UK Advocates for a More Inclusive International Financial System

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Foreign Secretary James Cleverly is poised to unveil new UK initiatives aimed at fostering a more inclusive global financial system to enhance livelihoods worldwide at the UN General Assembly (UNGA).

Addressing challenges like climate change, pandemics, and economic stagnation requires a concerted global effort. During his second day in New York, Cleverly will emphasize the necessity for a robust and collective international framework, reiterating the UK’s commitment to achieving the Sustainable Development Goals by 2030.

Increasing financing from international financial institutions and the private sector is crucial for attaining these goals. The UK is already actively involved, mobilizing private investments, enhancing global tax systems, and preparing for climate change, including a recent $2 billion commitment to the Green Climate Fund.

The UK’s announcements and reforms aim to unlock billions in global finance, assisting developing countries in investing in their futures to advance sustainable development objectives.

At the Sustainable Development Goals Summit, Cleverly will introduce new financial guarantees for Multilateral Development Banks to amplify the impact of overseas aid by facilitating more affordable loans.

One such guarantee will unlock up to $1.8 billion in climate finance to aid vulnerable populations in Asia and the Pacific in adapting to climate change impacts and transitioning to low-carbon energy sources.

Another guarantee will provide urgent investments in quality education, unlocking up to $1 billion for education in Lower Middle Income countries in Asia and Africa.

Cleverly stressed the urgency of bold global action to bridge the $4 trillion annual gap needed to achieve the Sustainable Development Goals. The UK, alongside international partners, is committed to accelerating efforts and ensuring that the most vulnerable countries have a voice in the multilateral system.

In addition to financial support, the UK is leading efforts to make the global financial system more resilient. This includes offering climate-resilient debt clauses in loans and providing disaster risk financing support for vulnerable regions like the Caribbean.

Ensuring sustainable public finances is crucial for achieving the Sustainable Development Goals. The UK will invest £17 million to improve tax systems in developing countries, preventing revenue leakage and enabling investment in sustainable development.

Furthermore, the UK will commit £3 million to promote the use of standards in Commonwealth countries, reducing trade barriers, enhancing economic stability, and fostering international business opportunities.