G-20 News

The G20 seeks to improve sustainable finance to meet the 2030 agenda

The fiscal capacity of countries in the current global crisis is limited

Jakarta (ANTARA) – The G20 Sustainable Finance Working Group (SFWG) encourages the strengthening of synergies between the public and private sectors to improve sustainable finance in order to achieve the objectives of the 2030 Agenda and the Paris.

Wempi Saputra, expert in macroeconomics and international finance to the Minister of Finance, made these remarks on Saturday.

He highlighted the role of the private sector in mobilizing sustainable and affordable financing given the limited fiscal capacity in the context of the current global crisis.

“The fiscal capacity of countries in the current global crisis is limited,” he noted.

One of the efforts to engage the private sector was the G20 Private Sector Roundtable on Sustainable Finance.

At the forum, private sector actors shared their thoughts on voluntary practices to help financial institutions (FIs) develop and execute transition plans and also create a broader supportive environment.

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The private and public sectors also discussed tools and policies to increase the access of small and medium-sized enterprises (SMEs) to sustainable financial instruments.

Saputra said the private sector also discussed the role of digital finance and public sector mechanisms in developing countries to increase access to sustainable financial markets.

In addition, private sector representatives highlighted several potential areas of work to help accelerate the promotion of sustainable finance, he added.

Efforts to accelerate the improvement of sustainable finance relate to the interoperability of the alignment approach, the availability and quality of data, the disclosure of transition plans or transparency, and the role of the public sector in providing incentives.

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The G20 is a forum made up of the European Union and 19 countries, namely South Africa, the United States, Saudi Arabia, Argentina, Australia, Brazil, India, l Indonesia, United Kingdom, Italy, Japan, Germany, Canada, Mexico, Republic of Korea, Russia, France, China and Turkey.

Indonesia holds the 2022 G20 Presidency from December 2021 to November 2022. There are two main work streams discussed at the G20, namely the financial track, which focuses on financial, economic, monetary and fiscal issues, and the Sherpa track, which focuses on climate change, development, trade, energy, anti-corruption and geopolitics.

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