The Banking Executive, Issue 155, November 2021

2021 G20 Rome Summit OVERVIEW OF DECLARATION: Climate change Leaders committed to the key Paris Agreement goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels, pledged action against dirty coal plants, but fell short on a target of zero emis- sions. “Keeping 1.5 degrees within reach will require meaningful and effective actions and commitment by all countries, taking into account differ- ent approaches,” the G20 said in their final communique. They also pledged to reach a target of net zero carbon emissions “by or around mid-century”, instead of set- ting a clear 2050 date, as campaign- ers and summit host Italy were hoping for. Elsewhere in the statement, they agreed to stop funding new dirty coal plants abroad by the end of 2021, and reaffirmed the so far unmet com- mitment to mobilize $100bn for de- veloping countries for climate adap- tation costs. Leaders for the first time acknowl- edged “the use of carbon pricing mechanisms and incentives” as a possible tool against climate change, just as the International Monetary Fund (IMF) is calling on the most pol- luting countries to go down that path by setting a minimum carbon price. Taxation Leaders put their seal of approval on an agreement that will subject multi- nationals to a minimum 15% tax, as part of an effort to build “a more sta- ble and fairer international tax sys- tem”. US internet giants such as Amazon, Google parent Alphabet, Facebook and Apple – which have benefited from basing themselves in low-tax countries to minimize their tax bills – are particular targets of the new global regulation. The reform, brokered by the OECD and backed by 136 countries repre- senting more than 90% of world GDP, has long been in the making, and is supposed to come into effect in 2023, but the deadline is at risk of slipping. Each country taking part in the global deal must first pass national legisla- tion – and US president Joe Biden is among those facing tough domestic opposition to the plan. Nevertheless, the G20 calls on rele- vant working groups within the OECD and G20 “to swiftly develop the model rules and multilateral in- struments … with a view to ensure that the new rules will come into ef- fect at global level in 2023.” Vaccines Leaders vowed to support the WHO’s goal of vaccinating at least 40% of the world’s population against Covid-19 by 2021, and 70% by the middle of next year, by boost- ISSUE 155 NOVEMBER 2021 the BANKING EXECUTIVE 35