Closing of high-level event on financing for SDGs

11 June 2018

– AS PREPARED FOR DELIVERY –

Statement by H.E. Mr. Miroslav Lajčák, President of the 72nd Session of the UN General Assembly, at closing of high-level event on financing for SDGs—Breaking the bottlenecks of investment, from policy to impact

 

 

Excellencies, Dear Colleagues, Ladies and Gentlemen,

I want to start by thanking you all, again, for being here today.

We all know that we have the building blocks. We have the 2030 Agenda, with the potential to transform the world. We have the Addis Ababa Action Agenda, which is a framework for financing it.

But now we need to put our money where our mouth is.

On all sides.

…Developed countries need to meet commitments related to Official Development Assistance and climate finance.

…Developing countries need to make changes, to mobilise domestic revenue.

…International financial institutions need to expand their reach.

…And the private sector needs to do more, to direct investment towards the SDGs.

And… that is why we are here today.

We brought a lot of ideas and suggestions to the table

I will not be able to capture them all, in only a few minutes.

But I do want to point out a few areas, before we go our separate ways.

First: partnerships.

One of our buzz phrases today was “public-private partnerships”. We heard that, although they are not a silver bullet – they remain a crucial tool, to achieving the SDGs.

Our talks also focused on the role of multilateral development banks. They are absorbing risk. And this is allowing private funding to come into places it might not otherwise be.

And, when it comes to partnerships, one was clear: The United Nations must play a major role. It can bring all kinds of actors to the table. It has unique expertise and experience across the board – from peacebuilding to climate change. And it is often seen as the most legitimate actor on the ground. Our event today is an example of its convening power. And we need to see this power used, even more.

Second: outreach.

Because, there is no point, in preaching to the choir. And that is something we – who work in this building – need to remember.

Today, we listened to a wide range of actors discussing the SDGs. They were impressively tuned in, and knowledgeable. But that is not the reality, for everyone. There are, still, many executives, bank governors, or even world leaders, who do not fully understand what the SDGs are.

So, we heard many calls today – to scale up outreach.

We need to go out there: to spread the word, to educate, and, frankly, to sell the SDGs.

Third: Enabling environments.

We cannot just expect to attract investment; we have to invite it in.

This means regulatory frameworks.

This means stamping out corruption

This means good governance.

And the lion’s share of responsibility is in the hands of national governments. Visionary leadership, and effective partnerships are crucial.

And, progress is being made. We listened to many success stories today. And, we heard that the cost of starting up a business in developing countries continues to fall.

Fourth: Measurement.

Our discussions focused not only on the action we should take, but also on how it should be tracked.

Investors are used to a certain set of measurements. From clear currencies and established accounting guidelines, to auditing rules.

Now, we are inviting them into a new arena. And, these kinds of frameworks, definitions and standards do not always come with it.

So, we need to do something about that. We need more harmonisation – more standardisation – and more data.

But, we also need to look at tracking – on a broader scale. Not just the investment going in, the expenses going out, and immediate, tangible results. But, also, the longer-term impact, for people on the ground.

And, as we heard today, this is not very common. A lot of the time, investors still have a short-term focus.

I want to echo a call we heard today: for shareholders to insist on longer-term benchmarks.

Because, it is not just about the results, today. But, also, the change and benefits, which will come down the line, tomorrow.

And it is only through apply this perspective that we will see a boost in climate financing.

Fifth: Best practices.

We heard a lot of them today.

For example, the Sustainable Stock Exchanges, by UNCTAD. This initiative has changed reporting by stock exchanges around the world. And it means we now have access to information that we have never had before – from environmental to social sectors.

We also learned how Aviva has created the World Benchmarking Alliance. This involves free, public league tables. And it shows how sustainable practices can be incentivised.

And, we heard about some good examples of blended finance. For example, the partnership between the Gates Foundation and Inter-American Development Bank. This blends philanthropic funds with the bank’s capital –to scale up programmes against malaria.

Or another best practice came from YES Bank – one of the largest private banks in India. It has used innovative financing techniques – including green and blue bonds – to drive climate-friendly financing.

These are all quite inspiring. Now we just need to make them the norm – not the exception.

And sixth, and finally: Opportunities.

It is clear we are living in exciting times.

We heard about many new opportunities today:

…New models of blended financing.

…The transformative power, of digital lending.

…Enhanced data collection and analytics.

…Harnessing financial technology, to direct funding to the people, on the ground, who need it the most.

…Innovative financing tools, including green, blue and sustainability bonds.

… And major advancements in Artificial Intelligence.

A.I. has already revolutionised SDG-related sectors….for example, saving energy used for cooling, at levels thought to be impossible….. or helping earlier medical diagnosis – from eye conditions to melanoma.

But our discussions showed that, when it comes to A.I., there are also a lot of concerns. And they must be dealt with, before we can fully harness its potential.

Finally, I do not want to conclude before talking about gender equality. Women’s participation and leadership is vital to the Sustainable Development Goals… Not only to the dedicated Goal 5 – but to every goal and target in the agenda. And if we want the kind of financing that can power transformation – women must be in the driving seat.

So, all of these areas represent major opportunities. And there were many more mentioned today, which I haven’t captured.

But one thing is clear: we have only scratched the surface. And now we need to dig much deeper.

Excellencies, ladies and gentlemen,

I will soon publish a summary of today’s event on my website. My team will also work to create a “toolbox” – containing major recommendations, best practices and available data. It will be managed by UNCTAD, to ensure it lives on, after my presidency.

I have to say, I was very impressed by the quality of our discussions today.

But I also want to say something else: if we all leave this room, and continue with business as usual, we will have wasted our time.

We need to meet our words with actions.

And so, I want to end with a simple challenge:

When you all go home this evening, please make a commitment to doing one thing differently.

Whether it’s as big as launching a new initiative….. or as small as organising a coffee meeting, with someone you met here today.

And please talk about it. Use your Twitter accounts….contact my office…or include it in a newsletter.

Let’s keep this momentum going!

Thank you – and good luck!