A rural community facing drought needs several things at once to bounce back: food support, a functioning clinic, resilient crops, clean energy access, a repaired school, and protection from the next climate shock. But none of those things happen without one essential ingredient — a steady stream of money to pay for it all. 

Debates about budgets and financial policy can lose sight of the fact that investing money is one of the most surefire ways for governments to save lives — by helping children stay in school, keeping clinics open, supporting farmers, and protecting communities from devastating climate shocks. 

And that’s why this year’s G7 summit matters. The apex of the G7’s entire political calendar happens this June at the Leaders’ Summit, where Heads of State have the opportunity to turn scattered progress throughout the year into clear political commitments.

It couldn’t come sooner. The world is confronting a dangerous convergence of shrinking aid budgets, escalating debt burdens, climate disasters, food insecurity, and widening inequality — all while the financing gap for sustainable development continues to grow. Against this backdrop, the June G7 Leaders’ Summit represents the most important moment of the year specifically for wealthy nations to demonstrate whether they are serious about protecting the finance that reaches people first.

First, the Basics — What’s the G7 Again?

The G7 is a group of major economies — Canada, France, Germany, Italy, Japan, the UK, and the US, with the European Union also participating as a “nonenumerated member.” It’s not a formal governing body, meaning it can’t actually dictate policy. But it does hold enormous economic sway, shaping political agendas and redirecting money flows worldwide. Though these countries make up only about 10% of the world’s population, they collectively account for just under 30% of the world’s total GDP. 

For decades, the G7 has been a high-profile venue for discussing solutions to international issues. Notable achievements include coordinating global responses to the 1970s energy crisis, the HIV/AIDS pandemic, the 2015 Paris Agreement, COVID-19 vaccine rollouts, and consistently, how much financial aid to provide to countries in need. 

Each country’s leader meets annually at the G7 Leaders’ Summit. But before leaders like French President Macron or UK Prime Minister Starmer gather, lower-level ministers covering topics like finance, development, environment, and health meet throughout the rest of the year to take a first crack at negotiating topics to champion at the Leaders’ Summit. 

Those ministerials matter because they build momentum for what G7 countries are willing to take action on. And what G7 leaders do ends up affecting the rest of the entire world. 

How Can the G7 Help Stabilize a World on Fire? 

Discussing these issues is important. But a little too often, ministers this year have leaned heavily on the idea that mobilizing private investment can fill the gap left by declining aid budgets. In reality, private finance alone cannot deliver many of the services and protections communities rely on most.

Just look at the math, and consider the following:

• Official development assistance (essentially foreign aid) fell by 23.1% in 2025 compared with 2024 — the largest contraction in a single year on record.
• Developing countries face a $4.3 trillion annual budget shortfall for sustainable development — including $1.8 trillion for climate needs alone.
• In 2023, a record $87.9 billion in private capital was mobilized for low- and middle-income countries in 2023 — not even a fraction of the multi-trillion-dollars needed to make a difference. 
• If aid cuts continue, the world could see 9.4 million excess deaths by 2030, including 2.5 million lost children.

Finding the money to close this gap will shape how countries respond to the world’s overlapping crises, from the rise of AI threatening livelihoods, stabilizing energy and food supply lines, to managing mounting debt pressure and climate crises.

The Glaring Gap: Concessional Finance

There’s one phrase you have to know when it comes to grading this year’s G7 discussions: concessional finance.

It sounds technical, but the idea is simple. 

Concessional finance refers to money loaned out with more affordable payback terms than normal, including very low interest rates or grants. It allows governments and communities to borrow money to pay for urgent needs today without taking on even more expensive consequences tomorrow.

Crucially, concessional finance often goes where normal market interests do not. That includes high-risk, low-return, and life-saving areas.

Private capital plays an important role  and the G7 is right to push for more private sector development. It can help build solar farms, trade ports, and businesses from scratch. But sectors that are critical to both communities’ short-term survival and long-term resilience aren’t attractive to private investors looking to make substantial returns. 

Even major international institutions acknowledge these limitations. The OECD noted in 2025 that humanitarian projects, the kind that are inherently high risk with low immediate returns, discourage private investment in sectors like health, education, and climate adaptation.

In other words, private capital can complement public finance — but it’s no replacement. 

What G7 Leaders Must Do in June

Ahead of the June Leaders’ Summit, Global Citizen is urging all G7 partners to reaffirm their commitment to ODA and concessional public finance for the world’s most vulnerable countries and communities.

Success would mean more support for climate adaptation and disaster recovery, immunization, maternal health, education in emergencies, water and sanitation systems, and nutrition programs — all essential fundamentals people everywhere need to thrive in places where private finance can’t reach.

G7 ministers have acknowledged the importance of stronger global partnerships. But they must prioritize the kind of financing that actually reaches people who need it most. The last thing the world needs is another carefully worded, toothless declaration detached from reality. It needs leaders willing to fight to keep schools open, clinics stocked, food systems resilient, and communities safe from disasters. 

The G7 has already laid some of the groundwork to make this happen. In June, leaders have a chance to prove that commitment means more than words.