UK’s drive for a fairer international financial system

Foreign Secretary James Cleverly is set to unveil the UK’s renewed commitment to a fairer international financial system at the UN General Assembly (UNGA) 

Facing global challenges like climate change, pandemics, and sluggish economic growth, the world’s most vulnerable populations demand a united global effort.

Mobilising resources for sustainable goals

To realise the Sustainable Development Goals by 2030, the UK recognises the necessity of unlocking additional resources from international financial institutions and the private sector. 

The UK is actively mobilising private investments, enhancing global tax systems, and fortifying itself against climate change. This includes the recent $2 billion commitment to the Green Climate Fund.

Aiming for a fairer international financial system

The UK announces significant pledges and reforms to unlock billions of pounds in global finance. These measures will empower developing countries to invest in their futures, aligning with sustainable development goals. Multilateral Development Banks will receive new financial guarantees, multiplying the impact of overseas aid through more affordable loans.

Fostering climate resilience and education

One of the guarantees provided by the UK will facilitate the release of up to $1.8 billion in climate finance, aiding at-risk populations in Asia and the Pacific to adapt to climate change. It will expedite the transition to low-carbon energy sources and demonstrate sustainable economic growth and development coexistence.

Another guarantee will unlock up to $1 billion in new education financing for Lower Middle-Income countries in Asia and Africa. This initiative addresses the global learning crisis, focusing on improving literacy, numeracy, and social skills, especially for marginalised children.

Urgent call for global action

Foreign Secretary James Cleverly emphasises the urgent need for bold global action to bridge the $4 trillion annual gap required to achieve the Sustainable Development Goals. 

The UK and international partners are dedicated to ensuring that the international financial system becomes more comprehensive, equitable, and inclusive, leaving no one behind.

The UK is also leading efforts to make the global financial system more resilient to shocks, such as natural disasters and pandemics. The Foreign Secretary calls for including climate-resilient debt clauses to become a norm, enabling affected countries to prioritise recovery.

UKs commitment to a sustainable financial future

As part of its commitment to combating climate change, the UK will provide additional disaster risk financing support for the Caribbean, a region highly susceptible to natural disasters. This will establish an affordable insurance scheme to push water and sanitation services during crises.

In addition to enhancing sustainable public finances, the UK will allocate £17 million to improve tax systems in developing countries, preventing revenue leakage and promoting sustainable development. 

Furthermore, £3 million will promote standards in Commonwealth countries, reduce trade barriers, foster economic stability, and reduce aid dependency.

These efforts will open doors for international businesses, including those from the UK.