We must foster a bigger, better and fairer financial system: UK statement at the FfD4 Second Preparatory Committee
Statement by UK Permanent Representative to the UN Ambassador Barbara Woodward at the FfD4 Second Preparatory Committee or the Fourth International Conference on Financing for Development.
The UK sees FfD4 as a pivotal moment to deliver a modernised financing framework to address economic, environmental and social development challenges in an integrated way, and to close the financing gap.
FfD4 must set direction on international financial architecture reforms, and foster a bigger, better, fairer financial system.
The FfD4 outcome should build upon the Addis Agenda’s focus on an enabling environment, particularly towards women’s economic empowerment.
It should also focus more on vulnerability and those at risk of being left behind to improve shock responsiveness and progress State Contingent Debt Clauses and Disaster Risk Financing.
We need to continue to reform Multilateral Development Banks to scale up their impact. The UK has announced that we are increasing our pledge to IDA by 40%, and will provide $2.5bn over the next three years. We call on other donors to step up and help deliver the largest ever replenishment.
Climate and nature finance is also critical. At COP29, the UK announced that the Climate Investment Fund’s new Capital Markets Mechanism has been listed on the London Stock Exchange. This innovative multilateral fund will use capital markets to accelerate climate finance to developing countries.
British International Investment also announced a $30 million investment in InfraCredit, to promote local currency financing to support the clean energy transition.
And ever more private capital needs to be mobilised to support greater investment in low income, climate vulnerable, and fragile and conflict-affected states.
Finally, to accelerate progress on the SDGs, a modernised development finance framework must go beyond just mobilising more finance, to focus on greater impact, evidence-based decision making, and ownership at country and local levels.
The UK looks forward to working with you all to ensure FfD4 delivers on the step change needed.