The conflict in the Middle East is affecting food costs in many parts of the world. UN report: Funding gap threatens achievement of Sustainable Development Goals Conor Lennon Sustainable Development Goals
Rising conflicts, the climate crisis and declining development finance are increasing pressure on the poorest and most vulnerable countries, pushing development goals further back.
This is stated in the new UN report “Financing Sustainable Development – 2026”, presented on Monday. It notes that four years before the deadline for achieving the 2030 Agenda for Sustainable Development, progress has stalled and in some cases even reversed amid the impacts of the COVID-19 pandemic, rising geopolitical tensions and increasing climate impacts.
According to the report, development financing is under severe pressure at a critical time: A quarter of developing countries still have per capita income below pre-pandemic levels, and some 3.4 billion people live in countries that spend more on debt servicing than on health or education. services.
At the same time, global trade tensions and rising tariffs are increasing economic pressure, especially on least developed countries.
Signs of resilience
Despite the gloomy forecasts, the report shows signs of resilience. In 2025, global economic growth exceeded expectations, trade between developing countries (so-called “South-South trade”) has expanded significantly over the past two decades, and investment in renewable energy reached a record level of $2.2 trillion in 2024, twice that of fossil fuels.
However, the authors emphasize that without urgent action, this progress will not be sustainable. They estimate that the annual financing gap in developing countries reaches four trillion dollars. The report calls for accelerating implementation of the Seville Commitment (a 2025 global agreement to expand financing for development) as the most realistic and only way to return to its previous trajectory.
Key priorities include increasing investment, strengthening multilateral cooperation, modernizing the international financial system to strengthen the role of developing countries, and building resilience to shocks.
Without renewed global cooperation and political will, the report’s authors warn, achieving the Goals will not achieve sustainable development and build a more equitable future. Guterres said conflict in the Middle East was increasing development risks.
“We are seeing in real time the impact of war on the cost of fuel, fertilizer and food,” he said, “as well as on trade, transport and tourism.”
Rising energy prices, slowing economic growth and depreciating currencies are further adding to the debt burden of developing countries, he said. The UN chief identified three key areas for reducing the financing gap, which is now estimated at four trillion dollars.
First, he proposes to “accelerate the work of financial mechanisms” – to harness the potential of multilateral development banks and create new public-private financial initiatives. Second, reform the debt management system, including mechanisms for debt relief and “rethinking” the credit rating system. And thirdly, it insists on the need to reform the international financial architecture so that it reflects the modern structure of the world economy.