Global goals addressing poverty, inequality, injustice and climate change face a funding gap of $ 100 trillion and are likely to be lost unless 10 percent of global economic output is directed at the goals. of the UN every year until 2030, according to a report on Friday.
The UN Sustainable Development Goals set targets on everything from the environment to health and equality and are supported by all member states, yet providing funding from governments, investors, banks and companies to helping to meet them has been consistently insufficient.
Hampered by the impact of the coronavirus pandemic, the annual deficit is now as high as $ 10 trillion a year, the landmark report from the United Nations and the financial industry-backed Force for Good Initiative shared with Reuters showed.
“Humanity is at a crossroads. More than ever, all stakeholders must partner to ensure that this crisis ushers in a new economy for sustainable development with prosperity for all, ”said Chantal Line Carpentier, Head of the United Nations Conference on Trade and Development at the New York Secretary’s Office. General.
Adding up the financing costs of the global transition to a low-carbon economy to limit global warming, and the total financing through 2050 amounts to $ 200- $ 220 trillion, the report added. The SDGs are a global list of “to-dos” that address 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, failure to accelerate efforts on the SDGs risked fueling conflict and crises, they said. After a slow start, the global financial industry has started to do more, with $ 9.5 trillion committed by 2030 and a record $ 2.1 trillion deployed in 2020. However, there are imbalances in the way it is invested. money, according to the report.
While climate change-related targets accounted for 20 percent of the funding gap, the issue currently attracted 44 percent of committed capital, according to the report. In contrast, human, economic and social goals accounted for more than half of the funding gap, but absorbed only 32% of current funding.
“The financial sector is playing a rapidly expanding role in financing the SDGs and transitioning to a sustainable digital future,” said Ketan Patel, president of Force for Good and CEO and co-founder of Greater Pacific Capital.
“However, with less than ten years to go, there is a pressing need to explore even larger and more radical solutions than those currently being implemented.”