One of the dominant themes of the declaration has been climate change with a special emphasis on financing to help in the energy transition for developing and least developed countries. It has set the need of developing countries at $5.8-5.9 trillion over the next six years till 2030 for implementing the target of carbon neutrality and net zero emissions. While these ambitious targets are laudable indeed, the reality is that the developed world has still not met the earlier commitment of $100 billon in climate finance based on the Paris Agreement.
On fossil fuels, the declaration has fallen short of climate activists’ pleas for phasing out and instead used the term “phasedown of unabated coal power in line with national circumstances.” The dilution is clearly in line with the needs of developing economies like India and China that are finding it difficult to easily dispense with coal-based power. At the same time, it has committed to phase out of inefficient fossil fuel subsidies.Digital InfrastructureIt is in building digital infrastructure, however, that India’s mark is most evident. India’s plan to build and maintain a Global Digital Public Infrastructure Repository (GDPIR), a virtual repository of DPI has been highlighted in the declaration. A framework has been evolved for the development and governance of DPI along with the One Future Alliance (OFA), a voluntary initiative to help low- and middle-income countries in this sector.The Declaration has been quite strident in its demand for reforming the international development finance system to enable it to support developing countries facing unprecedented shocks in recent times. These are not spelt out but the impact of the pandemic followed by the Ukraine war leading to inflationary pressures and collapse of supply chains has had a huge impact on many developing economies. It says the G20 is working to deliver bigger and more effective multilateral development banks (MDBs). It underscores the need to increase financing levels as well as raise the representation of emerging economies in MDBs. These proposals are welcome in view of the pain being felt by emerging economies in recent years.The New Delhi Declaration has thus taken a comprehensive overview of the challenges facing both the Global North and South in light of the current geopolitical situation. The fact that there has been a harmonious agreement on an enormous number of issues – the list is too long to be enumerated in a single article – indicates the group is operating productively. Some proposals may not finally fructify but many like those related to the digital economy are set to become a reality. The Group of 20 – now 21 – needs to plan for the future to ensure effective implementation of all these commitments.Sushma Ramachandran is a senior journalist based in Delhi. Views are personal, and do not represent the stand of this publication.
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