On 10-14 February 2025, the third session of the Preparatory Committee for the Fourth Financing for Development Conference (FfD4) takes place in New York. GCH has sent its observations and recommendations to the committee based on its position that Local and Regional governments (LRGs) have a fair view of the development needs being the closest level of governance to the population. Better representation of their voice in global economic governance, policy development and decision-making would help deliver more effective institutions with bigger impact on the ground.
As the 2024 Financing for Development report indicates, we are at an inflexion point to correct the course if we want to achieve the SDGs by the 2030 deadline. GCH agrees that only an urgent, large-scale and sustainable investment push can help us achieve our global goals. It also believes that a coherent transformation of financing should follow whole-of-government and whole-of-society approaches and involve local LRGs.
At the recent UN Summit of the Future, States committed to strengthen the engagement of local and regional authorities in localizing SDGs. Through inclusive multilateral cooperation, the international community should be able to bridge the gap between SDG visioning and the reality on the ground.
GCH recommends to the Committee that States follow an inclusive approach to financing SDG Localization. Coherence of policies on localization of finance for sustainable development across local, regional and national governance levels is essential to work successfully towards the Agenda2030.
The GCH commends States for incorporating the principle of a whole-of-government approach and advocates for strengthening it by explicitly referencing LRGs in ‘International development cooperation, point 5/A/a’: “Commit to supporting policy coherence at all levels to ensure development partners’ policies strengthen rather than weaken development cooperation, including by: i) promoting local procurement, local audit, and the involvement of local actors; ii) reconfirming commitments to untying aid and reducing the number of exemptions; iii) adopting a whole-of-government approach, including local and regional governments, in delivering development cooperation, in line with principles of Policy Coherence for Sustainable Development.”
It also suggests acknowledging the role played by LRGs in closing the digital divide by amending the text ‘Science technology, point 1/b’: “Enhance international collaboration between local, regional, and national governments, DFIs, and private actors to design digital infrastructure financing models and impact measurement in support of the Global Digital Compact’s commitment to develop innovative and blended financing mechanisms that can close the connectivity gap and improve the quality and affordability of connectivity.”
The Global Cities Hub further recommends exploring different options to increase investment in urban mitigation and adaptation infrastructure and services by:
- Following the principle of inclusive multilateralism within the international financial architecture, incorporating the perspectives and needs of LRGs;
- Recognizing the importance of ensuring political commitment and resourcing for sustainable development at all levels by financial institutions of all kinds;
- Promoting public-private partnerships structured at the municipal level for climate-related urban infrastructure projects;
- Developing credit guarantee programs for derisking borrowing, for entities like cities that may lack creditworthiness and have insufficient collateral;
- Making urban climate finance a key component of MDB reform agendas by integrating urban content into country platforms through multilevel coordination.
The Fourth Financing for Development Conference will take place from 30 June to 3 July 2025 in Sevilla, Spain. It will provide a unique opportunity to reform financing at all levels, including to support reform of the international financial architecture.