BackgroundAchieving the Sustainable Development Goals (SDGs) requires a major scale-up in private-capital mobilization. In Latin America and the Caribbean, the annual financing gap to meet the SDGs is estimated between USD 650 billion and 1.34 trillion, equivalent to 5–11 percent of regional GDP. In the context of limited fiscal space, high public debt, and increasingly tight international financial conditions, relying solely on traditional public-finance mechanisms is no longer viable.
The
Seville Commitment, adopted at the Fourth International Conference on Financing for Development (FfD4), recognizes that mobilizing private capital is a key pillar for advancing more equitable, resilient, and sustainable economies.
It underscores the importance of engaging the private sector as a driver of sustainable growth and productive innovation, and of fostering enabling environments that integrate sustainability into both macroeconomic policies and economic decision-making. It also calls for responsible financial innovation and stronger public–private collaboration as essential means to align investment flows with the Sustainable Development Goals (SDGs).
Countries and financial institutions are increasingly deploying innovative instruments to attract private investment, including sustainable-finance taxonomies, catalytic funds, blended-finance schemes, and de-risking mechanisms such as guarantees, insurance, and hedging facilities that reduce perceived risks and improve project bankability. These tools aim to maximize the impact of public spending and international cooperation by leveraging private investment toward sectors with high transformative potential.
Across the region, there is growing momentum in developing green regulatory frameworks, financial incentives, and national sustainable-investment strategies, particularly in areas such as resilient infrastructure, energy transition, biodiversity, circular economy, and care systems.
This session will examine how governments, financial institutions, and private actors can mobilize private capital more effectively to accelerate sustainable development, building on the innovations inspired by Seville and strengthening the region’s economic and social resilience.
Objectives- Identify conditions and opportunities to attract and scale private investment in priority sectors through coherent policies and clear signals that build confidence and reduce perceived risk.
- Highlight innovations linked to the Seville Commitment that enhance the alignment between business strategies, national development goals, and the SDGs.
- Explore mechanisms for transparency, accountability, and impact to ensure private investments make a tangible contribution to sustainable development.
Guiding questions- Which policy, regulatory, or incentive frameworks can strengthen market confidence and improve the flow of private capital into transformative sectors?
- How can innovative financial instruments—such as catalytic funds, blended finance, and de-risking mechanisms—mobilize private resources to generate sustainable impact?
- Which public–private partnership and cooperation models have proven most effective in reducing risks, sharing costs, and expanding sustainable investment?