The fourth International Conference on Financing for Development (FfD4) is a renewed opportunity for global financial actors to revitalise sustainable development and empower developing countries by enabling a long-term, cooperative economic framework that reduces systemic risks. The International Commission of Experts on Financing for Development released a critical report in February 2025 that outlines recommendations for addressing challenges faced by developing countries. The report highlights key areas of concern including tax cooperation and illegal financial flows, the role of development banks, official development assistance (ODA) and concessional finance, environmentally sustainable finance, trade and investment, sovereign debt restructuring, and institutional and regulatory issues.
The Commission’s recommendations stand in contrast to recent events in development finance. Climate finance continues to be a contentious issue, with the new climate finance goal from COP29 falling short of the trillions of dollars required for climate finance. Development aid cuts by the United States, the United Kingdom and Europe have jeopardised the financing of climate programmes in the Global South. It remains to be seen whether FfD4 can provide meaningful pathways for revitalising the sustainable development agenda.
