2nd G20 FMCBG Meet: Members Discuss Global Economic Challenges, Climate Change, Financial Risks

The second meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency was held on April 12-13, 2023. During the session, members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability.

“The members agreed that the G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected,” according to an official statement on Friday.

Finance Minister Nirmala Sitharaman, and RBI Governor Shaktikanta Das jointly chaired the meeting, which was conducted on the margins of the 2023 Spring Meetings of the IMF and the World Bank Group. The meeting saw participation of around 350 delegates from G20 members, 13 invitee countries, and various international and regional organisations.

The meeting was organised in three sessions covering the Global Economy, International Financial Architecture, Sustainable Finance, Financial Sector, Financial Inclusion, and International Taxation. The goal of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward.

Ministers and Governors also discussed the progress of the implementation of recommendations of the Independent Panel of MDBs’ Capital Adequacy Frameworks (CAF).

During the second session on Sustainable Finance, Financial Sector, and Financial Inclusion, discussions focussed on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments. Ministers and Governors also shared perspectives on the development of the 2023 Financial Inclusion Action Plan (FIAP).

The third session on International Taxation discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package. Ministers shared suggestions on how best G20 can complement global efforts to enhance tax transparency.

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