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

The International Institute for Sustainable Development calls for the inclusion of natural resource taxation in the FfD4 outcome document, noting that the current zero draft overlooks this critical revenue source. The author highlights that resource rents are vital for many lower- and middle-income countries but are often undermined by tax avoidance and weak governance. The statement proposes specific amendments to the FfD4 draft to ensure fair fiscal terms and better benefit-sharing, particularly regarding critical energy transition minerals.

• Natural resource rents are a significant portion of GDP for many developing nations; in 2021, they exceeded 10% of GDP in 20 lower- and middle-income countries and 4% of GDP in over 40 countries.
• The extractive sector provides substantial revenue, with 24 large mining companies (members of the International Council on Mining and Metals) paying USD 54 billion in 2023 and USD 42 billion in 2024 in taxes and royalties to host countries.
• Tax avoidance by multinational enterprises causes significant revenue loss for African countries, with IMF research estimating average annual losses between USD 470 million and USD 730 million in corporate income tax.
• The zero draft of the FfD4 outcome document fails to explicitly mention the contribution of natural resources to domestic resource mobilization, unlike the previous Addis Ababa Action Agenda.
• There is a strategic opportunity to reform resource taxation and benefit-sharing in the context of the global race for critical energy transition minerals, supported by recommendations from the UN Secretary-General’s Panel on Critical Energy Transition Minerals and the African Development Bank.

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} }