Countdown to WSDS 2025

Bridging the Financing Gap for Climate Action and Sustainable Development

Day: 6th March 2025 | Thursday
Time: 12:00 – 1:30 pm (IST)

With just five years left to achieve the 2030 Agenda for Sustainable Development, the financing challenge has reached a critical juncture. The United Nations Financing for Sustainable Development Report (2024) highlights a staggering annual financing gap of USD 4 trillion for developing nations, with trillions more needed for climate adaptation and mitigation by 2030. Despite this pressing need, financial flows remain misaligned with sustainability goals, leaving vulnerable populations at risk of being left behind.

The current international financial architecture needs reforms to address these challenges, underscoring the need for transformative reforms. Innovative instruments such as blended finance, sustainability-linked bonds, and climate-responsive fiscal policies are gaining traction. Additionally, South-South cooperation, green budgeting, and the integration of the Sustainable Development Goals (SDGs) into public and private finance processes hold significant promise for bridging the financing gap. Advancing these solutions requires collective action and collaboration across stakeholders, including governments, multilateral institutions, the private sector, and civil society.

The plenary aims to deliver actionable recommendations and strategies to mobilise resources, strengthen public finance mechanisms, reform financial systems, and align investments with climate action and sustainable development goals.

Questions for Discussions

  • How can public finance and fiscal policies align better with the SDGs and climate action?
  • How can private sector investments and financial regulations be incentivised to prioritise sustainability and resilience over short-term gains?
  • What structural reforms are needed to make financial systems more supportive of climate and sustainable development goals?
  • Which innovative approaches and partnerships can help mobilise resources for bridging the financing gap in developing countries?