5 things you should know about financing for sustainable development

Financing is the fuel of development. With adequate financing, the world can tackle poverty, inequalities, hunger, education, and the climate crisis. Yet, the world faces a stark financing divide and shrinking fiscal space. Here are 5 things you should know about financing for sustainable development. 

1. Sustainable development is a good investment

Investment in sustainable development is good value for money. For example, every $1 invested in girls’ education can generate a $2.80 return. Every $1 invested in water and sanitation can reduce health care costs by $4.30. 

2. Financing gaps are large and growing

The SDG financing gap - an estimated $4 trillion shortfall in annual investment - has never been so large. This is up from an estimated $2.5 trillion in 2019. 

3. Developing countries are facing high debt burdens that crowd out other spending

In 2023, developing countries spent a record $1.4 trillion to service their foreign debt. Around 3.3 billion people live in countries that spend more on debt interest payments than on health or education.  

4. The international financial architecture needs urgent changes to ensure affordable access to finance

Many developing countries can’t access finance at affordable rates, especially during times of crisis. On average, developing countries face borrowing costs that are two to four times higher than developed countries pay.

5. The fourth International Conference on Financing for Development (FFD4) is a once-in-a-decade opportunity for change

In June, world leaders will come together at FFD4 in Sevilla, Spain to take action to deliver an SDG investment push. They will also work on reforming the international financial architecture to enable the transformative change that the world urgently needs. FFD4 will showcase the power of multilateral cooperation to tackle these global challenges, which far exceed the capacity of any single country to respond to.  

In the lead up to FFD4 in Sevilla, follow the ECOSOC Financing for Development Forum (28-29 April), and the Fourth Preparatory Committee Session (30 April-1 May).

Learn more and stay updated on the road to Sevilla and the FFD4 Conference.

Photo credit: UN DESA/Helen Rosengren.