'Going It Alone' Is Not an Option, Draghi Says: G-20 Update

  • In Business
  • 2021-10-30 11:29:06Z
  • By Bloomberg

(Bloomberg) -- Italian Prime Minister Mario Draghi told fellow Group of 20 leaders that "multilateralism is the best answer to the problems we face" as he kicked off their two-day summit in Rome. "From the pandemic, to climate change, to fair and equitable taxation, going it alone is simply not an option," Draghi said.

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Seeking to turn the page on Trump-era unilateralism, Draghi said challenges leaders must meet together include disparities in global vaccine distribution, which he called "morally unacceptable," adding they undermine economic recovery from the pandemic. He said they must strengthen supply chains, while expanding vaccine manufacturing capacity at local and regional level.

Negotiators at the summit are racing the clock to reach a climate deal that can be taken on to the crucial United Nations COP26 summit in Glasgow. Officials have failed so far to agree on a draft statement they can put to the heads of state, with stark differences over timelines to reach specific climate goals and whether countries can wean themselves off coal entirely. The hope is for COP26 to advance pledges made in the Paris climate accord.

Complicating matters, Chinese President Xi Jinping and Russian President Vladimir Putin have opted to dial in from afar. U.S. President Joe Biden has struggled to get consensus at home on how strongly America will commit to climate action.

Key Developments:

  • Today's agenda includes a session on the global economy and the traditional family photo.

  • U.K. Prime Minister Boris Johnson urged the G-20 to do more on climate change before it becomes too late to rescue the most vulnerable nations from its "apocalyptic" effects.

  • Biden met with French President Emmanuel Macron to clear the air after tensions over a submarine deal involving Australia.

  • Leaders will sign off on a global tax deal at the meeting.

  • There will be a sideline chat between European nations and the U.S. on Iran.

Read more: Climate Talks Get a Shaky Start: A Roadmap From G-20 to COP26

All times are local (CET).

U.K. Prods Italy to Go Further on Climate Change (1:22 p.m.)

Johnson has encouraged Draghi to go further on Italy's climate-finance commitments to support developing countries's growth during a bilateral meeting between the two leaders today, according to a spokesperson for the U.K. prime minister.

Johnson "expressed his hope that Italy will lead the way in making further commitments on coal, cars and trees in the days ahead," according to the media note.

Italy is expected to double its contribution to the global financial pledge to more than $1 billion, Bloomberg reported earlier.

World Nears WHO Vaccination Target, Draghi Says (12:40 p.m.)

"We are very close to meeting the World Health Organization's target of vaccinating 40% of the global population by the end of 2021," Draghi said at the start of the summit talks. "Now we must do all we can to reach 70% by mid-2022."

While the pandemic isn't over, "we can finally look at the future with great -- or with some -- optimism" as the global economy rebounds and governments seek to reduce inequalities and promote sustainability," Draghi said. "Together, we are building a new economic model, and the world will be all the better for it."

Family Photo Includes Fill-Ins for Leaders (12:05 p.m.)

With leaders from China, Russia, Japan, South Africa and Mexico skipping an in-person appearance at the G-20, organizers of the traditional family photo subbed in the ministers who are representing them in person.

Read more: A Very Unusual 'Family Photo' With Stand-Ins for G-20 No-Shows

Johnson Says France May Be Breaking Brexit Deal (12:00 p.m.)

Johnson said France may already be violating the post-Brexit trade deal in their latest dispute over fishing access, even as he sought to downplay the row and switch the focus to tackling climate change.

"If there is a breach of the treaty or we think there is a breach of the treaty then we will do what is necessary to protect British interests," he told broadcasters at the Colosseum in Rome. "What I think everybody wants to see is co-operation between the European allies and Emmanuel Macron and I share a common perspective, which is that climate change is a disaster for humanity."

Read more: Johnson Says It Might Actually Be France Breaching Brexit Deal

Negotiators Hone In on Energy Price Swings (11:50 a.m.)

The latest communique draft addresses the volatility in global energy markets that sparked a historical surge in gas prices.

"Responding to the current fluctuations in the energy markets, we reaffirm our resolve to ensure stable and uninterrupted supply of energy, including by means of diversification of energy delivery, energy types and sources and markets stability in the context of national circumstances," it says. The reference to "national circumstances" is new and reflects a shift in the discussions toward meeting the concerns of developing countries.

On Friday, Russian sherpa Svetlana Lukash stressed the need "to respect each other's national situations" as countries are "in the same storm but not in the same boat," on climate and energy issues.

Biden to Hold Talks on Supply-Chain Squeeze (10:58 a.m.)

Biden will host a meeting Sunday on global supply-chain resilience through the pandemic and recovery. The aim is to improve international coordination on all aspects of supply chains, according to the White House.

A European diplomat told Bloomberg they expected about 15 countries to attend, including a mix of G-20 members and invited guests, with several leaders due to make short interventions. The event will be relevant for work on strengthening the resilience and preparedness for any future health crisis, another EU official said.

U.S., European Powers to Meet on Iran Deal (10:47 a.m.)

The leaders of the U.S., the U.K., France and Germany will meet today to discuss the Iranian nuclear deal, after Tehran said this week it's willing to resume talks with world powers on reviving the 2015 accord. The meeting on the G-20 sidelines will focus on ways of "bringing Iran back into compliance," Johnson's spokesman Max Blain told reporters late Friday, adding "there is limited time to sort the problems that remain."

Countries Argue Against One-Size-Fits-All on Coal (9:35 a.m.)

The latest communique draft, from the last round of talks in the early hours of the morning, reinserts the most disputed section on climate, which includes moving away from coal. The leaders pledge to do their utmost, "taking national circumstances into account, to refrain from building new unabated coal power generation capacity in the 2030s," according to the version seen by Bloomberg. That would allow countries potential wiggle room to argue on a case-by-case basis against a total phase out.

Little has changed since earlier versions, with the countries still deadlocked on the key issues. Lead negotiators known as sherpas are expected to talk into Saturday night as the envoys will need to consult with their leaders and participate in the day's working session, said officials who asked not to be identified discussing confidential talks.

Talks Show Some Movement Around Temperature Pledges (9:25 a.m.)

The latest draft does reaffirm a commitment to the Paris Agreement goal to hold the global average temperature increase "well below" 2 degrees Celsius and to "pursue efforts" to limit it to 1.5 degrees above pre-industrial levels.

Leaders also recognize that the impacts of climate change at 1.5 degrees are "much lower" than at 2 degrees, adding this will require "meaningful and effective actions by all countries, taking into account different pathways and approaches."

Japan's Leader Stays Home To Focus on Election Day (9:15 a.m)

Another absence in Rome is Japanese Prime Minister Fumio Kishida, making his final campaign push ahead of an election on Sunday where the focus is mostly on how much of a hit the ruling party will take. Polling indicates the Liberal Democratic Party will lose seats in the election for the powerful lower house and could fail to keep the single-handed majority it has held in the body for the past nine years.

The LDP is expected to stay in power via its junior coalition partner Komeito, but a significant drop for the party could weaken the prime minister's grip, increasing the risk of him being dispatched through the "revolving door" of Japanese politics that claimed six premiers between 2007 and 2012. Kishida has said he plans to travel to Glasgow for COP26.

Climate Talks Still Deadlocked as Nations Dig In on Coal (9:05 a.m.)

Some countries have singled out China, saying it is refusing to budge over domestic coal, with Russia and India also holding out.

The countries are set to commit to ending international funding for coal-fired power plants overseas but are struggling to agree on a date to ditch supporting them at home, according to officials briefed on the talks. On the push to stop financing plants overseas, one official warned that would likely only apply to new projects, and that some in early-stage development by China would continue.

Leaders to Endorse Tax Accord After Years of Talks (8:54 a.m.)

The summit will back an ambitious plan Saturday to overhaul the way countries around the world tax multinational companies, according to a senior U.S. administration official. The official called it a historic reshaping of the rules for the global economy that will force corporations to pay their fair share of taxes. The pact had already won support in October, in principle, from 136 governments under the auspices of the Organization for Economic Cooperation and Development, and G-20 finance ministers endorsed a framework in July.

Read more: G-20 No-Shows Give Some Leaders Room to Shine: Balance of Power

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  • handymaninreddingca.com/
    (2021-11-26 13:30:31Z)

    Negotiators at the summit are racing the clock to reach a climate deal that can be taken on to the crucial United Nations COP26 summit in Glasgow.


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