NEW DELHI: In a move that surprised many, China and Russia withheld their support for the G20 outcome document and Chair's summary. The 3rd G20 Finance Ministers and Central Bank Governors (FMCBG) meeting at Gandhinagar witnessed a strong expression of dissatisfaction towards Russia's aggression against Ukraine.
China argued that the G20 FMCBG meeting was not the appropriate platform for discussing geopolitical matters, while Russia distanced itself from the document's status.
The outcome document voiced its strongest condemnation of the Russian Federation's aggression against Ukraine and demanded an immediate and unconditional withdrawal from Ukrainian territory. Numerous members joined in denouncing the war in Ukraine, highlighting its devastating impact on human lives and its negative effects on the global economy. The conflict has resulted in constrained growth, increased inflation, disrupted supply chains, heightened energy and food insecurity, and escalated financial stability risks.
The outcome document reiterated that the use or threat of nuclear weapons is unacceptable. It emphasized the imperative of seeking peaceful resolutions to conflicts, addressing crises through diplomatic efforts and dialogue, and striving for an era free from war.
Shifting focus to other important issues, the G20 looked forward to the end-of-year ambitious replenishment of resources for the International Fund for Agricultural Development (IFAD) by its members. The objective is to enhance IFAD's ability to combat food insecurity effectively.
Additionally, the FMCBG welcomed discussions on the potential macro-financial implications arising from the introduction and adoption of Central Bank Digital Currencies (CBDCs). The talks specifically highlighted the impact on cross-border payments and the international monetary and financial system.
The G20 FMCBG reiterated the crucial importance of addressing debt vulnerabilities in low and middle-income countries through effective, comprehensive, and systematic approaches.
Regarding the debt situation in Sri Lanka, the FMCBG expressed support for all efforts aimed at timely resolution, including the establishment of an official creditor committee. Swift resolution was emphasized.
The G20 FMCBG reaffirmed the commitment made by developed countries to mobilize $100 billion per year in climate finance by 2020, continuing annually through 2025. This commitment aims to address the needs of developing countries while ensuring meaningful mitigation actions and transparency in implementation.
The document also stated that developed country contributors anticipate achieving this goal for the first time in 2023. Furthermore, it expressed support for ongoing discussions concerning an ambitious new collective quantified goal of climate finance, starting from a minimum of $100 billion per year. This goal will assist developing countries in fulfilling the objectives of the UNFCCC and implementing the Paris Agreement.
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