12 May 2017
The task force on climate policy and finance has proposed policy options for the G20 with the intent of achieving the objectives of the Paris Agreement.
The policy brief, Towards a comprehensive approach to climate policy, sustainable infrastructure, and finance, was published as part of the Think Tank 20 (T20) dialogues in anticipation of the 2017 G20 summit.
“Infrastructure is the Marshall Plan of the 21st century, it will cement Europe and will be a foundation for Canada’s climate commitments,” says Céline Bak, senior fellow at the Centre for International Governance Innovation, who co-authored the brief and co-chairs the task force on climate policy.
Leading with the point that G20 countries are responsible for roughly 80 per cent of global energy use and CO2 emissions, the brief proposes that:
- G20 countries should include targets on quantity and quality of sustainable infrastructure consistent with the Paris Agreement.
- G20 countries should undertake systematic assessments of current investments and impediments to sustainable infrastructure.
- The G20 should invite global governance and finance institutions working in cooperation with other international organizations to establish common definitions and standards, and set targets for sustainable infrastructure.
- The G20 should invite the Financial Stability Board (FSB) to establish a platform to exchange experiences and develop approaches to disclosure on climate-related financial risks.
- Public and private-sector financial institutions should adopt shadow carbon pricing in internal decision-making as an instrument to help reduce climate-related risk in their investment portfolio.
- G20 Finance Ministers should commit to a peer review process to assess the adequacy of the current carbon pricing systems.
- G20 members should set 2022 as a target date for eliminating fossil fuel subsidies, including both production and consumption subsidies.
- G20 should develop a carbon pricing roadmap, agree on a minimum and rising carbon price broadly, while maintaining social equity though increased access to sustainable infrastructure. G20 countries should continue bilateral peer-review of carbon pricing systems.
Centre for International Governance Innovation | http://www.cigionline.org