The Paris Pact for People and the Planet (4P)

The four main principles of the Paris Pact

• i) No country should have to choose between its development and the preservation of the planet.
• ii) Every country is free to adopt its own transition strategy to achieve the objectives of the Paris Agreement.
• iii) A significant increase in public financing is necessary to fight poverty while protecting the planet.
• iv) Private financing must be redirected and mobilized on a massive scale to support these objectives.

On the basis of this political consensus, a community of States came together with the aim of carrying out an ambitious reform of the international financial architecture in order to quickly raise the financing needed to effectively fight against climate change and poverty.

The Paris Pact is now supported by 57 States [1] across the world – developed and developing countries, small island States and large emerging economies alike.

Background of the 4P (Paris Pact for People and the Planet)

The combined effects of the COVID-19 pandemic, conflicts, climate change and natural disasters have created a world where poverty and inequality are on the rise and where progress towards the Sustainable Development Goals (SDGs) is not forthcoming.

The annual SDG investment gap has grown considerably, reaching $4.2 trillion after the COVID-19 pandemic. To achieve carbon neutrality by 2050, global clean energy investments will need to triple and an annual $2.2 trillion to $2.8 trillion will be required to bring about the energy transition and counter climate change in emerging and developing countries.

But rising inflation and interest rates, unsustainable debt burdens, trade tensions and other external shocks have considerably reduced countries’ fiscal space.

According to the United Nations’ report on the SDGs for 2023, we must:

• Tackle the high cost of debt and the growing risks of debt distress
• Massively scale-up affordable long-term financing for development
• Expand emergency financing to all countries in need

In light of this context, the French President invited our international partners to Paris to encourage closer multilateral cooperation in order to tackle shared challenges, restore trust and achieve rapid results for the planet and its peoples.

The aims of the 4P

The 4P offers an inclusive forum where participating countries can discuss and build a strategic agenda, helping to guarantee that negotiations and discussions held in other multilateral forums – such as COPs, the governing boards of multilateral development banks and the IMF, the G7 and the G20 – converge within a coherent programme of action for development, the climate and nature.

The 4P is also a platform where all members can propose initiatives contributing to the general goal of increasing the financing available for the climate and development. For example, Kenya, France and Barbados collectively launched the International Tax Task Force, which aims to identify potential international levies for the financing of global public goods by COP30.

The 4P also serves to amplify this conversation, connecting the various aspects of the programme to reform the international financial architecture. It publishes regular reports highlighting progress made and identifying shortcomings in the efforts of the international community. It also draws attention to the efforts made by individual countries and their initiatives, helping them to mobilize more support and increase their impact.

How does the 4P work?

The member States of the 4P convene regularly for implementation committee meetings. An independent secretariat was created in January 2024 to facilitate the work of these committees and ensure that the objectives of the Pact are correctly implemented. The Secretariat is hosted at the OECD.

The 4P also gained a representative in April with the arrival of the 4P Special Envoy: Macky Sall, former President of Senegal. The Special Envoy represents the 4P and its positive agenda on the international scene, helping to reinforce political traction for its implementation. He has committed to expanding the inclusivity of the 4P, as well as the impact of its actions.

Some examples of progress brought about by the 4P:

• Improved consideration of environmental and climate issues through the World Bank’s new vision focusing on major global challenges, and its decision to devote 45% of all its financing to the climate

• Additional financing unlocked by improving development banks’ operational model and setting a target of an additional $300 billion to $400 billion in loans over the next decade

• Increased representativeness of major international financial bodies by establishing the third African seat on the IMF Executive Board