Parallel Forum on Capital Mobilization for Sustainable Infrastructure at the First High-Level Conference of the Forum on Global Action for Shared Development

Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

Greetings.

It is an honour to participate in today's important discussion, and an absolute privilege to join the 8th United Nations Secretary-General, Ban Ki-moon, who led the realization of an ambitious and herculean undertaking, the agreement reached by the UN membership to make the Sustainable Development Goals (SDGs) a global North Star to advance human development and humanity.

The world is lagging behind in its progress toward the SDGs as a result of a convergence of global shocks. In its mid-year update to the World Economic Situation and Prospects 2023 report, the UN Department of Economic and Social Affairs projects that the global economy will grow by 2.3 per cent this year, up from 1.9 per cent in January, but still well below the global average growth rate in the two decades preceding the pandemic.

The arguments for immediate action are abundant. The COVID-19 epidemic has given the globe a devastating blow, particularly to developing nations, aggravating existing gaps in global recovery efforts, particularly those related to access to inexpensive financing to accelerate these efforts.

Slow growth, along with rising inflation rates and increased debt burdens, poses serious difficulties to reaching the SDGs. As a result, many developing countries' ability to spend in important areas such as healthcare, education, infrastructure, and the transition to renewable energy has been severely limited.

As emphasized by UN Deputy Secretary-General Amina J. Mohammed during her recent visit to China, the world urgently needs to increase the amount and ensure the equitable distribution of development financing if we are to achieve the ambitious goals set out in the 2030 Agenda for Sustainable Development.

The importance of acting quickly cannot be emphasized, as the poorest and most vulnerable groups would suffer the most if we do not.

Structural barriers must be addressed, debt burdens must be reduced, and favourable financial conditions must be created. By doing so, we can stop the cycle of debt, enable developing countries to invest in critical areas, and help their populations. Only via these comprehensive steps will we be able to achieve sustainable growth, inclusivity, and resilience while guaranteeing that no one is left behind.

Excellencies, Ladies and Gentlemen,

To overcome these discrepancies and pave the road for a more equitable recovery, it is critical that developing nations get coordinated help.

China's Global Development Initiative (GDI) has the ability to help close these finance gaps and accelerate progress toward the SDGs. It provides a platform for China to leverage its technological expertise, form partnerships, and foster South-South cooperation, with many of the GDI's priority areas explicitly aligned with a number of the SDGs, including poverty eradication, food security, health, climate action, industrialization, innovation, and means of implementation.

The UN in China co-hosted a briefing in New York in April of this year with the Permanent Mission of China to the UN and the China International Development Cooperation Agency (CIDCA). Many Permanent Missions attended this briefing to learn more about the prospects of the GDI, CIDCA, and China's larger-scale international development cooperation projects.

Because of their unique capacity to mobilize financial resources, stimulate international cooperation, and facilitate knowledge sharing, multilateral development banks (MDBs) such as the Asian Infrastructure Investment Bank (AIIB) can play a critical role in attaining the SDGs. MDBs are critical sources of funding for long-term infrastructure projects, poverty alleviation, climate change mitigation and adaptation, and social development programs. MDBs can leverage their financial strength by pooling resources from numerous member countries to finance large-scale, long-term investments that individual nations could struggle to undertake separately. Furthermore, MDBs foster international collaboration by facilitating knowledge sharing, best practices, and technical skills to enable the efficient implementation of global sustainable development plans. MDBs are crucial partners in reaching sustainable development objectives and building a more inclusive, egalitarian, and sustainable future for all because of their holistic strategy that combines financial resources, technical help, and policy guidance.

We are also committed to collaborating closely with all stakeholders, including MDBs, who can serve as key partners in providing additional financing to support larger-scale projects, particularly those focused on infrastructure, which is critical for building more robust, sustainable, and equitable economies. We hope to leverage these efforts to promote South-South collaboration and sustainable development internationally, particularly in the most vulnerable places.

For more than four decades, China has relied on the UN as a development partner. Looking ahead, the UN has a unique opportunity to promote changes and connect the international financial architecture with the SDGs through the Financing for Development initiative.

I am pleased to highlight our recent progress toward the formation of the UN in China Pooled Fund for SDGs, which will help the UN Country Team execute joint activities. This fund will operate as a multi-partner trust fund, accepting contributions from a variety of stakeholders such as the private sector, enterprises, foundations, and others. We envision this fund as a critical resource for financing cooperative programs and projects addressing national development goals and assisting China's international development cooperation initiatives. As a young institution, AIIB is already making a significant effect as an important multilateral development bank under the dynamic leadership of its President, Mr. Jin Liqun. We would be delighted if AIIB joined us in this attempt.

The UN aims to guarantee that all opinions are heard and considered by bringing stakeholders together on an equal footing. Upcoming events, such as the SDG Summit in 2023 and the Climate Ambition Summit in September, offer additional possibilities for collective action to raise our goals and commitments to achieving the SDGs, combatting climate change, and ensuring a just transition. We must also utilize these summits to stimulate public and private investment that is consistent with the 2030 Agenda, as well as to support new and innovative initiatives that address funding gaps for sustainable development.

Excellencies, Ladies and Gentlemen,

The UN Secretary-General António Guterres stated at the opening of the 2023 ECOSOC Forum on Financing for Development this April- "Multilateral Development Banks should be able to transform their business models and accept a new approach to risk. This includes dramatically leveraging their finances in order to lure more private capital into developing countries at acceptable costs."

The need to save the SDGs and achieve a better future has never been more pressing. To address the problems posed by mounting public debt, chronic inflation, and geopolitical divides, we must structure development initiatives to better mobilize public investment and stimulate private capital.

I'm looking forward to hearing about a variety of approaches to addressing and overcoming these difficulties at this Forum. We can unleash the essential resources for speeding progress on sustainable development and ensuring that no one is left behind in our shared journey towards a bright and equitable future through joint efforts and collaborative endeavours.

Thank you very much.