President, Excellencies, distinguished Members of the Executive Board,

Let me be candid. UNCDF has reached a moment of consequence.

FfD4 made clear the need to mobilize capital for LDCs perceived as high risks. It also recognised the unique role that UNCDF has to play in financial derisking underserved markets. And that was done because of the recognition that without that type of financial derisking, no amount of pipeline development will be sufficient to crowd in the private capital that Seville asked for. The evidence is clear.

Four years ago, confidence in this organization began to wane. When I came in two years ago, I understood why. We responded with action.

And the result today is an organization with two years of clean audits, balanced books and a renewed focus to address the capital gap that is essential to meet the market development and capital flows necessary for LDCs to meet their development objectives.

In 2025 we began to function true to mandate. The proportion of capital deployed in LDCs grew. We answered the call to support the UN development system. The MPTF is the largest funding instrument. We are scaling up our partnership with UNDP, UNICEF, UNEP, WFP to name a few.

That said, core funding is not moving in the required direction.

And I would fail in my responsibility if I did not sound the alarm.

Core funding is below $5 million against an annual requirement of $15 million. Six member states have responded to date.

SIX

To Switzerland, Luxembourg, the Netherlands, Austria, China and Thailand: thank you.

However, the limited amount of core we currently have risks undermining governance. I cannot make it clearer.

The remaining resources we do receive largely arrive as earmarked. As that share grows, priorities increasingly follow those resources. What that means is this Board risks having less room to shape the institution it governs.

I do not believe this is the future you intend.

Yet without action, it is the future taking shape. I have to admit - it is challenging to meet needsof the underserved with this limited level of core.

If a barrier remains, name it. If doubts remain, test us. If further changes are required, guide us.

UNCDF is ready.

Please take this proposition back to your capitals. Join the six who have already shown support.

For if you want UNCDF to effectively function in support of the FfD4 consensus, fund the part that makes it yours.

Thank you.