Through a joint communication after the Summit held in Carbis Bay (Cornuelles, United Kingdom) from 11 to 13 June, 2021, members of G7 have published “Our Shared Agenda for Global Action to Build Back Better”. Among points listed, representantives of the seven major economies state:
We also support the transformation underway to mobilise further private capital towards these objectives in particular to support developing countries and emerging markets in making the most of the opportunities in the transition; whilst mitigating and adapting to climate change. We call upon the MDBs and our DFIs to prioritise capital mobilization strategies, initiatives and incentives within their operations. The G7 commits to leverage different types of blended finance vehicles including through our greater strategic approach to development finance, greater collaboration between our DFIs and billions worth of planned commitments towards CIF and Green Climate Fund, all of which will mobilise billions more in private finance. We also encourage further development of disaster risk finance markets. Towards this, G7 members have committed hundreds of millions worth of new financing for early action, disaster risk and insurance in line with the InsuResilience Global Partnership and Risk-Informed Early Action Partnership (REAP). We commit to establishing the necessary market infrastructure for private finance to support and incentivise the net zero transition. Developing the global green finance market will help mobilise private sector finance and reinforce government policy to meet our net zero commitments. We support the recently launched Glasgow Finance Alliance for Net Zero, and call on swift, robust delivery of their commitments to reduce real economy emissions. We emphasise the need to green the global financial system so that financial decisions take climate considerations into account. We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) 16 framework, in line with domestic regulatory frameworks. We also look forward to the establishment of the Taskforce on Nature-related Financial Disclosures and its recommendations. These initiatives will help mobilise the trillions of dollars of private sector finance needed and reinforce government policy to meet our net zero commitments. We recognise the potential of high integrity carbon markets and carbon pricing to foster cost-efficient reductions in emission levels, drive innovation and enable a transformation to net zero, through the optimal use of a range of policy levers to price carbon. We underline their importance towards the establishment of a fair and efficient carbon pricing trajectory to accelerate the decarbonisation of our economies, to achieve a net zero global emissions pathway. In all this, we will develop gender-responsive approaches to climate and nature financing, investment and policies, so that women and girls can participate fully in the future green economy.
In the same way, policy leaders from G7 countries recognize in the joint communication entitled G7 Nature Compact:
Working with finance, industry and business leaders: including through formal and informal partnerships such as the Terra Carta and the Sustainable Markets Initiative instigated by HRH the Prince of Wales, and the One Planet Summit coalitions on sustainable finance, to drive a nature-positive shift by fully investing in natural capital and embedding consideration of nature-related risk. We look forward to the establishment of the Taskforce on Nature-related Financial Disclosures and its recommendations.
In addition, G7 leaders have committed to to take bold action to deliver ambitious outcomes at the 15th Conference of the Parties of the CBD (COP 15 CBD) and the COP 26 on Climate Change of the United Nations Convention for Climate Change (COP 26 UNFCCC).
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