Financing sustainable development
Financing the Sustainable Development Goals (SDGs) and the Paris Agreement objectives - to avoid dangerous climate change by limiting global warming - requires massive public and private investment to make them a reality for all people, everywhere. Financing for sustainable development is based on the paradigm that to achieve the SDGs and the Paris Agreement objectives, it is necessary to unlock the full potential of all financial flows – private and public, domestic and international.
The 2015 Addis Ababa Action Agenda sets out a vision of how development financing should support the SDGs through effective use of all financial flows, as well as non-financial means of implementation. It emphasises the key role of domestic action and sound policies. It also serves as a guide for action in a number of areas, such as domestic public resources, debt and debt sustainability, international development cooperation, private business and finance for countries to take domestic actions. It provides a framework for cooperation between developed countries and their developing partners.
The COVID-19 pandemic has had a dramatic socio-economic impact on all countries, exacerbating financing needs and decreasing the level of resources available. The financing for sustainable development agenda is more relevant than ever.
The EU Investing in Sustainable Development Report
The ‘Investing in Sustainable Development Report’, published in April 2022, monitors progress on the Addis Ababa Action Agenda and other commitments that the EU, its Member States and European development financial institutions have collectively achieved to support partner countries in financing their sustainable development priorities.
The report examines the impact that COVID-19 has had on financing for sustainable development and provides an analysis of the EU and its Member States’ performance between 2018 and 2020. Progress is examined through a ‘Team Europe’ lens. Indeed, the Team Europe approach has demonstrated the impact that can be achieved when the EU, its Member States and European development financial institutions work together.
The report includes a thematic chapter presenting the EU’s work in sustainable finance. Indeed, accelerating private financial flows towards partner countries will be critical to collectively deliver our global sustainability commitments.
For questions on the report, please contact: INTPA-FFD-REPORT@ec.europa.eu