G20 leaders navigate MBD reforms & crypto regulation in virtual summit
On Wednesday, G20 leaders assessed September decisions, focusing on boosting multilateral development banks, climate financing, and global crypto regulation, stated Finance Minister Nirmala Sitharaman.
cryptocurrency
Highlights
- G20 leaders convened virtually on Wednesday to discuss progress on decisions made in September
- Sitharaman highlighted ongoing efforts among MDBs to explore collaborative options
In the culmination of the Indian Presidency in 2023, G20 leaders convened virtually to review the outcomes of their physical meeting in New Delhi on 9-10 September. Finance Minister Nirmala Sitharaman reported that the leaders discussed progress on decisions made in September, focusing on enhancing the financing capability of multilateral development banks (MDBs), climate financing, and the global crypto regulation template.
Addressing urgent global challenges and SDGs
An expert group set up by the G20 Indian Presidency estimated a substantial spending requirement of $3 trillion per year by 2030 to tackle urgent global challenges and achieve Sustainable Development Goals (SDGs). The report outlined that $2 trillion could be sourced from domestic resources, with the remaining $1 trillion requiring additional external financing. Of this external funding, more than half is expected to come from private financing, with the rest from official financing, including MDBs. Sitharaman highlighted ongoing efforts among MDBs to explore collaborative options, with the U.S. seeking Congress funding to unlock $25 billion in IBRD, and Germany pledging €35 million in hybrid capital for additional World Bank lending.
Climate finance and crypto asset regulation remain priorities
During the Indian Presidency, climate finance mobilisation remained a key focus. The leaders addressed the urgent need for resources, with announcements of USD 5.8-5.9 trillion and USD 4 trillion per year for National Determined Contributions (NDCs) implementation and clean energy technologies in developing countries. The G20 leaders also emphasised the swift implementation of a comprehensive policy framework to manage risks associated with crypto assets.
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) presented a Synthesis Paper on cryptos to the G20, which was later adopted in the G20 New Delhi Declaration. The Financial Ministers and Central Bank Governors (FMCBG) endorsed the proposed roadmap in their meeting in Marrakesh, Morocco, on 12-13 October.
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