The Group of 20 (G20) Finance Ministers and Central Bank Governors agreed to report to G20 leaders in 2013 on incorporating green growth into structural reforms, a peer review of fossil fuel subsidies and underlying issues among members on mobilizing climate finance resources.
5 November 2012: The Group of 20 (G20) Finance Ministers and Central Bank Governors discussed progress on green growth, phaseout of fossil fuel subsidies, climate finance and disaster risk financing during a meeting from 4-5 November 2012, in Mexico City, Mexico. The Ministers and Governors assessed progress on a G20 mandate to promote growth and job creation and to address ongoing economic and financial challenges.
On green growth, the Ministers and Governors agreed to voluntarily self-report on national efforts to incorporate green growth and sustainable development policies into structural reform agendas, taking into account the outcomes of the UN Conference on Sustainable Development (UNCSD, or Rio+20). They also welcomed the report from the Organisation for Economic Co-operation and Development (OECD) on pension funds financing green initiatives.
The Ministers and Governors agreed to report on progress on rationalizing and phasing out “inefficient fossil fuel subsidies that encourage wasteful consumption, while providing targeted support for the poorest,” and to develop a voluntary peer review process for such subsidies and report on outcomes.
The Ministers and Governors welcomed the G20 Climate Finance Study Group’s progress report on effectively mobilizing climate finance resources. They committed to: reach a better understanding of underlying issues among G20 members; take into account the objectives and provisions of the UNFCCC Framework; and report to G20 leaders in 2013.
The Ministers and Governors recognized disaster risk financing policies as a necessary component of disaster risk management (DRM) strategies and welcomed the G20/OECD voluntary framework for disaster risk assessment and risk financing. The framework highlights interconnections between disaster risk assessment, disaster risk reduction (DRR) and financial management. It also includes a step-by-step guide to reduce and manage disaster risk and enhance resilience. The Ministers and Governors encouraged the World Bank, OECD and others to leverage the framework to address DRM challenges. Mexico currently chairs the G20. [Communique of G20 Finance Ministers and Central Bank Governors] [Publication: G20 Study Group on Climate Finance Progress Report] [Publication :G20/OECD voluntary framework for disaster risk assessment and risk financing]