Findings of the latest EU Accountability Report - Main contents

Encouraging progress on financing for development - with important work left to do

The annual EU Accountability Report on Financing for Development has just been published on the European Commission's website. The Report monitors the progress the EU as a whole makes on its collective commitments on financing for development. This year's edition is particularly important for two reasons:

First, because it comes at a crucial juncture in the international negotiations ahead of the Third Financing for Development Conference in July, the UN Summit to adopt the new Sustainable Development Goals in September and the COP21 Climate Conference in December. As we work towards a new global framework for sustainable development, the Accountability Report is a very valuable source of information on the EU's contribution so far, and of inspiration for the future.

Second, because it includes a comprehensive overview of progress - reviewing the entire series of reports from 2002 to 2013 - together with new information on progress in 2014.

The overall picture coming out of the report is encouraging: 23 out of 41 EU commitments have been met or are on track to be met. 9 areas are partially off track and could still be met. But that means, of course, that there is still important work to be done.

The EU and its Member States have been consistently leading the way internationally in development financing: Between 2000 and 2014 EU Official Development Assistance (ODA) to developing countries, increased by nearly 70% or over €20 billion. This represents the largest increase among 'traditional' donor countries. Collective EU ODA, forecast to be 0.44% of Gross National Income in 2015, is significantly above the average of other donors reporting to the Organisation for Economic Co-operation and Development. We remain globally the single largest provider of financial support for the developing world, with our ODA amounting to EUR 58.2 billion in 2014. At the same time it is clear that as a result of the economic crisis we have fallen behind on our ambitious targets - we can, and must, do more and do it better.

The EU is a doing very well on trade-related assistance and aid for trade, as well as on fast-start finance on climate change. We also have a good track record on helping improve domestic resource mobilisation particularly in Middle-Income Countries.

The EU has been pioneering innovative and new financial resources and blending public and private finance for sustainable development in recent years, and this is paying off: over €1.3 billion annually is now raised through innovative financing sources and EU blending has helped to unlock investments worth an estimated €44 billion in EU partner countries.

The report explains what the EU does to encourage the EU private sector, a key partner for development, to invest in developing countries. This has been enhanced through considerable progress on Corporate Social Responsibility, where the EU is one of the global leaders.

In science, technology and innovation, the EU has promoted cooperation with developing countries in agriculture and food, health and clean energy. The latest EU research and innovation framework programme, Horizon 2020, is open to partners from developing countries.

The findings of this Accountability Report are a useful tool as we move into the final stretch of negotiations for the important international conferences later this year. The EU stands ready fully play its part in the post-2015 discussions as recently underlined by the Council Conclusions of 26 May, which unequivocally reaffirmed the EU's collective commitment to financing for development. We will continue to help to provide the finance needed to support sustainable development and improve the lives of people living in the poorest countries. At the same time, it is critical that the full range of means of implementation are successfully put to work to support the future framework: financial, non-financial and from a variety of sources and actors; domestic and international, public and private.

The universality of the new development agenda will require transparency and regular review of progress from all. A solid monitoring and accountability framework for all partners will be essential for the success of the SDGs and should form an integral part of the post-2015 agenda. Today’s report is a very good starting point for the EU to assess what we do well, and what we must do better or differently in the post-2015 context.

The full report is available at: https://ec.europa.eu/europeaid/eu-accountability-report-financing-development-2015_en