distinguished representative of Poland to be followed by the representative of the United States.

Thank you, Mr. Chair. Let me start by general reflection that each country has responsibility for its economic and social development. Still, no one is able to face the challenges of today alone, especially the countries in special situations. Poland remains committed to sustainable development. The latest example of this commitment is our decision to increase our financial support for the International Development Association by 100 per cent. Colleagues, we believe we need to ensure stability and predictability of financing for development, including technical assistance for developing countries. We need to prioritise investments in modern solutions, in particular green resilient infrastructure, green energy and digital transformation, as well as in human capital development. We are also convinced that gender equality and human rights based approach should be an axis of international development assistance. The needs related to development assistance are vast and complex these days. We see the potential for greater involvement of the private sector through well-structured and transparent public-private partnerships aligned with the goals of the 2030 Agenda. We see the advantages of blended finance, especially in low-income countries. We subscribe to the elements papers postulate to revitalize and enhance the development agenda and to better monitor its implementation. Poland is taking efforts to improve and better integrate its development policy in the spirit of reforming the international development cooperation architecture. We have made significant progress towards implementation of the SDGs and we are ready to help our partner countries in the spirit of partnership and solidarity. Thank you.

I thank the distinguished representative of Poland. I now give the floor to the distinguished representative of the United States to be followed by the representative of Germany.

Thank you, Chair. Delivering on the SDGs and tackling global challenges like climate change, pandemics, fragility, and conflict are integral to poverty reduction and sustainable, inclusive, resilient growth and requires more financing than what public financing can do alone. This is why the United States has led a global coalition to evolve the multilateral development banks to be better equipped to address today's global challenges at scale. A successful FFD outcome document will recognize and build on the work to reform and strengthen the MDBs and the International financial architecture and focus on promoting greater financing for development from all sources, public and private, domestic and international. The United States is the largest or one of the largest shareholders in five of the largest MDBs and the largest donor to the International Development Association. We proudly stand as the largest provider of ODA. The United States has not committed to the UN target of the 0.7 percent of GNI to ODA. We urge as ODAs. We urge more reflection on the country programmable aid proposal. To commit a rising share of CPA and ODA, it would have the effect of reducing humanitarian aid and debt relief to individual partner countries, because these are not included in ODA-CPA, but are fundamental to sustainable development. The United States strongly supports the recognition of TOSD alongside ODA. Harmonization of concepts and standards related to SDG 17.3.1, TOSSD and ODA was accomplished in the UN Statistical Commission's and the General Assembly's adoption of the new SDG 17.3.1 indicator. We do not see the purpose of relitigating these relatively recent adoptions as an outcome for FFD4. We strongly support efforts to simplify and access to and increase in the impact of climate finance and the steps the climate finance funds are taking to work together better as a system. Effective multilateral cooperation require -- requires respect for international -- institutional governance, sorry, authorities and mandates, and for each partner to focus on its comparative advantage. For example, as the number of countries impacted by fragility, conflict, and violence grows, the UN's role in addressing such issues is critical to help shape the enabling environment for IFF funding to continue to be effective and to attract greater private investment. Decisions about MDB resources, financing volumes and terms, and strategic objectives are the purview of their respective executive boards.

I thank the distinguished representative of the United States. I now give the floor to the distinguished representative of Germany, to be followed by the representative of Saudi Arabia.

Thank you very much. We align with the statement of the European Union. I'll focus on some additional topics. Germany welcomes the emphasis on achieving the 0.7 order target. We encourage all donors to strive toward this benchmark. However, efforts to establish an enhanced transparency framework in the UN Development Cooperation Forum should avoid duplication and ensure alignment with existing monitoring and standard setting mechanisms like OECD for ODA and TOSDI. Moreover, we discourage from using country programmable aid as a proxy for ODA that reaches developing countries. ODA includes by definition all aid to developing countries. We need to systematically embed partner orientation in development policy and finance, but we do not see CPA as the right tool to do so. On climate, biodiversity and ecosystem financing, we acknowledge the importance of properly scaling up resources from all sources for vulnerable countries, including multilateral development banks. Donor countries and multilateral partners are encouraged to consider incorporating systematically climate change mitigation and adaptation measures, as well as biodiversity concerns into their ODA portfolio. The international financial system must be fit to deliver on the new climate and finance target agreed at COP29. The four large multilateral climate funds should implement their joint action plan to further simplify access and to use the limited concessional finance coherently and catalyse additional development finance for climate and biodiversity action. we should focus on existing platforms and funds to further, uh, to avoid further fragmentation on the financing ecosystem. Carbon finance and debt swaps are important as well as support for improving framework conditions in developing countries to attract private climate finance at scale. The role of MDBs remains vital in addressing global challenges and financing global public goods, including climate action. Germany supports efforts to implement the G20 capital adequacy framework recommendations, which have already unlocked additional resources. We encourage further implementation of these recommendations, provided that MDBs safeguard their AAA credit ratings. Thank you very much.

I thank the distinguished representative of Germany. I now give the floor to the distinguished representative of Saudi Arabia, to be followed by the representative of Uruguay.

Thank you, Chair. Relevant to the document as a whole, we do not look to mix between climate financing and development financing. Rather, Each subject shall be tackled separately. We would like to raise a critical point that the NEXED in its form is not aligned with the UNFCCC and its Paris agreement. We call for further alignment while respecting the different mandates between both the FFD and the UNFCCC. With regard to taking into consideration the outcomes of the UNFCCC COPs, we request to consider the provisions and principles, including the principle of common but differentiated responsibility, a principle that should be reflected when discussing climate related issues. We should not prejudge or preempt any ongoing discussions related to climate change. When discussing climate finance instruments, we require further clarity on the mentioned mechanisms. Nonetheless, all instruments and mechanisms must be inclusive of all pathways, approaches, and technologies. With regards to the MDBs, and the system of public development banks, it's important to ensure adherence to specific mandate and governance structure of each MDB. This also applies to all relevant areas in the text. Finally, issues related to the NDCs are discussed elsewhere and is not relevant in this context of the FFD. Thank you.

I thank the distinguished representative of Saudi Arabia. I now give the floor to the distinguished representative of Uruguay, to be followed by the representative of Indonesia.

Thank you very much, Chair. Good afternoon. We align ourselves with the statement delivered by the G77 and by Morocco on behalf of like middle income countries. We make the following general preliminary comments on the section on international development cooperation first and in line with the goal of advancing sustainable development in its three dimensions inclusively and building on the Addis Ababa action agenda. My delegation believes that the outcome document of the Fourth International Conference on Financing for Development, FFD4, must establish concrete progress towards implementing measures that go beyond GDP to enable access to development financing, international cooperation and technical assistance. The outcome of the fourth FOD conference must go beyond mere recognition of the limitations of GDP as an indicator for measuring sustainable development, something we have actually acknowledged since Addis Ababa and in fact before that. In this regard, a priority for the final document will be inclusion of ambitious language on this matter, which should go beyond what is currently in the elements paper. and build upon the process mandated in the Pact for the Future, action 53, and its respective outcomes. Secondly, in relation to section 3 on financing for climate, biodiversity and ecosystems, we wish to express our concern with the use of the term vulnerable countries. It does not align with the intergovernmental agreements of the UNFCCC nor with the Paris Agreement. We cannot support the inclusion in the outcome document of FFD4, which should aim to bridge the financing gap for SDGs, of new categorizations that restrict the flow of financing for climate and biodiversity. We would ask that the zero draft explicitly recognize the additional nature of this financing and also the principle of CBDR. The reference to vulnerable countries should be aligned with the language of the Paris Agreement or we would request its removal from the text.

Thank you. I thank the distinguished representative of Uruguay. I now give the floor to the distinguished representative of Indonesia to be followed by the representative of Vietnam.

Thank you, Chair, distinguished delegates. Official development assistance shall become the central point in international development cooperation. On this occasion, we wish to emphasize the need to ensure ODA sustainability and effectiveness. ODA must go beyond traditional benchmark. the emphasis should move to build ideas, innovative solutions and fresh approaches that align with the perspective and needs of recipient countries. For example, on the severe impacts of the climate change to developing countries. In this connection, ODA should be able to create, among other things, a non-debt financing instrument to support energy transition, foster green and blue economy development, and enhance climate resilience infrastructure. Furthermore, we believe that international financial institutions play a pivotal role in international development cooperation by providing financial resources, technical expertise, and policy guidance to address global challenges and promote sustainable development. We encourage the international financial institution to put SDGs at the forefront of their main consideration over the financial return. Alignment their financing models with the unique needs and national priorities of the recipient countries are contextually relevant. International financial institution must innovate beyond traditional lending by developing non-debt financing instrument, particularly to support energy transition, climate adaptation, and green and blue economy initiative. Finally, Indonesia highlights the importance of strengthening international development cooperation in all forms, guided by the spirit of solidarity and partnership. Indonesia recently held a high-level forum on multi-stakeholder partnerships attended by more than 2,000 participants globally. We also share the continued importance of Global Partnership for Effective Development Cooperation, GPEDC, while recognizing the strategic value of South-South and triangular cooperation. To conclude, Indonesia calls for sustained actions to all countries to come hand in hand to create enabling environment in international development cooperation, particularly for developing countries, to accelerate the efforts in achieving sustainable development.

I thank the distinguished representative of Indonesia. I now give the floor to the distinguished representative of Vietnam, to be followed by the representative of Costa Rica.

Thank you. Thank you, Mr. Chair, distinguished delegates. We would like to comment on the proposal that one of the objectives of FFD should be to ensure the adherence to ambitious environmental, social, and governance standards and safeguards in all operations as this very strict approach may reduce the access to finance. In Vietnam, we are making strong efforts to align to the best practices, best international practices and standards in terms of environmental and social safeguards. But there should be a roadmap to get to the full application of all international standards. Therefore, there should be a higher degree of flexibility in implementation. Secondly, we propose that one of the objectives of FFD should be to ensure and facilitate not only the knowledge sharing and capacity building, but also digital transformation and technology transfer in all operations as they are crucial for poverty reduction and the achievement of SDGs. Thank you.

I thank the distinguished representative of Vietnam. I now give the floor to the distinguished representative of Costa Rica, followed by the representative of the World Bank.

Thank you, Chair, distinguished delegates. Costa Rica calls for ambitious and concrete outcomes to revitalise the commitments on international cooperation for development at the next international conference to be held in Seville. International cooperation for development allows us to coordinate efforts, share resources and establish common standards to address global challenges. Allow me to refer to the following points first. We need to rethink criteria for measuring progress in sustainable development. These criteria should go beyond GDP. Costa Rica wishes to express that it shares the view of the comments expressed by the Brazilian delegation on what is presented in the elements paper on the need to go beyond GDP and thus promote greater access to concessional financing and other forms of cooperation for developing countries. This will only be possible through the development of a metric that has a multidimensional approach with incorporation of environmental, social, and economic dimensions. Costa Rica hopes that this will be one of the outcomes of FFD4. Secondly, countries in transition to development like Costa Rica, still need North-South cooperation in order to overcome their structural development gaps. Only cooperation that is commensurate with their needs will make it possible to overcome these obstacles. Thirdly, South-South and triangular cooperation should be promoted to transfer knowledge, ideas, experience, and technical skills. taking advantage of the strengths and comparative advantages of the countries. This cooperation should not, however, be a substitute for North-South cooperation but rather a complement to it. Costa Rica renews its commitment to a successful FD4 conference. As indicated in the pact for the future, we must redouble our efforts with ambitious, prompt, fair and transformative actions to implement the 2030 agenda to achieve the SDGs and leave no one behind. I thank you.

I thank the distinguished representative of Costa Rica. Now I give the floor to the distinguished representative of the World Bank, to be followed by the representative of Reality of Aid Africa.

Thank you, Mr. Chair. We welcome the opportunity to provide comments on the elements.

Paper, and we share the diagnostic of an insufficient volume of ODA to address.

Pressing global challenges like climate change, conflict, and pandemics. We would like to reiterate that in addition to the insufficient volume of ODA, developing countries have had to deal with the effects of an increasingly complex global aid landscape. Over the last past two decades, there has been a rapid proliferation of donor agencies, fragmentation of financial flows, limited direct funding through national budgets, and growing earmarking ineffective financial leverage of resources. To address the inefficiencies and fragmentation in the global aid architecture.

A more balanced approach that takes into account the advantages.

Of the strengths of both horizontal aid providers like MDBs and vertical funds is essential. Vertical approach, effective in tackling specific issues like HIV/AIDS or climate change, can achieve economies of scale, but they typically operate as un-leveraged facilities. In contrast, horizontal aid providers like MDBs work as leveraged facilities, financing country-led programs. Promoting country ownership and alignment with national priorities is also vital.

Aid should support country-driven development strategies, Ensuring that resources are used effectively, we agree with the.

Recommendation in the paper that there should be concrete action to increase the focus of ODA.

On core capacities, systems and institutions, institutions strengthening, including by increasing the share of budget support in ODA.

In closing, let me reiterate that we share the paper's statement that increasing fragmentation, proliferation of donor channels, coupled with earmarking and circumvention of recipient government budgets runs counter, counter to longstanding effectiveness principles.

We sh- we therefore urge the international community through its deliberations.

In the FFD4 process to focus on rebalancing, uh, the current global aid architecture and prioritizing aid effectiveness commitments to strengthen country ownership and put the recipient countries back in the driver's seat. Thank you.

I thank the distinguished representative of World Bank. I now give the floor to the distinguished representative of reality of aid Africa to be followed by the representative of ILO.

I thank you very much, Mr. Chairman, and we also welcome, I make this statement on behalf of CSO mechanism for financing for development. Let me first register my appreciation for the LMS paper that we feel is very progressive and we welcome specifically the statements around the quantity and quality of aid and the steps that need to go there. In that regard, let me make the following submission. The FFD process since its inception aimed to expand the policy and fiscal space of developing countries to advance their development agenda in a sustainable manner. This goal must remain our focus. We must generate actionable multilateral decisions that seek the removal of systemic and structural impediments to transformative global economic governance. We therefore need a new international public finance architecture that secures the right to development for the people of the South, recognizes the common but differentiated responsibilities, promotes the rights to development and gender equality, and seeks reparative justice for colonial and ecological debt owed to the people of the South. FFD should reform the narrative surrounding international development cooperation from a perspective of charity to one of justice and reparation, recognising and addressing historical injustices. The current international development cooperation framework exists within a global economic and political framework that perpetuates inequality between and within countries. Countries in the Global North possess both resources to provide financial and technical support and responsibility to help bridge these global inequalities. In this regard, we should therefore, we should, the FFD therefore offers opportunity to establish a new normative framework putting international public finance at the heart of international financial architecture. We must have therefore a framework that addresses development cooperation governance, norms and rule creation democratizes global decision-making. This is key. We therefore need to agree on establishing a UN Convention on International Development Cooperation. A UN Convention on Development Cooperation could ensure coherence between all forms of development cooperation and provide a normative space that brings together all relevant actors to share policy and decisions. We support the establishment of a UN target of 0.7 GNI as a floor on aid, while quantitative recognizing trillions of unmet ODA commitments must be paid up as a debt owed to the global south.

I thank the distinguished representative of Reality of Aid Africa. I now give the floor to the distinguished representative of ILO to be followed by the representative of Thank you, Chair.

Financing sustainable development remains a pressing challenge. While progress has been made, the social dimensions of development have not kept pace. Without addressing this imbalance, we risk exacerbating existing inequalities instead of fostering inclusive growth. Let me highlight two key avenues for action. One, ensuring a just transition to a low carbon economy in the context of finance for climate, biodiversity and ecosystems, and leveraging foreign direct investment for decent work creation as part of the commitment to broaden the normative role of the United Nations in development cooperation. First, regarding the just transition, the shift to net zero must be both green and inclusive. Financiers must access catalysts by integrating social considerations into green finance decisions and using instruments like guarantees and concessional loans to attract private capital with strong social safeguards. Simultaneously, blended finance approaches should align private investment with both environmental and social benefits, including explicit social metrics alongside environmental targets. Strengthened policy frameworks and disclosure requirements are essential, ensuring that sustainable finance gives equal weight to social and environmental dimensions. Second, foreign direct investment holds untapped potential to drive decent work creation and structural transformation. This requires strengthening linkages between foreign direct investment and local economies through investment incentives that ensure the quality of jobs created and connections to local suppliers. Policy coherence across government institutions, guided by the ILO's Tripartite Declaration, is critical. Moreover, investment promotion agencies need enhanced tools and capacity to align foreign investments with sustainable development goals. The message is clear. Success depends on frameworks that prioritize inclusivity and decent work. The ILO stands ready to support Member States in building these frameworks and capacities. I thank you.

I thank the distinguished representative of ILO. I now give the floor to the last speaker of this meeting, the distinguished representative of Gates Foundation.

Thank you. Colleagues, I'm pleased to represent the Bill and Melinda Gates Foundation in this session on international development cooperation. The foundation's vision is to support a world where every person has the opportunity to live a healthy, productive life. In practice, this means we work in those countries with the largest number of people living in extreme poverty. Two months ago, I shared with delegates and stakeholders in this building our concern over the gradual dilution of official development assistance and its diversion from its core function of poverty eradication. As I said then, ODA is a vital source of financing for meeting the needs of the world's poorest, of whom nearly three quarters live in sub-Saharan Africa and fragile and conflict affected states. Yet in 2022, only slightly more than 25% of ODA went to countries in sub-Saharan Africa. as ODA spent on in-donor refugee costs, humanitarian assistance in middle-income countries has risen dramatically. Today, I would like to offer you our thoughts on the Elements paper from this perspective. Firstly, we're pleased to see the Element paper's proposal to examine the global international development architecture. We believe it is time for a discussion on how to accelerate efforts to make ODA's governance more inclusive and responsive to the needs of low-income countries. Secondly, we're pleased to see the elements paper include suggestions on how to set higher expectations for the quality of ODA and improve development effectiveness. For instance, through an increase in country programmable aid, increased use of budget support, and redoubling efforts to reduce fragmentation and complexity in the provision of development cooperation. Thirdly, we have funded efforts for many years around the transparent reporting and monitoring of ODA and have chosen ourselves to report to the OECD on our financing. We thus look forward to seeing additional efforts on transparency in FFD. Fourth, in picking up on a suggestion in paragraph 5b in the international development cooperation section, we would support the convening of an expert working group to examine these and other issues related to the governance allocation quality and transparency of ODA. Thank you for your time and attention. The Bill and Melinda Gates Foundation is proud to be the only non-member state contributor to the FFD4 Trust Fund, and we look forward to staying engaged. Thank you.

I thank the distinguished representative of Gates Foundation. Excellencies, distinguished delegates, we will reconvene tomorrow morning at 10:00 AM in this conference room to hear remaining speakers in this discussion. followed by the interactive discussion four on science, technology and innovation, and on five on international trade as an engine for development. I thank the interpreters for their work. Thank you for your participation. The meeting is adjourned.