Statement by the Permanent Representative of Brazil to the United Nations, Ambassador Sérgio França Danese, at the FfD4 – 2o PrepCom - December 3rd, 2024

Mr. Chair,

The current significant shortcomings in development financing is extremely worrisome and require decisive and urgent action.

A renewed global framework is essential to address the widening financing gap for achieving the SDGs, mounting debt vulnerability, climate emergencies, trade disruptions, and increasing poverty and inequality.

Securing the trillions of dollars in investments needed to overcome the current crises demands a balance between domestic and international, private and public sources of financing.

The success of the FfD4 will be measured by its ability to help identify concrete - and meaningful – ways to make funds flow from all these sources at the necessary speed and volume.

Brazil welcomes the Elements Paper issued for this PrepCom as a solid foundation for our discussions. We appreciate its emphasis on reforming international financial institutions. Real changes in governance structures, including the realignment of quota shares, and significant expansion of their lending capacity are imperative.

The growing debt challenge in developing countries require immediate attention. Brazil supports calls for improved international debt mechanisms. Enhanced transparency, fair burden-sharing among creditors, and participation of private creditors are essential.

Achieving the SDGs requires fiscal space. To do so, strengthening tax transparency and fostering dialogue on fair and progressive taxation are vital. Measures to ensure that high-net-worth individuals contribute their fair share is an important piece of the puzzle.

Brazil supports the development of a U.N. Framework Convention on International Tax Cooperation to address challenges such as tax evasion, illicit financial flows, and base erosion.

A central challenge of economic diplomacy today is to preserve the universal nature of the global trade regime. As we work to reform and strengthen the WTO, we must urgently restore a fully functioning dispute settlement system. Additionally, we are concerned about the potential impact of unilateral border carbon adjustment measures on developing countries’ trade and development prospects. These measures must comply with international trade rules and be carefully assessed to avoid the creation of disguised trade barriers.

Public financing can have a crucial catalyzing effect on private investment flows and are key to achieving our shared development goals. It is crucial that longstanding Official Development Assistance (ODA) commitments are met. Brazil encourages establishing an enhanced transparency framework under the United Nations to harmonize concepts and monitor ODA flows effectively.

Mr. President,

We are concerned that the document does not give sufficient attention to SDGs 1 and 2. Poverty eradication and hunger elimination are indispensable for sustainable development. A key tool is the Global Alliance Against Hunger and Poverty, launched last month, which aims to mainstream successful public policy instruments that have proven effective in developing countries.

Finally, we emphasize the need for clear recognition that climate finance must be grant-based, truly additional to ODA, and not divert resources from other development needs, including poverty eradication.

Brazil looks forward to engaging constructively in this preparatory process to ensure FfD4 delivers meaningful outcomes for sustainable development. By addressing these critical areas, we can make significant strides toward achieving the SDGs and building a more equitable international financial architecture.

Thank you.