Climate financing a sticking point among global leaders as G20 finance ministers wrap up meeting

JOHANNESBURG - Climate financing has remained a sticking point among global leaders as G20 finance ministers wrap up their first meeting in Cape Town.

Discussions this week centred around South Africa’s G20 agenda and laid the groundwork to address key global issues.

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Economic growth and equality, finance sector issues, dealing with the debt burden on emerging economies, tax policy reforms, and monetary policy were among some of the topics at hand.

In the other high-level G20 meetings held in South Africa since the country assumed presidency in December, there has been broad consensus on the priorities for 2025’s G20 cycle.

This week, South African officials had hoped to again get favour from other G20 partners in its efforts to convince the globe to finance the shift by developing economies to a low-carbon economy.

But the issue of climate financing became the main point of contention.

While it is believed the United States (US) has again pushed back on the G20 climate ticket, Minister of Finance Enoch Godongwana would not give further details on the disagreement in the closed-door meetings.

"I’m not going to say what country stands on which point. Climate financing is one of the big points. There are differences of opinion on moving forward on those issues."

Without consensus, a chair’s summary was issued instead, with the working groups expected to continue discussions on other matters.