Introduction section More resilient and inclusive societies: Coordinating public and private sustainable investments
More resilient and inclusive societies: Coordinating public and private sustainable investments
On 17-18 May 2021, members of the recently established G20 Sustainable Finance Working Group met virtually with distinguished representatives from the private sector to discuss solutions to accelerate the mobilization of public and private capital towards the achievement of the Paris Agreement’s and the United Nations Sustainable Development Goals (SDGs) ’s commitments.
The current challenging economic juncture gave the G20 the ambition and the political will to make concrete progress in the so called green agenda. In this frame, the Italian G20 Presidency takes the view that mobilizing sustainable finance is essential not only for global growth and stability but also for promoting the transitions towards greener, more resilient and inclusive societies and economies.
In particular, as far as the G20 Finance Track is concerned, the Italian G20 Presidency proposed the re-establishment of the Sustainable Finance Study Group and its upgrade to the Sustainable Finance Working Group (SFWG). This initiative is in line with the Italian G20 Presidency vision, which is articulated around the pillars of People, Planet and Prosperity.
On 7 April, the G20 Finance Ministers and Central Bank Governors welcomed the Italian Presidency proposal and agreed to elevate the study group to a full-fledged working group. The Group is co-chaired by China and the United States, and the United Nations Development Programme serves as its Secretariat.
This two-day roundtable offered a unique opportunity to promote the involvement of the private sector in shaping the G20 green agenda on sustainable finance. Issues discussed during the work sessions included challenges and opportunities arising from energy transitions for a green recovery, improvements in sustainability reporting and coordinated investments supporting sustainability goals. This would also include the role of International Financial Institutions (including Multilateral Development Banks) in sustaining the Paris Agreement and the role of technologies in sustainable finance. Representatives from leading private sector organisations presented some of their best practices to close the gaps between current sustainable finance initiatives and those needed to achieve the goals of the Paris Agreement and the 2030 Agenda.
The ideas emerged from this debate will feed the SFWG’s longer term agenda and will be put forward in the coming months. Debate on the global green agenda will continue at the next meeting of Finance Ministers and Central Bank Governors (9-10 July) and at the Venice International Conference on Climate on 11 July 2021.