A Bold Step Towards Scalable Development Finance
At the Fourth International Conference on Financing for Development (FFD4) in Seville, a transformative initiative was unveiled in the Seville Platform for Action (SPA): A Joint Declaration on Partnership Opportunities between Institutional Investors and Multilateral Development Banks.
Endorsed by the governments of the Netherlands, Norway, Sweden, Denmark, Finland, Iceland, and the United Kingdom, in collaboration with ILX, the SPA represents a pivotal moment in the evolution of development finance. The SPA aims to unlock the vast potential of private capital—particularly from pension funds—for sustainable and climate-focused investments in Emerging Markets and Developing Economies (EMDEs).
“Development finance is not a niche market—it’s a scalable, investable high-impact asset class.”
Why the SPA Matters
Despite nearly a decade of effort since the Addis Ababa conference in 2015, the ambition to mobilise private capital at scale for the Sustainable Development Goals (SDGs) remains largely unmet. The SPA seeks to change that by translating the outcomes of Seville into concrete, results-oriented actions.
With over EUR 15 trillion in European pension fund assets, the opportunity to bridge the investment gap in EMDEs is immense. Multilateral Development Banks and Development Finance Institutions (DFIs) are uniquely positioned to create attractive, scalable investment opportunities aligned with global sustainability and climate goals
Key Actions Outlined in the SPA
🔹 Scaling Up Innovative Investment Vehicles
The SPA supports funds and platforms that offer standardised, large-scale investment opportunities tailored to institutional investors
🔹 Enhancing Data Transparency
The initiative calls for improved data platforms such as GEMs, which provide insights into EMDE investments, including credit risk and return data. This transparency builds investor confidence and demonstrates that development finance can deliver risk-adjusted returns with measurable impact
🔹 Fostering Co-Investment Opportunities
The SPA encourages collaboration between MDBs, innovative asset managers, and institutional investors. Initiatives like ILX exemplify how co-investment can be scaled to meet global development needs
🔹 Standardisation and Originate-to-Share Models
The declaration advocates for MDBs to adopt originate-to-share approaches and to standardise legal, origination, and reporting processes to make development finance more accessible and efficient
🔹 Supporting Institutional Investors
Governments commit to equipping their institutional investors with the necessary knowledge, data, and regulatory frameworks to invest confidently in development finance
Looking Ahead
The SPA is not merely a declaration—it is a call to action. It reflects a shared commitment to reimagine development finance as a mainstream, scalable asset class. By aligning global capital with the urgent needs of our planet and its people, the SPA sets the stage for a new era of impactful investing.
As the momentum from Seville carries forward, the challenge now is to turn these commitments into tangible outcomes. With continued collaboration and innovation, the SPA could become a cornerstone in the global effort to finance sustainable development.