New Delhi: We are working diligently to provide more for both people and the environment. The capacity of nations to combat hunger, poverty, and inequality, foster resilience, and make investments in their futures has been hampered by numerous, overlapping shocks. Debt vulnerabilities in low- and middle-income nations pose a significant barrier to their ability to recover their economies and make necessary long-term investments.
Fighting against poverty and inequality is a top priority for us. We have failed miserably to meet the UN Sustainable Development Goals by the year 2030, with an estimated 120 million people being driven into extreme poverty in the last three years. Thus, in order to improve human welfare globally, we should put people at the centre of our strategy.
We want a system that more effectively addresses the vulnerabilities and needs of development, which are now being exacerbated by climate risks and may make it harder for nations to end poverty and achieve inclusive economic growth. The poorest and most vulnerable populations worldwide will be disproportionately affected by larger and more frequent disasters brought on by climate change. These difficulties transcend national boundaries and endanger economies and societies.
Also Read: German woman imprisoned for holding Yazidi woman as a slave
We want our system to provide the planet with more benefits. This generation has the chance to usher in a new era of sustainable global economic growth as a result of the transition to a "net-zero" society and the Paris climate agreement's objectives. We think that equitable ecological changes that benefit everyone can be a significant force in reducing poverty and promoting inclusive and sustainable development. To ensure that all nations can take advantage of this opportunity, long-term investment is needed everywhere. We also need new economic models that take inspiration from the historic Kunming-Montreal Global Biodiversity Framework and acknowledge the enormous value of nature for humanity.
We are convinced that eradicating poverty and preserving the environment are mutually reinforcing goals. To make sure that the poor and most vulnerable can fully benefit from this opportunity instead of bearing an unfair share of the burden, we must concentrate on just and inclusive transitions. We acknowledge that, depending on their specific national circumstances, different countries may need to pursue different transition paths in order to adhere to the 1.5 degree Celsius limit set by the Paris agreement. If there isn't enough cooperation, opportunities for employment, or sustainable growth to support the transition, it won't happen.
Also Read: PM Modi's US Visit: Easing Visa for Skilled Indian Workers?
We, the heads of the world's various economies, are united in our desire to create a new global consensus. We will use the June 22–23 Paris Summit for a New Global Financing Pact as a pivotal political opportunity to make up for lost development gains and hasten progress towards the SDGs, including just transitions. We are clear about our approach: in accordance with the Addis Ababa Action Agenda, we must leverage all available sources of funding, including official development assistance, domestic funds, and private investment, in order to fulfil our development and climate commitments.
The first step in implementing that consensus should be to honour current financial commitments. By 2023, all climate-finance objectives must be attained. Through the redistribution of special drawing rights or equivalent budget contributions, we should also be able to meet our overall goal of $100 billion in voluntary contributions for the world's most impoverished nations.
No nation ought to be forced to wait years for debt relief. Both low-income and middle-income countries must cooperate more actively and quickly when it comes to debt. This begins with a prompt resolution of solutions for debt-stricken nations.
Keeping up the ambitious reform of our system of multilateral development banks while building on the current momentum is a top priority. On the basis of specific goals and plans for the contribution of private capital and the mobilisation of domestic resources, we are requesting that development banks take responsible action to do much more with already available resources and to increase financing capacity and private capital mobilisation.
Even though these financial assets are crucial, this reform is about much more than money. It ought to produce an operational model that is more successful and is based on a national strategy. For the greatest impact, our development banks must also collaborate as an ecosystem with other public organisations, streamlined vertical funds, philanthropists, sovereign wealth funds, private finance, and civil society as needed.
Our partnerships, which will work to support voluntary technology transfer, a free flow of scientific and technological talent, and an inclusive, open, just, and nondiscriminatory economy, will be built around technology, skills, sustainability, and public and private investment. We will advocate for an agenda of inclusive, sustainable investment in developing and emerging economies that is based on regional economic value addition and local transformation, such as value chains for fertiliser. New metrics will be needed to update our accountability tools in order to use this comprehensive approach.
The public sector will continue to be crucial to achieving our objectives. The International Development Association, the Poverty Reduction and Growth Trust, the Resilience and Sustainability Trust, the International Fund for Agricultural Development, the Green Climate Fund, other concessional windows of our banks, as well as the Global Shield against Climate Risks should all be strengthened as a starting point. However, we acknowledge that in order to achieve our development and climate goals, new, creative, and sustainable sources of funding will be necessary, such as debt buybacks, participation from industries that benefit from globalisation, and more reliable carbon and biodiversity credit markets. This holds true for initiatives to combat hunger, poverty, and inequality; adapt to climate change; and work to prevent, reduce, and make good on loss and damage.
A top priority is boosting resilience through a full range of financial tools. In order to lessen the effects of climate change and adapt to them, particularly when disasters strike, we need a stronger global safety net built on predetermined strategies. This implies deferral mechanisms, safety nets, and financing for emergency responses that are resilient to climate change and other disasters, as well as a more sustainable model for humanitarian aid.
Scaling up private capital flows will also be essential to achieving our development objectives, including climate mitigation. As encouraged by the G20 Compact with Africa, this calls for increased private sector mobilisation with its financial resources and innovative capacity. Additionally, this calls for enhancing the business climate, putting in place common standards, building sufficient capacity, and lowering perceived risks, such as in the foreign exchange and credit markets. Public support and the dissemination of trustworthy data may be necessary for this. In order to promote sustainable development, including the green transition in developing and emerging economies, our system must lower the cost of capital.
To address the issues facing developing countries and to advance our global agenda, our work together is centred on solidarity and group effort. By utilising additional significant occasions, such as the G20 Summits in India and Brazil, the SDG Summit, and the COPs, beginning with COP28 in the UAE this year, we will continue to push for progress. We will work to advance practical measures that fulfil the promise of the SDGs, for our prosperity, the people, and the planet, in all of our upcoming international endeavours and negotiations.
