Bold steps needed to jack up SDG funding, reform global financial system: UN Report
The 'Financing for Sustainable Development Report, 2024,’ says the global community faces a critical juncture with only six years remaining to achieve the Sustainable Development Goals (SDGs)
A recent UN report highlights the urgent need for substantial financial investments to mitigate the current crisis and propel progress towards sustainable development.
The 'Financing for Sustainable Development Report, 2024,’ says the global community faces a critical juncture with only six years remaining to achieve the Sustainable Development Goals (SDGs).
Prepared by the UN Inter-agency Task Force on Financing for Development, the report emphasizes that financial constraints lie at the heart of the existing sustainable development crisis.
It notes that countries are not only lagging in their efforts but are also veering off course from the 2030 Agenda for Sustainable Development.
According to the report, around half of the 140 SDG targets, for which sufficient data is available, are deviating from the required trajectory.
Furthermore, it is projected that by 2030, nearly 600 million people, over half of whom are women, will remain trapped in extreme poverty.
One of the critical findings of the report is the significant shortfall in financing to address pressing issues such as climate change alongside the SDGs.
The report underscores that the unmet financing needs for SDGs and climate action amount to trillions of dollars annually.
Developing countries, in particular, face acute financing challenges, compounded by higher capital costs and unfavorable access to financing terms.
The report highlights the imperative to align decision-making and financing with the SDGs to address misaligned incentives, both in the public and private sectors.
Technological advancements, particularly digitalization, and the fragmentation of the global economy are identified as factors affecting the financial landscape, posing challenges at both national and international levels.
Despite the setbacks, the report sees opportunities amidst the challenges, advocating for decisive actions to close financing gaps, reform the international financial architecture, and create enabling environments to finance transformative agendas.
UN Secretary-General Antonio Guterres emphasizes the need for immediate action, proposing a ‘SDG Stimulus’ plan of USD$500 billion per year for additional investments in sustainable development and climate action.
The essence of sustainable development, as defined by the UN, underscores the imperative of meeting present needs without compromising the ability of future generations to meet their own needs.
It calls for concerted efforts to build an inclusive, sustainable, and resilient future for both people and the planet.
Since the adoption of the SDGs in 2015, UN member states have been striving to align national budgets and plans with the SDGs, focusing on the 5Ps: people, planet, prosperity, peace, and partnership.
