The meeting emphasised the huge returns on investments from green projects and urged the mobilisation of funds to help distressed developing nations back on the sustainability track.
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The inaugural meeting of the 10-member SDG Stimulus Leaders Group, against the backdrop of distress of many developing countries, reeling from repeated economic shocks and unbearable debt burdens. For these troubled nations to achieve the 17 SDGs by 2030, they would need large infusions of funds, the Group said.
The Group's proposals include calls for immediate actions to alleviate the here-and-now constraints of the developing countries and set them off on an accelerated development path.
The SDG Stimulus focuses on three main actions: addressing the high cost of debt and the increasing risks of debt distress; significantly increasing accessible long-term financing, mainly through multilateral development banks (MDBs), by a minimum of $500 billion per year; and extending contingency financing to countries experiencing liquidity constraints.
The Secretary-General's initial proposal of the SDG stimulus made some 18 months ago, has gained significant traction at many global gatherings, and most recently, it was endorsed by world leaders at the SDG Summit in New York and the G20 New Delhi Leaders’ Declaration.
The G20 countries have redirected 100 billion dollars of Special Drawing Rights (SDRs) to help the International Monetary Fund (IMF) provide liquidity financing to developing countries. Multilateral Development Banks (MDBs) have also initiated reforms to collectively increase lending by $300 to 400 billion over the next decade. Despite initial steps, the UN emphasises the need for more decisive action as conditions in many developing countries worsen. The Leaders Group aims to promote the SDG Stimulus in the coming year.
