Recommendations to Strengthen the First Draft of the Fourth Financing for Development Conference Outcome Document

The International Institute for Sustainable Development (IISD) proposes revisions to the first draft of the Fourth Financing for Development Conference Outcome Document to increase ambition and specificity. Key recommendations include phasing out fossil fuel subsidies without 'inefficient' loopholes, strengthening natural resource taxation, and establishing a broad-based debt-relief initiative. The report also advocates for a phased approach to climate finance in least developed countries and the integration of green public procurement to align fiscal systems with climate goals.

• The report argues that the term "inefficient" in the draft's commitment to phase out fossil fuel subsidies creates a loophole and should be removed. It suggests instead that subsidies be phased out if they "do not address energy poverty or just transitions" or that countries create national roadmaps to justify remaining subsidies.
• IISD recommends strengthening the taxation of natural resources to optimize domestic revenue, noting that in 2021, natural resource rents exceeded 10% of GDP in 20 lower- and lower-middle-income countries. It proposes that revenues from exploration to mine closure should "reflect the value to society of the resources mined".
• The report calls for a comprehensive debt-relief initiative that serves both countries facing liquidity constraints and those in debt distress, rather than maintaining a binary distinction. It proposes establishing a commission of experts, debtors, creditors, and organizations like the G20 and Paris Club to build consensus on this initiative.
• For climate financing, the report suggests a phased approach for least developed countries (LDCs) to build foundational legal, regulatory, and governance systems before implementing innovative financial instruments. It notes that in 2024, no carbon credit trading mechanisms existed in LDCs.
• The report identifies a gap in green public procurement and recommends that procurement systems demand low-carbon solutions by including sustainability in technical specifications and using performance-based specifications to incentivize CO2 performance.
• IISD advocates for the development of domestic institutional investor bases, such as pension funds and insurance companies, to mobilize long-term financing for sustainable infrastructure and reduce risks from external market volatility.

APA

International Institute for Sustainable Development (2025). Recommendations to Strengthen the First Draft of the Fourth Financing for Development Conference Outcome Document. https://www.iisd.org/system/files/2025-05/ffd4-outcome-document-recommendations.pdf

Chicago

International Institute for Sustainable Development. Recommendations to Strengthen the First Draft of the Fourth Financing for Development Conference Outcome Document. 2025. https://www.iisd.org/system/files/2025-05/ffd4-outcome-document-recommendations.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Recommendations to Strengthen the First Draft of the Fourth Financing for Development Conference Outcome Document |date=May 2025 |url=https://www.iisd.org/system/files/2025-05/ffd4-outcome-document-recommendations.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2025recommendations, author = {{International Institute for Sustainable Development}}, title = {{Recommendations to Strengthen the First Draft of the Fourth Financing for Development Conference Outcome Document}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = may, url = {https://www.iisd.org/system/files/2025-05/ffd4-outcome-document-recommendations.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }