The co-facilitators of the intergovernmental consultations on the outcome document of the Fourth International Conference on Financing for Development (FfD4) released a zero draft of the text. Delegations offered initial comments on the zero draft and were briefed on the co-facilitators’ proposed vision for the process and a roadmap for the negotiations on 22 January 2025. A townhall meeting with stakeholders will be held on 7 February.
In a letter dated 17 January, Permanent Representative of Zambia Chola Milambo, Permanent Representative of Norway Merete Fjeld Brattested, Permanent Representative of Nepal Lok Bahadur Thapa, and Permanent Representative of Mexico Alicia Buenrostro Massieu inform Member States that the zero draft builds on comments and feedback from delegations and stakeholders on the elements paper, provided during the second session of the FfD4 Preparatory Committee (PrepComm), which took place from 3-6 December 2024. Per the letter, the co-facilitators sought to ensure that the zero draft reflects Member States’ inputs and priorities and aligns with the goal “to produce an ambitious and action-oriented document.”
The 29-page zero draft outlines a renewed global financing framework to help realize sustainable development.
With respect to domestic public resources, the draft defines commitments on transparency and accountability in fiscal systems and their alignment with sustainable development, as well as capacity support and subnational finance. The draft addresses international tax cooperation and innovative taxes, illicit financial flows, and the role of national development banks in mobilizing resources to support sustainable development.
On domestic and international private business and finance, the draft includes commitments on: domestic financial sector development, enabling environments, and access to financing; foreign direct investment (FDI) and private capital mobilization for sustainable development; and alignment of private business and finance with sustainable development.
The section on international development cooperation addresses volumes and allocation of finance through official development assistance (ODA), South-South and triangular cooperation, and multilateral development banks (MDBs) and the system of public development banks. It also contains provisions on: financing for climate, biodiversity, and ecosystems; development effectiveness; and development cooperation architecture.
The draft approaches international trade as an engine for development by outlining commitments regarding the multilateral trading system (MTS), trade capacities, boosting trade in least developed countries (LDCs), and trade in critical minerals and commodities.
On debt and debt sustainability, the draft includes provisions on: sustainable and responsible borrowing and lending, and debt crisis prevention; fiscal space for investment in countries facing debt challenges; debt architecture for debt crisis resolution; and debt sustainability assessments and credit ratings.
Systemic issues addressed in the draft include global economic governance, the global financial safety net, regulation for a sustainable financial system, and public payment systems.
Provisions on science, technology, innovation, and capacity building cover technological advances for sustainable development, digital divides, and digital technology for financial inclusion and financial health.
On data, monitoring, and follow up, the draft includes commitments on investment in data and statistical systems and on data frameworks for sustainable development, accessibility, and innovation.
A paragraph-by-paragraph reading of the text will take place during the PrepComm’s third session in New York, US, from 10-14 February. The co-facilitators invite Member States to provide “detailed and substantive comments,” to inform preparation of a first draft of the outcome document. The co-facilitators aim to publish the first draft the week of 10 March. [FfD4 Website] [SDG Knowledge Hub Story on PrepComm’s Second Session] [SDG Knowledge Hub Story on PrepComm’s First Session]