Toward a Coherent, Transformative Approach to Financing Sustainable Development, Climate, and Nature

The report argues that current financing frameworks for sustainable development, climate, and nature are fragmented and insufficient. It proposes that FfD4 conduct a cross-disciplinary review of these frameworks, implement a 'grander bargain' on sovereign debt relief, provide practical guidance on domestic resource mobilization (DRM), and foster multi-stakeholder coordination to align private finance with public goals.

• Developing countries face immense financing gaps, with an estimated additional USD 3.9 to 4.3 trillion per year needed for Sustainable Development Goals (SDGs), USD 1 trillion in external finance by 2030 for climate change, and USD 700 billion annually until 2030 for global biodiversity preservation.
• The report recommends that FfD4 perform a cross-disciplinary review of existing financing frameworks—including the Addis Ababa Action Agenda, UNDP Integrated National Financing Frameworks, the COP28 Climate Finance Framework (CFF), and the Global Biodiversity Framework (GBF)—to identify and resolve overlaps, gaps, and inconsistencies.
• Sovereign debt relief is presented as a critical pre-condition for effective development finance. The report notes that the proportion of poor countries in debt distress or at high risk of distress has risen from 22% a decade ago to nearly 60% today, with governments spending 10% of public revenues on debt servicing in 2022.
• The document advocates for a 'grander bargain' on debt involving three technical pillars: relief from official and private creditors, credit enhancement from multilaterals, and a commitment from debtor countries to use the resulting fiscal space for green growth.
• Domestic resource mobilization (DRM) requires practical guidance on sequencing and trade-offs. For instance, the report argues that introducing carbon taxes may have limited value if fossil fuel subsidies—which cost over USD 7 trillion globally per year—remain in place, as they may cancel each other out.
• While de-risking strategies (such as guarantees) can attract private capital, they create contingent liabilities that may increase public debt levels and strain fiscal resources, particularly for countries already burdened by high debt.

APA

Readhead, A., Wiedenbrüg, A., & Uzsoki, D. (2024). Toward a Coherent, Transformative Approach to Financing Sustainable Development, Climate, and Nature. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-12/submission-fourth-financing-development-conference.pdf

Chicago

Readhead, Alexandra, Anahí Wiedenbrüg, and David Uzsoki. Toward a Coherent, Transformative Approach to Financing Sustainable Development, Climate, and Nature. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-12/submission-fourth-financing-development-conference.pdf.

Wikipedia

{{cite report |last1=Readhead |first1=Alexandra |last2=Wiedenbrüg |first2=Anahí |last3=Uzsoki |first3=David |title=Toward a Coherent, Transformative Approach to Financing Sustainable Development, Climate, and Nature |publisher=International Institute for Sustainable Development |date=December 2024 |url=https://www.iisd.org/system/files/2024-12/submission-fourth-financing-development-conference.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{readhead2024toward, author = {Readhead, Alexandra and Wiedenbrüg, Anahí and Uzsoki, David}, title = {{Toward a Coherent, Transformative Approach to Financing Sustainable Development, Climate, and Nature}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = dec, url = {https://www.iisd.org/system/files/2024-12/submission-fourth-financing-development-conference.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }