Johannesburg, South Africa
Supporting debt sustainability for low-income countries was a key part of the final G20 communique, but the offical comminqiue did not make any concrete commitements. The G20 members also epressed support for the review of the Low-Income Country Debt Sustainability Framework that the IMF and World Bank are undertaking.
The Johannesburg Leaders’ Declaration noted the need for enhanced action and support to avert, minimize and address loss and damage.
The G20 Leaders welcomed updated NDCs but stressed the urgent need for rapid and sustained reductions in emissions in line with the 1.5°C target, and called on members to contribute according to their national circumstances. They also noted that developing countries require an estimated USD 5.8–5.9 trillion to implement their NDCs by 2030.
The G20 Leaders’ Declaration committed to strengthening the global sustainable finance architecture by fostering interoperability between vertical climate and environment funds, MDBs and NDBs.
G20 Leaders Declaration noted efforts to explore debt for development, climate swaps, noting that both benefits and limitations of these tools should be part of an balanced approach.
G20 Declaration noted that countries have been exploring pause clauses, opening up fiscal space for borrowers.
Launched the G20 Critical Minerals Framework, a voluntary, non-binding blueprint designed to facilitate sustainable, resilient, stable, and transparent critical minerals value chains that underpins industrialization and sustainable development.
Recognized national just transition pathways as key enablers of climate action.
Leaders reaffirmed the importance of just energy transitions, highlighting the role of finance, investment, and international cooperation in supporting developing economies. Although no new JET-Ps were launched, the summit endorsed principles consistent with JET-Ps, including inclusiveness, job creation, and affordable access to clean energy.
Leaders explicitly recognized country platforms as important tools to mobilize and coordinate climate and development finance. They emphasized their role in aligning domestic strategies with international resources and improving the effectiveness of support to vulnerable countries.
The dialogue should emphasize enhancing representation of developing countries in global financial governance, ensuring their voices influence MDB operations, IMF programs, and climate-finance policymaking.
Some G20 members have advanced reforms, while others continue large-scale subsidies due to political and economic pressures. Calls for coordinated action and integration with carbon pricing frameworks are growing.
G20 leaders reaffirmed the importance of fiscal reforms and enabling regulations to mobilize both public and private climate finance.
1.Recognized the need to catalyze and scale up investment from all financial sources to bridge the funding gap for sustainable energy transitions globally, especially in developing countries 2. Underlined the urgency of de-risking, mobilizing, and diversifying investment in energy transition technologies and infrastructure.
Endorsed the need to focus on credible pipeline development supported by enabling environments, robust project preparation and data, de-risking through blended finance instruments, and advancing cross-border infrastructure for regional development
Underscored the importance of pre-arranged financing mechanisms to strengthen ex-ante disaster risk reduction and preparedness, through parametric insurance, risk pools, contingent credit, catastrophe bonds, and adaptive social protection systems.
The dialogue should emphasize enhancing representation of developing countries in global financial governance, ensuring their voices influence MDB operations, IMF programs, and climate-finance policymaking.
G20 leaders emphasized domestic market reforms as central to climate finance mobilization.
Some G20 members have advanced reforms, while others continue large-scale subsidies due to political and economic pressures. Calls for coordinated action and integration with carbon pricing frameworks are growing.
G20 leaders reaffirmed the importance of fiscal reforms and enabling regulations to mobilize both public and private climate finance.