Private Sector Participation in the Third PrepCom
The 3rd Preparatory Committee (PrepCom) to the 4th International Conference on Financing for Sustainable Development (FFD4) was held in New York from February 10th to 14th, 2025.
The Third PrepCom saw an increased participation from the private sector with stakeholders from across the business community engaging in the discussions. For example, the representative from Standard Chartered Group shared inputs to the Zero Draft of the Outcome Document in the Plenary session on Domestic and International Private Business and Finance. Specific recommendations focused on ongoing reforms of the multilateral development banks, pooling of catalytic capital, solutions to managing currency risk using a portfolio approach that leverages diversification, and making financial regulation fit for purpose to advance sustainable development. Representatives from ICC, Global Reporting Initiative and the World Benchmarking Alliance also made contributions to the proceedings.
The GISD Alliance leads discussions on key issues at the Third PrepCom to FFD4:
Side Event: Business Actions to Unlock Private Capital for Sustainable Development
The FFD4 Business Steering Committee (chaired by the GISD Alliance and the International Chamber of Commerce) hosted a side event on “Business Actions to Unlock Private Capital for Sustainable Development”. Ambassador Charlotta Schlyter, Head of the Section for Sustainable Development, Permanent Mission of Sweden to the United Nations provided the opening remarks to the panel which included representatives from the International Chamber of Commerce, Standard Chartered, UN-PRI, UNEP, UN Global Compact and the World Economic Forum. Speakers discussed ways to strengthen public-private sector collaboration to close the financing gap for sustainable development and emphasized the critical role of the private sector, with a focus on blended finance, guarantees, and developing enabling environments in developing countries. Key topics brought up included the need for standardized solutions, effective engagement strategies for different investors, and the importance of aligning investment opportunities with local economic conditions to encourage greater private sector involvement.
Side Event: Solutions for Addressing Currency Risks
The GISD Alliance and Inter-American Development Bank (IDB) co-hosted a side event on “Solutions for Addressing Currency Risks”. Matias Bendersky, Manager of the Global Partnerships Office, IDB, opened the event, followed by a presentation by IDB and the Government of Brazil on the EcoInvest initiative. Thereafter, Dr. Gautam Jain presented the findings and recommendations of GISD Alliance’s workstream on tackling local currency risks. Other panellists included representatives of Investec, APG Asset Management, IFC Treasury Client Solutions, the European Bank for Reconstruction and Development and the IDB. Speakers highlighted the challenges developing countries face in managing currency risk, with discussions focusing on the high costs of hedging and limited private sector involvement. Key solutions proposed included increasing government involvement, developing local capital markets, and exploring currency risk pooling mechanisms. The experts also emphasized the need for more cross-border finance to support climate transition, with a focus on innovative solutions like EcoInvest in Brazil and collaboration among MDBs to address currency risk effectively.
Side Event: Exploring Gaps in Financial Regulation
The GISD Alliance and Paris Pact for People and the Planet (4P) co-hosted a side event on “Mobilizing Private Finance for Sustainable Development at Scale: Exploring Gaps in Financial Regulation”. The event opened with remarks by the head of the Financing for Sustainable Development Office at UN DESA and the head of 4P. This was followed by a presentation by Liliana Rojas-Suarez, Director of the Latin America Initiative at CGDEV, on her latest research on Basel III and the SDGs. The panel discussion comprised of comments from representatives of Citi Bank, CGDEV, 4P, the French Treasury, and Standard Chartered. The expert panel discussed challenges posed by international financial regulations that may restrict investment flows to regions with significant SDG gaps. Panellists discussed proposals in the Zero Draft of the FFD4 outcome document and recommendations developed by the GISD Alliance that focus on reassessing prudential regulations for banks, insurance companies, and pension funds to better align with risks in developing countries.
