Dear World Leaders,
Extreme hunger, poverty and debt distress are spreading. We are still not prepared for the next pandemic. Our environment is being polluted and biodiversity destroyed.
Our financial system is unfair, unjust and inefficient. It is not fit to tackle the 21st century's threats, nor invest at speed and scale to seize the exciting and historic opportunities we share right now.
It’s time to upgrade the system.
We call on all leaders at the New Finance Pact Summit – and all the gathered investors, companies, philanthropies, and civil society – to work together for a shared, positive vision of profound financial system change. Through this new pact our public and private finance will invest for our future – and not against it. For this future-friendly, fit-for-climate financial vision, our leaders need to urgently unlock at least an additional 2 percent of global GDP in financing – equivalent to global spending on defense spending. We can defeat poverty and defend the planet starting with the following steps:
Keep Past Promises:
Any new promises won’t be credible if past promises haven’t been kept. To help keep global climate change to 1.5°C, leaders must prove that they are actually mobilizing $100B in climate finance as promised 14 years ago and are committed to a fast but fair phaseout of fossil fuels. They need to reallocate their Special Drawing Rights, a special asset that can be used to counter crises and empower people in the poorest countries as soon as possible. And they cannot hide from their historic promise to allocate 0.7 percent of their GNI to official development assistance to finance health and education, fight hunger and promote gender equality.
Free the Funds:
Multilateral Development Banks are punching well below their weight. We need them fit for the future, implementing ambitious reforms, and freeing hundreds of billions of dollars. In return, major shareholders including the G7 countries need to offer additional capital and dramatically increase their highly concessional financing for the poorest, most indebted, and climate-vulnerable countries.
Stop the Debt Crisis:
Leaders need to deliver debt justice and urgently deal with the existing debt crisis which is crippling roughly 60 countries and crippling life-saving services. In addition, to help prevent future crises, major creditors – governments, development, and private banks – need to introduce ‘pause clauses’ in any new debt contracts as of next year to give countries the space to fight disasters such as hurricanes, pandemics or famines when they strike.
Make Polluters Pay:
The sectors that pollute most and thrive during times of crisis need to pay the most to fund climate solutions. International solidarity levies are key to financing a just and equal future, and now is the time to enact them – on maritime transport but also fossil fuels and financial transactions and phase out of harmful fossil fuel finance altogether.
This new financing pact must be delivered through open budgets and with a clear roadmap so citizens the world over can ensure the system changes are credible and hold leaders accountable for action.
With hope,
Accountability Lab
Glasgow Action Team
Save the Children International
Africa Climate Action Foundation
Global Citizen
Shamba Centre for Food and Climate
Africa Practice
Green Economy Coalition
Sharing Strategies
African Center for Economic Transformation
Healthy Planet - Healthy People Foundation
Sustainable Development Solutions Network Europe (SDSN Europe)
BudgIT
Hungry for Action
Catalyst 2030
Innovate Development Foundation
The African Leader Institute
Civil Society for Poverty Reduction
Jesuit Debt and Ecology Conference
The Millennials Movement
Climate Emergency Collaboration Group
ODI
Think Equal
Connected Development (CODE)
ONE
TrendAsia
CORDIO East Africa
OurCause
UN Climate Change High-Level Champions COP 26
Daughters of Kenya (DOK)
Pakistani Tahafuz Movement
UNITED YOUNG FARMERS FORUM
Development Initiatives
Pandemic Action Network
Uniting to Combat Neglected Tropical Diseases
E3G
Project Everyone
VOICE
Earth4ALL
Recourse
Women Engage for a Common Future - WECF International
WRI
Gender Equity Diversity Investments Ltd. (GEDI)
Restless Development