G20 urged developed nations to make further pledges in order to meet the $100 billion target on concluding day of Bali meet
“We resolve to pursue efforts to limit the temperature increase to 1.5°C”, G20 countries declared as their annual meet concluded in Bali on Wednesday. They acknowledged that this wouldn’t be possible without international cooperation and support, especially on finance and technology. The meet was held parallel to COP27 in Egypt. The hope is that this declaration will speed things up at the Egypt summit where progress has been far from inspiring.
“The positive signals from the G20 summit should put wind in the sails of the climate talks in Egypt, which are entering their final days. The world’s major economies reaffirmed the need to address loss and damage. Now it’s critical that by COP27’s end, countries should agree on a clear process to create a funding stream to help vulnerable countries recover from devastating losses and damages,” said Ani Dasgupta, president and CEO, World Resources Institute.
Although some experts expressed their doubts. “It [G20 declaration] shows political will to do more on climate and food security in particular, including raising the ambition and implementation of climate plans. But stating that will is not enough—the G20 as major emitters and economically advantaged need to step up to build on this outcome at COP27,” said Alex Scott, programme leader, E3G.
Working to ensure a just energy transition
The G20 doubled down on its commitment to ensure “clean, sustainable, just, affordable, and inclusive energy transitions” as well as sustainable investments. It recognised the need to meet global energy demand with affordable energy supplies. The declaration reiterates the G20’s commitment to achieve carbon neutrality by the mid-century, with an eye on scientific developments and national circumstances.
Enhancing energy efficiency
The declaration vows to meet its climate commitments by diversifying energy mixes. This will include ramping up the generation of zero- and low-scale emission power. The text mentions the G20 will focus on a “phasedown” of unabated coal power while trying to ensure a just transition towards clean power generation.
Giving a boost to climate-vulnerable developing countries
The declaration text boldly claims that the G20 is “committed to support all vulnerable countries to recover together, recover stronger”. It welcomed the $81.6 billion pledged through the voluntary channelling of Special Drawing Rights (SDRs) or equivalent contributions. SDRs are essentially a pool of exchange reserves created by the IMF to supplement official reserves of member countries at times of fiscal crises. But urged developed nations to make further pledges in order to meet the $100 billion target.
The G20 has also declared that it recognises the deteriorating debt conditions in vulnerable middle-income countries, and urged “private creditors and other official bilateral creditors to commit to providing debt treatments on terms at least as favourable to ensure fair burden sharing in line with the comparability of treatment principle.”
Committed to ramping up climate finance
“We recall and further urge developed countries to fulfil their commitments to deliver on the goal of jointly mobilising $100 billion per year urgently by 2020 and through to 2025 in the context of meaningful mitigation action and transparency on implementation,” the declaration reads. The G20 also committed to continue discussions on revising the annual climate finance goal while keeping $100 billion as the baseline. The declaration highlights the Glasgow pact which urged developed countries to double their provisions for climate finance for adaptation towards developing countries by 2025.
The 2050 net-zero pursuit
The declaration also includes a reiteration of its global net-zero emissions goal by “around mid-century”. It also states that member countries’ carbon neutrality and net zero policies should include the “full range of fiscal, market and regulatory mechanisms”. This includes carbon pricing and phasing out of inefficient fossil fuel subsidies.
“This G20 should be considered only a milestone on the way to reform international financial institutions, urgently needed for the poorest and most vulnerable countries and for rebuilding trust between South and North,” said Sébastien Treyer, Executive Director, IDDRI.
The next G20 summit will be held in India.