G-20 Leaders Pledge to End Financing for Overseas Coal Plants
G-20 leaders meeting in Rome have agreed to work to reach carbon neutrality “by around mid-century” and pledged to end financing for coal plants abroad by the end of this year.
The final communique was issued Sunday at the end of a two-day summit, ahead of talks at ahead of a broader U.N. climate change summit, COP26, this week in Glasgow, Scotland.
Leaders in Rome addressed efforts to reach the goal of limiting global warming to 1.5 degrees Celsius, in line with a global commitment made in 2015 at the Paris Climate Accord to keep global warming to “well below” 2 degrees Celsius above pre-industrial levels, and preferably to 1.5 degrees.
“We recognize that the impacts of climate change at 1.5°C are much lower than at 2°C. Keeping 1.5°C within reach will require meaningful and effective actions and commitment by all countries,” the communique said, according to Reuters.
The group of 19 countries and the European Union account for more than three-quarters of the world’s greenhouse gas emissions.
Two dozen countries this month have joined a U.S.- and EU-led effort to slash methane emissions by 30% from 2020 levels by 2030.
Coal, though, is a bigger point of contention. G-20 members China and India have resisted attempts to produce a declaration on phasing out domestic coal consumption.
Briefing reporters ahead of the summit, a U.S. senior administration official said U.S. President Joe Biden and other leaders are hoping to get a commitment to end overseas financing of coal-fired power generation.
Climate financing, namely pledges from wealthy nations to provide $100 billion a year in climate financing to support developing countries’ efforts to reduce emissions and mitigate the impacts of climate change, is another key concern. Indonesia, a large greenhouse gas emitter that will take over the G-20 presidency in December, is urging developed countries to fulfill their financing commitments both in Rome and in Glasgow.
Global supply chain
Biden will hold a meeting at the summit’s sidelines to address the global supply chain crisis. The group of 20 countries in the summit account for more than 80% of world GDP and 75% of global trade.
“The President will make announcements about what the United States itself will do, particularly in respect to stockpiles, to improving… the United States’ capacity to have modern and effective and capable and flexible stockpiles,” White House national security adviser Jake Sullivan told VOA aboard Air Force One en route to Rome, Thursday. “We are working towards agreement with the other participants on a set of principles and parameters around how we collectively manage and create resilient supply chains going forward.”
Addressing global commerce disruptions has been a key focus for the Biden administration, which is concerned that these bottlenecks will hamper post-pandemic economic recovery. To address the nation’s own supply chain issues, earlier this month the administration announced a plan to extend operations around the clock, seven days a week, at Los Angeles and Long Beach, two ports that account for 40% of sea freight entering the country.
“Whether it’s you’re talking about medical equipment or supplies of consumer goods or other products, it’s a challenge for the global economy,” said Matthew Goodman, senior vice president for economics at the Center for Strategic and International Studies.
Some of the concrete measures to alleviate global supply chain pressure points may need to be longer term, such as shortening supply chains and rethinking dependencies, said Leslie Vinjamuri, director of the U.S. and the Americas program at Chatham House.
“Those are not quick fixes,” she said. “But the G-20 is historically set up really to be dealing with short-term crises. So, I think that there will be considerable effort made to really discuss and come to terms with that.”
While global supply chain issues are a key concern for the leaders in Rome, Goodman said he doubts the meeting will result in tangible solutions.
“It’s a very difficult group — the G-20 to get consensus to do very specific things. And this may be one area in which it’s going to be particularly difficult,” he added.
President Xi Jinping of China, considered to be the “world’s factory,” is not attending the summit in person. In his virtual speech to G-20 leaders, Xi proposed holding an international forum on resilient and stable industrial and supply chains, and welcomed participation of G-20 members and relevant international organizations.