The writer is UN assistant secretary-general and director of UNDP’s bureau for policy and programme support

Around the world, countries have made significant progress in transforming their financial systems to build impact economies. Across government institutions, including finance ministries, national treasuries and planning commissions, there is meaningful reform under way.

Countries are integrating climate priorities into budgets, aligning spending with the Sustainable Development Goals, developing pipelines of investable projects, and creating conditions to attract private capital. These are bold and systemic efforts, and many developing countries are leading the way.

Yet the global financial architecture has not kept pace. The challenge is no longer ambition but alignment between national development strategies and the financial systems intended to support them. When reform efforts stall, it is often due to financial friction — the space between where capital exists and where it is needed.

Outdated perceptions of risk, institutional inertia and fragmented instruments have widened this gap. Closing the gap will involve changing how finance aligns with national priorities, reflects contemporary circumstances, and operates effectively on a large scale.

The cost of inaction is growing. Official Development Assistance fell by 7.1 per cent last year, even as humanitarian needs multiplied. In over 55 developing countries, more than 10 per cent of government revenues go to servicing debt. By 2030, 75 per cent of people living in extreme poverty are projected to be in fragile or crisis-affected states. These converging crises make closing the financing gap more urgent than ever.

This is precisely the opportunity presented by the Fourth International Conference on Financing for Development (FFD4) taking place from 30 June to 3 July in Sevilla. The conference comes at a pivotal moment, 10 years after the Paris agreement and just five years before the 2030 deadline to meet the SDGs. It also comes as countries navigate the compounded effects of the pandemic, geopolitical conflict and escalating climate risk.

At FFD4, all stakeholders must look forward, not only to reaffirm commitments but to unlock innovative, forward-looking solutions. This means breaking out of traditional silos and fostering true collaboration across all actors: governments, development finance institutions, international financial institutions, the private sector, philanthropy and civil society. The goal should be to support countries already undertaking ambitious reforms, ensuring they can access the capital, partnerships and tools needed to deliver lasting results.

At FFD4, countries and partners will launch the Sevilla Platform for Action, a voluntary initiative designed to help translate national strategies into measurable progress. This is not just about mobilising resources. It is about fundamentally aligning public and private finance with the SDGs, climate and biodiversity priorities.

These efforts focus on practical enablers of progress such as tax policy, investment facilitation and insurance regulation, and on connecting them with technical expertise, institutional partners and financing mechanisms that can scale their impact. This work is already translating into tangible results across countries and across sectors.

For example, in 86 countries, integrated national financing frameworks are already helping countries to translate development strategies into tailored financing plans. In Colombia, this approach aligned more than $1bn in public spending directing investment into climate-smart agriculture and digital transformation. In Bangladesh, climate budget tagging helped unlock $1.4bn in IMF financing. In Uzbekistan, the Ministry of Agriculture introduced new insurance products for smallholder farmers, with subsidies covering 50 per cent of premiums to make coverage accessible for climate-vulnerable households.

Businesses can thrive by contributing directly to the solutions the world needs. This is where the private sector excels — by driving innovation, scaling solutions and turning challenges into opportunities. But it must be done carefully, ensuring progress in one area does not come at the expense of another.

To support this shift, UNDP is partnering with the International Organization for Standardization to develop ISO 53001, a global standard to help companies embed sustainability into core management systems. This includes partnering with development banks, philanthropic actors, insurers, investors and businesses to expand country-led financing mechanisms. It means using core and flexible public finance not as a substitute for private capital, but to help attract it.

FFD4 offers a moment of alignment. Countries have shown leadership. Now financial systems must be reshaped for impact. The Sevilla Platform for Action offers a path to close the gap by aligning public and private finance with national priorities and redefining value so that profit advances people and planet.

At FFD4, we invite partners to join us in reshaping the financial system to achieve our shared goals.