See this from G7 text published today. Mondovisione.
CarrZee: seems like one main G20ish club might still be on the table. Even though that might seem unlikely because of geopolitical tension.
The G20 isn’t mentioned in the paragraph on carbon / climate clubs (18), but it is mentioned elsewhere in the document.
“We commit to intensifying discussions on the Club´s Terms of Reference within the G7 as well as with all interested ambitious partners, including developing and emerging countries in the coming months. We will come back to this issue in our meeting in October 2022.”
Some countries have previously voiced concern climate or carbon clubs might limit trade unjustly.
Climate and Environment
- The G7 reaffirms its steadfast commitment to the goals of the Paris Agreement and to implement domestic measures aimed at achieving our emission reduction targets by 2030 and net zero by 2050 or earlier. We commit to intensifying efforts to accelerate the transition in a way that positively impacts jobs, growth, fairness and the environment, both globally and at domestic level. Russia´s war of aggression against Ukraine is putting further upward pressure on energy prices and underscores the need to accelerate the reduction of our overall reliance on fossil fuels and strengthen our transition to clean energy. This transition will enhance energy security and mitigate the risk of future energy price shocks, particularly for the most vulnerable, promoting a just transition for all. We, therefore, commit to enhancing international cooperation and coordination on climate mitigation. Effective international cooperation can help facilitate an immediate and orderly global response to climate change, which has huge environmental benefits and has the potential to save trillions of dollars of global GDP by 2050.
- We recognise the potential of high integrity carbon markets and carbon pricing to foster cost- efficient reductions in emission levels, drive innovation and enable a transformation to net zero, through the optimal use of a range of policy levers to price carbon. We recognise that the risk of carbon leakage may increase with more divergent climate policy ambition and will cooperate on possible WTO-compatible mechanisms to mitigate this risk and support trade relations. We support comprehensive cooperation in the transformation and decarbonisation of our economies, in particular in hard-to-abate industrial and power sectors, and welcome ongoing work by Climate and Energy Ministers.
- G7 Leaders agreed to explore establishing an open, cooperative international Climate Club to support the implementation of the Paris Agreement, consistent with international rules and with participation beyond the G7. We are committed to achieving a true paradigm shift, by demonstrating that ambitious climate action is conducive to strong and sustainable growth for all economies. We had a first discussion on the Climate Club proposal based on the Presidency´s proposal for core elements of Terms of Reference for a Climate Club. We commit to intensifying discussions on the Club´s Terms of Reference within the G7 as well as with all interested ambitious partners, including developing and emerging countries in the coming months. We will come back to this issue in our meeting in October 2022.
- We welcome the ongoing work by international organisations on stocktaking and mapping of climate change mitigation policies within the G7 as well as globally, taking into account the complexity and heterogeneity of applied policy mixes. We are committed to sharing best practices in supporting a green and just transformation of our economies. We take note of the joint report by the IMF and the OECD on advancing climate policy ambition under heterogeneous approaches to mitigation. We commit to advancing this work together with international organisations and to work towards a common understanding of ways to compare the effectiveness in reducing emissions as well as the economic impacts of mitigation policies, such as through explicit carbon pricing, other alternative carbon mitigation approaches and carbon intensities.
- We recognise the significant impact of climate change and the transition to net zero on macroeconomic outcomes and fiscal sustainability within our economies and acknowledge the uneven impacts for many low- and middle-income countries and for vulnerable groups in all countries. We recognise the need to reflect the effects of climate change and the transition in our analyses and consider the impact on economic, financial and monetary decision-making, in line with our mandates. We welcome the IMF and World Bank stepping up their engagement on climate change related issues in line with each institution´s mandate and in continued collaboration with partners. G7 central banks are committed to intensifying collaboration on integrating climate risks and aspects into their macroeconomic analysis and modelling toolkit. We support further work on climate-related macroeconomic scenarios and nature-related financial risks by the Network for Greening the Financial System and the Coalition of Finance Ministers for Climate Action.
- We are strongly committed to achieving the collective climate finance mobilisation goal of 100 billion US dollars per year from a wide variety of sources through to 2025 to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation. We expect this goal will be met in 2023. We agree to continue to strengthen and, where possible, increase public climate finance and mobilisation of private sector financing to meet this goal, including through tailor-made just energy transition partnerships with strong country ownership. We commit to continued G7 leadership on climate finance, including for adaptation, and to more detailed work in the Finance Track by our October meeting ahead of COP27, in close cooperation with other relevant G7 Tracks. We support the G7 Partnership for Infrastructure and Investment with the aim to jointly work towards a step change in sustainable financing of quality infrastructure.
Then there was this on sustainability.
Financial Market Policy and Sustainability
- The G7 emphasises that resilience of financial markets is key to mobilising private sector finance to facilitate the whole-of-economy transition along the pathway towards sustainability and net zero. We remain committed to supporting the implementation of the G20 Sustainable Finance Roadmap and the Financial Stability Board Roadmap for Addressing Climate-related Financial Risks and welcome the related work by other international standard-setting bodies.
- The G7 welcomes the inauguration of the International Sustainability Standards Board (ISSB) and its progress of work on the global baseline of sustainability reporting standards. We welcome the ISSB “path to global baseline” statement of 18 May 2022 and call on all relevant stakeholders to participate in the ongoing consultation on the proposed standards. We urge the ISSB and national and regional standard-setters as well as other reporting initiatives to actively cooperate in the process of elaborating the baseline with the aim of reaching standards that can be implemented globally. The baseline should be practical, flexible and proportionate and ultimately suitable for small- and medium-size enterprises and enable jurisdictions to implement the baseline and a more extensive approach to supplement the baseline. We encourage countries to prepare or continue to prepare the ground for usage of the baseline, aim to ensure interoperability of national and regional standards and the global baseline in order to minimise fragmentation of reporting requirements, reduce reporting burdens, and enable the availability of consistent sustainability information for users. We encourage the ISSB to continue its work on sustainability reporting standards beyond climate, such as nature and social issues.
- The G7 welcomes market participants´ formulation of voluntary commitments to reaching net- zero emissions by 2050 and alignment with broader sustainability goals with published transition plans with transparent and credible interim targets and actions. We will continue to explore ways for the public sector to help enhance the credibility and accountability of these commitments.
- In line with the G20 Sustainable Finance Roadmap, the G7 calls for international organisations to take concrete steps to improve access to available public and corporate sustainability data. Repositories of sustainability data sources, such as the prototype of the Network for Greening the Financial System, should be made available to the public on a permanent basis. The G7 also supports the launch of the new G20 Data Gaps Initiative which will also focus on climate change.
- We recognise that the fight against money laundering linked to environmental crimes can contribute to combatting climate change as well as the loss of biodiversity. We renew our commitment to address the risks of illicit finance from environmental crime and recognise them as a cross-cutting issue. We commit to the following priority actions of the Financial Action Task Force (FATF) report “Money Laundering from Environmental Crime:” assessing the money laundering risk exposure in relation to proceeds from environmental crimes in national risk assessments as well as helping other countries to do so; facilitating knowledge-sharing and promoting awareness-raising measures on money laundering linked to environmental crimes and fostering international co-operation through a multi-stakeholder dialogue. Participants in this dialogue should include, amongst others, environment agencies, law enforcement authorities, Financial Intelligence Units, and customs authorities.
- The G7 welcomes the FATF´s ongoing efforts to enhance beneficial ownership transparency. We commit to fully and effectively implement the recently revised FATF standards on transparency and beneficial ownership of legal persons and in this regard reiterate our commitment to implement and strengthen beneficial ownership registries to provide efficient access to information for law enforcement agencies and competent authorities in tackling illicit finance. We also affirm the benefits of making beneficial ownership information public where possible. We call on all countries to expeditiously implement the new standard. We support the ongoing review of the FATF standards for transparency of trusts and similar legal arrangements, as well as on asset recovery. We welcome the FATF Ministers’ commitments for the FATF to do more in combating corruption.
International Financial Architecture
- We welcome the recent establishment of the Resilience and Sustainability Trust (RST) at the IMF and the pledges to the RST. We reaffirm our support for broad-based voluntary contributions in Special Drawing Rights or freely usable currencies to this Trust, which is also an important step towards achieving the total global ambition of 100 billion US dollars of voluntary contributions for countries most in need. We call for all countries with strong external positions to contribute to this effort. We commend the historic 20th replenishment of the International Development Association.
- Given the deteriorating and highly challenging debt situations of many developing and emerging countries with over 60% of low-income countries in debt distress or at high risk of debt distress, we recognise the urgency to improve the multilateral frameworks for debt restructurings. We underscore our commitment to successfully implementing the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative, which is also endorsed by the Paris Club. The G7 encourages further efforts to ensure an accelerated implementation of the Common Framework and stands ready to support enhancements and increase predictability in order to provide more certainty for debtor countries. The G7 also continues to work with G20 partners to support and expedite debt treatments under the Common Framework.
- With regards to the implementation of the Common Framework, it remains essential that all relevant creditor countries including non-Paris Club countries, such as those, like China, with large outstanding claims on low-income countries facing debt sustainability challenges, contribute constructively to the necessary debt treatments as requested. We encourage the Creditor Committee for Chad to conclude a debt treatment with Chad shortly in order to reduce Chad’s debt vulnerabilities, notably resulting from oil price volatility. We stress that Chad’s private creditors are expected to provide a debt treatment in line with the comparability of treatment principle. We reiterate our commitment to swiftly form the Creditor Committee for Zambia and call upon all creditors to convene a meeting as soon as possible in order to swiftly provide financing assurances to unlock the IMF and World Bank´s timely financial support. Following Ethiopia´s re-engagement for a new IMF Extended Credit Facility, we also look forward to progress by the Creditor Committee for Ethiopia. …continues … link above.
(Corrects to say decades in the making rather than two decades)