A stronger financial foundation is needed in order to succeed in implementing the UN 2030 Agenda for Sustainable Development. In addition to political commitment and public funds, the private sector will also need to make a greater contribution to reaching the goals. In July 2015, the international community agreed on a framework for implementing and financing the 2030 Agenda – the Addis Ababa Action Agenda.
The UN estimates that a global investment of USD 5–7 trillion per year is needed to realise the 17 Sustainable Development Goals (SDGs). Such a sum can only be mobilised if public and private donors also take part, which is why the international community agreed in mid-July 2015 at the Third International Conference on Financing for Development on a catalogue of measures to achieve the necessary funding for the 2030 Agenda. The Addis Ababa Action Agenda is integral to the 2030 Agenda. 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, improve government accountability to communities and 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. Switzerland remains committed in this area, and implements global standards as well as providing technical assistance to other countries.
Private financial resources
The Addis Ababa Action Agenda recognises the important contribution the private sector can make towards the achievement of the SDGs, 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 must also be fostered, which is at the heart of Switzerland's current efforts.
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 leveraged in order to help mobilise domestic resources and additional private-sector resources. Switzerland remains committed to its own target of allocating 0.5% of gross national income (GNI) for ODA. At the same time, it continues to recognise the UN target of 0.7% of GNI for ODA.
Non-financial implementation measures
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 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. Switzerland is also committed to a rules-based, open, non-discriminatory and equitable multilateral trading system as a key condition for the promotion of sustainable development. In addition, the Addis Ababa Action Agenda envisages measures for sustainable debt management and the return of stolen public assets.