Amid Record-Breaking Heatwave in Sevilla, Small Island Developing States Stress Climate Finance Must Consider Their Vulnerabilities, as Conference Continues
SEVILLA, SPAIN (2 July) — Against the backdrop of a record-breaking heatwave in Sevilla, representatives of small island developing States highlighted the importance of climate finance that takes into account their vulnerabilities, as speakers at the fourth International Conference on Financing for Development considered how best to move beyond abstract commitments towards concrete implementation.
“We cannot stop the seas from rising. We cannot prevent climate change,” Delvin Thoma, Deputy Minister for Finance of Nauru, said, adding: “But ,we can, and we must, insist on a financial architecture that does not erase our reality.” The vulnerabilities of small island developing States “are not chosen”, and not solvable by domestic policy alone, he said, calling for global solidarity. One example of such solidarity is the multidimensional vulnerability index, he said, appealing to international financial institutions, multilateral development banks and other partners to use it. Also noting that his country graduates to high-income status in January 2026, he said this graduation is premature and based on flawed metrics.
Tonga’s delegate, speaking for the Pacific Islands Forum, said that his ocean is home to some of the most vulnerable economies. “Climate change remains the single greatest threat to our region’s resilience,” he said, welcoming the new collective aspirational goal of mobilizing $1.3 trillion per year by 2035 for climate finance. However, this ambition must be underpinned by action, he said calling on developed countries to “take the lead”. He also stressed the importance of ocean finance, noting that Sustainable Development Goal (SDG) 14 on life below water remains the least funded.
Small Island Developing States Received Only 3 Per Cent of Climate Finance between 2016 and 2021
The representative of Belize pointed out that small island developing States received only 3 per cent of climate finance between 2016 and 2021. “Worse still, grants are being replaced by loans, compounding our debt burdens,” he said. States such as his are urged to become investable, but this narrative overlooks the structural barriers they face.
Financing reform must be climate-smart, said Laura Elizabeth Agathine, Principal Secretary, National Planning Department, Ministry of Finance, National Planning and Trade of Seychelles. It must “address the existential threats we face” and ensure equitable impact and it must also be digitally enabled to enhance transparency and efficiency. “In Seychelles, we have come to believe that finance is no longer just about numbers,” she said. It is about choices, priorities and bold decisions that shape lives and determine futures.
Formidable Partnerships Key to Unleash Climate Finance, Other Development Financing
The representative of Jamaica recalled that, last year, two catastrophic weather events — Hurricane Beryl and Tropical Storm Rafael — caused devastation to critical sectors of his country. Agriculture alone suffered approximately $45 million in damages, he said, noting that disaster-related setbacks keep requiring the country “to repeatedly rebuild rather than advance”. He called for formidable partnerships “to unleash financing for development, including climate finance, for the most vulnerable countries”.
In Madagascar, Max Andonirina Fontaine, Minister for the Environment and Sustainable Development, said droughts are destroying harvests while cyclones, climate shocks and poverty continue to weigh heavily on the country. But, rather than retreat, Madagascar has chosen to act. "We have decided to take action — not to complain but to set ambitious goals," he said, highlighting a comprehensive national climate finance strategy, which will be adopted in a few months. “Now is not the time for symbolic declarations of reform — we must give countries of the South a real voice in the institutions that set the rules,” he added.
Climate Action Linked to Debt Justice
Joven Z. Balbosa, Undersecretary of the International Finance Group, Department of Finance of the Philippines, speaking on behalf of the Like-Minded Group for Middle-Income Countries, underscored that climate action cannot be separated from debt justice. He called for the scaling up of debt swaps for climate goals, and welcomed the Sevilla Commitment’s recognition of the specific vulnerabilities of middle-income nations. In his national capacity, he reaffirmed the contributions of migrants, emphasized the need to further reduce remittance transaction costs and stressed the continued importance of official development assistance (ODA).
José Manuel Albares Bueno, Minister for Foreign Affairs, European Union and Cooperation of Spain, underscored his country’s commitment to ODA, and called on all partners to achieve the 0.7 per cent goal. His country has incorporated this goal into its cooperation policy. While the Sevilla Commitment affirms the importance of mobilizing national resources and combating illicit financial flows, “Sevilla is not the end of the road”, he stressed, highlighting the need for a follow-up mechanism to ensure accountability and guarantee results.
Focus on Best Use of Official Development Assistance
Many speakers from donor countries pointed to the need to reflect on how best to use ODA going forward. “Let me be clear: Ireland is not cutting its development budget,” said Neale Richmond, Minister of State at the Department of Foreign Affairs and Trade of Ireland, noting that ODA is especially critical to the most vulnerable communities. He highlighted his country’s ODA investments in maternal and newborn health and stressed that it is “absolutely committed” to the 0.7 per cent target. At the same time, it is necessary to consider how to make ODA more impactful, he said.
“We need to be clear-eyed,” stressed Christopher MacLennan, Deputy Minister for International Development and Global Affairs of Canada. The current international aid architecture is “complex, costly and duplicative”, he said, also noting the “significant pressure on aid budgets”. Calling for efficiency and impact, he said that holistic and adaptable resource mobilization is a priority for his country. Stressing the importance of multilateral development banks and private capital mobilization, he noted his country’s contribution to the Sevilla Platform for Action: the Common Principles for Private Capital Mobilization. The Principles will serve as a call to action, as well as a road map for Canada and others to mobilize private capital for sustainable development.
Good Governance, Gender-Responsive Approaches Also Crucial
“Financing problems are at the heart of the current sustainable development crisis,” said Patricia Danzi, Director-General of Switzerland’s Agency for Development and Cooperation, but “more financing alone will not solve everything”. She highlighted the immense untapped potential of non-financial measures, such as strengthening good governance and systematically improving the participation of women and girls in decision-making. Along similar lines, Melita Gabrič, Deputy Minister for Foreign and European Affairs and Minister for Development of Slovenia, said that “human rights and the 2030 Agenda [for Sustainable Development] are mutually reinforcing”. She called for gender-responsive approaches across the financing for development agenda.
Steven Collet, Vice-Minister for Development of the Netherlands, welcomed the increased use of ODA as a means to mobilize other sources of finance. “Additionality is key here,” he said, adding that, while ODA will remain an important element of development assistance, “we must acknowledge its evolving role”.
“ODA should be depoliticized and geared towards Sustainable Development Goals achievement,” stressed Aleksandr Pankin, Deputy Minister of Foreign Affairs of the Russian Federation. But, the largest donors and international financial institutions are denying support to entire regions “while disbursing disproportionally large sums to the Kyiv regime”, he said, adding: “Kyiv is receiving more than all of Africa from the World Bank.” While the Sevilla Commitment is “a good enough basis” for working together, the agreement does not cover many important issues. Its success depends on whether the international community can avoid distortions and political agendas in its implementation, he underscored, adding: “We are not optimistic.”
However, Sigitas Mitkus, Vice-Minister of Foreign Affairs of Lithuania, said that the Russian Federation’s war against Ukraine has inflicted unimaginable suffering on the latter country’s people. Ukraine has lost 15 years of development progress, pushing millions of its citizens into poverty and displacement, both internally and abroad. This war has also greatly affected the global fight against poverty, causing regress in development well beyond Ukraine and the entire European continent, he added.
Speakers Share National Experiences to Overcome Development Challenges
Several speakers today shared their national experiences, and how they tackled challenges. Among them was Alexandra Hill Tinoco, Minister for Foreign Affairs of El Salvador, who highlighted her country’s transformation as an example of what is possible — just a few years ago, El Salvador was known as a violent country, “the country of death”. But, today, it is one of the safest countries in the Western hemisphere, and recently signed an agreement with the International Monetary Fund (IMF) — this demonstrates the world’s confidence in the soundness of the country’s public finances. But, “we are not here to virtue-signal, we don’t come to boast,” she said, adding that international cooperation must measure up to national challenges.
Paraguay’s delegate highlighted his country’s macroeconomic stability and significant reduction in poverty — it also achieved the highest economic growth on his continent in the last few years. The country’s position “at the heart of South America” compels it to be “a motor of inter-American integration”, but the lack of access to sea prevents its gross domestic product (GDP) growth by 1.5 per cent. Reaffirming Paraguay’s commitment to trade, he opposed all unilateral measures that undermine trade.
Sim Ann, Senior Minister of State for Foreign Affairs and Home Affairs of Singapore, highlighted her country’s efforts in job creation and leveraging digitalization. Noting the need for 600 million new jobs by 2030 to keep pace with demographic changes, she said jobs are a key engine of growth while digitalization is an indispensable catalyst for development. Public finance must be channelled “in a disciplined and strategic way”, she said, adding that Singapore is investing in its people, including by bolstering life-long learning.
Former Aid Beneficiaries Turned Donors Highlight Importance of Supporting Others
Matsumoto Hisashi, Japan’s Vice-Minister for Foreign Affairs, highlighted the role of both “self-help and solidarity” in national development trajectories. After the Second World War, Japan achieved reconstruction with international support, later becoming a major donor. He highlighted the work of the Japan International Cooperation Agency, as well as Tokyo’s technical cooperation to improve legal and institutional frameworks and spur business development. This “virtuous cycle” by which beneficiaries become donors must be fostered, he said.
A former small island developing State, Cyprus is “acutely aware” of vulnerabilities faced by small, climate-exposed economies, said Andreas S. Kakouris, State Secretary and Permanent Secretary of the Ministry of Foreign Affairs of that country. Water scarcity, biodiversity loss, economic dependence on external factors – these vulnerabilities are not abstract; they translate into real and persistent obstacles, he added. Located at the crossroads of Europe, the Middle East and Africa, Cyprus has also endured foreign aggression and occupation, and understands the “fragility of peace”, he added. This legacy informs his country’s firm commitment to inclusive development, he said, highlighting the work of CyprusAid, launched in 2024. Reaffirming commitment to a future where no one is left behind, he said the Sevilla Commitment “cannot just be one more document or another agreement […] but a compass that leads to real, measurable progress and implementable action, especially for those most in need.”