G20 calls for increased investment in climate and sustainable development goals

Wednesday, July 19, 2023 | 10:02:37

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The G20 Council stressed that an additional $3 trillion in annual investment between now and 2030 is needed to support climate action and sustainable development goals.

G20 Finance Ministers and Central Bank Governors are meeting in Gandhinagar, Gujarat, India.

The world will need to increase investment by about $3 trillion per year between now and 2030 for climate action plans and to meet sustainable development goals.

This is the conclusion of a report by an independent panel led by economists Lawrence Summers and NK Singh, released on July 18.

The Group of 20 (G20) leading developed and emerging economies has mandated the council to propose reform directions for multilateral development banks (MDBs) with a focus on increasing funding for sustainable development goals and climate change.

The report highlights the need for MDBs to act as effective intermediaries in developing countries to mainstream development and climate change agendas.

Similar to financial institutions such as the International Monetary Fund (IMF) or the World Bank (WB), MDBs need to work with governments and the private sector to ensure risk mitigation and management to help save costs.

The G20 Council stressed that an additional $3 trillion in annual investment between now and 2030 is needed for environmental action plans and sustainable development goals, of which $1.8 trillion will be needed to promote sustainable infrastructure projects, while $1.2 trillion will help the world achieve other important goals, including health and education.

According to the report, the international development finance system needs to find a way to support this investment, by providing an additional $500 billion per year, of which one-third should be provided in the form of concessional loans and grants and the remaining two-thirds in the form of non-concessional official loans.

The Council pledged to continue working to resolve differences in positions, agree on a plan to support low-income countries to address their debt burdens and release financial resources for climate goals.

The Council recommends that MDBs provide an additional $260 billion in official development assistance annually, of which about $200 billion is non-concessional lending, mobilizing private finance for poor countries.

G20 Finance Ministers and Central Bank Governors are meeting in Gandhinagar, Gujarat, India, from July 17-18 to discuss the contents of the Common Framework - a G20 initiative launched in 2020 to help ease debt for poor countries./.

According to vietnamplus.vn

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