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Financing sustainable development - The critical role of risk and resilience
With a growing recognition, in the post-2015 development agenda, of the need to build resilience to a broad suite of shocks, the necessary financing must be considered. It is imperative that this goes beyond Official Development Assistance (ODA) or domestic public finance to include all future investments, ensuring that they do not lock-in or introduce risks. If the anticipated $90 trillion in infrastructure investment over the next 15 years is not driven by low-carbon and climate resilient choices, the pace of climate change – and vulnerability to it – could increase dramatically. More remains to be done to ensure that all development finance (especially that spent in fragile and conflict-affected contexts) is risk-informed, and that financial flows adequately consider risks and build resilience. This report makes a case for financing that directly manages risk and builds resilience. It highlights that all forms of finance – including public and private, domestic and international – have a role in such an effort and demonstrates this through examples in key development themes. It ends by noting some of the operational aspects of how this might be achieved and development safeguarded.