30 October 2021

G20 supports IFRS Foundation sustainable standard-setting - and much else

We welcome the agreement by Finance Ministers and Central Bank Governors to coordinate their efforts to tackle global challenges such as climate change and environmental protection, and to promote transitions towards green, more prosperous and inclusive economies

... 30. Policies for the transition and sustainable finance. We welcome the agreement by Finance
Ministers and Central Bank Governors to coordinate their efforts to tackle global challenges such as
climate change and environmental protection, and to promote transitions towards green, more
prosperous and inclusive economies. We welcome the introduction of a Pillar dedicated to Protecting
the Planet in the G20 Action Plan. We agree on the importance of a more systematic analysis of
macroeconomic risks stemming from climate change and of the costs and benefits of different
transitions, as well as of the macroeconomic and distributional impact of risk prevention strategies and
mitigation and adaptation policies, 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 circumstances. Such policy mix
should include investment in sustainable infrastructure and innovative technologies that promote
decarbonisation and circular economy, and a wide range of fiscal, market and regulatory mechanisms
to support clean energy transitions, including, if appropriate, the use of carbon pricing mechanisms
and incentives, while providing targeted support for the poorest and the most vulnerable. We welcome
the constructive discussions held at the Venice International Conference 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 impact of climate change policies could benefit from further
technical work

31. Sustainable finance is crucial for promoting orderly and just transitions towards green and more
sustainable economies and inclusive societies, in line with the 2030 Agenda for Sustainable
Development and the Paris Agreement. We welcome the establishment of the G20 Sustainable 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 biodiversity and nature as well as social matters, based on mutual
agreement by G20 members in the coming years. We welcome the Financial Stability Board (FSB)
Roadmap for addressing financial risks from climate change, which will complement the work carried
out by the SFWG. We welcome the FSB report on the availability of data on climate-related financial
stability risks and the FSB report on promoting globally consistent, comparable and reliable climate-
related financial disclosures and its recommendations. We also welcome the work programme of the
International Financial Reporting Standards Foundation to develop a baseline global reporting standard
under robust governance and public oversight, building upon the FSB’s Task Force on Climate-Related
Financial Disclosures framework and the work of sustainability standard-setters.

32. International taxation. The final political agreement as set out in the Statement on a Two-
Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy and in
the Detailed Implementation Plan, released by the OECD/G20 Inclusive Framework on Base Erosion
and Profit Shifting (BEPS) on 8 October, is a historic achievement through which we will establish a
more stable and fairer international tax system. We call on the OECD/G20 Inclusive Framework on
BEPS to swiftly develop the model rules and multilateral instruments as agreed in the Detailed
Implementation Plan, with a view to ensure that the new rules will come into effect at global level in
2023. We note the OECD report on Developing Countries and the OECD/G20 Inclusive Framework
on BEPS identifying developing countries’ progress made through their participation in the
OECD/G20 Inclusive Framework on BEPS and possible areas where domestic resource mobilisation
efforts could be further supported. ...

much more G20

© G-20