September 25, 2009
For immediate release
The draft G20 communiqué leaked last night to the media indicates world leaders are facing a crisis of leadership. At a time when the global economy needs wholesale transformation to a green new deal, and climate change threatens the lives of millions in the developing world, the G20 is picking off the low hanging fruit of bank bonus reform and the scrapping of fossil fuel subsidies.
CAFOD's head of climate finance policy Liz Gallagher said: "The focus of the G20 on limiting bank bonuses, the will to modernise the IMF, and the phasing-out of fossil fuel subsidies is basically tinkering at the edges of the core issues.
"When 100 people every minute are being pushed into poverty due to the repercussions of the economic crisis in developing countries, and millions of lives are at risk through the devastating impacts of climate change, the G20 leaders appear to be fiddling while Rome burns."
This is not just a financial crisis, this is a development crisis and the G20 has shown that as a leadership forum it is not fit for purpose.
Climate finance
At L'Aquila President Obama tasked the next G20 meeting with making progress on the finance needed for developing countries to cope with the impacts of climate change and leapfrog dirty development. At Pittsburgh leaders have put off action once again and asked finance ministers to report back options for climate finance at the next G20.
Liz Gallagher said: "The Pittsburgh negotiators may well have "underscore(d) anew" their resolve to 'take strong action to address the threat of dangerous climate change' but CAFOD suspects the pen has now gone through the paper. The ambition and momentum released in New York now needs to be backed up by solid action."
London Summit pledges & the G20 forum
The G20 countries' inability to deliver significant action on pledges to low income countries made at the London summit is one example of how this body is not the answer to the life-threatening problems poor countries are facing as a result of the double whammy crises of climate and economy.
CAFOD's senior policy advisor George Gelber said: "The poorest countries are having as much of a look-in at this summit as the protestors on the streets of Pittsburgh. But at least the protestors are having their voices heard - the poorest countries haven't been given the chance.
"The heavyweight nations of the G20 are taking over as the new board of directors of the global economy. The new board members will be sitting alongside the G8 nations which were not only responsible for the economic crisis that has touched the lives of poor people everywhere but also the climate crisis which threatens to push million to the edge of existence. The new members, countries like India, China and Brazil, know all about poverty - but they have yet to show that the G20 is anything more than an expanded rich men's club."
IMF
Poor countries need a seat at the table when issues affecting the global economy are being discussed to make sure their interests are taken into account.
Fossil fuel subsidies
It's a welcome step to phase out these damaging policies that essentially subsidise the rich - but the needs of the poorest must be not be forgotten in the transition. This gesture, thin on detail, must not detract from the urgent need for climate finance.
The United Nations
CAFOD welcomes the G20's affirmation that the UNFCCC is the "main channel of negotiations" for a deal on climate change. But CAFOD believes the inclusive nature of the UN members means it is also the only legitimate forum for debate on the global economic crisis and recovery strategies.
CAFOD's economic advisor Chistina Weller said: "The UN has its problems, but it is the obvious choice for a legitimate body to design and mobilise a coordinated response to the failures of the global economy. The UN's biggest problem is the G20 which sucks political momentum from its own, inclusive processes."
Notes to editors
For interviews with CAFOD spokespeople:
At the G20
Head of Climate Finance Policy Liz Gallagher +44 7920 235 974
In London
Senior Policy Advisor George Gelber +44 7776 493 140
Economic Advisor Christina Weller +44 7952 832 031
For further media information Pascale Palmer +44 7785 950 585
[ Any views expressed in this article are those of the writer and not of Reuters. ]
The sun sets above a cement factory in Sai Son village, outside Hanoi September 23, 2009. World leaders tried to inject momentum into climate change talks on Tuesday but new proposals ...
