Co-Facilitators, Excellencies,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

As we approach the final five years of implementation of the 2030 Agenda for Sustainable Development, the Fourth International Conference on Financing for Development represents a critical opportunity to renew the global commitment to financing sustainable development and to accelerate concrete action toward achieving the Sustainable Development Goals.

Progress in this regard will be measured, in large part, by our collective ability to close the financing gap through advancing meaningful reform of the international financial architecture. Reforming global economic governance is not an abstract ambition, it is essential to creating enabling conditions for development. The outcome of FfD4 must reflect this reality by reaffirming existing commitments and charting a clear path forward.

ON RENEWED GLOBAL FINANCING FRAMEWORK

The Group acknowledges the Co-Facilitators' efforts to streamline the preamble and improve coherence across the text. However, we stress that certain foundational principles and priorities must remain explicitly reflected. We appreciate the inclusion of language on poverty eradication and express our intention to further strengthen this language to reaffirm it as the overarching objective of the 2030 Agenda.

We also welcome the inclusion of reference to the SDG financing gap, which underscores the critical scale of investment needed to deliver on our commitments. The Group will be proposing additional language to emphasize the urgency of delivering predictable, adequate, accessible, and concessional financing to developing countries, in particular for long-term sustainable development.

The Addis Ababa Action Agenda affirms our commitment to advancing toward an equitable global economic system based on the principle that no country or person should be left behind. The Group would like to reaffirm this principle and propose the inclusion of this language.

The Group would also like to see a standalone reaffirmation of the Rio principles, particularly the principle of Common But Differentiated Responsibilities (CBDR), which remains central to the fair and effective delivery of development commitments. The integration of this principle across the text will be essential to maintain alignment with the broader framework of international development cooperation.

We express our appreciation for the inclusion of stronger language on the central role of the United Nations in shaping global economic governance, as well as the removal of earlier caveats in the draft. These changes are in line with longstanding G77 and China positions, and the Group will propose further language to reinforce the UN's role as the most inclusive multilateral forum, particularly in relation to economic and financial decision-making processes.

At the same time, we are concerned that the current draft contains no reference to hunger or food insecurity. Given the alarming increase in hunger levels in many developing countries, exacerbated by multiple crises, the Group believes that this omission must be urgently addressed. We will be submitting concrete proposals to include language that reflects the pivotal role of food security in development and recovery.

With reference to taxation, the Group believes that the design of such policies should be based on the principle of respect for tax sovereignty, enabling countries to tailor tax systems to their specific contexts and needs. Further, discussions on global solidarity levies, specific innovative taxes and taxation of High Net Worth inviduals are at nascent stage, and the Group, therefore, believes that no commitments to such taxes should be made at this stage in the outcome document.

ON DOMESTIC PUBLIC RESOURCES

The Group of 77 and China recognizes that domestic public resources constitute the bedrock of sustainable development and are critical to the achievement of the Sustainable Development Goals. We acknowledge the importance of strengthening national fiscal systems with sustainable development priorities, and in this regard, we welcome the emphasis placed on strengthening domestic resource mobilization.

We appreciate the inclusion of language on curbing illicit financial flows and enhancing fiscal transparency, both of which are essential to protecting and maximizing domestic revenues. The Group stresses that combatting tax evasion, corruption, and other leakages is vital to ensuring that domestic resources are effectively mobilized and retained for national development.

Moreover, we believe that robust and innovative frameworks are necessary to catalyze and sustain private sector engagement in development finance. Public-private partnerships, blended finance instruments, and targeted incentives for sustainable investment should be explicitly promoted to ensure that private capital meaningfully complements public resources, without undermining national ownership or development priorities and exacerbating the debt sustainablility in the long run.

ON DOMESTIC AND INTERNATIONAL PRIVATE BUSINESS AND FINANCE

The Group of 77 and China believes that additional context should be provided in paragraph 26, including the concerning decline in foreign direct investment (FDI) in developing countries and the urgent need to mobilize private resources at the scale, quality, and speed required to meet sustainable development objectives. In this regard, we emphasize that private business and finance must complement, not substitute, official development assistance (ODA), which remains a critical source of external financing for many developing countries.

We appreciate the references to capacity-building for domestic financial sector development and technical assistance for the preparation of bankable projects, including those that support sustainable industrialization. We look favorably on the inclusion of language promoting access to finance for micro-, small- and medium-sized enterprises (MSMEs), as well as financial and digital inclusion. The Group also has concrete proposals to strengthen the sections on FDI, remittances, recognizing the vital contribution of migrants, and reducing the high cost of capital for developing countries. We will also constructively engage on proposals related to innovative financing mechanisms, including de-risking strategies, thematic SDG bonds, and blended finance.

Regarding standards and reporting, we welcome the reaffirmation of their voluntary nature and the recognition of the importance of capacity-building. These standards must be adapted to national circumstances and must not create additional burdens or unintended negative impacts on developing countries. We also see added value in strengthening the language related to credit rating agencies, and improvement in their methodology for developing countries, and we will continue working to further refine and improve this section in a manner that supports sustainable development financing in all its dimensions.

ON INTERNATIONAL DEVELOPMENT COOPERATION

We believe that this chapter must reflect the unique and indispensable contribution of ODA in realising sustainable development and we will be proposing language towards this end.

We welcome the inclusion of a standalone section on access to concessional finance and will be proposing language to broaden the scope of this section.

We believe that the sub-section on MDBs provides a good basis for our discussions, and hope that the language contained therein will not be further weakened.

While the Group recognizes the importance of the peacebuilding agenda, as well as humanitarian assistance, and their role in sustainable development. We are alarmed by the decision of the co-facilitators to include a reference to the so-called 'humanitarian-peace-development' nexus, a concept we have not been able to agree to as recently as in the 2024 QCPR negotiation. The group had previously expressed concerns on the mixing of humanitarian issues in the FFD agenda, and we regret those concerns were not taken into account.

Lastly, we reaffirm that the language on climate and biodiversity must not rewrite decisions from the respective forums in which they were negotiated. We are deeply concerned that there is no reference to the legally binding obligations of developed countries to provide climate finance, which is a step back from the zero draft. We appreciate the inclusion of a commitment to enhance consistency and transparency in ODA and climate finance but believe that it must be clearly stated that climate finance must be new and additional to development finance.

ON INTERNATIONAL TRADE AS AN ENGINE FOR DEVELOPMENT

International trade as an engine for development is increasingly under threat. Tariffs and trade restrictions are on the rise globally amidst rising trade tensions and stalling multilateral negotiations.

Developing countries, in particular least developed countries, landlocked developing countries, small island developing States and African countries. as well as MICs, with limited productive capacities and trade infrastructure, have challenges integrating into regional and global value chains. This calls for concrete measures to improve their capacities to trade and generate value-added, with a focus on the furthest behind including from trade in commodities, services and critical minerals.

We call for a recommitment to multilateral trade that upholds policy space for sustainable development within a universal, rules-based, fair, open, transparent, predictable, inclusive, non-discriminatory, and equitable system.

To promote such a multilateral trading system, countries should refrain from imposing unilateral economic, financial or trade measures not in accordance with international law and the Charter of the United Nations as well as rules and norms of WTO.

The document should also address the issue of increasing use by developed countries of unilateral measures impacting trade in the guise of environmental protection including the Carbon Border Adjustment Mechanism (CBAM) that place onerous requirements upon exporting countries

To preserve the multilateral trading system as a key driver of economic growth and sustainable development, we reaffirm our commitment to a universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory, and equitable multilateral trading system with the World Trade Organization (WTO) at its core.

We urge WTO members to accelerate the accession of developing countries in the process of, or considering, accession to WTO and to provide technical assistance to support them in this process, as well as making the best efforts to reduce trade restrictions.

We call on WTO members to fully implement all WTO agreements, we also urge the finalization of pending agreements.

We reaffirm the commitment made at the 13th WTO Ministerial Conference to have a fully and well-functioning dispute settlement system.

The ECOSOC FFD Forum can be a relevant venue to assess the impact on sustainable development of unilateral economic, financial or trade measures that are inconsistent with the principles of international law, and the Charter of the United Nations, building on the work of the United Nations system.

We call for strengthening trade capacities of developing countries, least developed countries, landlocked developing countries, small island developing States and African countries. as well as MICs, and their ability to integrate intro regional and global value chains in a very challenging global context.

It is also important to understand that WTO does not have the mandate for investment-related discussions and the Document should reflect that correctly.

ON ADDRESSING SYSTEMIC ISSUES

The Group appreciates that critical actions to accelerate the reform of international financial architecture remain in the First Draft and reaffirms that progress in this area will be an objective criterion to determine if fourth international conference on Financing for Development in Sevilla is successful.

In the chapeau, the Group will introduce language based on the Addis Ababa Action Agenda to convey the collective commitments to reform global economic governance and strengthen the United Nations leadership role in promoting development, expecting this will remain the focus of the paragraph, rather the nature of existing mandates. It will also be important for the Group to recover language from the Zero Draft related to the need o reforming the International Financial Institutions, so that they deliver on their mandates in a more efficient and equitable manner. The Group notes that there is no reference to the link between the efforts to reform the IFA and the imperative of addressing developing countries' needs to achieve sustainable development and poverty eradication.

In the actions related to the need of strengthening global economic governance, the Group strongly supports item a) and would like to add a reference to the need of protecting regional representation in the boards of IFIs. The Group is also supportive of commitments on quota review and realignment in the IMF, as well as of a comprehensive shareholding review of World Bank in 2025. In d), we would support stronger language so that we, as members and shareholders, work through the executive boards to increase the voice and representation of developing countries in IFIs, instead of considering options. We are supportive of e) as drafted and would like to qualify diversity in geographical terms in f). We can go along with h) as it is.

We take note of the recent measures adopted by the IMF regarding "surcharges." In this regard, the Group recommends that further clarification be provided on what will be considered as "exogenous shocks" for the purpose of a possible suspension of these additional costs.

On measures to strengthen the financial safety net, the Group would like to propose an additional action to ensure that multidimensional vulnerability is taken into account in the global financial safety net.. We are also considering critical proposals in this section, such as the IMF multilateral swap line, rechanneling SDRs, particularly from developed countries, enhancing their role and considering a new issuance, surcharges suspension, and ways to strengthen the role and scope of the Resilience and Sustainability Trust. The Group will present specific proposals during the intersessional sessions.

Co-facilitators, effective regulation of credit-rating agencies and most transparent, countercyclical, lone-term and accurate credit ratings methodologies are main deliveries for the Group when it comes to strengthening financial regulation. The Group will further enhance the language so that dialogue with these critical institutions is inclusive of all Member States and to ensure developing countries count with the capacity to properly engage with them. We welcome actions on paragraphs 49 and 50 and will revert with specific suggestions.

ON SCIENCE, TECHNOLOGY, INNOVATION AND CAPACITY-BUILDING

we welcome the efforts by the co-facilitators in the revised draft. We believe that this section must have a balanced approach to addressing both (a) financing for STI development and use; and (b) STI development and use for financing for development. In this regard, the Group has the following comments:

The chapeau of this chapter (Para 51) needs to recognise the persistent digital divide between developing and developed countries. We should also recognise that the development of emerging technologies, including Artificial Intelligence, takes a people-centered, inclusive and development-oriented approach. We are pleased that this section specifically deals with capacity-building, and wish to see a strengthened reference to international support for effective and targeted capacity-building in developing countries.

In Para 52 and its sub-bullets, we should recognize the role of robust national regulatory frameworks, clear legal structures, technology-driven policies, and incentives to encourage private-sector participation as well as that of enhanced multilateral cooperation to foster innovation and ensure that developing countries equitable access to STI benefits. We would also like to see language on the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favorable terms.

We also need to acknowledge centrally the need to enhance partnerships to ensure the provision of means of implementation to developing countries, as well as the integration of STI financing into national development frameworks, including digital transformation strategies.

We would also like to review the work of the UN Technology Facilitation Mechanism, and consider establishing intergovernmental organizations to support developing counties in utilizing technology for sustainable development.

The Group also recognizes the importance of fair and interoperable data governance at all levels to enable developing countries to harness the benefits of digital economy, emerging technologies and AI models.

The Group also feels that this section should reflect the digital and technology divides in access to affordable digital health technology.

On the SDG investment fair, we feel that it will not suffice for developing countries to merely be invited to bring projects on digital public goods to the SDG investment fair, but that there must be a call for the relevant UN entities to support developing countries upon their request to do so, and that such projects must be brought for funding consideration.

ON DATA, MONITORING AND FOLLOW-UP

The Group is pleased to see that data has retained its cross-cutting and foundational character across the text, but particularly in this section. The Group would like to make the following points:

Upfront in the chapeau, we would like to see a recognition that the ability for developing countries to follow-up on FFD4 outcomes is contingent on the means of implementation, and we call on the UN to assist in assessing the progress in delivering the means of implementation and the challenges that are outstanding.

The Group would also like to see a commitment to scale up international cooperation, including through technological and financial support, to further strengthen the capacity of developing countries national statistical offices and systems.

We also call for sustained ?nancial and technical support for strengthening national statistical systems in developing countries, to meet evolving data demands of integration of arti?cial intelligence, machine learning, and big data analytics to enhance the quality and e?ciency of statistical output.

We also call for the full and timely implementation of the commitments to establish measures of progress on sustainable development that complement or go beyond GDP to have a more inclusive approach to international cooperation and inform access to development finance.

On the various follow-up mechanisms the Group still has outstanding questions on how these envisioned mechanisms, such as the financing indicator set and the Financing Action Reviews, are intended to be operationalised, how they tessellate with existing frameworks, mechanisms or processes. In view of wanting to improve accountability and implementation, but not concomitantly increase resource or reporting burdens on developing countries, we welcome the co-facilitators and the Secretariat to provide greater clarification to the Group on these follow-up actions as soon as possible. It is also difficult for the Group to engage robustly on these recommendations without first defining the commitments and actions in the preceding sections of the text.

The Group of 77 and China remains committed to engaging constructively in the negotiations to ensure a balanced, inclusive, and actionable outcome document that accelerates progress toward financing for development.

Thank you.