Pacific Leaders Demand Fairer Global Finance At UN Conference Delivered By The Prime Minister Of Tuvalu, Chair Of PSIDS

Seville, Spain, 30 June 2025 – At the second plenary session of the 4th International Conference on Financing for Development (FfD4), Tuvalu’s Prime Minister Hon. Feleti P. Teo, in his role as Chair of the Pacific Small Island Developing States (PSIDS), delivered a powerful group statement calling for urgent reforms to the global financial system.

“The choice before us is stark: stand with the most vulnerable and deliver justice, or uphold a flawed system that deepens inequality and crisis,” declared Prime Minister Teo.

Amid rising climate threats, deepening debt crises, and a widening development financing gap, the PSIDS group urged bold global action across six key areas:

1. Climate Justice Now: Prime Minister Teo questioned the lack of urgency, asking, “Where is the Marshall Plan for climate action?” and called for scaled-up climate finance and immediate replenishment of the Loss and Damage Fund.
2. Targeted Support for Vulnerable Countries: The PSIDS welcomed the reaffirmation of SIDS as countries in special situations and pushed for the immediate use of the Multidimensional Vulnerability Index (MVI) in allocating concessional finance.
3. Tackling Inequities in Global Taxation: The group supported a UN Framework Convention on Tax Cooperation, advocating for fair taxation of billionaires and multinationals, with PM Teo stating, “A 2% tax on billionaire wealth could unlock $250 billion annually — enough to start closing global financing gaps.”
4. Restore Correspondent Banking Access: The group called for concrete action to protect vulnerable jurisdictions in the Pacific from losing vital international banking relationships.
5. Financing the Ocean Economy: Reaffirming that the ocean is core to PSIDS identity, the group demanded that ocean initiatives — like SDG14 and the BBNJ Agreement — be fully funded and integrated into global mechanisms.
6. A Just Transition from Fossil Fuels: Disappointed by the removal of fossil fuel phase-out language from the outcome document, the PSIDS called for a “just, equitable, and time-bound global phase-out.”

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“PSIDS contributed negligibly to this emergency — yet here we are, bearing its full cost,” Prime Minister Teo reminded delegates.

The Pacific Small Islands Developing States PSIDS, endorsed the Sevilla Platform for Action as a critical tool for follow-through, while also expressing concern over the dilution of ambition in the final outcome document. “What we need now is not more plans, but political will, bold leadership, and relentless implementation,” said Prime Minister Teo in closing.

As small island nations with vast ocean territories and deep cultural resilience, the PSIDS continue to advocate for a global financing system that is fair, future-focused, and fit for purpose.

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