On 30 June \u2013 2 July 2025, GCH attended the 4th International Conference on Financing for Development (FfD4) in Sevilla to promote the localization of financing for development and better access of Local and Regional Governments (LRGs) to national and international financial resources.<\/p>\n\n\n\n
The FfD4 is a pivotal event organized by the United Nations to assess and advance the implementation of the Addis Ababa Action Agenda, the central framework for financing sustainable development. The conference aims to address emerging global challenges and mobilize financial resources to achieve the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs). LRGs were acknowledged as important stakeholders in localizing the SDGs, but they often lack the necessary financial resources to act.<\/p>\n\n\n\n
The GCH applauds the Sevilla Commitment<\/a>, the official outcome of the FfD4, which reflects several recommendations by LRGs in the \u201cMayors\u2019 Declaration<\/a> on Financing for Development to build a better, more equitable world for future generations\u201d. States have committed to strengthening subnational finance and enhancing LRGs\u2019 capacities. They will support local governments to prioritize and strengthen their policies. They urge Multilateral Development Banks (MDBs) to help better meet local development needs. It is crucial that States have decided to strengthen development cooperation architectures at both national and global levels including LRGs.<\/p>\n\n\n\n Unlocking Fiscal Potential for Sustainable Urban Development<\/strong><\/p>\n\n\n\n A special panel \u201cUnlocking Fiscal Potential for Sustainable Urban Development \u2013 Voices from African Cities to Mobilize Resources for the SDGs and Agenda 2063<\/a>\u201d explored how financing of local projects should be advanced in the international financial system, and how African cities are reforming their own financial systems to deliver on the SDGs and Agenda 2063. GCH was proud to contribute to the discussion as part of a distinguished panel including:<\/p>\n\n\n\n The discussion revealed the importance of stabilizing and increasing the domestic revenue sources of cities which also allows them better access to international financing and investment. A systemic change at the local, national and international level should go hand in hand to make sustainable local development a reality.<\/p>\n\n\n\n We explained how GCH is working to bring LRGs\u2019 voices to international financing and climate negotiations. We promoted the importance of including cities in global finance mechanisms and policy-making processes from the outset. This inclusion ensures that global policies are actionable on the ground.<\/p>\n\n\n\n In this respect we presented the process of drafting together with the Global Parliament of Mayors the \u201cMayors\u2019 Declaration on Financing for Development to build a better, more equitable world for future generations\u201d and presenting it as an input to the inter-governmental negotiations. The Mayors\u2019 Declaration<\/a> remains open for signature after the FfD4.<\/p>\n\n\n\n GCH preparatory webinar<\/strong><\/p>\n\n\n\n During the FfD4 preparations, GCH invited Mr. Mauricio Rodas, Head of Secretariat of SDSN Urban Commission, former Mayor of Quito and Ms. Karen Hitschke, CEO of Building Bridges to discuss the key issues of sustainable financing and guide the webinar participants in this endeavor. We explored how to make the international financial architecture more apt for financing sustainable local development projects. With climate challenge intensifying, fiscal space tightening, and the SDGs still far from reach, localizing financing for development is without doubt one of the key challenges the international community faces.<\/p>\n\n\n\n The speakers discussed the need for localizing finance through strengthened cooperation between national and local governments, private sector actors, and international financial institutions (IFIs). The current State-focused international financial system should be adapted and local access to global financial resources need to be enabled. Today only 44% of States allow their LRGs to borrow money and only 10% of climate financing is dedicated to local projects.<\/p>\n\n\n\n Multilevel and multilateral cooperation is of high importance to effectively connect the global sustainability agenda and its local implementation. Greater private sector engagement and the mobilization of resources from MDBs to support local climate-responsive projects might open up new capacities. However, it also requires adequate capabilities by LRGs to develop and manage bankable projects, transparent good governance, and stable rules-based investment climate.<\/p>\n\n\n\n Mauricio Rodas and Karen Hitschke explained how dedicated tools might de-risk investment in local projects and improve the creditworthiness of LRGs, ensuring that no place is left behind. Several financing instruments, such as catalytic financing, guarantee funds, blended financing, and public-private partnerships, were identified as effective tools. Scaling up funding and financing instruments for LRGs is essential for ensuring that they can pay their fair share in financing local efforts, including climate-responsive projects and driving forward the achievement of the SDGs. It is particularly relevant for SDG 13 “Climate Action” and SDG 11 “Sustainable Cities and Communities”.<\/p>\n\n\n\n Rewatch the webinar:<\/strong><\/p>\n\n\n\n\n