Inputs to the Outcome Document

This policy brief addresses the $1.5 trillion global trade finance gap, which disproportionately impacts small and medium-sized enterprises (SMEs) in developing economies. It outlines key challenges, including high rejection rates and compliance costs, and proposes targeted solutions such as expanding risk-sharing frameworks, strengthening local financial institutions, and promoting climate-friendly trade finance. The brief emphasizes the need for multilateral cooperation to close the gap, promote inclusive growth, and support the transition to a low-carbon global economy.

This policy brief explores the challenges of trade fragmentation and inequality in the global economy, focusing on the impact on low- and middle-income countries. It outlines policy solutions to reduce trade costs, invest in infrastructure, promote economic diversification, and strengthen global trade governance. Specific recommendations for the Fourth Conference on Financing for Development (FFD4) include financing for trade infrastructure, bridging the digital divide, improving access to finance, and reducing trade barriers to foster inclusive and sustainable development.

The global finance landscape remains fragmented, insufficient, and not fit-for-purpose, limiting access for developing countries most in need. Urgent reforms are required to simplify access, scale up concessional finance, and mobilize private sector capital through blended finance mechanisms. Strengthening country ownership and improving transparency across financial flows are key priorities. The Fourth Conference on Financing for Development (FFD4) should advocate for these reforms to close the sustainable development finance gap and accelerate progress toward global goals, especially for vulnerable and low-income countries. FFD4 must be the running point that transforms global financing landscape into a truly inclusive, scalable, impactable, fit-for-purpose and sustainable engine for achieving the SDGs, Post-2015 development Agenda, and Paris Agreement goals by 2030.

This policy brief explores innovative approaches to mobilizing climate finance, focusing on both public and private sector contributions. It highlights the urgent need for scalable finance solutions, given global economic volatility and rising debt levels in developing countries. Key solutions include unlocking alternative funding sources, leveraging debt restructuring, scaling blended finance, and utilizing innovative financial instruments. The Green Climate Fund (GCF) plays a critical role in catalyzing such investments and driving climate action, particularly in support of the most vulnerable.

Demographic change is one of the most powerful yet largely neglected factors shaping financing for sustainable development. It not only has implications for the expenditure side of public and private budgets, but also for the revenue side, and thus on budgets and debt. This brief makes the case for systematic consideration of demographic change and other megatrends in planning and budget processes of countries.