Changes from report parliamentary committee draft to plenary report

Added26. Urges the UN member states to develop a harmonised framework to strengthen domestic sovereign debt restructuring laws across its member countries, with the aim of facilitating more efficient and equitable debt treatment;

Added27. Emphasises the need for greater policy coherence in addressing sovereign debt issues, aligning tax, budgetary, and development policies to effectively respond to cross-cutting challenges such as climate change and inequality;

Reform of the international financial architecture

Change 5

Changed12.28. Calls for highly concessionalan financingincrease ofin the ecologicalfinancing transition,power inof particularMDBs, forand mobilisingthe moreexpansion resourcesof fortheir themandates Lossto andtackle Damageglobal Fund;challenges;

Change 6

Removed13. Calls for the implementation of a rules-based, automatic quota reallocation system in the International Monetary Fund (IMF) to better reflect the changing global economic landscape and ensure fairer representation of emerging economies; in the meantime, calls for IMF special drawing rights to be rechannelled to developing countries and multilateral development bank (MDBs), and for such rights to continue to be regularly allocated;

Added29. Calls for grants and highly concessional financing of the ecological transition, in particular for mobilising more resources for adaptation and the operationalisation of the Loss and Damage Fund; in addition, believes that all public lenders – governments, MDBs and other official lenders, including the IMF – should include, in their contracts, state-contingent clauses that are tied to climate and other economic exogenous shocks;

Removed14. Urges the exploration of innovative financing mechanisms, such as portfolio guarantees and hybrid capital, to further expand MDBs’ lending capacity by an additional USD 300-400 billion over the next decade; acknowledges, moreover, the need to work towards the expansion of the balance sheets of MDBs and towards increased access to concessional financing; underlines the need to improve the lending terms of MDBs, including lower interest rates and longer-term loans;

Added30. Considers it necessary to guarantee new, additional, predictable funding that is readily accessible to women, indigenous peoples and the most vulnerable communities;

Removed15. Supports the establishment of a joint committee for governance reforms in the Bretton Woods Institutions to enhance transparency, inclusivity and diversity in leadership and staff;

Added31. Calls for the implementation of a rules-based, automatic quota reallocation system in the International Monetary Fund (IMF) to better reflect the changing global economic landscape and ensure fairer representation of emerging economies, as well as low income and least developed countries; in the meantime, calls for IMF special drawing rights to be rechannelled to developing countries* and multilateral development banks (MDBs), in line with the Bridgetown initiative, the UN Secretary-General’s SDG Stimulus and the initiatives of the African Development Bank (AfDB) and the Inter-American Development Bank (IDB), and for such rights to continue to be regularly allocated; in line with the principle of common but differentiated responsibilities;

Added32. Underlines that EU financing must uphold the EU’s role as the world’s leading provider of development aid and climate finance in line with the Union’s global obligations and commitments; calls for sustainable financing models that prioritise resilience, reduce fiscal dependence and support structural transformation to prevent recurrent financial distress in developing economies*;

Added33. Welcomes the commitment to gender balance on executive boards of all international organisations in the Zero Draft on the FfD4 Outcome; supports the establishment of a joint committee for governance reforms in the Bretton Woods Institutions to enhance transparency, inclusivity, such as through a fairer representation in decision-making bodies and fair access to finance and diversity in leadership and staff;

Added34. Underlines that civil society organisations and smaller non-governmental organisations as well as churches and faith-based organisations are key development partners, since they work closely together with populations on the ground and are therefore better acquainted with their needs, and retain a presence after many other aid providers have withdrawn; calls for the adoption of guidelines on partnerships with churches and faith-based organisations in the area of development cooperation;

Added35. Recalls that the regulation of the financial system is essential to advancing towards the prevention and fair resolution of debt crises;

Added36. Calls for stronger regulation of global commodity futures markets, which is especially important for food and fuel products, and digital financial markets; stresses equally the need to encourage appropriate finance for social and environmental objectives, while discouraging the financing of high-carbon activities;

Private business and finance

Change 7

Changed16.37. Emphasises once moreagain the crucial role of the mobilisation of private finance to close the financing gap in achieving the SDGs,SDGs whileand recallingcalls for more action to facilitate private sector involvement in development cooperation and to encourage companies to invest in less developed countries; recalls, however, that private sector investment and blended finance instruments have not always proven to be effective or sufficient in least developed countries and fragile states, especially in critical public services such as health, education and social protection, continuesand tothey becannot morefully difficult;replace public investment, thus requiring special attention from international donors, governments and MDBs; recognises, however, the potential role of enhanced public-private partnerships (PPPs), particularly in the field of technical and vocational training, upskilling and reskilling;

Change 8

Removed17. Insists that a conducive business enabling environment is essential for private investment, including through the rule of law, transparency, good governance, anti-corruption measures, investor and consumer protection, and fair competition; calls for further improved access to affordable financing for the informal sector, dominated by micro- and small businesses, often led by women;

Added38. Recalls the need to promote investments in education and vocational training in order to prioritise sustainable job creation and contribute to achieving the SDGs; further notes that trade, investment and job creation are a vital part of EU engagement for development and are contributing to sustainable development;

Removed18. Calls for the establishment of a dedicated SDG investment facilitation mechanism to identify and develop investment-ready opportunities aligned with the SDGs in least developed countries;

Added39. Underlines the lack of transparency regarding the functioning of the Global Gateway in EU partner countries and absence of clear mechanisms for assessing its impact, particularly in fragile contexts where the Global Gateway may not apply; emphasises that there must be a continuous evaluation of the Global Gateway to assess its effectiveness and strategic direction;

Removed19. Urges the expansion of innovative financing mechanisms, such as blended finance, to mobilise private capital for SDG-aligned projects in least developed countries (LDCs), emphasising the need to double current finance flows to nature-based solutions;

Added40. Insists that a conducive business enabling environment is essential for private investment, including through the rule of law, transparency, good governance, anti-corruption measures, investor and consumer protection, and fair competition; calls on the Commission to monitor and further improve mechanisms that will provide a security guarantee for European investors, on the other hand, stresses the need to rebalance investors’ rights with obligations towards the host state i.e. by supporting the local economy through technology transfer and by utilising local labour and inputs, so as to ensure that FDI translates into wider socio-economic benefits for society; calls for further improved access to affordable financing for the informal sector, dominated by micro- and small businesses, often led by women; calls for scaled-up EIB guarantee programmes to financially support small and medium-sized enterprises;

Removed20. Stresses the importance of capacity building and technical assistance for LDCs to develop bankable projects and improve their investment climates;

Added41. Recalls that the security landscape is a decisive factor for investments and for sustainable development; highlights in this context the role and activities of religious institutions, women and all civil-society actors in conflict resolution and management, contributing to peace and security; more generally, emphasises the interconnectedness of development and security and stresses the necessity of further advancing a clearly defined nexus between development, peace and security;

Removed21. Advocates the creation of a global risk mitigation facility to address the higher perceived risks and borrowing costs faced by developing countries;

Added42. Emphasises that blended public and private finance must be aligned with the SDGs, focusing on development and requiring frameworks and legislation that focus on sustainable business and finance, sustainability disclosure and transparency and the set-up of a global SDG finance taxonomy;

Added43. Calls on the EU to constructively engage towards the adoption of the UN Treaty on Business and Human Rights to regulate the activities of transnational corporations and other business enterprises and to allow victims to seek redress;

Added44. Calls for the establishment of a dedicated SDG investment facilitation mechanism supported by the international community to identify and develop investment-ready opportunities aligned with the SDGs in least developed countries, leveraging the UNDP SDG Investor Platform’s success in identifying over 600 investment opportunity areas in emerging markets; recalls that SMEs play an important role in achieving the SDGs and therefore need to be encouraged and incentivised by EU policies to actively participate in initiatives contributing to sustainable development in developing countries*; also urges the EU and its Member States to prioritise allocation of grants and concessional financing based on vulnerabilities, namely in LDCs, fragile or conflict-affected countries, and to engage in coordination with relevant stakeholders including civil society actors;

Added45. Urges the expansion of innovative financing mechanisms to mobilise private capital for SDG-aligned projects in LDCs and fragile states, emphasising the need to double current finance flows to nature-based solutions from USD 154 billion to at least USD 384 billion per year by 2025 to effectively address biodiversity loss, land degradation ecosystem destruction and climate change;

Added46. Stresses the importance of capacity building and technical assistance for LDCs to develop long-term viable and SDG-aligned projects, advance human development and improve their investment climates, thereby attracting more private sector investment in critical sectors such as renewable energy, healthcare, and sustainable agriculture;

Added47. Advocates the creation of a global risk mitigation facility consolidated within current UN-frameworks to address the higher perceived risks and borrowing costs faced by low- and middle-income countries; calls for the regulation of the credit rating system, which currently benefits countries in the Global North disproportionately over those in the Global South, which pay on average twice as much interest on their sovereign debt compared to developed countries, to address these higher perceived risks and borrowing costs;

Added48. Emphasises the need for clearly defined access to development finance for local and regional governments in partner countries to ensure more balanced and transparent allocation of resources; stresses that overly centralised funding structures risk reinforcing inefficiencies and the politically motivated distribution of funds; underlines that empowering local governments – many of which play a crucial role in delivering public services and fostering inclusive economic development – would enhance community-based investments, accountability and governance reforms;

Added49. Emphasises the need to promote PPPs and private investments, which drive economic growth and sustainable regional development;

Added50. Highlights that PPPs are needed to cover the financial gap for development objectives in partner countries, further notes that private sector investments also need to serve the development of local communities and encourage, in this context, investments in education and vocational training;

Added51. Highlights the special challenges faced by persons with disabilities and their families in terms of accessing development aid; calls for the special needs of persons with disabilities to be taken into account in development financing;

Tax cooperation

Change 9

Changed22.52. Welcomes the two-pillar solution for addressing the tax challenges arising from the digitalisation and globalisation of the economy, butas deploresagreed by the members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, as a step forward; takes note, however, that a group of developing countries* has expressed dissatisfaction with the outcome, highlighting concerns around equity and inclusivity within the OECD Inclusive Framework; regrets that Pillar 1 on reallocation of taxing rights has still not entered into force;force and calls for the acceleration of its implementation, ensuring a fair reallocation of taxing rights to market jurisdictions, particularly benefiting developing countries*; calls for the EU and its Member States to ensure that the agreed global minimum corporate tax rate of 15 % for multinational enterprises is effectively applied, and urges the EU to support capacity building initiatives in developingdeveloping* countries to effectively implement that minimum tax rate;rate, ensuring they can benefit from the new rules and increase their domestic resource mobilisation;

Change 10

Removed23. Advocates further assistance for developing countries and international cooperation for the purpose of strengthening tax systems, transparency and accountability in public financial management systems and of increasing domestic resource mobilisation, including through the digitalisation of tax systems and administrations;

Added53. Urges the international community to take concrete steps in the creation and implementation of a UN Framework Convention on International Tax Cooperation; takes the view that this UN Convention on Tax should be designed with a view to ensuring a fair division of taxing rights between nation states, and, while duly considering national tax sovereignty, support efforts to tackle harmful tax practices and illicit financial flows; stresses, in this context, that the EU should play a proactive role in enabling developing countries* to mobilise domestic resources, in particular through enhanced tax governance, and that the EU should take the lead in combating illicit financial flows;

Removed24. Supports the initiative of Brazil at the most recent G20 summit for a coordinated minimum tax on ultra-high net worth individuals, equal to 2 % of their wealth;

Added54. Advocates further assistance for developing countries* and international cooperation for the purpose of strengthening tax systems, transparency and accountability in public financial management systems and of increasing domestic resource mobilisation, including through the digitalisation of tax systems and administrations;

Removed25. Emphasises the need to continue working on combating illicit financial flows, in particular out of developing countries, and corruption, inter alia by investing in human capacities and skills, digitalisation, building up accessible and interoperable data, strengthening governance structures, enhancing regulatory frameworks and promoting regional cooperation;

Added55. Supports the decision of G20 finance ministers to ensure that ultra-high net worth individuals are taxed effectively; considers that Brazil’s initiative at the latest G20 summit for a coordinated minimum tax on ultrahigh net worth individuals equal to 2 % of their wealth, which it is estimated would raise up to USD 250 billion annually, is worth further consideration;

Added56. Emphasises the need to continue working on efforts to combat illicit financial flows, in particular out of low- and middle-income countries, and corruption, inter alia by investing in human capacities and skills, digitalisation, building up accessible and interoperable data, strengthening governance structures, enhancing regulatory frameworks and promoting regional cooperation;

Added57. Recalls that the extractive sector in Africa is particularly prone to illicit outflows; takes the view that the review of tax treaties should aim to strengthen the bargaining position of host governments so they can obtain better returns from their natural resources and stimulate diversification of their economies; in addition, believes that the Extractive Industries Transparency Initiative (EITI) should be made mandatory and extended to focus not only on governments but also on producer firms and commodity trading companies;

58. Advocates the creation of a global beneficial ownership registry to enhance transparency and combat tax evasion and illicit financial flows, building on existing EU initiatives in this area;

Change 11

ChangedOfficial development assistance (ODA) and financing of EU externaldevelopment actioncooperation

Change 12

Changed27.59. Emphasises that, despite the EU and its Member States remaining the largest global ODA provider, accounting for 42 % of global ODA in 2022 and 2023, the collective ODA/gross national income ratio has declined from 0.56 % in 2022 to 0.51 % in 2023, falling well short of the 0.7 % target; calls for urgent action to address the cumulative shortfall in meeting the 0.7 % target; is alarmed by the worrying trends that further cut ODA in many Member States and in the EU budget;budget as well as by other leading global donors, leading to a further increase in the global financing gap for development; encourages Member States to increase their ODA budgets in the light of the current geopolitical situation; stresses the need to use development cooperation efficiently, to invest more specifically in those partner countries that promote, among other things, democratic reform efforts, access to social security systems and economic self-reliance;

Change 13

Removed28. Urges the EU and Member States to prioritise reaching the immediate target of 0.15 % ODA/gross national income for LDCs;

Added60. Rejects the idea that the traditional donor-recipient model has become obsolete and that ODA is no longer relevant; underlines that, despite evolving financing mechanisms and partnerships, ODA remains a vital tool for poverty reduction, addressing inequalities, and supporting the most vulnerable communities, particularly in fragile countries and LDCs;

Removed29. Expresses concern over the increasing trend of tied aid, which reached EUR 4.4 billion (6.5 % of total bilateral ODA) in 2022, and calls for measures to reverse this trend;

Added61. Urges the EU and the Member States to prioritise reaching the immediate target of devoting 0.15 % of GNI to ODA for LDCs, and to take concrete actions to fulfil this commitment, with a view to rapidly scaling up efforts to achieve a level of 0.20 % of GNI as ODA for LDCs; notes that the impact of development finance also depends on the efficiency of implementation of funding;

Removed30. Stresses the need for a comprehensive approach to development financing, aligning the Neighbourhood, Development and International Cooperation Instrument – Global Europe with the SDGs and the Paris Agreement;

Added62. Urges the Commission to increase efforts to implement the development finance objectives under the GAP III, namely that 85 % of all new actions integrate a gender perspective and support gender equality;

Added63. Regrets that women’s rights organisations receive less than 1 % of global ODA and SDG5 remains among the least-funded SDGs, although improvement on SDG5 has been shown to be a cross-cutting driver for sustainable development; reiterates that women-led organisations are often best adapted to respond to humanitarian crises; calls on the international community to set ambitious targets for funding to women’s rights organisations;

Added64. Expresses concern over the increasing trend of tied aid, which reached EUR 4.4 billion (6.5 % of total bilateral ODA) in 2022, and calls for measures to reverse this trend and ensure that ODA primarily benefits partner countries rather than donor economies;

Added65. Calls on the EU and the Member States to devote 15 % of their ODA to education by 2030;

Added66. Calls on the EU and the Member States to ensure that ODA includes long-term, sustainable funding for United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), guaranteeing access to essential services for Palestinian refugees and preventing further humanitarian crises;

Added67. Emphasises that education must remain a central pillar of EU development assistance, including continued support for UNRWA schools, which provide education to over 500 000 Palestinian children, ensuring their right to quality education despite ongoing displacement and conflict;