On 8 October 2025, the United Nations Headquarters in New York hosted the launch of the 2025 Financing the United Nations Development System Report, co-organized by the Dag Hammarskjöld Foundation (DHF), UNDP Multi-Partner Trust Fund Office (MPTFO), and the Permanent Missions of Kenya and Sweden to the UN.

The event convened Member State representatives, UN agencies, and development practitioners to examine the trends in development financing based on the latest official data in 2023—and their implications for the UN’s reform and funding landscape.

Opening Remarks: A Call for Strategic Reform

Mr. Alain Noudehou, Executive Coordinator of MPTFO, opened the event by highlighting a 9% nominal decline in UN development funding, from $74.3 billion in 2022 to $67.6 billion in 2023. He emphasized the urgency of sustaining momentum around mechanisms like the Funding Compact, and called on Member States to prioritize flexible, quality funding for achieving the 2030 Sustainable Development Goals (SDGs). He underscored the value of pooled funding as an innovative, transparent and efficient channel for delivering resources to implementing partners.

Mr. Bjoern Holmberg, Executive Director of DHF, echoed the importance of inter-agency pooled funding over fragmented, single-agency approaches. He stressed that collaboration among partners is essential to achieving systemic impact.

The Assistant Secretary-General at the UN Development Coordination Office, Mr. Oscar Fernandez-Taranco, described the report as a “sobering picture” of the current development landscape, with SDGs off track and funding shrinking at an unprecedented pace. He advocated for a shift in the UN’s role—from project implementers to strategic policy advisors—and urged Member States to move away from tightly earmarked contributions toward core, thematic, and pooled funding. He also called for predictable, multiyear financing to support country-level development strategies and national priorities.

The Assistant Secretary-General’s view about the report’s relevance to system-wide reform was supported by the Permanent Representative of Kenya to the United Nations, Ambassador Erastus Ekitela Lokaale, and Ambassador Nicola Clase, Permanent Representative of Sweden to the United Nations. The Swedish Representative also stressed the importance of making unearmarked funding more appealing, promoting national ownership via the Resident Coordinator system, and ensuring transparency through reporting.

Report Presentation: Key Findings

The second segment of the event focused on the report’s findings. MPTFO colleagues presented Part I, which analyzed how UN resources are generated and allocated. Key insights, in addition to the nominal decline in UN system revenues to $67.6 billion, included:

• UN expenses reached a record high (largely due to record revenue in the preceding year), but three out of every five dollars were earmarked, constraining th ability of the UN system to adapt flexibly to sudden crises.
• Humanitarian expenses, while declining year-on-year, still accounted for 45% of total spending by the UN system, responding to Member States’ most pressing needs, in the most challenging contexts.
• Pooled funding contributions declined for the second consecutive year, from $3.3 billion to $2.8 billion.

Mr. Hendra, Senior Advisor to the Dag Hammarskjöld Foundation, outlined four strategic pillars for reframing global development cooperation: localization, mutual interest, human security, and the UN’s core role in fostering international understanding and interconnectedness. He warned that excessive earmarking leads to fragmentation, and potentially undermines the UN’s ability to deliver coherent support.

Ms. Alvarez, UN Coordination Advisor at UN Women, focused on gender financing, noting progress in the use of gender markers and the upcoming implementation of the mandatory Gender Equality Marker (GEM) reporting in 2026. She emphasized that tracking is only the first step toward accountability, and that targeted funding must be paired with broader gender equality goals.

Open Discussion: Member State Reflections and Innovative financing

The open discussion allowed Member States and contributors to share reflections and raise critical questions.

Among partners taking the floor, Zimbabwe’s Ambassador emphasized the importance of pooled funding, sharing an example of a country-level renewable energy project to propose leveraging private sector investment in order to de-risk development financing.

Supporting this view, South Africa’s Ambassador called for targeted strategies to enhance private sector engagement. She also raised two additional concerns: donor reluctance toward pooled funding mechanisms, and the need to expand national fiscal space.

Ireland’s representative echoed concerns about fragmentation and earmarking, announcing a €30 million increase in its Official Development Assistance budget.

The European Union Ambassador emphasized the importance of accountability and supported deeper engagement with the private sector.

Closing Reflections: A Shared Responsibility

The event concluded with a unified call to action: to scale up core and pooled funding, , and invest in innovative financing mechanisms to accelerate SDG progress. The report and discussions made clear that while the UN faces unprecedented financial and operational challenges, a path forward for a stronger UN system exists—rooted in strategic collaboration, flexible funding, and a shared commitment to constructive reform.

Access the report here.