A comprehensive financial basis is needed to successfully implement the 17 Sustainable Development Goals. Alongside public and private funding, the political sphere will also need to make a greater contribution to reaching the goals. In July 2015, the international community agreed on a new framework for financing and implementing sustainable development – the Addis Ababa Action Agenda.
The 2030 Agenda recognises the need for broad-based financing and implementation. At the Third International Conference on Financing for Development in mid-July 2015, the international community agreed on a new financing plan, which provides answers to the important question of how the 17 Sustainable Development Goals are to be implemented. This makes the Addis Ababa Action Agenda integral to the 2030 Agenda.
Switzerland is satisfied with the results of the conference, which achieved its most important objectives. "The results are groundbreaking for the modernisation of international cooperation. The partnerships and financing models agreed in Addis Ababa will help shape global efforts to overcome poverty and inequality," said SDC Director-General Manuel Sager.
The framework comprises a series of solutions:
Mobilising domestic resources
According to the Addis Ababa Action Agenda, mobilising domestic resources is a key source of finance for sustainable development. These resources help build functioning institutions to drive sustainable development, they improve government accountability to communities and they reduce dependence on foreign support. That is why the Addis Ababa Action Agenda includes provisions to strengthen national tax systems and to intensify international cooperation to combat tax evasion and illicit financial flows.
Private financial resources
The Addis Ababa Action Agenda recognises the important contribution the private sector can make towards the achievement of the goals, for example through private direct investment in sustainable development, remittances from migrants and funding from foundations and charities. To encourage the private sector to invest more heavily in activities promoting sustainable development, it is important for all countries to offer a supportive regulatory framework and appropriate incentives. Public-private partnerships will also be encouraged.
Targeted use of official development assistance
Official development assistance (ODA) remains an important means of funding. In future this will increasingly benefit the poorest countries and will be guided by effectiveness criteria. In addition, ODA will increasingly be used to as leverage to help mobilise domestic resources and additional private sector resources. Switzerland remains committed to the UN target of allocating 0.5% of GNI for ODA by 2015. At the same time, it continues to recognise the UN target of 0.7% of GNI for ODA.
Non-financial means of implementation
Providing financial resources for sustainable development is not the only way to implement the new agenda. As part of the Addis Ababa Action Agenda, the countries commit to pursuing policy coherence and an enabling environment at national and international level. The Addis Ababa Action Agenda recognises the importance of science, technology and innovation for sustainable development and proposes measures for the transfer of environmentally-friendly, resource-efficient technology and more effective knowledge transfer. Furthermore, a rules-based, open, non-discriminatory and equitable multilateral trading system is a key condition for the promotion of sustainable development. In addition, the Addis Ababa Action Agenda envisages measures for sustainable debt management.