Concessional International Development and Climate Finance under FfD
Significant public international development and climate finance will be needed to achieve the Sustainable Development Goals (SDGs). The current macroeconomic and fiscal outlook in many developed countries is unfavorable towards significant increases in Official Development Assistance (ODA). While these developed countries must meet their commitments over time, the Financing for Development (FfD) process should also broaden the provider base by including high-income countries that are not members of the OECD Development Assistance Committee (DAC), and by preparing upper-middle-income countries for their role as financial providers for global public goods and the development priorities of poor countries. To achieve this, the FfD process needs to set clear standards to improve the effective targeting and use of scarce public and concessional funds. Moreover, every effort should be made to use innovative mechanisms for generating concessional finance and to mobilize philanthropy for the SDGs. This brief reviews practical steps towards mobilizing and targeting ODA, specifically concessional international public finance. Some of these steps are a continuation of the historic evolution of ODA, while others respond to new challenges.
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