In an ongoing effort to support the localization of the Sustainable Development Goals (SDGs), the United Nations Department of Economic and Social Affairs (UNDESA), in collaboration with an Inter-Agency Taskforce of UN entities and relevant stakeholders, has just issued a new policy brief focused on local government finance.
The document was drafted by United Nations Capital Development Fund (UNCDF), UNDESA, and UNDP with inputs from the Global Taskforce of Local and Regional Governments, Local 2030, the Global Fund for Cities Development (FMDV), United Cities and Local Governments (UCLG), UN-Habitat, UNICEF and the NYU University.
The policy brief builds on the 2015 Addis Ababa Action Agenda (AAAA), particularly on its Paragraph 34, which recognizes the importance of strengthening local government finance as an accelerator of national development.
The document is available as PDF and as interactive website version.
The document highlights how local governments, which are responsible for 39.5% of public investment worldwide and oversee 65% of SDG indicators, play a critical role in achieving the SDGs. Despite their crucial role, systemic barriers within the global financial architecture continue to limit their ability to access the necessary resources.
The policy brief was presented during the Third Session of the Preparatory Committee for the Fourth International Conference on Financing for Development (FfD4) on 12 February 2025. United Cities and Local Governments organized this official side event to present concrete solutions that local and regional governments are proposing to break the gridlock on financing for sustainable development.
The side event was broadcast live via the UN Web TV:
Topics included the creation of city-friendly investment funds, risk-mitigation mechanisms and improved public financial management capacities at the local level.
The side event highlighted the importance of reforming the global financial system to empower local governments and demonstrate how innovative, inclusive financing mechanisms can help achieve the SDGs.