Analytical Studies > 2018 Charlevoix Summit Analysis
G7 Summits > 2018 Charlevoix Summit
Charlevoix Commitment on Innovative Financing for Development
La Malbaie, Quebec, Canada, June 9, 2018
See also The Charlevoix G7 Summit Communiqué
We, the Leaders of the G7, acknowledge the importance of public finance, including official development assistance and domestic resource mobilization, for sustainable development. We also recognize that available public capital alone is insufficient to support the economic growth and sustainable development necessary to lift all populations out of poverty, and to work towards the aspirations outlined in the Sustainable Development Goals of the 2030 Agenda. The development landscape has changed significantly in the last few years and the G7 can now seize new opportunities for global action. New sources of domestic and international private financing that complement public sector resources and innovative solutions for sustainable development and inclusive economic growth are emerging, together with new tools, technologies and approaches to partnership as outlined in the Addis Ababa Action Agenda.
G7 members contribute the largest portion of official development assistance and collectively host the greatest share of private capital wealth. We therefore have a unique opportunity to catalyze momentum to shape development financing solutions for the future, forge pioneering alliances and activate contributions from different partners. It is important that these efforts target inequality and reinforce our shared prosperity, especially for the most vulnerable, to succeed in eradicating poverty and achieving sustainable development.
New investments in development finance should increase overall resilience and complement humanitarian assistance responses. Transparency and encouraging responsible and gender-sensitive development investment that supports partner priorities are vital in achieving sustainable development. Moreover, bilateral and multilateral development institutions should support gender equality and women's economic empowerment.
We, the Leaders of the G7, commit to provide leadership to support innovative financing for international development and reinforce gender equality and women's economic empowerment by:
- Supporting innovative financing approaches to achieve greater sustainable development outcomes and unlock resources, such as crowdfunding, blended finance, risk mitigation tools, and investor partnerships. This will create opportunities for economic growth that benefits everyone, including the poorest and most vulnerable. We will work to implement the OECD-DAC blended finance principles including promoting greater transparency and accountability of blended finance operations.
- Fostering new international development partnerships, and capacity to mobilize more private sector investments for sustainable international development, with particular attention to inclusive growth. We welcome voluntary initiatives by local and international institutional investors, philanthropic organizations, and private sector partners to advance partnership opportunities and identify viable pathways to increase sustainable long-term quality investments to further mobilize resources for sustainable international development.
- Exploring opportunities to enhance the economic resilience of vulnerable developing countries, as well as to respond effectively to extreme weather events and other hazards. We will continue to support innovative financing approaches, such as risk insurance to strengthen the resilience of vulnerable developing countries, including Small Island Developing States, and build on existing G7 initiatives. We support the consideration of risk finance and insurance solutions and underscore the importance that such initiatives integrate a gender perspective.
- Seeking to strengthen the evidence base for the use of public finance in innovative financing, including implications for gender equality, while advancing efforts in domestic resource mobilization. We strive to support effective tax systems and functioning banking and financial systems. We call on the multilateral development banks to work more closely with domestic financial markets, and in local currencies wherever possible, in order to build local markets.
- Affirming that bilateral Development Finance Institutions (DFIs) are important actors in mobilizing, not displacing, private sector financing for the achievement of sustainable development outcomes, including support for quality infrastructure and projects. We support the creation of a set of high-level principles on development finance. We will work to ensure international best practices are respected, including on transparency, rule of law, good corporate governance, human and labour rights, environmental and social standards, economic efficiency in view of life cycle costs, resilience against risks such as natural disasters, attraction of new industries and private investment, transfer of expertise, open and non-exclusive use of infrastructure and sustainable and responsible financing for recipient countries.
- Recognizing that access to capital is an important tool towards enhancing women's economic empowerment. We welcome the initiative by a group of DFIs to commit to catalyze USD $3 billion, principally from private sources, to support business activities that would provide women in developing countries with access to leadership opportunities, quality employment, financing, enterprise support, and products and services that enhance economic participation and access for women.
- Supporting development finance programs that strive to advance women's economic empowerment and gender equality while promoting mutually reinforcing economic prosperity and stability in partner countries, including by providing access to capital, jobs, skills, and services that enhance economic opportunities for women.
Source: The Official Website of the 2018 Canadian Presidency of the G7
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