Laurent Matile

In October 2023, the OECD Development Assistance Committee (DAC) took a decision that has largely escaped public notice. It is about including "private sector instruments" in development financing, and could hold far-reaching implications for the poorest countries in the South.

In 2015, governments committed to aligning financial flows with the climate objectives of the Paris Agreement. Where do things stand with implementation? What is Switzerland doing? A stocktake.

Even at the height of the climate crisis, gas mega-projects are being mounted in Mozambique by oil majors, including TotalEnergies, in which the Swiss National Bank holds a stake. These projects are fuelling conflicts while not benefiting the people.

Since the UN Conference on Financing for Development in Addis Ababa in 2015, the international community has been almost at one in repeating the mantra: only by mobilising private finance will it be possible to fund the Sustainable Development Goals.

In signing the Paris Climate Agreement in 2015, the international community pledged, among other things, to orient financial flows towards a low-carbon economy. Switzerland is moving along that path – but in very small steps.

In late May, public prosecutors in Frankfurt searched the offices of Deutsche Bank and its asset management subsidiary DWS. The reason was presumed greenwashing practices. Time to ensure greater clarity in also Switzerland.

The invasion of Ukraine by Russian troops has thrown energy markets and geopolitics into chaos and forced many countries to rethink their energy supply arrangements. Over time, the race for “green minerals” will create new dependencies.

There is a new SECO initiative designed to mobilise private capital for developing countries. It raises several questions about governance and development impacts.

The right to a safe, clean, healthy and sustainable environment has been enshrined as a fundamental right in a resolution adopted by the Human Rights Council. Enterprises too fall within its scope.