By Faridat Salifu
As climate warnings intensify, the G20 countries have tempered a report by leading economists on restructuring financial systems to address climate change. This is despite urgent appeals from the United Nations Secretary-General António Guterres.
Guterres had urged the G20 leaders to take the lead on climate action, as the latest UN Emissions Gap Report indicates the group’s current policies will fall short of the 2030 targets for cutting greenhouse gas emissions.
The G20 climate and finance officials gathered in Washington, D.C., for discussions spearheaded by Brazil’s G20 presidency to align financial and environmental priorities through the Taskforce on a Global Mobilization against Climate Change.
At the meeting, the G20 reviewed a report by economists Vera Songwe and Mariana Mazzucato, commissioned to provide a roadmap for transforming G20 financial systems in line with climate goals.
It was gathered that originally, the report included pointed critiques and ambitious recommendations, ranging from central bank involvement to wealth taxes on billionaires, but much of this language was softened after member feedback.
In the finalized report, stronger terms such as “G20 inaction” were replaced with “G20 inertia,” and references to the annual climate damage worsening were removed.
Suggestions on implementing a billionaire wealth tax for climate funding, popular among some G20 nations but opposed by others, were also revised or removed. France, Spain, and South Africa had expressed support for the tax, but specifics on the countries’ positions were omitted from the final document.
Moreover, a recommendation that central banks help mitigate climate risks was modified to emphasize action only “within their mandates,” reportedly due to reservations from the U.S., the EU, and France. Ultimately, the G20’s official statement offered no commitment to implementing the report’s recommendations, noting only that ministers would “take note” of it.
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Critics say the G20’s response underscores a missed opportunity for meaningful change. Rebecca Thissen, from the Climate Action Network International, called the decision a “deliberate oversight” given the tools and influence the G20 holds.
The UN’s latest Emissions Gap Report, released alongside the G20 meeting, adds urgency to the calls for action. It highlights that the 1.5°C target for global warming is at risk of being breached within the next few years unless global emissions are cut 42% by 2030 and 57% by 2035. Global emissions rose to a record high of 57.1 gigatonnes of CO2 equivalent in 2023, marking a 1.3% increase from 2022.
With G20 nations responsible for 77% of the world’s greenhouse emissions, the report emphasizes the need for these countries to take “the heavy lifting” on reductions.
Yet, officials recognize that stronger climate finance, international support, and a tailored approach are crucial, given the varied economic and historical emissions footprints of G20 members.
Developing nations within the G20, such as India and Brazil, are among the largest current emitters but have lower per capita emissions and smaller historical contributions to global warming than richer countries.
The G20’s latest ministerial statement encourages member nations to “bring forward” their net-zero commitments.
While Brazil’s Ambassador André Aranha Corrêa do Lago described the call as a first for the G20, UN Environment Programme Executive Director Inger Andersen emphasized that emissions cuts are necessary from all nations, with wealthier ones urged to act more swiftly to allow emerging economies room to progress toward net-zero by 2050.
With the clock ticking on climate commitments, UN officials continue to urge the G20 to adopt robust measures in finance, policy, and international cooperation to address what scientists warn could soon be irreversible climate consequences.
