Mister President, dear Secretary General, Excellencies, distinguished Delegates,

I have the honour to speak on behalf of the European Union and its Member States. We welcome the 2022 World Investment Report, which responds well to our expectations on quality research and publications from UNCTAD.

We are happy to note the observed rebound of global FDI flows. Even if admittedly, from exceptionally low levels registered in 2020 due to the COVID-19 pandemic. 2020 was an unfortunate, yet a valid demonstration of the importance of predictable and stable business and investment climate for FDI flows. Deplorably, the Russian invasion into Ukraine is at the origin of global economic uncertainties that put significant downward pressure on global FDI in 2022, as clearly put by the report. In addition to the unnecessary loss of innocent lives and destruction of productive infrastructure Ukraine, this global downward economic pressure caused by the Russian war is further squeezing the limited fiscal capacity of developing countries, which are already overstretched after dealing with the pandemic and climate change impacts.

Investment flows into developing countries are a crucial financing for development component. The immense financing needs for delivering on the 2030 Agenda simply cannot be reached by public sources alone – be it domestic or international. The figure I.8 of the report clearly demonstrates this. In this sense, we are happy to read in the report that there has been an observable increase in SDG investments, in particular in renewables. As well as the momentous increase in sustainability-themed investment products, in particular in the EU, which confirms the SDG commitment of EU governments and businesses.

Indeed, the EU and its Member States are strongly committed in further boosting investments that deliver on the 2030 Agenda. The €300 bn Global Gateway initiative is specifically aiming to boost investments in digital, climate and energy, transport, as well as health and research infrastructure in our partner countries. For instance, we are contributing to the Continental Power System Masterplan, creating electricity interconnections between the five African power pools – for instance between DRC and Zambia, Zambia and Tanzania, and Angola and Namibia. We are developing strategic multi-country transport corridors across Africa, from Egypt to South Africa. And we do all this through a combination of grants and highly concessional loans, as well as through the Global Green Bond Initiative and by re-channeling part of the EU’s Special Drawing Rights to Africa and to other vulnerable countries.

We also note the registered increase of regulations that are arguably less favourable to FDI flows. Unfortunately, Russia’s invasion of Ukraine and breaching the Charter of the UN and the international law, is at the origin of 70% of these measures at the beginning of this year, as outlined by the report.

As for the rest of the measures, we should highlight the crucial importance of the investment facilitation talks at the WTO. As the Trade Facilitation Agreement has demonstrated, such deals within the WTO can have a remarkable impact for trade and development by ensuring transparency and predictability for the economic actors. Just like for the trade facilitation work, we commend UNCTAD’s engagement in investment facilitation.

We also welcome the analysis of the impact on FDI of the global minimum tax agreement within the context of the G20/OECD BEPS project and through discussions in its Inclusive Framework with participation of 141 jurisdictions. This has been an important agreement and we must now see how best to ensure its effective implementation. And indeed, as the reports highlights, no country can afford to ignore these changes.

In conclusion, we would like to thank again the Division on Investment and Enterprise for preparing a highly relevant and clear research product.

Thank you.