In the face of the food and energy crises, the uncertain outlook for the global economy, and the growing impact of climate change, a sustainable industrial transformation is needed.

This is stated in a new report by the UN Department of Economic and Social Affairs (UN DESA). The authors call on governments to expand international cooperation and mobilize resources to accelerate the energy transition.

In 2023, the global cost of the energy transition exceeded investment in fossil fuels and reached a record $1.1 trillion. Despite significant increases in sustainable financing, most developing countries still lack sufficient resources and productive capacity. Reforming the international financial system and increasing investment in developing countries is an imperative to achieve the SDGs.

As part of the reorganization of the international financial architecture, the authors propose:

• establish international tax requirements for digital business that meet the needs of developing countries;
• establish policy and regulatory frameworks to stimulate the development of environmentally responsible initiatives;
• changing the scope and mission of the development bank system;
• Establish a fund to compensate for losses and damages due to climate change;
• revise the rules for managing external debt obligations;
• Establish multilateral trade rules that encourage green projects.