The Group of 20 (G20) Finance Ministers and Central Bank Governors' July meeting addressed green and climate finance.
During the meeting, the G20 Green Finance Study Group (GFSG) and Climate Finance Study Group (CFSG) presented their reports.
In their final communiqué, the Ministers and Governors recognize the need to scale up green financing and express interest in promoting voluntary principles for green finance.
25 July 2016: The Group of 20 (G20) Finance Ministers and Central Bank Governors’ July meeting addressed green and climate finance. During the meeting, the G20 Green Finance Study Group (GFSG) and Climate Finance Study Group (CFSG) presented their reports. In their final communiqué, the Ministers and Governors recognize the need to scale up green financing and express interest in promoting voluntary principles for green finance.
In their communiqué, the Ministers and Governors recognize that green investment and finance should be promoted to support environmentally sustainable growth globally. They also welcome the GFSG’s ‘G20 Green Finance Synthesis Report.’ The GFSG report examines the need for, and challenges of, developing green finance globally. It also presents seven voluntary options to enhance the financial system’s ability to mobilize private capital for green investment.
The Ministers and Governors note that “efforts could be made to provide clear strategic policy signals and frameworks, promote voluntary principles for green finance, expand learning networks for capacity building, support the development of local green bond markets, promote international collaboration to facilitate cross-border investment in green bonds, encourage and facilitate knowledge sharing on environmental and financial risks, and improve the measurement of green finance activities and their impacts.”
The report was presented by Zhou Xiaochuan, Governor of the People’s Bank of China, who explained the group members had studied ways to mobilize further resources for green finance through financial innovation, knowledge sharing, capacity building, risk analysis and international cooperation.
The Ministers and Governors also welcomed the CFSG’s report ‘Promoting Efficient and Transparent Provision and Mobilization of Climate Finance to Enhance Ambition of Mitigation and Adaptation Actions.’
Other issues on the Finance Ministers’ and Central Bank Governor’s agenda included, inter alia, a framework for strong sustainable and balanced growth, the international financial architecture, international tax issues and climate finance. The meeting, held in Chengdu, China, from 23-24 July 2016, marked the third gathering of G20 finance ministers and central bank governors in 2016, and their final meeting before the G20 Summit in Hangzhou, China, in September.
At their first 2016 meeting, which took place from 26-27 February, the Ministers and Governors reiterated the role of developed countries in providing financial resources to developing countries for climate actions. At their second meeting, held from 14-15 April, the Ministers and Governors called on the Green Climate Fund (GCF) to scale up its operations and affirmed the importance of monitoring and transparency of climate finance. At their two previous 2016 meetings, the G20 Ministers and Governors also provided guidance to the work of the GFSG.
The GFSG, an initiative of the Chinese G20 Presidency, was co-chaired by the People’s Bank of China and the Bank of England, with the UN Environment Programme (UNEP) acting as the group’s secretariat. The GFSG met four times in 2016, with the last meeting taking place on 21 June in Xiamen, China. The Group had more than 80 participants, including representatives from all G20 members, and from invited countries and international organizations.
The G20 members include 19 individual countries, namely Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, the Russian Federation, Saudi Arabia, South Africa, Turkey, the UK and the US, along with the EU. [G20 Presidency Press Release on Third Finance Ministers’ Meeting] [G20 Finance Ministers’ Communiqué] [UNEP Press Release] [G20 Presidency Press Release on Fourth GFSG Meeting] [IISD RS Story on First G20 Finance Ministers’ Meeting] [IISD RS Story on Second Finance Ministers’ Meeting] [IISD RS Story on UNEP Inquiry Report]