Fight against climate change and poverty will fail without overhaul of global financial system, says major UN report

(Eco Business, 5 Apr 2019) A new UN study warns that a comprehensive overhaul of the world’s financial system is necessary, if governments are to honour commitments to tackle critical issues, such as combatting climate change and eradicating poverty by 2030.

The 2019 Financing for Sustainable Development Report, says that achieving the financing needed to implement the 2030 Agenda for Sustainable Development – the UN’s plan of action for peace, planet and prosperity – is not just about finding additional investment, but also building supportive financial systems, and global and national policy environments, which are favourable to sustainable development.

At a press conference on Thursday, following the release of the report, Deputy Secretary-General Amina Mohammed said that it delivers a “sobering message”, showing low wage growth, rising inequality and debt distress, and stagnating aid levels.

Climate change, said Ms. Mohammed, continues to threaten sustainable development in all regions, and, despite international commitments to limit a rise in global temperatures, greenhouse gas emissions actually rose by 1.3 per cent during the course of 2017.

The report also shows that it is becoming increasingly difficult to create conditions to bring about positive change. The reasons include rapid changes in technology, geopolitics and climate, and the inability of national and multilateral institutions to adapt.

In addition, increasing inequality has hit many people’s faith in the multilateral system and, in his foreword to the report, António Guterres, Secretary-General of the United Nations, says: “Our shared challenge is to make the international trading and financial systems fit for purpose to advance sustainable development and promote fair globalisation.”

External link

Eco Business, 5 Apr 2019: Fight against climate change and poverty will fail without overhaul of global financial system, says major UN report