The 2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads (FSDR 2024) says urgent steps are needed to mobilise financing at scale to close the development financing gap, now estimated at USD 4.2 trillion annually, up from USD 2.5 trillion before the COVID-19 pandemic. Meanwhile, rising geopolitical tensions, climate disasters and a global cost-of-living crisis have hit billions of people, battering progress on healthcare, education, and other development targets.
“This report is yet another proof of how far we still need to go and how fast we need to act to achieve the 2030 Agenda for Sustainable Development,” said UN Deputy Secretary-General Amina J. Mohammed. “We are truly at a crossroads and time is running out. Leaders must go beyond mere rhetoric and deliver on their promises. Without adequate financing, the 2030 targets cannot be met.”
With only six years remaining to achieve the SDGs, hard-won development gains are being reversed, particularly in the poorest countries. If current trends continue, the UN estimates that almost 600 million people will continue to live in extreme poverty in 2030 and beyond, more than half of them women.
“We’re experiencing a sustainable development crisis, to which inequalities, inflation, debt, conflicts and climate disasters have all contributed,” said UN Under-Secretary-General for Economic and Social Affairs Li Junhua. “Resources are needed to address this, and the money is there. Billions of dollars are lost annually from tax avoidance and evasion, and fossil fuel subsidies are in the trillions. Globally, there is no shortage of money; rather, a shortage of will and commitment.”
According to the report debt burdens and rising borrowing costs are large contributors to the crisis. Estimates are that in the least developed countries debt service will be USD 40 billion annually between 2023 and 2025, up more than 50 per cent from USD 26 billion in 2022. Stronger and more frequent climate related disasters account for more than half of the debt upsurge in vulnerable countries. The poorest countries now spend 12 per cent of their revenues on interest payments -- four times more than they spent a decade ago. Roughly 40 per cent of the global population live in countries where governments spend more on interest payments than on education or health.
While investment in SDG sectors had grown steadily in the early 2000s, major sources of development funding are now slowing down. For example, domestic revenue growth has stalled since 2010, especially in LDCs and other low-income countries, in part due to tax evasion and avoidance. Corporate income tax rates are falling, with global average tax rates down from 28.2 per cent in 2000 to 21.1 per cent in 2023, due to globalization and tax competition.
Meanwhile, Official Development Assistance from OECD countries and climate finance commitments are not being met. While ODA increased to an all-time high in 2022, reaching USD 211 billion, from USD 185.9 billion in 2021, much of the growth came from aid to refugees living in donor countries, and the total amount is inadequate for development. Only four countries met the UN aid target of 0.7 per cent of GNI in 2022.
The report concludes that the international financial system, which was set up at the 1944 Bretton Woods Conference, is no longer fit for purpose. It proposes a new coherent system that is better equipped to respond to crises, scales up investment in the SDGs especially through stronger multilateral development banks, and improves the global safety net for all countries.
The report points to the UN Summit of the Future in September 2024 as a crucial opportunity to change course. It highlights the June 2025 Fourth International Conference on Financing for Development (FfD4) as the critical moment for countries to commit to closing the development financing gap and invest in achieving the SDGs.
FfD4 is an opportunity for countries to:
- Close credibility gaps and rebuild trust in multilateralism.
- Close financing and investment gaps, at scale and with urgency.
- Reform and modernize the outdated international financial architecture and adjust international rules for trade, investment and finance.
- Formulate and finance new development pathways to deliver on the SDGs and ensure no one is left behind.
The 2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads (FSDR 2024) says urgent steps are needed to mobilise financing at scale to close the development financing gap, now estimated at USD 4.2 trillion annually, up from USD 2.5 trillion before the COVID-19 pandemic. Meanwhile, rising geopolitical tensions, climate disasters and a global cost-of-living crisis have hit billions of people, battering progress on healthcare, education, and other development targets.
“This report is yet another proof of how far we still need to go and how fast we need to act to achieve the 2030 Agenda for Sustainable Development,” said UN Deputy Secretary-General Amina J. Mohammed. “We are truly at a crossroads and time is running out. Leaders must go beyond mere rhetoric and deliver on their promises. Without adequate financing, the 2030 targets cannot be met.”
With only six years remaining to achieve the SDGs, hard-won development gains are being reversed, particularly in the poorest countries. If current trends continue, the UN estimates that almost 600 million people will continue to live in extreme poverty in 2030 and beyond, more than half of them women.
“We’re experiencing a sustainable development crisis, to which inequalities, inflation, debt, conflicts and climate disasters have all contributed,” said UN Under-Secretary-General for Economic and Social Affairs Li Junhua. “Resources are needed to address this, and the money is there. Billions of dollars are lost annually from tax avoidance and evasion, and fossil fuel subsidies are in the trillions. Globally, there is no shortage of money; rather, a shortage of will and commitment.”
According to the report debt burdens and rising borrowing costs are large contributors to the crisis. Estimates are that in the least developed countries debt service will be USD 40 billion annually between 2023 and 2025, up more than 50 per cent from USD 26 billion in 2022. Stronger and more frequent climate related disasters account for more than half of the debt upsurge in vulnerable countries. The poorest countries now spend 12 per cent of their revenues on interest payments -- four times more than they spent a decade ago. Roughly 40 per cent of the global population live in countries where governments spend more on interest payments than on education or health.
While investment in SDG sectors had grown steadily in the early 2000s, major sources of development funding are now slowing down. For example, domestic revenue growth has stalled since 2010, especially in LDCs and other low-income countries, in part due to tax evasion and avoidance. Corporate income tax rates are falling, with global average tax rates down from 28.2 per cent in 2000 to 21.1 per cent in 2023, due to globalization and tax competition.
Meanwhile, Official Development Assistance from OECD countries and climate finance commitments are not being met. While ODA increased to an all-time high in 2022, reaching USD 211 billion, from USD 185.9 billion in 2021, much of the growth came from aid to refugees living in donor countries, and the total amount is inadequate for development. Only four countries met the UN aid target of 0.7 per cent of GNI in 2022.
The report concludes that the international financial system, which was set up at the 1944 Bretton Woods Conference, is no longer fit for purpose. It proposes a new coherent system that is better equipped to respond to crises, scales up investment in the SDGs especially through stronger multilateral development banks, and improves the global safety net for all countries.
The report points to the UN Summit of the Future in September 2024 as a crucial opportunity to change course. It highlights the June 2025 Fourth International Conference on Financing for Development (FfD4) as the critical moment for countries to commit to closing the development financing gap and invest in achieving the SDGs.
FfD4 is an opportunity for countries to:
- Close credibility gaps and rebuild trust in multilateralism.
- Close financing and investment gaps, at scale and with urgency.
- Reform and modernize the outdated international financial architecture and adjust international rules for trade, investment and finance.
- Formulate and finance new development pathways to deliver on the SDGs and ensure no one is left behind.
NAIROBI, Kenya (PAMACC News) - When Dr Leah Tsuma, the founder Asticom Limited succumbed to cancer in August 2021, her idea of converting municipal waste from Kibera slum into some 10 mega watts of electricity seemed to have died too. But, three years down the line, the dream has become a global topic, with scientists calling on the world to start turning rubbish into resources.
During the 2024 United Nations Environment Assembly (UNEA) in Nairobi, the International Solid Waste Association (ISWA), in collaboration with the UN Environment Programme (UNEP) released a report offering assessment of global waste management and an analysis of data concerning municipal solid waste management worldwide.
“Waste generation is intrinsically tied to GDP, and many fast-growing economies are struggling under the burden of rapid waste growth,” observed Inger Andersen, the Executive Director at UNEP.
Generally, municipal waste is generated wherever there are human settlements. It is influenced by each person in the world, with every purchasing decision, through daily practices and in the choices made about managing waste in the home. According to the report, the world generates two billion tonnes of municipal solid waste every year.
One study shows that between 400,000 and one million people, most of them in developing countries die every year as a result of diseases related to mismanaged waste that includes diarrhoea, malaria, heart disease and different types of cancer.
On biodiversity, scientists have pointed out that indiscriminate waste disposal practices can introduce hazardous chemicals into soil, water bodies and the air, causing long-term, potentially irreversible damage to local flora and fauna, negatively impacting biodiversity, harming entire ecosystems, and entering the human food chain.
On the climate change front, a different report by UNEP shows that methane, which is a greenhouse gas is released from the decomposition of organic waste in landfills and dumpsites thereby directly contributing global warming.
And now, the new report finds that getting waste under control by taking waste prevention and management measures could limit net annual costs by 2050 to USD 270.2 billion.
However, projections, according to the report show that a circular economy model, where waste generation and economic growth are decoupled by adopting waste avoidance, sustainable business practices, and full waste management, could in fact lead to a full net gain of USD 108.5 billion per year.
“By identifying actionable steps to a more resourceful future and emphasizing the pivotal role of decision-makers in the public and private sectors to move towards zero waste, this (report) can support governments seeking to prevent missed opportunities to create more sustainable societies and to secure a liveable planet for future generations,” said Andersen.
According to Zoë Lenkiewicz, the lead author of the report, the findings demonstrate that the world urgently needs to shift to a zero waste approach, while improving waste management to prevent significant pollution, greenhouse gas emissions and negative impacts to human health.
“Pollution from waste knows no borders, so it is in everyone’s interests to commit to waste prevention and invest in waste management where it is lacking. The solutions are available and ready to be scaled up. What is needed now is strong leadership to set the direction and pace required, and to ensure no one is left behind,” said Lenkiewicz.
The scientists are therefore calling on counties to adopt the circular Economy scenario, which has a net-positive effect on greenhouse gas emissions and human health, and reduces significantly the negative impact on ecosystem quality.
In his speech at UNEA’s high level segment, President William Ruto said that such efforts in shared resources such as oceans will call for international collaboration.
“International collaboration is crucial in promoting the adoption of the "reduce, reuse, and recycle" life cycle approaches to waste that are vital for sustaining the blue economy and its ecosystems,” said Ruto. “We are (currently) implementing the Green Economy Strategy and Implementation Plan to shift waste management to a circular economy,” he added.
So far, according to Eath.org, Germany has been celebrated as a world leader in recycling of municipal waste, thus becoming the benchmark for other countries when it comes to implementation of greener practices of waste disposal.
NAIROBI, Kenya (PAMACC News) - When Dr Leah Tsuma, the founder Asticom Limited succumbed to cancer in August 2021, her idea of converting municipal waste from Kibera slum into some 10 mega watts of electricity seemed to have died too. But, three years down the line, the dream has become a global topic, with scientists calling on the world to start turning rubbish into resources.
During the 2024 United Nations Environment Assembly (UNEA) in Nairobi, the International Solid Waste Association (ISWA), in collaboration with the UN Environment Programme (UNEP) released a report offering assessment of global waste management and an analysis of data concerning municipal solid waste management worldwide.
“Waste generation is intrinsically tied to GDP, and many fast-growing economies are struggling under the burden of rapid waste growth,” observed Inger Andersen, the Executive Director at UNEP.
Generally, municipal waste is generated wherever there are human settlements. It is influenced by each person in the world, with every purchasing decision, through daily practices and in the choices made about managing waste in the home. According to the report, the world generates two billion tonnes of municipal solid waste every year.
One study shows that between 400,000 and one million people, most of them in developing countries die every year as a result of diseases related to mismanaged waste that includes diarrhoea, malaria, heart disease and different types of cancer.
On biodiversity, scientists have pointed out that indiscriminate waste disposal practices can introduce hazardous chemicals into soil, water bodies and the air, causing long-term, potentially irreversible damage to local flora and fauna, negatively impacting biodiversity, harming entire ecosystems, and entering the human food chain.
On the climate change front, a different report by UNEP shows that methane, which is a greenhouse gas is released from the decomposition of organic waste in landfills and dumpsites thereby directly contributing global warming.
And now, the new report finds that getting waste under control by taking waste prevention and management measures could limit net annual costs by 2050 to USD 270.2 billion.
However, projections, according to the report show that a circular economy model, where waste generation and economic growth are decoupled by adopting waste avoidance, sustainable business practices, and full waste management, could in fact lead to a full net gain of USD 108.5 billion per year.
“By identifying actionable steps to a more resourceful future and emphasizing the pivotal role of decision-makers in the public and private sectors to move towards zero waste, this (report) can support governments seeking to prevent missed opportunities to create more sustainable societies and to secure a liveable planet for future generations,” said Andersen.
According to Zoë Lenkiewicz, the lead author of the report, the findings demonstrate that the world urgently needs to shift to a zero waste approach, while improving waste management to prevent significant pollution, greenhouse gas emissions and negative impacts to human health.
“Pollution from waste knows no borders, so it is in everyone’s interests to commit to waste prevention and invest in waste management where it is lacking. The solutions are available and ready to be scaled up. What is needed now is strong leadership to set the direction and pace required, and to ensure no one is left behind,” said Lenkiewicz.
The scientists are therefore calling on counties to adopt the circular Economy scenario, which has a net-positive effect on greenhouse gas emissions and human health, and reduces significantly the negative impact on ecosystem quality.
In his speech at UNEA’s high level segment, President William Ruto said that such efforts in shared resources such as oceans will call for international collaboration.
“International collaboration is crucial in promoting the adoption of the "reduce, reuse, and recycle" life cycle approaches to waste that are vital for sustaining the blue economy and its ecosystems,” said Ruto. “We are (currently) implementing the Green Economy Strategy and Implementation Plan to shift waste management to a circular economy,” he added.
So far, according to Eath.org, Germany has been celebrated as a world leader in recycling of municipal waste, thus becoming the benchmark for other countries when it comes to implementation of greener practices of waste disposal.
