Objectives of the session

The debate will revolve around the implementation of the

Habitat Agenda with a special focus on its adequate financ-
ing including exploration of viable innovations, synergic
mechanisms and new partnerships to be proposed ahead of
Habitat III.

The overall objective will be:

To contribute to developing a common understanding
about the catalytic and multiplying effects of coordinat-
ed donors investments in sustainable urban develop-
ment to achieve the overall development goal.
To outline current challenges and comparative advan-
tages within the existing framework of financing instru-
ments for sustainable development, and specifically pro-
pose innovative means to finance a reinvigorated urban
agenda.
To promote increased coordination and cooperation of
development actors at the urban level encouraging syn-
ergy and new partnerships, in order to effectively and
SPECIAL SESSION efficiently allocate available resources.

WUF 7 CONCEPT NOTE Moreover, this special session is expected to constitute a

valuable substantive contribution to the global debate of

SPECIAL SESSION financing for development within the Post-2015 Devel-

opment Agenda.

ON FINANCING Ahead of the definition of a new urban agenda in 2016, it

will specifically advocate for a clear financing framework and
bridging of current funding gaps.

THE NEW URBAN Introduction of the topic

AGENDA
Since the elaboration of the Urban Agenda in 1996, thanks
to the strengthened role and advocacy efforts of Habitat
agenda partners, the focus on urban poverty in the devel-
opment agenda adopted by international donors, multilat-
eral and regional banks has experienced a relatively good
increase.

In recent years the World bank, regional development banks

as well as a number of country Development cooperation
agencies have set up or strengthened urban departments
within their organizational structure with increasingly spe-
cialized expertise and portfolio of funds, to plan interven-
tions to counter the so called urbanization of poverty in
developing countries.

Regardless of this trend, the urban agenda still has a long

way to go to position itself centrally in the Global develop-
ment agenda, acquiring adequate finance levels for its status
as a principal development driver that goes far beyond the
mere framework of urban poverty reduction strategies.

As of 7th March, 2014

SPECIAL SESSION ON FINANCING THE NEW URBAN AGENDA
Despite the scarce availability of reliable data on funds ac-
tually allocated to the implementation of the Urban Agenda,
it is legitimate to argue that, not all resources and funds al-
located to interventions within the urban perimeters can be
considered funding towards implementing the urban agenda.
In fact it is clear that in many cases a coherent linkage with
the sustainable urban development dimension is missing and
consequently the efficient harnessing of its full potential.
With the given scenario, accelerating progress towards the
implementation of a renewed urban agenda will require a
broad base of financing sources and mechanisms, including
upholding existing commitments for Financing Development
from traditional donors and strengthened contributions from
all Habitat Agenda partners.
Investment of available resources should also be oriented to
trigger catalytic effects, scaling up the use of mechanisms that
leverage additional development finance including mobiliza-
tion of domestic resources, for example through strengthening
financial management and tax systems at the national and
local level.
Public-private partnerships within clear policies and account-
ability frameworks should be encouraged, especially in the
field of urban infrastructures and service provision.
Urbanization processes guided by the notion of urban equity
will help to mobilize public subsidies and income generated by
land regularization as well as the added values resulting from
planning and servicing of converted areas, towards advancing
the right to the city for all.
This session will demonstrate that correct investment on sus-
tainable urban development, regulated by effective and inclu-
sive policies from credible institutions, can foster economic
growth and development. For the same reason all concerned
actors are called to contribute to design and support a coordi-
nated financing framework to be articulated ahead of the new
urban agenda.
As of 7th March, 2014
Linkages with Post-2015 Development Agenda
and Habitat III
The linkage of the sessions topic with the on going Post-2015
Development Agenda is strong and the debate will borrow
from the progress registered so far in the global process, start-
ing with the outcomes of Rio + 20, while striving to contrib-
ute to it through gathering valuable inputs from the sessions
debate.
The session will also contribute to promoting the coherent
frameworks of coordination auspicated by the UN system for
the Post-2015 Development Agenda, hopefully resulting in im-
proved mobilization and more effective allocation of resources
for development.
The substantive outcomes of the session will consolidate
knowledge and understanding towards the creation of a fi-
nancing framework for the new urban agenda in 2016.
Key interrogatives
Is the current level of funds allocated to sustainable urban
development within main donors programming adequate
to its importance as a driver of development?
Is the current proportion of funds allocated to the urban
sector aligned to the notion of sustainable urbanization
and consistent with the goals and principles of the Urban
Agenda?
What are the available financing instruments for sustain-
able urban development and how effective they have been
so far?
What other funding opportunities are emerging in a gen-
eral framework of reduced ODA (Official Development As-
sistance)?
Why would increased funding for sustainable urbanization
accelerate development?
Which are the relevant synergies to put in place ahead of
Habitat III in 2016?
What are the emerging innovative funding mechanisms to
further explore and recommend within the framework of
the implementation of the new urban agenda?
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SPECIAL SESSION ON FINANCING THE NEW URBAN AGENDA

References Format of the debate

The Habitat Agenda: Goals and Principles, Commitments
and Global Plan of Action. UN Habitat 1996
Financing for Development Post-2015, the World Bank
Group 2013
UN System Task Team on the Post-2015 UN Development
Agenda: Financing for Sustainable Development in the
Global Partnership Beyond 2015
Intergovernmental Committee of Experts on Sustainable
Development Financing1
DESA World Economic and Social Survey 2012: In Search
of New Development Finance
Doha Declaration on Financing for Development
A high-level panel of representatives from Development banks,
UN system, Private sector, Development agencies and other
decision and policy makers, will gather for 2 hours, bringing
their experience and perspectives to the audience on a sub-
ject that cannot be articulated in isolation to the development
goals.
The special session, held in parallel with the ones on high-Lev-
el UN Interagency, South-South Cooperation and the Business
Roundtable also discussing means of implementation of the
urban agenda will converge in a joint plenary where the
respective conclusions will be presented resulting in a moder-
ated open discussion with the audience.

1 The Committee was established in follow-up to the outcome of

the UN Conference on Sustainable Development (Rio+20) with
a mandate to prepare a report proposing options on an effec-
tive sustainable development financing strategy to facilitate the
mobilization of resources and their effective use in achieving
sustainable development objectives. To this end, the Commit-
tee was tasked to asses financing needs, consider the effec-
tiveness, consistency and synergies of existing instruments and
frameworks and evaluate additional initiatives. It will conclude
its work by 2014.

As of 7th March, 2014 Page 3