The Banking Executive, Issue 155, November 2021

2021 G20 Rome Summit able supply chains of critical minerals and materials, as well as semiconductors and related technologies. 30. Policies for the transition and sustainable finance. We wel- come the agreement by Finance Ministers and Central Bank Gov- ernors to coordinate their efforts to tackle global challenges such as climate change and environ- mental protection, and to pro- mote transitions towards green, more prosperous and inclusive economies. We welcome the in- troduction of a Pillar dedicated to Protecting the Planet in the G20 Action Plan. We agree on the importance of a more sys- tematic analysis of macroeco- nomic risks stemming from climate change and of the costs and benefits of different transi- tions, as well as of the macroeco- nomic and distributional impact of risk prevention strategies and mitigation and adaptation poli- cies, including by drawing on well-established methodologies. We ask the different G20 work streams to act in synergy, within their respective mandates and while avoiding duplication, to inform our discussions on the most appropriate policy mix to move towards low-greenhouse gas emission economies, taking into account national circum- stances. Such policy mix should include investment in sustain- able infrastructure and innova- tive technologies that promote decarbonisation and circular economy, and a wide range of fiscal, market and regulatory mechanisms to support clean en- ergy transitions, including, if ap- propriate, the use of carbon pricing mechanisms and incen- tives, while providing targeted support for the poorest and the most vulnerable. We welcome the constructive discussions held at the Venice International Con- ference on Climate and at the G20 High Level Tax Symposium on Tax Policy and Climate Change and we recognise that the policy dialogue on the macroeconomic and fiscal im- pact of climate change policies could benefit from further tech- nical work. 31. Sustainable finance is crucial for promoting orderly and just tran- sitions towards green and more sustainable economies and in- clusive societies, in line with the 2030 Agenda for Sustainable De- velopment and the Paris Agree- ment. We welcome the establishment of the G20 Sus- tainable Finance Working Group (SFWG) and we endorse the G20 Sustainable Finance Roadmap and the Synthesis Report. The Roadmap, initially focused on climate, is a multi-year action- oriented document, voluntary and flexible in nature, which will inform the broader G20 agenda on climate and sustainability. We recognise the importance of gradually expanding the Roadmap's coverage to include additional issues, such as biodi- versity and nature as well as so- cial matters, based on mutual agreement by G20 members in the coming years. We welcome the Financial Stability Board (FSB) Roadmap for addressing fi- nancial risks from climate change, which will complement the work carried out by the SFWG. We welcome the FSB re- port on the availability of data on ISSUE 155 NOVEMBER 2021 the BANKING EXECUTIVE 45