Introduction section Second meeting of the G20 Sustainable Finance Working Group (SFWG)

Second meeting of the G20 Sustainable Finance Working Group (SFWG)

On 7 April 2021, G20 Finance Ministers and Central Bank Governors recognized the urgency of fighting climate change and protecting the environment. Such priorities were included in the fourth pillar of the updated G20 Action Plan.

 

In order to develop a forward-looking common view of the challenges to scale up finance that supports the objectives of the 2030 UN Agenda and goals of the Paris Agreement, the G20 has agreed to create a permanent forum of international cooperation on sustainability issues. To do so, Ministers and Governors agreed to upgrade the Sustainable Finance Study Group to a fully-fledged working group (thus renamed as Sustainable Finance Working Group - SFWG).

 

The second meeting of the SFWG was held virtually on 18 June 2021. The Group advanced the works on the main deliverables for 2021, which include, sustainability reporting, approaches to identify sustainable investments, and the role of international financial institutions in supporting the Paris Agreement. The Group also started a discussion on the multi-year G20 Sustainable Finance Roadmap. The SFWG delegates discussed an interim version of the Roadmap, which takes into account the contribution of several international organizations as well as suggestions gathered during a roundtable with the private sector, held on 17 and 18 May.

 

Priorities for future actions fall under five Focus Areas, concerning: the alignment of financial flows with sustainability goals; the access to reliable and timely information on sustainability risks, opportunities, and impacts; the assessment and management of climate and sustainability risks; the leverage of public finance and incentives from public policies; cross-cutting elements such as innovation, digitalization and transition finance.

 

The Roadmap will also benefit from messages coming from the International Conference on Climate, which will be held in Venice on July 11. The final version will be agreed by SFWG delegates and submitted to G20 Finance Ministers and Central Banks Governors, ahead of their October meeting.

 

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