EU Reaffirms Commitment to Landlocked Developing Countries, Touting Innovative Financing and Collaboration

At a side event during the Third UN Conference on Landlocked Developing Countries (LLDCs) in Awaza, Turkmenistan, the European Union (EU) reaffirmed its commitment to addressing the unique financing challenges faced by LLDCs. The event, titled “Unlocking SDG Finance in LLDCs through Integrated National Financing Frameworks,” highlighted the critical role of Integrated National Financing Frameworks (INFFs) in aligning financial resources with sustainable development goals (SDGs). Ambassador Beata Pęksa, Head of the EU Delegation to Turkmenistan, delivered a statement, emphasizing innovative financing strategies and international collaboration.

Landlocked Developing Countries face significant barriers to accessing global markets, which stifles economic growth and sustainable development. Ambassador Pęksa underscored that public funding alone is insufficient to bridge the investment gap. She advocated for public funds to act as a catalyst for mobilizing private investment. The EU’s flagship Global Gateway initiative was highlighted as a model for this approach, supporting transformative projects in transport, climate, digital connectivity, education, and health by leveraging guarantees, grants, and technical assistance to unlock private finance.

Introduced in the 2015 Addis Ababa Action Agenda, INFFs have emerged as vital tools for aligning domestic and international financial flows with national priorities and the SDGs. The EU has been a steadfast supporter of INFFs, viewing them as essential for fostering country ownership and leadership in sustainable development.

The recent Compromiso de Sevilla further reinforced this commitment, proposing actionable steps to scale up country-driven financing through the Sevilla Platform for Action.

INFFs facilitate transparent and coordinated financing strategies, ensuring resources are allocated efficiently and aligned with national development goals. The EU’s Global Gateway initiative complements this framework by promoting equal partnerships, good governance, and transparency, utilizing a Team Europe approach to combine public and private resources effectively.

The statement highlighted several LLDCs that have successfully implemented INFFs. Mongolia has enhanced cross-sector coordination through its INFF strategy, while Armenia and Nepal have focused on sector-specific financing in energy and transport. Uzbekistan has made strides by issuing sovereign SDG Bonds to mobilize international capital for green infrastructure and digital connectivity.

As the world’s largest issuer of green bonds, the EU is committed to sharing its expertise through initiatives like the Global Green Bonds program. Additionally, the EU is supporting LLDCs in strengthening public finance systems through capacity-building efforts, including domestic revenue mobilization, international tax cooperation, and combating illicit financial flows. Transparent procurement and strategic investment management were also emphasized as critical to improving spending efficiency.

Ambassador Pęksa urged greater collaboration among stakeholders, encouraging multilateral development banks (MDBs) and development actors to align with country-owned platforms and INFFs to maximize impact.

The EU’s continued support for the INFF Facility underscores its commitment to multilateralism and partnership. “Together with our LLDC partners, we can build resilient, prosperous, and sustainable futures for all,” Ambassador Pęksa concluded.

The EU’s ideas at the Awaza side event signals a robust commitment to supporting LLDCs in overcoming their structural challenges. By promoting INFFs and leveraging initiatives like Global Gateway, the EU is paving the way for innovative financing solutions that align with the SDGs, fostering sustainable and inclusive growth for landlocked nations. ///nCa, 11 August 2025

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}

_{Aggregated From –}

_{Source link}