International conference galvanizes efforts towards advancing climate funding, despite Trump's involvement
The Fourth International Conference on Financing for Development (FfD4) is currently underway in Seville, Spain, from June 30 to July 3, 2025. This significant event brings together governments, international organizations, civil society, and business to discuss funding development, climate, and nature goals.
The conference, which is focused on rethinking the global economic and financial architecture, has been a platform for various proposals aimed at mobilizing substantial funds for environmental transformation. One such proposal is a Vatican-backed report, put together by prominent economists, calling for urgent action to address the global debt and development crises.
Martín Guzmán, the former Argentina economy minister, was commissioned by the late Pope Francis to co-lead the Vatican-backed report. The report emphasizes the need for a workout mechanism to restructure $812bn worth of sovereign debt in the global south, a move that could help the region fight climate change.
Advocates have long sought to restructure global south debt to help vulnerable countries meet their climate commitment goals. However, the recent Cop29 summit concluded on a sour note after a contentious US$300bn annual climate finance deal passed despite objections from global south representatives. The final Cop29 agreement falls short of the $1.3tn experts deem necessary for effective climate action in developing economies.
The draft outcome document of the FfD4 conference states that urgent actions will be taken to adapt to and build resilience against climate impacts, improve access to climate finance, provide new and additional financial resources, and facilitate the transfer of technology to address the global climate change challenge.
However, the final agreement relies primarily on expanding loans and private capital, without a guaranteed grant-based component, a concern for many advocates. Rebecca Thissen, global advocacy lead at CAN International, hopes the Seville meeting agrees to establish a process to forgive the debt that is stalling the green transition.
Calls have been made for substantial grant financing to avoid burdening the global south with more debt. In 2023 alone, emerging and developing economies paid $385bn in debt service payments, limiting their ability to invest in green projects. The debt crisis is crowding out investments in health, education, and climate and is making the economic and social situation dramatic in many developing economies.
Brazil is expected to convene a meeting of finance ministers on the sidelines of the conference, seeking action on climate finance ahead of the Cop30 summit. The US, however, is reportedly pushing to dilute the outcome of the meeting by removing references to climate, gender equality, and sustainability.
The draft outcome document also considers expanding financial regulation and supervision to incorporate climate transition plans and climate stress testing. This could potentially lead to a more resilient financial system that is better equipped to handle the challenges posed by climate change.
As the FfD4 conference continues, the focus remains on finding solutions to the global debt and climate crises that prioritize the needs of developing economies and promote a sustainable, inclusive future for all. This page was last updated on June 26, 2025.
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