World Leaders from 20 big economies successfully concluded the G20 Summit on Sunday (10th September 2023). Conducted in Indian Capital- New Delhi, the summit witnessed a diplomatic win for nations looking forward to inclusive growth. Whether it is inclusion of Africa in the club or pushing the sustainability envelope under the global spotlight or achieving a consensus for US, Middle East and South Asian Economic Corridor, G20 has proved to be good for business and global prosperity!
Commenting on the success of Summit, Indian External Affairs Minister quotes notes that the New Delhi Declaration showed that Indian Presidency was able to table ideas, shape global issues, bridge divides and forge consensus. Also evident in his tweet, “We kept the focus on Global South. We showcased our civilisational heritage even as we highlighted contemporary achievements”
Lets dive into the highlights of G20 Summit!
India-Middle East-Europe: Joining Hands for Economic Corridor
The announcement of the India-Middle East-Europe Economic Corridor during the summit garnered significant attention as a potential alternative to China’s Belt and Road Initiative. Leaders from the United States, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union jointly unveiled this ambitious project on the sidelines of the G20 summit.
The memorandum of understanding signed by these countries signifies their commitment to establishing the corridor, which is anticipated to spur economic growth through improved connectivity and economic integration across Asia, the Arabian Gulf, and Europe. This initiative, including plans for rail and port links between the Middle East, South Asia, and Europe, has been lauded as a significant development on the global economic landscape, with U.S. President Joe Biden highlighting its importance.
In the face of China’s Belt and Road efforts, the Biden administration aims to position Washington as a valuable partner and investor for emerging economies within the G20. However, it is important to note that specific details regarding financing and the project’s timeline, particularly the construction of railway lines in the Middle East and their connection to India via ports, remain forthcoming.
SUSTAINABILITY—Prime Focus on SDG 2030
World leaders at the G20 summit have taken a momentous step in the direction of sustainability. They have unanimously endorsed a landmark initiative that underscores the global commitment to a greener future. The G20 leaders have pledged to triple renewable energy capacity worldwide by 2030 and have acknowledged the pressing need to phase out unabated coal power. Also, the leaders recognized the colossal financial requirement of approximately $4 trillion annually to facilitate the transition to green energy.
These deliberations hold immense significance as the world gears up for the COP28 U.N. climate summit in the United Arab Emirates later this year. Within this context, the G20 nations have taken substantial strides towards a smoother energy transition. This includes commitments to phase out unabated coal power, significantly boost investments in renewable energy, and double energy efficiency targets by 2030. A notable development is the creation of the Global Biofuel Alliance, spearheaded by Prime Minister Narendra Modi. He announced the alliance’s launch and called upon G20 nations to unite in elevating global ethanol blending with petrol to 20 percent. The G20 Delhi Declaration emphasizes the pivotal role of sustainable biofuels in low and zero-emission development strategies.
Adding up, G20 members underscore the importance of ramping up investments in renewable energy and express a commitment to take note of the Voluntary Action Plan aimed at doubling the rate of energy efficiency improvement by 2030. This collective dedication to sustainability represents a significant milestone in the global effort to combat climate change and transition to a greener, more environmentally responsible future.
Global Bio-fuel Alliance
The G20 nations have taken a significant stride towards fostering a sustainable and business-friendly global energy landscape. Their collective agreement includes the phased reduction of unabated coal power, a threefold increase in investments in renewable energy, and the doubling of energy efficiency targets by 2030. Notably, they have established the Global Biofuel Alliance, a pivotal initiative aimed at propelling sustainable biofuels into the forefront of global energy strategies.
Prime Minister Narendra Modi’s announcement of the Global Biofuel Alliance launch is a clarion call to G20 nations to participate in this endeavor, emphasizing the importance of increasing global ethanol blending with petrol to 20 percent.
The G20 Delhi Declaration underscores the crucial role of sustainable biofuels in achieving zero and low-emission development strategies, highlighting the establishment of the Global Biofuels Alliance as a pivotal milestone.
African Union in the Club: G21 Grouping
The inclusion of the African Union (AU) as a permanent member of the G20, elevating the grouping to G21 status, marks a significant diplomatic achievement and holds the potential to drive enhanced growth, equity, and sustainability on a global scale.
Previously, only South Africa represented the African continent within the G20, but this new development ensures that the entire 55-member African Union is on par with the European Union in the G20.
One of the primary benefits of this inclusion is the amplification of the Global South’s voice within the G20. Historically, the G7 countries have held a dominant role in this forum, but with the entry of the AU, the Global South gains a more robust presence. This move aligns with the broader trend of rebalancing global power dynamics and fostering a more representative international order.
Soft Words on Russia-Ukraine Issue
The G20 summit spotlighted a diplomatic win for India as it navigated the Ukraine conflict with finesse.
While the declaration refrained from direct criticism of Russia for the ongoing war, it signaled a shift from the G20’s stance last year, which had explicitly condemned Russia and called for its withdrawal from Ukraine. Instead, the G20 nations, including Russia, acknowledged a fundamental principle: that states cannot annex territory through military force. This diplomatic subtlety ensured broader participation and commitment.
Hosted by India and supported by Brazil, Indonesia, and South Africa, the summit demonstrated the growing influence of Global South developing nations within the G20. Their collaborative efforts helped prevent a schism within the group over the Ukraine issue, underlining the importance of diplomatic pragmatism and cooperation on the global stage. India’s role in fostering consensus marks a diplomatic success, showcasing its ability to navigate complex international dynamics effectively.
