COP29 ANALYSIS: G20 Declaration And Climate Finance

Intro: G20 leaders Summit in Rio

The G20 summit delivered political signals, but fell short of meaningful climate action. This underscores a key point: G20 is not the forum to create robust climate policy. The UNFCCC remains the legitimate multilateral space for these discussions, and is now focusing on the adoption of a robust and equitable new climate finance goal at COP29 - the New Collective Quantified Goal (NCQG). While the G20 countries are the planet's biggest economies and biggest polluters - and therefore carry a huge responsibility to address the climate crisis - let's not forget that the true negotiations are happening here in Baku. 

Energy/mitigation

The G20 outcomes mark a troubling regression from the commitments made at COP28 in Dubai. Key shortcomings include:

Cherry-picking the Global Stocktake (GST): The communiqué references paragraph 28 but omits critical language on transitioning away from fossil fuels. Instead, it reiterates support for unproven abatement and carbon removal technologies - so-called "false solutions" or "dangerous distractions."

Phasing out inefficient fossil fuel subsidies: Progress has stagnated since this commitment was first made 15 years ago, and the G20 has now backtracked from both the GST decision and its own TF-Clima ministerial statement issued just last month (October 24, 2024) which did repeat the language of transitioning away from fossil fuels.

Finance

Despite 2024 being dubbed the "Year of Finance," the G20 fell short of expectations:

NCQG: Mentions of the new climate finance goal remain vague, with leaders offering only an intent to “cooperate and support the process.” The communiqué’s rhetoric of shifting from “billions to trillions” from a variety of sources, ignoring the vital need for developed countries to lead with public financing and to establish a fair and ambitious finance goal.

Dilution of public finance commitments: Leaders pivoted from public finance to private finance, disregarding the TF-Clima ministerial outcomes that emphasised public funding.

Positive messaging on progressive taxation: This should be featuring in COP29 decisions as a source of public money funding for climate action - needs to target big polluters. Encouragingly, the G20 has expressed intent to target effective taxation on ultra-high-net-worth individuals. The next essential step is anchoring this commitment within a UN Tax Convention.

Just transition

The G20 offered an important political signal by endorsing the “Principles for Just and Inclusive Energy Transitions,” which marks progress compared to frameworks from institutions like the World Bank or ADB.

These principles don’t fully reflect civil society demands, but they do elevate Just Transition towards what must come next: a multilateral agreement on Just Transition by COP30.

Critical Energy Transition Minerals: The Communiqué notes the conclusions of the UN Secretary General’s Panel on Critical Energy Transition Minerals, emphasising rights and equity in managing the energy transition.

While politically noteworthy, the G20 substantive outcomes remain weak. This should motivate civil society and social movements to push for massive mobilisation ahead of COP30 to ensure Just Transition delivers for workers, communities, and the planet.

Adaptation

The G20’s adaptation outcomes barely meet the minimum standard. While the GST decision is recognised, the ambition falls far short of the TF Clima ministerial statement.

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