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Global Finance for Global Challenges: UK’s Path to Inclusive Prosperity

Foreign Secretary James Cleverly is making a significant impact at the UN General Assembly (UNGA) by introducing a series of initiatives to strengthen the global financial system and tackle pressing global challenges. The United Kingdom is committed to achieving the Sustainable Development Goals by 2030 and recognizes the need for collective international efforts to make this a reality.

Unlocking Finance for Sustainable Development

The UK is taking proactive steps to unlock international finance from financial institutions and the private sector, essential for achieving the Sustainable Development Goals. This commitment includes mobilizing private investments, enhancing global tax systems, and preparing for climate change. Notably, the UK recently pledged $2 billion to the Green Climate Fund to support climate initiatives.

Pledges and Reforms to Unlock Billions in Finance

At the Sustainable Development Goals Summit, Foreign Secretary Cleverly unveiled financial guarantees for Multilateral Development Banks, enabling overseas aid to have a more significant impact by unlocking affordable loans. One such guarantee will unlock up to $1.8 billion in climate finance, aiding vulnerable populations in Asia and the Pacific in adapting to climate change and transitioning to low-carbon energy sources.

Education Investment for a Global Learning Crisis

The UK is addressing the global learning crisis by offering support for quality education through a $1 billion investment in Lower Middle-Income countries in Asia and Africa. This commitment will contribute to the International Finance Facility for Education (IFFEd) and aims to increase school enrollment, improve literacy and numeracy skills, and empower marginalized children through education.

Aiming for a Bigger, Better, and Fairer Financial System

Foreign Secretary Cleverly emphasized the need for bold global action to bridge the estimated $4 trillion annual gap in financing required to achieve the Sustainable Development Goals. The UK, along with international partners, is committed to reshaping the international financial system, ensuring no one is left behind.

Strengthening Financial Resilience in Vulnerable Regions

The UK is taking steps to make the global financial system more resilient to shocks, such as natural disasters and pandemics. The introduction of climate-resilient debt clauses and additional disaster risk financing support for the Caribbean will enhance the resilience of vital water and sanitation services, safeguarding communities in times of crisis.

Improving Tax Systems and Promoting Standards

To support sustainable public finances and prevent revenue leakage in developing countries, the UK will allocate £17 million to enhance tax systems. Additionally, a commitment of £3 million will be made to promote the use of standards in Commonwealth countries, reducing trade barriers and fostering economic stability.

Foreign Secretary James Cleverly’s announcements at the UNGA underscore the UK’s dedication to building a more inclusive global financial system and addressing pressing global challenges. These initiatives represent a crucial step towards a more equitable and sustainable future for all.

Source: Gov[Dot]uk

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