IIED at the 4th International Conference on Financing for Development (FFD4)
IIED researchers and partners attended the 4th International Conference on Financing for Development from 30 June to 3 July 2025 in Seville, Spain.
Seville, Spain (Photo: Henrique Ferreira via Unsplash)
The international financial architecture – led by institutions such as the World Bank, International Monetary Fund and multilateral development banks (MDBs) – is meant to support sustainable development, climate action, reverse the loss of nature and reduce poverty.
In theory, these institutions should help vulnerable countries access resources to build resilience and drive locally-led solutions. In practice, power is tightly held with those who hold the money, which is entrenching injustices and perpetuating inequality.
What was the International Conference on Financing for Development (FFD4)?
The FFD4 conference addressed the urgent need to fully implement the Sustainable Development Goals, and support reform of the international financial architecture.
Without meaningful reform, the international financial system will continue to deepen inequality, block progress on addressing climate change and reversing the loss of nature, and fail the people and places who have done the least to contribute to the crisis but are impacted the most.
Many of the poorest countries are mired in debt, with financing challenges preventing the urgently needed investment push in the SDGs. FFD4 provided an opportunity to reform financing at all levels, including to support reform of the international financial architecture.
At the conference, IIED brought high-quality, evidence-based research to inform policymaking and the development of practical, sustainable, joined-up solutions, led by local perspectives. We built bridges between those most directly impacted by poverty and climate change and the decision makers, so that the quality as well as quantity of finance are part of the debate.
Other events IIED was active at include a technical workshop on country platforms hosted by the Climate and Development Ministerial just ahead of FfD4, the 2025 World Bank Spring Meetings and the London Climate Resilience Finance Summit 2025.
Creating a financial system that works for all
IIED has published a range of research that shows the reforms needed to create a financial system that works for all, not just the wealthiest and most powerful.
We want financial systems that deliver on countries’ own priorities and social, cultural and environmental values.We must dismantle unfair trade rules, harmful subsidies and debt structures that perpetuate inequality and environmental harm. The issue paper ‘Aligning debt relief for climate and nature with the Principles of Effective Development Cooperation’ outlines ways international bodies can improve the effectiveness of debt for climate and nature swaps, while this blog outlines how debt for climate and nature swaps can be effective financing instruments.
The Global Small Island Developing States (SIDS) Debt Sustainability Support Service offers a new financial compact for resilient prosperity, and debt swaps can be structured so they align with the good practices showed by the widely endorsed Heavily Indebted Poor Countries initiative.
At the same time, global supply chains for critical minerals – needed for the clean energy transition – are being expanded through disjointed infrastructure and trade deals that often reinforce extractive, short-term models of development. Read our briefing on how projects such as the Lobito Corridor present opportunities and challenges for a just transition.
For more information on the urgent need to shift power to Indigenous Peoples, marginalised groups and frontline communities, ensuring they lead the decision-making and delivery of initiatives, read a reflection on common challenges in funding for both nature and climate.
It is essential that the amount of finance reaching communities is increased substantially in order to drive locally-led climate action, nature restoration, and loss and damage recovery, and the Climate & Development Ministerial has produced actionable recommendations for governments, donors, multilateral development banks, and other stakeholders to make nationally led, programmatic financing mechanisms more effective, inclusive and transformative.
Finally, don’t miss episode 28 of the Make Change Happen podcast, Money, politics and power – reforming the international financial architecture.
Events
Monday 30 June
Reimagining development finance: a new architecture for vulnerable economies and natural capital
Side event
Venue: Room 9
Hosted by: PVBLIC Foundation, Development Bank for Resilient Prosperity
The session spotlighted the Development Bank for Resilient Prosperity as a systemic and scalable model that integrates natural capital and resilience into national frameworks, with a special emphasis on vulnerable economies. It brought together leaders from government, multilateral organizations, philanthropy, and the private sector to advance a new era of inclusive, resilient, and nature-positive development finance.
Wednesday 2 July
Beyond projects, towards prosperity: financing for a new era
Breakfast dialogue
Venue: Jardín Secreto, CoolRooms Palacio Villapanés 5 GL
Hosted by: UN Joint SDG Fund, PVBLIC Foundation, Development Bank for Resilient Prosperity
This intimate gathering brought together global statespersons, multilateral leaders, and new-generation financiers to explore how we move beyond piecemeal project finance toward whole-of-system solutions.
The session explored how innovative financing mechanisms are reshaping global cooperation and mobilizing investments toward prosperity and resilience.
Financing infrastructural projects for critical minerals in the energy transition: Whose energy transition?
Side event
Venue: Room 7
Hosted by: IIED
With support from: OSF
Growing demand for energy transition minerals and global geopolitical rivalries has prompted renewed interest in strategic transport infrastructure projects, with major economic powers competing to secure their supplies. The design and financing of these projects raise questions for low- and middle-income countries looking to harness their mineral wealth for economic development.
This event provided an opportunity for policymakers and practitioners to discuss questions such as how project costs, risks and benefits are distributed; and how projects can be designed not just to facilitate raw material exports but to catalyse value addition and economic diversification in producer countries.
Further reading: Financing infrastructure projects for ‘critical minerals’: whose energy transition?
Financing development in a climate challenged world: Global SIDS Debt Sustainability Support Service
Side event
Venue: Room 22
Hosted by: IIED, ALL ACT, government of Maldives, government of Antigua and Barbuda
With support from: Quadrature Climate Foundation, OPEC Fund, UN-OHRLLS, UN
Small Island Developing States (SIDS), least developed countries (LDCs) and other climate-vulnerable economies are facing converging fiscal crises. These are driven by climate-induced disasters, unsustainable debt burdens, and structural flaws in the global financial system that inflate the real cost of external debt servicing. Climate shocks and exchange rate volatility compound vulnerabilities, leaving countries with limited fiscal space to invest in adaptation, social protection, and development.
The Global SIDS Debt Sustainability Support Service (DSSS) was developed as a response to these challenges, offering a structured and integrated mechanism combining debt relief, climate-responsive finance, resilience-building investments, and expert advisory support.
This high-level side event brought together governments, financial institutions, technical experts, and development partners to present the institutional and operational model of DSSS and discuss how it can contribute to the broader objectives of FFD4. The session highlighted pathways to unlock fiscal space for resilience, promote country-led governance, and build a coalition to deliver systemic financial reform tailored to climate-vulnerable economies.
Further reading: IIED's debt solution adopted in UN outcome on development finance
Thursday 3 July
Unlocking sustainable finance for food security and resilience: country platforms as an approach for social protection, debt relief and climate finance
Side event
Venue: Room 22
Hosted by: IIED, ALL ACT, government of Somalia, government of Senegal, government of Ireland
With support from: UN, Quadrature Climate Foundation, Financing for Development
Climate change threatens sustainable development, disproportionately impacting Fragile and Conflict-Affected States (FCAS), SIDS, LDCs, and Landlocked Developing Countries (LLDCs), where recurring climate shocks devastate agriculture, exacerbate food insecurity, and deepen debt burdens.
This high-level side event explored how country platforms can unlock sustainable finance to scale social protection, enhance debt sustainability, and leverage climate finance for resilience and food security. Drawing on evidence from 39 SIDS, 10 LDCs, and FCAS, the event showcased solutions like anticipatory social protection, the Global SIDS Debt Sustainability Support Service (DSSS) and funding from the Fund for responding to Loss and Damage (FRLD).
Featuring heads of government and finance ministers from Somalia, Mali, Maldives, and Nepal, alongside representatives from The World Bank, FRLD Board, philanthropies like the Gates Foundation, and grassroots organisations, the event aligned with FfD4’s focus on mobilising finance for sustainable development by addressing systemic barriers, promoting innovative financing, and ensuring equitable access to resources through locally led country platforms.
Maximising the impact of investments: localising finance solutions for the transformation of informal settlements and slums
Side event
Venue: Room 8
Hosted by: IIED, government of Brazil, Ministry of Finance, Cities Alliance (hosted by UNOPS), Slum Dwellers International, United Cities and Local Governments
With support from: UN-HABITAT, government of South Africa, Grupo de Institutos, Fundações e Empresas (GIFE), African Development Bank, Habitat for Humanity International, Build Change
The need to improve living conditions in slums and informal settlements that are home to 1.1 billion people is one of the most pressing challenges of the 21st century: slum dwellers face poor access to basic services, little security of tenure or protection from eviction and displacement, and a disproportionately high exposure to growing climate threats like flooding and extreme heat.
The event promoted greater investment into the transformation of informal settlements and slums by supporting locally-driven financial infrastructures as a catalyst to advance the goals of FfD4. It drew from and contributed to ongoing discussions on mobilising global investment in affordable and adequate housing.
Contact
Anne Schulthess ([email protected]), marketing manager, IIED's Communications Group
