FfD4 Countdown: Resource taxation must be part of the agenda at the Fourth Financing for Development Conference

The International Institute for Sustainable Development (IISD) argues that the Fourth Financing for Development Conference (FfD4), scheduled for July 2025, must explicitly include the taxation of natural resources in its agenda to enhance domestic resource mobilization in developing nations.

• The zero draft of the FfD4 outcome document fails to explicitly mention the contribution of natural resources to domestic resource mobilization, despite the sector's importance for many developing nations and its role as a major driver of illicit financial flows.
• Natural resource rents are a significant portion of GDP for many lower- and middle-income countries; World Bank 2021 data shows these rents exceeded 10% of GDP in 20 such countries and 4% of GDP in over 40 countries.
• Revenue collection from the extractive sector is hindered by factors such as aggressive tax planning by multinationals, weak governance, poorly constructed contracts, and generous tax incentives.
• Multinational enterprise tax avoidance leads to significant losses for African countries, with IMF research indicating an average annual loss of between USD 470 million and USD 730 million in corporate income tax.
• The IISD proposes specific amendments to the FfD4 draft, including adding a subparagraph to paragraph 29 on fiscal systems to support strong resource governance and equitable benefit sharing, and revising paragraph 46 on trade in critical minerals to prioritize 'predictability' over 'stability' in commodity contracts.

APA

Lassourd,, T. (2025). FfD4 Countdown: Resource taxation must be part of the agenda at the Fourth Financing for Development Conference. International Institute for Sustainable Development. https://www.iisd.org/articles/insight/ffd4-financing-development-conference-resource-taxation

Chicago

Lassourd,, Thomas. FfD4 Countdown: Resource taxation must be part of the agenda at the Fourth Financing for Development Conference. International Institute for Sustainable Development, 2025. https://www.iisd.org/articles/insight/ffd4-financing-development-conference-resource-taxation.

Wikipedia

{{cite press release |last1=Lassourd, |first1=Thomas |title=FfD4 Countdown: Resource taxation must be part of the agenda at the Fourth Financing for Development Conference |publisher=International Institute for Sustainable Development |date=4 March 2025 |url=https://www.iisd.org/articles/insight/ffd4-financing-development-conference-resource-taxation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{lassourd2025ffd4, author = {Lassourd,, Thomas}, title = {{FfD4 Countdown: Resource taxation must be part of the agenda at the Fourth Financing for Development Conference}}, publisher = {International Institute for Sustainable Development}, year = {2025}, month = mar, url = {https://www.iisd.org/articles/insight/ffd4-financing-development-conference-resource-taxation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }