There are serious threats to the 2030 Agenda for Sustainable Development and the United Nations, especially its development system, must be effectively reformed in order to be able to limit the impact of those threats Secretary-General António Guterres said on Tuesday.
In his address to the opening of the annual operational segment of the Economic and Social Council (ECOSOC), Mr. Guterres warned that the world is facing a crisis of legitimacy, confidence and trust, rooted in legitimate fears
And while the benefits of globalization should be clear to all, “too many are being left behind.”
“Women are still far less likely to participate in the labour market – and gender pay gaps remain a global concern. Youth unemployment is at alarming levels. And inequalities are rampant – stretching the fabric of societies to the breaking point and undermining the social compact,” he stated, pointing out that “a handful of men hold the same wealth as half of humanity.”
Mr. Guterres underscored that exclusion resulted in frustration, alienation and instability.
“All of this compels us to do all we can to achieve inclusive and sustainable development – a goal in its own right, but also our best form of prevention against all kind of risks,” Mr. Guterres stressed.
An economic and social model that drives exclusion and environmental destruction cause deaths, missed opportunities, division and future conflicts.
“We need a global economy that works for all and creates opportunities for all,” he asserted.
According to the UN chief, the 2030 Agenda is crucial to rebuild the trust needed for fair globalization.
The Secretary-General flagged poverty eradication as the UN’s top priority, with the 2030 Agenda acting as its roadmap and the goals and targets its tools to get there.
He saw the Sustainable Development Goals (SDGs) as outlining the Organization’s commitment to expand dignity and opportunity for all on a healthy planet by empowering women, meaningfully including young people, reducing climate risk, creating decent jobs and mobilizing clean investments for inclusive growth.
“Finance is pivotal,” espoused Mr. Guterres, pointing to the Addis Ababa Action Agenda as stressing the importance of upholding Official Development Assistance commitments.
He underscored the need to support countries’ efforts to mobilize domestic resources, which must be accompanied by the international community’s commitment to fight tax evasion, money laundering and illicit financial flows, which threaten development.
“We are focused on building a system that is demand-driven, oriented around achieving results at scale, and accountable in providing support to achieve the 2030 Agenda,” Mr. Guterres said, mentioning a proposed a set of global adjustments to make operations on the ground “more cohesive, effective and efficient.”
He encouraged all present to take inspiration from the 2030 Agenda to forge the future we want.
“We are now closer than ever to repositioning sustainable development at the heart of the organization and to having a development system that is an even stronger partner as we seek to deliver for people,” said the UN chief.
“Together, let us make good on our shared promise to humanity – a future of prosperity, peace and dignity for all,” he concluded.
Development system ‘fit for purpose’
Opening the meeting, Marc Pecsteen de Buytswerve, Permanent Representative of Belgium to the United Nations and Vice-President of ECOSOSC said that repositioning the UN’s development system would be a unique opportunity to create a more integrated, effective, efficient and accountable system that matches the world’s commitments.
In short, he said, a development system that is “fit for purpose.”
He referred to the 2030 Agenda as demonstrating the commitment of Member States to promote peaceful, just and inclusive societies based on human rights, gender equality, empowerment of all women and girls, and free from poverty and fear and violence.
Mr. Pecsteen recalled the Secretary-General’s vision and concrete proposals to realign and reinvigorate the UN development system, which is necessary for the adequate and timely response Member States expect from the UN in the 21st century to help deliver on the 2030 Agenda promises.
He thanked Mr. Guterres for his leadership, vision and determination “to take on a challenge that is not easy,” adding that it was now up to the Member States to be “as bold in their desire to transform the system.”
He detailed that the ECOSOC Segment for Development will lay the groundwork for the consensus that will be forged in the coming weeks.
Panelists include senior government representatives from capitals, board chairs, UN leaders and key partners in the system.
Also addressing the meeting, Amina Mohammed, the UN Deputy Secretary-General, reiterated the importance of utilizing the opportunities offered by the 2030 Agenda to address the myriad challenges facing the world as well as to seize the momentum offered by it to ensure that the Organization is “fit to support” national efforts to realize the global goals.
In that context, she highlighted the important role that UN Resident Coordinators have to play.
“We know that if we want to strengthen our ability to support the 2030 Agenda in a cohesive, effective, accountable and efficient manner – then we must strengthen the Resident Coordinator system,” underscored the deputy UN chief, noting that a “reinvigorated” Resident Coordinator system is at the core of the proposals to reposition the UN development system.
“And it is at the centre of the mandate of the quadrennial comprehensive policy review,” she added.
The Policy Review is the mechanism through which UN Member States assess the effectiveness, efficiency, coherence and impact of UN development work. It also provides policy orientations for development cooperation at country level.
In her remarks, Ms. Mohammed also stated that strengthened Resident Coordinator system would ensuring a more accountable UN development system on the ground, one that is more responsive to national needs and more capable to deliver meaningful results.
“A system that can draw on the expertise across all entities – including non-resident entities, DESA [the Department of Economic and Social Affairs] and the regional economic commissions – to respond to country priorities,” she added.
New ADB Platform to Help Boost Financing for Climate Action
The Asian Development Bank (ADB) has launched a new platform aimed at helping its developing member countries in Asia and the Pacific mobilize funding to meet their goals under the Paris Agreement.
The NDC Advance platform will help countries mobilize finance to implement Nationally Determined Contributions (NDCs) regarding greenhouse gas emissions that each country has voluntarily committed to under the Paris Agreement. NDCs also describe priority actions for countries to adapt to climate change.
The announcement was made at the 24th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24) in Katowice, Poland, which is aiming to finalize a rulebook for the Paris Agreement when it goes into effect on 1 January 2020.
The agreement aims to limit the increase in the global average temperature to below 2°C, while aiming for 1.5°C.
“Through their NDCs, our developing member countries have made ambitious commitments to respond to climate change,” said ADB Vice-President for Knowledge Management and Sustainable Development Mr. Bambang Susantono. “We need to ensure that countries are able to mobilize the needed financing to deliver on their commitments. NDC Advance will help countries devise investment plans to tap financing from a variety of sources and to implement priority projects effectively.”
NDC Advance is funded through a $4.55 million grant from ADB and will have three aims: providing technical assistance that helps countries better engage with potential sources of climate finance and to make use of innovative finance mechanisms; identifying and prioritizing climate projects; and supporting countries in tracking how projects deliver against their NDC goals.
The new initiative will help propel the climate actions ADB has committed to under its Strategy 2030 program.
ADB earlier this year committed to ensuring that 75% of its operations will support climate change mitigation and adaptation by 2030, while providing cumulative climate financing of $80 billion from its own sources between 2019 and 2030.
Egypt: Shifting Public Funds from Infrastructure to Investing in People
Egypt has an opportunity to capitalize on current reforms by enabling more private investment in infrastructure and freeing up public funds for investments in people’s education, health and social protection. This is according to a new World Bank report launched today in Cairo,‘’Egypt: Enabling Private Investment and Commercial Financing in Infrastructure’’, which calls for increasing the public funds available for building human capital by expanding successful energy reforms to other key sectors, such as transport, logistics, water and agriculture.
“Egypt can learn from global experience and gain by increasing the use of private sector finance, management expertise and innovation in commercial infrastructure and agriculture, conserving public sector resources for where they are needed most”, said Clive Harris, Head for Maximizing Finance for Development for the World Bank.
Egypt is now beginning to reap the benefits of its transformative economic reform program. Macroeconomic stability and market confidence have been largely restored, growth has resumed, fiscal accounts are improving, and the public debt ratio is projected to fall for the first time in a decade.
“Egypt has demonstrated that by having a package aimed at reducing economic risks, pursuing sector level reforms and well-prepared bankable projects, large scale foreign and domestic investment can be achieved, This is visible through the US$ 2 billion invested in the largest solar park in the world, Benban, as well as US$ 13 billion in the Zohr field and other natural gas projects” said Ashish Khanna, Program Leader for Sustainable Development at the World Bank.
The report indicates that the action plan to further enabling private investment requires clear policy actions to resolve four cross cutting barriers to private investment – namely better management of land, transparency in Government procurement, efficiency in state owned enterprise and encouraging long term domestic financing. This needs to be complemented with developing projects for private investments with maximum economic impact, like the regional energy hub, logistics corridors, freight transport and agricultural transformation hubs.
The gains from reforms would also free up scarce public resources and allow for them to be re-allocated to investments in the education and health of Egyptians, the country’s human capital. Reforms in the energy sector provide an example of what is possible. The reform of energy subsidies freed up US$14 billon, reduced the pressure on the national budget and allowed the quadrupling of the investments in social safety net programs.
According to the report, for Egypt to maintain its reform momentum and focus on investing in its citizens, it will need to broaden and deepen its reform agenda to other sectors. This would be part of a fundamental shift away from the state as a provider of employment and output to an enabler of private investment; with the economy driven by a dynamic private sector generating jobs for the youth.
The report identifies four sectors which have huge potential for private investments and illustrates how successfully attracting those investments would generate growth, create jobs and ultimately contribute to developing Egypt’s human capital. The four sectors analyzed in the report are: transport, energy, water and sanitation, and agriculture.
The World Bank provides technical, analytical and financial support to help Egypt reduce poverty and boost shared prosperity. The focus of Bank support includes social safety nets, energy, transport, rural water and sanitation, irrigation, social housing, health care, job creation, and financing for micro and small enterprises. The World Bank currently has a portfolio of 16 projects with a total commitment of US$6.69 billion.
New Initiative to Mitigate Risk for Global Solar Scale-up
The World Bank and Agence Française de Développement (AFD) are developing a joint Global Solar Risk Mitigation Initiative (SRMI), an integrated approach to tackle policy, technical and financial issues associated with scaling up solar energy deployment, especially in some of the world’s poorest countries.
Initiated in Delhi at the first International Solar Alliance (ISA) summit in March 2018, the initiative will support the ISA’s goal to reduce costs and mobilize $1,000 billion in public and private investments to finance 1,000 GW of global solar capacity by 2030.
“The World Bank, in partnership with AFD, remains committed to the International Solar Alliance’s goals and to global efforts to fight climate change. Through this new, integrated approach, we hope to further scale up solar energy use by reducing the cost of financing for solar projects and de-risking them, especially in low-income countries,” said Riccardo Puliti, Senior Director of Energy and Extractives at the World Bank.
As the costs for solar power have fallen steadily, solar power is increasingly viewed as a key component in the fight against climate change. However, solar deployment has been slow in some emerging markets, particularly Africa, due to layers of risks perceived by the private sector in financing solar projects. The SRMI aims to change that.
“This partnership with ISA and the World Bank is another step towards achieving the objective of the Paris Agreement of redirecting financial flows in favor of low carbon and resilient development pathways. AFD is glad to join forces with these partners to deliver on the commitments made at COP21, to bring solutions to de-risk potential solar investments and mobilize the private sector to invest in sustainable development” said Rémy RIOUX, CEO of AFD.
The SRMI’s integrated approach will include:
- Support for the development of an enabling policy environment in targeted countries
- A new digital procurement (e-tendering) platform to facilitate and streamline solar auctions
- Targeting relatively small (under 20 MW) solar projects, offering a more comprehensive risk mitigation package of support to a wider range of investors and financiers to promote scale up at later stages. The financial risk mitigation package offered by SRMI will be supported by technical assistance and concerted engagement on planning, resource mapping and power sector reforms to ensure the creditworthiness of utilities in these countries
- Mitigating the residual project’s risks through adequate risk mitigation financial instruments for both on and off-grid projects
The governments of India and France launched the ISA, an international organization as part of the Paris Climate Agreement in 2015 to scale up solar energy resources, reduce the cost of financing for solar projects around the world and ultimately help reach the Sustainable Development Goal on energy (SDG7) of providing access to affordable, reliable, sustainable and modern energy to all. To date, 71 countries have signed the constituting treaty of the ISA, and 48 have ratified it.
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