Governing Global Industrial and Financial Policies in the G20

On 27th November, Vera Songwe, Founder and Chair of the Liquidity and Sustainability Facility and Non-Resident Senior Fellow at the Brookings Institution, and Mariana Mazzucato, Professor in the Economics of Innovation and Public Value at University College London and Founding Director of the UCL Institute for Innovation & Public Purpose, spoke to Brazil’s National Environmental Council about what is needed to change course.

Vera Songwe and Mariana Mazzucato's comments were based on a recent report of the Group of Experts to the G20 Taskforce on a Global Mobilization Against Climate Change (TF CLIMA), of which they co-chaired.

“A Green and Just Planet: The 1.5°C Agenda for Governing Global Industrial and Financial Policies in the G20” sets out a framework for making green growth achievable across the G20 and globally, whilst still achieving the Paris Agreement’s 1.5°C goal.

In the foreword, the Co-Chairs call for the advancement of green industrial strategies and green finance, centred on ambitious Nationally Determined Contributions (NDCs): “Without green industrial strategy, economic development will continue to exceed planetary boundaries, and without green financial policies, investing in green industrial strategy and climate change mitigation and adaptation will remain out of reach for too many countries”.

The report highlights how green industrial strategies can transform entire economies by encouraging innovation and investment that align with national climate targets. Unlike traditional approaches that focus on specific sectors or technologies, these strategies create opportunities across industries. They ensure businesses receiving public support are held to high ESG standards, while tailoring assistance to a company’s size, maturity, and local economic conditions, making the transition fair and effective.

Government ministries are therefore called upon to play an active role in climate action by reshaping policies and institutions to support green industrial strategies, unlocking access to affordable green finance and enabling investments in a low-carbon sustainable future.

This includes taking responsibility for ensuring the risks and rewards of climate action are shared equitably between the public and private sector, as well as implementing a rapid shift in subsidies away from fossil-fuel intensive activities. On the global governance scale, ensuring the risk and rewards of climate action being shared equitably is a fundamental theme throughout.

The report calls for the G20 to take bold action and drive the green transition by creating fiscal space for investments, addressing tax loopholes, and reinforcing the calls of the Bridgetown Initiative, in ensuring low- and middle-income countries can access affordable green finance without adding to their debt.

Stronger collaboration between development banks is also highlighted to unlock long-term funding and the utilisation of blended finance to attract private investment in hard-to-reach sectors. At the same time, central banks and regulators need to embed climate risks into their policies, improve climate disclosures, and develop clear global standards.

With urgency and fairness, the report underscores how the G20 can lead the economic transitions needed to meet the Paris Agreement's 1.5°C goal.

Read the full report here.

Watch Vera Songwe and Mariana Mazzucato speak to Brazil’s National Environmental Council here.