The Addis Ababa Action Agenda


Date published on source: 
16 July 2015
Source organisation: 
UN News Centre

Addis Ababa: Countries agreed today [Wednesday] on a series of bold measures to overhaul global finance practices and generate investments for tackling a range of economic, social and environmental challenges at the United Nations Third International Conference on Financing for Development, being held in Addis Ababa, Ethiopia.

“This agreement is a critical step forward in building a sustainable future for all. It provides a global framework for financing sustainable development,” UN Secretary-General Ban Ki-moon said after negotiators reached the deal at the Conference, which has been running in the Ethiopian capital since Monday, 13 July, and officially wraps up its work tomorrow.

“It gives us the foundation of a revitalized global partnership for sustainable development that will leave no one behind,” said of the groundbreaking agreement, which will be known as the Addis Ababa Action Agenda.

The agreement provides a foundation for implementing the global sustainable development agenda that world leaders are expected to adopt in New York this September and for reaching a binding agreement at UN climate negotiations in Paris in December to reduce global carbon emissions. It marks a milestone in forging an enhanced global partnership that aims to foster universal, inclusive economic prosperity and improve people's well-being while protecting the environment.

Financing is considered the linchpin for the success of the post-2015 sustainable development agenda, which will be driven by the implementation of 17 goals. In support of implementation of these goals, the Addis Ababa Action Agenda contains more than 100 concrete measures, addressing all sources of finance, and covering cooperation on a range of issues including technology, science, innovation, trade and capacity building.

“This historic agreement marks a turning point in international cooperation that will result in the necessary investments for the new and transformative sustainable development agenda that will improve the lives of people everywhere,” said Wu Hongbo, the UN Under-Secretary-General for Economic and Social Affairs and Secretary-General of the Conference.

Domestic resource mobilization is central to the agenda and countries agreed to an array of measures aimed at widening the revenue base, improving tax collection, and combatting tax evasion and illicit financial flows. They also reaffirmed their commitment to official development assistance, particularly for the least developed countries, and pledged to increase South-South cooperation.

The outcome document also underscores the importance of aligning private investment with sustainable development, along with public policies and regulatory frameworks to set the right incentives. A new mechanism that will facilitate financing for new technologies for developing countries was also agreed upon.

The Action Agenda includes important policy commitments and key deliverables in critical areas for sustainable development, including infrastructure, social protection and technology.  Agreements were reached on international cooperation for financing of specific areas where significant investments are needed, such as in infrastructure for energy, transport, water and sanitation, and other areas to help realize the proposed sustainable development goals.

Countries also stressed the importance of nationally owned sustainable development strategies, supported by integrated national financing frameworks.

The Addis Ababa Action Agenda

To achieve these goals, countries also agreed to new initiatives, including on:

Technology:  Countries agreed to establish a Technology Facilitation Mechanism at the Sustainable Development Summit in September to boost collaboration among governments, civil society, private sector, the scientific community, United Nations entities and other stakeholders to support the sustainable development goals.

Infrastructure:  Countries agreed to establish a Global Infrastructure Forum to identify and address infrastructure gaps, highlight opportunities for investment and cooperation, and work to ensure that projects are environmentally, socially and economically sustainable.

Social protection: Countries adopted a new social compact in favour of the poor and vulnerable groups, through the provision of social protection systems and measures for all, including social protection floors.

Health:  Countries agreed to consider taxing harmful substances to deter consumption and to increase domestic resources. They agreed that taxes on tobacco reduce consumption and could represent an untapped revenue stream for many countries.

Micro, small and medium-sized enterprises:  Countries committed to promote affordable and stable access to credit for smaller enterprises. They also pledged to develop and operationalize a global strategy for youth employment and implement the International Labour Organization Global Jobs Pact by 2020.

Foreign aid: Countries recommitted to achieve the target of 0.7 per cent of gross national income for official development assistance, and 0.15 to 0.20 per cent for least developed countries.

A package of measures for the poorest countries:  Developed countries commit to reverse the decline in aid to the poorest countries, with the European Union committing to increase its aid to least developed countries to 0.2 per cent of gross national income by 2030. They also agree to adopt or strengthen least developed countries investment promotion regimes, including with financial and technical support. Governments also aim to operationalize the technology bank for this group of countries by 2017.

Taxation:  The Agenda calls for strengthening support for the work of the UN Committee of Experts on International Cooperation in Tax Matters to improve its effectiveness and operational capacity, and the engagement with the Economic and Social Council. It emphasizes the importance of inclusive cooperation and dialogue among national tax authorities.

Climate Change:  The Action Agenda calls on developed countries to implement their commitment to a goal of jointly mobilizing USD100 billion per year by 2020 from a wide variety of sources to address the needs of developing countries. Countries also committed to phase out inefficient fossil fuel subsidies that lead to wasteful consumption

*  Related: Addis Tax Initiative launched