Small island middle-income states urgently need debt relief, Secretary-General stresses in remarks to G20 Finance Ministers and Central Bank Governors – World

SG/SM/20819

Here are the remarks of United Nations Secretary-General António Guterres, as prepared for delivery, at the Third Meeting of the Group of 20 (G20) Finance Ministers and Central Bank Governors, held today :

We are now in the second year of a global pandemic that has killed 4 million people. Extreme weather events regularly devastate vulnerable communities. You have come together to determine the course of some of the most pressing issues facing us: access to vaccines; extending an economic lifeline to the developing world; and more and better public finance for ambitious climate action.

A global vaccine gap threatens us all because, as the virus mutates, it could become even more transmissible and even more deadly. Pledges of doses and funds are welcome, but they are not enough. We need at least 11 billion doses to vaccinate 70% of the world’s population and end this pandemic. The world needs a global vaccine plan, to at least double vaccine production and ensure equitable distribution, using COVAX as a platform.

To realize this plan, I call for an emergency task force that brings together countries that produce and can produce vaccines, the World Health Organization, GAVI and international financial institutions capable of dealing with pharmaceutical companies and the manufacturers concerned. The G20 is best placed to lead the world in preparing and implementing such a plan. Right now, it is important to support the $50 billion investment roadmap, which will be led by the International Monetary Fund (IMF).

The solidarity does not stop there. Many developing countries are on the brink of default. They need an economic lifeline. They face severe funding constraints, limited in many cases by interest payments and reduced opportunities to raise taxes. Of the 10 “new poor”, eight are in middle-income countries, which are not currently eligible for debt relief programs.

Solidarity demands that advanced economies channel unused special drawing rights into the new Resilience and Sustainability Fund to support developing countries. Special drawing rights should also be considered as additional funding, not deducted from official development assistance (ODA). I hope the G20 will expand debt initiatives to include vulnerable middle-income countries and small island developing states, and fully operationalize the Common Framework as the basis for a reformed and fairer international debt architecture.

Strengthening the financial architecture is also essential to combat climate change. We are still struggling to keep global temperature rise to the Paris Agreement target of 1.5°C. At 1.2°C, we are on the edge of the abyss. If COP26 in Glasgow is to be a turning point, we need all G20 countries to commit to net-zero [carbon emissions] by the middle of the century and to present nationally determined contributions aimed at reducing global emissions by 45% by 2030, compared to 2010 levels.

Developing countries also need reassurance that their ambition will be met through financial and technical support. I am deeply concerned about the lack of progress on public climate finance. Twelve years ago, in 2009, developed countries agreed to mobilize $100 billion a year from public and private sources for mitigation and adaptation actions in developing countries by 2020. They agreed to reiterated this commitment in Paris.

A hundred billion dollars is a bare minimum. But the agreement was not kept. A clear plan to fulfill this commitment is not just about the economics of climate change; it is about building trust in the multilateral system. Solidarity begins with the 100 billion dollars. It should go as far as allocating 50% of all climate finance to adaptation. Development banks have a vital role to play in helping developing countries transition from coal, oil and gas to renewable energy by creating green jobs and reducing inequality.

While public financing is essential, large-scale private financing is also essential. It now seems possible, for the first time. More than 160 financial firms, responsible for $70 trillion in assets, have joined the Glasgow Financial Alliance for Net Zero. To reinforce these efforts, the G20 must put in place ambitious, clear and credible climate policies, and ensure that the private sector has the framework it needs through mandatory climate-related financial disclosures. And we need all financiers to commit to no longer funding new international coal finance, by the end of 2021.

To restore confidence in multilateralism, we must ensure vaccines, economic recovery and climate finance. With your leadership and political will, we can do it.

For news media. Not an official record.