TABLE: G20 ENGAGEMENT GROUP RECOMMENDATIONS ON SUSTAINABLE FINANCE, 2024
RESOURCE MOBILISATION
B20
T20
C20
Review the role of multilateral finance institutions, shifting their focus from balance sheet deployment to leveraging resources to crowd in private sector capital
Increase local currency lending by exploring “diverse sources of local currency hedging”, and capitalising the Currency Exchange Fund
Ensure new, additional and flexible financing to respond to climate change effectively, accessible and adapted to the needs of groups at the front lines of climate adaptation
Repurpose fossil fuel subsidies to fund climate change adaptation and mitigation initiatives, especially in developing economies Increase the availability of public concessional funding and grants to avoid exacerbating fiscal crises and prioritising vulnerable countries’ adaptation needs Mobilise blended finance mechanisms to address finance gaps and de-risk investments in developing countries
Close the adaptation finance gap by supporting the Global Goal on Adaptation
Commit to an ambitious agreement on the new collective quantified goal on climate finance Repurpose fossil fuels and unsustainable agriculture subsidies to finance the energy transition while internalising labour and environmental costs Promote new allocations of special drawing rights to low- and middle-income countries based on their specific needs Establish governance frameworks that prevent investments in activities causing environmental degradation and human rights violations and implementing responsible divestments and sanctions Strengthen anticorruption and anti-money laundering regulations tracing financial flows associated with environmental crimes Avoid promoting de-risking, guarantees, or subsidies for carbon offsets and for carbon capture, utilisation and storage Incorporate human rights, environmental responsibilities and the Sustainable Development Goals into economic decision-making in the mandates of international financial institutions Create a multilateral credit rating agency with transparent criteria, aligned with the transition to carbon neutrality
RISK MANAGEMENT
Enhance private capital investment in climate solutions in emerging markets and developing countries through regulatory capital and rating agency policy reforms and through risk mitigation through blended finance and de-risking strategies
Establish a cap on the interest rate for special drawing rights and a countercyclical surcharge system to protect borrowing countries from rising borrowing costs during financial stress
Review the Debt Sustainability Analysis Framework by taking into account the development and climate requirements of developing countries
ACCESS
Expedite permitting processes for climate-resilient, net zero infrastructure by creating integrated permitting systems and establishing fast-track processes
Simplify application procedures and providing grants for capacity building in project design
Replace the gross domestic product per capita index with one that considers social, economic and climate investments and risks for defining global policies
Foster international collaboration to improve interoperability and expedite permitting procedures
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2024 — G20 BRAZIL: THE RIO SUMMIT
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