4th International Conference on Financing for Development

The Seville Commitment calls for provision and mobilization of the climate funds including the Fund to Respond to Loss and Damage.

The Seville Commitment calls for finance to be deployed to support the implementation of NDCs.

The Sevilla Commitment calls for enhanced and simplified access to VCEF funds for NDBs and developing countries, as well as complementarity and coherence across funds and improved cooperation with MDBs and national development institutions.

One of the most significant outcomes from Seville was the creation of a borrower's club, an initiative that has been pushed by advocates to support debtor countries manage debt and debt distress. It is meant to be a platform for South-South technical assistance and knowledge exchange.

A group of creditor nations and multilateral lenders launched the Debt Suspension Clause Alliance to push for more widespread inclusion of CRDCs in sovereign lending, from both public and private creditors.

Leaders welcomed the IMF decision enabling SDR use for hybrid capital, urged delivery of pledges, and called to rechannel at least half of allocations to developing countries, including via MDBs and through AfDB and IDB by end 2025, while preserving reserve status, creating an SDR playbook, and continuing allocations.

The F4D4 outcome document calls on the development partners and DFIs to further expand and collaborate on the use of risk-sharing instruments, such as insurance solutions for private capital mobilization Global Coalition launched to Scale up Pre-Arranged Financing towards reaching a Global Target by 2035, including insurance and other forms of contingent finance Ready and Resilient Americas Program of the IDB Group reaffirms its commitment to leverage risk transfer products such as catastrophe swaps, catastrophe bonds, and insurance solutions, to foster a financial environment where resilience is a shared responsibility, integrating private sector expertise to enhance protection and stability

The Outcome Document: Support for the development of repositories of guarantee instruments, building on the World Bank Guarantee Platform MDBs called upon to explore the use of portfolio guarantee platforms. DFIs encouraged to promote finance for MSMEs, including through guarantees or national guarantee facilities Commitment to strengthen the use of guarantees (amongst others) to increase the mobilization ratio of private finance from public sources

Initiatives under the Sevilla Platform of Action (SPA) were launched to scale country-driven approaches to sustainable development and climate action. By aligning national development plans, climate strategies, and biodiversity goals with Integrated National Financing Frameworks, SPA enables countries to lead their own development and implement the Compromiso de Sevilla.

Outcome document briefly mentions support for scaling up debt swaps to support SDGs as part of a broader ask for more coordinated and "enhanced liquidity and debt management support". Asks include simplifying the design, reducing transaction costs, and strengthening country ownership and transparency. Italy launched debt for development swap program aimed at African countries to convert EUR 230 million in debt obligations towards development projects. Spain and the World Bank launched a new tool to support collaboration around swaps, the Debt Swaps for Development Hub.

The Outcome Document: Encourages countries to integrate financing of social protection systems and policies, including floors and policies in line with ILO recommendations and inter-governmentally agreed standards, into their country-led plans and strategies. Commitment to take action to combat inequalities within and among countries, including through investment in social protection systems and human development Commitment to provide support to developing countries that aim to increase social protection coverage, including those that aim to do so by at least two percentage points per year.

IDB launched FX EDGE, a new platform to address currency volatility that aims to provide blended finance and project preparation facility, liquidity facility, and FX derivative program as tools for policymakers. FX EDGE builds on IDB's previous collaboration, Eco Invest in Brazil.

The conference emphasized that sustainable development must be driven by country-led financial systems, not just international aid. Key themes discussed include Integrated National Financing Frameworks (INFFs), Strengthening Public Financial Management, and a call for debt restructuring, concessional financing, and tailored international support to strengthen domestic markets.

The Seville Initiative launched a global coalition to reform tax expenditures, which cost governments ~4% of global GDP annually

The F4D4 outcome document urges official creditors to scale up, to the extent possible, lending in local currencies in developing countries to address currency risks and identify solutions to reduce the costs and other challenges associated with such lending.

Focus/ Emphasis on interoperability of taxonomies and cross border comparability of sustainability disclosure standards. The F4D4 outcome document expresses desire to promote interoperability of taxonomies towards a set of common design principles as guidance for local implementation, taking into account national circumstances and development priorities. The F4D4 outcome document encourages the adoption of sustainability disclosure standards for reporting on impacts, risks and opportunities, through a country-driven approach tailored to national circumstances. Standards such as those of the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI) referred for ensuring cross border compatibility Credit rating agencies and financial institutions called upon to recognize the adoption and reporting against such standards in their rating and financing decisions. The FFD4 Business Steering Committee, in its Communiqué, called for aligning sustainability standards across borders. It emphasizes clearer, more consistent sustainability regulations that work across countries, aligning investment strategies with local development priorities and national sustainability roadmaps and support the use of global standards for environmental and social reporting.

The FFD4 Business Steering Committee's Communiqué highlights the need for reassessing financial regulations to incentivize long-term investments and calls for targeted policies, better credit risk data, and stronger collaboration with international financial institutions and governments to improve access to finance for small- and medium-sized enterprises in developing countries.