The United Nations Secretary-General is calling on the public and private sectors to provide $500 billion a year in affordable long-term financing to developing countries.
© UNCTAD | UNCTAD Secretary-General Rebecca Grinspan (center) and world leaders attend the opening ceremony of the 2023 World Investment Forum in Abu Dhabi, United Arab Emirates, on October 16.
UNCTAD’s 8th World Investment Forum opened on October 16 in Abu Dhabi, United Arab Emirates, focusing on the investment challenges facing the world’s developing countries amidst today’s global crisis.
UN Secretary-General António Guterres, in a statement, addressed participants including heads of state, business leaders, sustainable stock exchanges, sovereign wealth funds and experts to implement the Sustainable Development Goals (SDGs) stimulus package. and called for efforts to achieve the goal of $500 billion. Annual investment amount in developing countries.
He also called on governments to establish a fair price for carbon and for companies to implement credible net-zero plans in line with the recommendations of the High-Level Expert Group on Net-Zero Emissions Commitments by Non-State Actors. I asked for it.
The forum, themed “Investing for Sustainable Development”, is strategically aligned with the global climate change consultations to be held at COP28. A dedicated track within the forum will focus on advancing climate finance and investment, providing an important platform for policymakers to find solutions and support global climate change negotiations.
The opening ceremony was attended by Sheikh Khaled bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, UNCTAD Secretary-General, Rebecca Grinspun, Deputy Ruler of Dubai, and Sheikh Maktoum bin Mohammed bin East Timor’s President Rashid Al Maktoum attended. Leste, Nobel laureate José Ramos-Horta and Togo’s President Faure Essogymna Gnassingbé set the stage for the week-long event.
World leaders tackle funding shortages
At the Global Leaders Summit on the first day, the SDG investment gap of $4 trillion was mentioned, but this is only 15% of the target achieved by 2030, and the investment gap for developing countries was 2.5 trillion dollars per year in 2015. This is because the economy has expanded from $1 trillion to $4 trillion. today.
At the summit, it was revealed that the sustainable finance market is valued at a staggering $6 trillion.
However, Secretary-General Grinspan said: “Not enough money is being put into new renewable energy power plants, water and sanitation facilities, agricultural projects and hospitals. And of the total sustainable funding, developing countries are “The funding is only 5%. The funding is there, but it’s not being allocated.” I was misguided. ”
Leaders, including Germany’s Deputy Prime Minister Robert Habeck, will close the SDG investment gap, mobilize sustainable finance in global capital markets, ensure sustainability standards in sustainable finance, and encourage more They discussed how to direct funds to where they are needed most.
Discussions highlighted the critical need for international coordination to take into account the scale of investment needs and mixed finance involving both the public and private sectors, including new actors such as sovereign wealth funds.
The forum focused on key areas such as a just energy transition and perspectives from countries such as Indonesia, South Africa and Vietnam.
Urgent investment needed in the agricultural sectorr
On World Food Day, UNCTAD and the Food and Agriculture Organization of the United Nations (FAO) are committed to tackling global malnutrition, poverty and food insecurity, amid global supply chain disruptions caused by the COVID-19 pandemic and the conflict in Ukraine. He emphasized the important role played by agricultural systems. loss of biodiversity and ecosystem services, and climate change.
FAO Director-General Dongyu Qu said transforming agricultural systems in low- and middle-income countries would cost $680 billion a year between now and 2030.
It is therefore critical to attract efficient public and private sector investments in agricultural systems to reduce food insecurity and promote rural employment, especially for women and youth.
Directing more investment in sustainable finance in global capital markets to food production where it is needed most will need to address challenges such as risk, institutional capacity, investment facilitation and ease of doing business. .
2023 UN Investment Promotion Awards celebrate successes in tackling climate change
Ten investment promotion agencies and special economic zones received the 2023 Investment Promotion Award, with Brazil, China, Egypt, France, India, Namibia, South Korea, South Africa, Turkiye and the United Arab Emirates among the winners.
This year’s awards highlight the work of investment promotion agencies in attracting investment to accelerate the transition to clean and sustainable energy to reduce climate change, as well as innovative innovations in investment promotion, financing and partnerships. This award recognizes this approach.
Since the adoption of the Paris Agreement in 2015, international investment in renewable energy has nearly tripled, but much of that growth has been concentrated in developed countries.