Currently, the G20 priority agenda covers sectoral issues that support development, but apparently, climate change has been the one that is left behind. Climate finance, as a result, has not yet become a priority on the agenda.
A G20 report (http://www.theguardian.com/environment/interactive/2011/sep/21/mobilising-climate-finance-report-g20) in 2011 identified several sources of finance that can be allocated for climate change mitigation and adaptation. One of the issue that was discussed within G20 that relates to climate change is the phasing out of fossil fuel subsidies. The issue to phase out inefficient fuel subsidies have been discussed and agreed among the country leaders since the G20 meeting in Pittsburg 2009; yet, there has been no concrete implementation of this commitment.
The February 2014 meeting for finance and central bankers meeting resulted in the agreement (https://www.g20.org/sites/default/files/g20_resources/library/Communique%20Meeting%20of%20G20%20Finance%20Ministers%20and%20Central%20Bank%20Governors%20Sydney%2022-23%20February%202014_0.pdf) for countries to target 2% economic growth through many approaches. The growth should be achieved through increasing the investment, lift employment and participation, enhance trade and promote competition, in addition to macroeconomic policies.
From my perspective, achieving the above growth should also consider the limitation of using inefficient fossil-fuel subsidies and shifting it to finance renewable energy and implementation of energy efficiency measures. Shifting or reforming the subsidy from financing the fossil-fuel driven industry to investment for renewable energy and/or energy efficiency will both reduce greenhouse gases emissions and at the same time generating opportunity to raise climate finance from existing recources.
G20 countries should be able to answer the following questions:
- What should be done by the G20 countries to phase out inefficient fossil fuel subsidies and shift it to finance renewable energy and energy efficiency development?
- What should be the contribution of the G20 countries to support the development of developing countries to which they are willing to cooperate with (ASEAN, East Asia Summit, Africa countries) to support them in coping with the impact of climate change, in terms of financial provision?
- How to ensure that the G20 countries will implement their agreement and/or following up their findings in terms of climate finance (such as the AGF – the Advisory Group on Climate Financing – report http://www.un.org/wcm/webdav/site/climatechange/shared/Documents/AGF_reports/AGF%20Report.pdf ), that it should not be only be a simple document, but it could be an action plan that could be implemented by the G20 countries.
If you have something in mind on how to answer the above questions, share your thoughts by clicking http://www.c20conversations.org.au/node/425876#comment-64048 . We will collect your ideas and compile it to be submitted as inputs for G20 meetings on climate finance.