G20 Talks on Climate, Debt, Inequality Hit Roadblocks

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Finance ministers and central bankers from the G20’s leading economies are meeting in South Africa on Wednesday and Thursday, but the gathering is overshadowed by the absence or limited attendance of key members, as well as disagreements on major issues like climate change, debt, and inequality.

Reaching a consensus has always been challenging at these meetings, given the differences between China, Russia, the European Union, and the United States. However, the divisions are more pronounced than ever, with some finance ministers skipping the event due to domestic political concerns. Japan’s Finance Minister Katsunobu Kato is absent due to a parliamentary debate, and U.S. Treasury Secretary Scott Bessent and EU economy commissioner Valdis Dombrovskis are also missing.

There seems to be little hope for agreement on the issues that South African President Cyril Ramaphosa sees as critical, including the insufficient climate finance from rich nations, the reform of financial systems that disadvantage poor countries, and the growing inequalities.

“Global priorities are at risk,” said Alex van den Heever, a political scientist at the University of Witwatersrand, noting that issues like debt in poorer countries are not a focus for the U.S. or developed nations in general.

Climate Challenges

South Africa had hoped to use the G20 summit as a platform to pressure wealthier countries to contribute more to tackling climate change and to support poorer nations in their transition to green energy and adaptation to climate impacts.

“The countries most responsible for climate change have a duty to support those least responsible,” Ramaphosa said last week.

Energy Minister Kgosientsho Ramokgopa expressed concerns that U.S. actions may complicate efforts to resolve climate issues, stating that the U.S. is reintroducing debates that were thought to be settled, which could lead countries to reconsider the speed and scope of their transition from fossil fuels.

Some analysts have questioned the relevance of the G20 due to the U.S. retreat from discussions, while others see it as an opportunity to move forward without U.S. involvement on certain issues.

“This could be a chance for South Africa to assert its leadership role,” said Daniel Silke, director of Political Futures Consultancy.

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