LONDON: Global Goals to Fight Poverty, Inequality, Injustice and Climate Change Face $ 100,000 Billion Funding Gap and May Be Missed at Less Than 10% of Global Economic Output be spent on UN goals each year until 2030, according to a report released on Friday.
The UN Sustainable Development Goals set targets on everything from the environment to health and equality and have the support of all member states, but the funding offer from governments, investors, banks and businesses to help them reach them has always been insufficient.
Hindered by the impact of the coronavirus pandemic, the annual deficit now stands at $ 10 trillion a year, according to a landmark report by the Force for Good Initiative, working with the United Nations and the financial industry, shared with Reuters.
“Humanity is at a crossroads. More than ever, all stakeholders must join together to ensure that this crisis is the start of a new economy for sustainable development with prosperity for all ”, declared Chantal Line Carpentier, head of the Conference of Nations United Nations on Trade and Development in the New York Office of the Secretary-General.
Adding in the costs of financing the global transition to a low-carbon economy to limit global warming, and total financing through 2050 amounts to $ 200-220 trillion, the report adds.
The SDGs are a global ‘to do’ list addressing issues such as war, hunger, land degradation, gender equality and climate.
While more than 1.1 billion people have been lifted out of extreme poverty since 1990, failing to accelerate efforts on the SDGs risked fueling conflicts and crises, they said.
After a slow start, the global financial industry has started to do more, with $ 9.5 trillion committed through 2030 and a record $ 2.1 trillion deployed in 2020. However, there are imbalances in the economy. how the money is invested, according to the report.
While climate change targets accounted for 20% of the funding gap, the theme currently attracted 44% of committed capital, according to the report. In contrast, human, economic and social goals accounted for more than half of the funding gap, but only accounted for 32% of current funding.
“The financial sector plays a growing role in financing the SDGs and the transition to a sustainable digital future,” said Ketan Patel, President of Force for Good and CEO and co-founder of Greater Pacific Capital.
“However, in less than ten years, there is an urgent need to explore solutions that are even bigger and more radical than those being deployed today.”
Other large financial firms involved in the initiative include BlackRock, JPMorgan, Bridgewater Associates and Schroders, according to the report.