The G20 leaders met in New Delhi to discuss global challenges including climate change, biodiversity loss, poverty, and conflicts affecting vulnerable populations. They committed to actions for sustainable, inclusive, and just transitions globally, addressing debt vulnerabilities, promoting resilient growth, and enhancing resources for achieving the Paris Agreement and SDGs. They also addressed the war in Ukraine, expressing deep concern about its adverse impacts on global food and energy security, macro-financial stability, and humanitarian response. They called for the full implementation of the UN-brokered Istanbul Agreements, cessation of attacks on infrastructure, upholding international law, and promoting peaceful relations.
Strong, Sustainable, Balanced, and Inclusive Growth
The global economic situation is characterized by challenges to long-term growth, uneven recovery, and high uncertainty due to tightening financial conditions, debt vulnerabilities, persistent inflation, and geo-economic tensions. The G20 leaders committed to implementing well-calibrated macroeconomic and structural policies to promote equitable growth, enhance stability, and support the 2030 Agenda for Sustainable Development. They recognized the critical role of private enterprise in driving sustainable economic transformations and committed to working with the private sector to create inclusive and resilient global value chains, facilitate sustainable investments, and promote ease and reduce the cost of doing business. They also acknowledged the importance of start-ups and MSMEs as engines of growth and innovation.
The G20 leaders reaffirmed their commitment to a rules-based, fair, and transparent multilateral trading system, with WTO at its core, and to address challenges faced by MSMEs in developing countries. They welcomed the Jaipur Call for Action, G20 Generic Framework, and High-Level Principles on Digitalization of Trade Documents. They also recognized the importance of WTO’s ‘Aid for Trade’ initiative. Regarding the Future of Work, the leaders committed to addressing skill gaps, promoting decent work, and ensuring inclusive social protection policies. They welcomed efforts to map global skill gaps, the development of international reference classification of occupations, and a comprehensive toolkit for digital upskilling and reskilling programs. They aimed to achieve sustainably financed universal social protection coverage and support progress on the UN Global Accelerator on Jobs and Social Protection for Just Transitions. Additionally, they acknowledged the economic significance of the cultural and creative sector and committed to providing adequate social protection for gig and platform workers and eliminating child and forced labor. On Advancing Financial Inclusion, the leaders welcomed the 2023 Update to Leaders on Progress towards the G20 Remittance Target and endorsed the Regulatory Toolkit for Enhanced Digital Financial Inclusion of MSMEs, G20 Policy Recommendations for Advancing Financial Inclusion and Productivity Gains through Digital Public Infrastructure, and the G20 2023 Financial Inclusion Action Plan (FIAP). They encouraged the continuous development and responsible use of technological innovations, including innovative payment systems, and supported efforts to strengthen digital financial literacy and consumer protection. Lastly, on Fighting Corruption, the leaders reaffirmed their commitment to zero tolerance for corruption and endorsed three G20 High-Level Principles related to combating corruption. They reaffirmed support to enhance global efforts to seize, confiscate, and return criminal proceeds and to criminalize foreign bribery, in line with international obligations and domestic legal frameworks. They also looked forward to increasing participation in the OECD Anti-Bribery Convention.
Accelerating Progress on Sustainable Development Goals (SDGs)
There are several key commitments made by the G20 countries to accelerate progress towards Sustainable Development Goals (SDGs) and other global challenges. It includes: 1) Leveraging digital transformation and data advances for development, 2) Mobilizing financing to support developing countries, 3) Promoting tourism and culture for sustainable development, 4) Enhancing food security and nutrition, 5) Strengthening global health and implementing a One Health approach, and 6) Addressing food and energy insecurity and its macroeconomic impacts. Overall, the commitments aim to foster inclusive growth, sustainable development, and a resilient global economy.
They deal with the commitments by G20 countries to enhance global health, education, and cultural preservation. It emphasizes strengthening pandemic prevention and response through finance-health collaboration, ensuring inclusive and equitable education, and recognizing culture as a driver of SDGs. Key points include refining the Framework on Economic Vulnerabilities and Risks, harnessing digital technologies for learning, protecting cultural heritage from illicit trafficking, and promoting open scientific collaboration. Overall, the commitments aim to build a more resilient, inclusive, and culturally rich global society.
Green Development Pact for a Sustainable Future
Here discusses the urgent need for global action to address climate change and its impacts, particularly on the most vulnerable populations. It reaffirms commitments to the Paris Agreement and its temperature goals, highlighting the need for ambitious action, international cooperation, technology development, and sustainable consumption to limit global warming to 1.5°C. It acknowledges the significant macroeconomic costs of climate change and the importance of assessing the impacts of climate change and transition policies on growth, inflation, and unemployment. It commits to sustainable development, sustainable lifestyles, circular economy, clean and sustainable energy transitions, and the phasing out of inefficient fossil fuel subsidies. It recognizes the importance of international cooperation, technology transfer, low-cost financing, energy security, and just transitions. It calls for enhanced climate action across mitigation, adaptation, and means of implementation, including revisiting and strengthening 2030 targets in nationally determined contributions (NDCs), and achieving global net zero greenhouse gas emissions by mid-century.
The Sustainable Finance Working Group (SFWG) recommends mechanisms to mobilize resources for climate finance, support transition activities, and leverage private finance through blended financial instruments and risk-sharing facilities. Public finance is crucial for climate actions, adaptation, and mitigation efforts. There is a need for increased global investments, from billions to trillions of dollars, to meet the Paris Agreement goals. Efforts include mobilizing $100 billion annually by developed countries, establishing a fund for loss and damage, setting a new collective quantified goal of climate finance, and encouraging private climate finance. Additionally, it is essential to conserve, protect, sustainably use, and restore ecosystems, including the ocean and marine ecosystems. Efforts should also be made to end plastic pollution, finance inclusive, resilient, and sustainable cities, and reduce disaster risk and build resilient infrastructure. Commitments include implementing the Kunming-Montreal Global Biodiversity Framework, reducing land degradation, protecting forests, enhancing global cooperation on water, ending illegal and unregulated fishing, supporting the Commission for the Conservation of Antarctic Marine Living Resources, and accelerating the implementation of the Sendai Framework for Disaster Risk Reduction.
Multilateral Institutions for the 21st Century
It emphasizes enhancing representation of developing countries in decision-making, mobilizing financing for development, and evolving multilateral development banks (MDBs) to maximize impact and accelerate progress towards Sustainable Development Goals (SDGs). It highlights efforts to increase financing capacity, improve effectiveness, and evolve the vision and operational approaches of MDBs. It calls for leveraging private capital, enhancing domestic resource mobilization, and addressing global debt vulnerabilities in a comprehensive manner. It underscores the importance of communication and debt transparency among stakeholders, including private creditors.
Technological Transformation and Digital Public Infrastructure
Technology can facilitate rapid transformations to bridge digital divides and accelerate inclusive and sustainable development. Digital public infrastructure (DPI) is essential for societal-scale service delivery, and efforts are being made to make it interoperable, secure, and respectful of legal frameworks and human rights. The G20 Framework for DPI and India’s GDPIR initiative are welcomed. Additionally, an inclusive and secure digital economy, regulation of crypto-assets, and the potential implications of Central Bank Digital Currencies are being addressed. Efforts are being made to foster digital ecosystems, promote responsible AI use, and international cooperation to ensure the global digital economy’s prosperity and expansion.
Commitment to a fair, sustainable, and modern international tax system is reaffirmed, with swift implementation of the two-pillar tax package being a priority. Progress has been made on Pillar One, including a Multilateral Convention (MLC) text, and work on Amount B and the Subject to Tax Rule (STTR) under Pillar Two. The Inclusive Framework is urged to resolve pending MLC issues and complete work on Amount B by 2023. The implementation of Global Anti-Base Erosion (GloBE) Rules, capacity building, technical assistance for developing countries, and the Crypto-Asset Reporting Framework (CARF) are welcomed. International tax transparency on real estate is also noted.
Gender Equality and Empowering All Women and Girls
The G20 reaffirms the importance of gender equality and women’s empowerment for implementing the 2030 Agenda. It encourages women-led development, equal participation in decision-making, and access to education, employment, and social protection. It commits to eliminating gender-based violence, promoting financial inclusion, and addressing gender stereotypes. The G20 aims to halve the digital gender gap by 2030, promote gender-responsive policies, and support women’s participation in climate action, food security, and nutrition. It agrees to create a new Working Group on Empowerment of Women to support the G20 Women’s Ministerial during the Brazilian G20 Presidency.
Financial Sector Issues
The G20 supports the Financial Stability Board (FSB) and Standard Setting Bodies (SSBs) in addressing non-bank financial intermediation (NBFI) vulnerabilities and enhancing resilience. It welcomes FSB’s recommendations on liquidity mismatch, leverage, cyber incident reporting, and third-party risk management. The G20 reaffirms commitment to the G20 Roadmap for Enhancing Cross-border Payments, aiming for faster, cheaper, more transparent, and inclusive payments by 2027, and celebrates the conclusion of G20 TechSprint 2023. It endorses the revised G20/OECD Principles of Corporate Governance to strengthen policy frameworks supporting sustainability and access to finance and commits to promoting sustainable capital flows.
Countering Terrorism and Money laundering
The G20 condemns terrorism in all its forms, recognizing it as a serious threat to international peace and security. It expresses concern about illicit trafficking of small arms and light weapons and commits to supporting the Financial Action Task Force (FATF) and its regional bodies to enhance global efforts to recover criminal proceeds and mitigate risks associated with virtual assets. It reiterates the importance of implementing effective regulatory and supervisory frameworks to address terrorism financing, money laundering, and proliferation financing risks, and supports the FATF’s initiative to accelerate global implementation of its standards, including addressing emerging technologies and innovations.
Creating a More Inclusive World
The G20 welcomes the African Union as a permanent member, reaffirms support for migrants and refugees, notes the UNGA resolution promoting respect for religious and cultural diversity, and commits to integrating developing countries’ perspectives into G20 agendas.
The G20 thanks India for hosting the 18th G20 Summit, reiterates commitment to the G20 as the premier forum for global economic cooperation, looks forward to future meetings and events, thanks international organizations and engagement groups for their support and recommendations, and expresses determination to steer the world out of its current challenges towards a more resilient, inclusive, and healthier future.