The Aakhya G20 Special | Summit leaders adopt New Delhi Declaration
The Aakhya G20 Special | Summit leaders adopt New Delhi Declaration
G20 Summit Day 1: New beginnings and big wins
The G20 Bharat edition stands as an unparalleled exemplar of ambition within the annals of G20 presidencies. The summit this year has achieved a staggering 112 discerning outcomes, eclipsing its predecessors. This remarkable endeavor signifies a monumental leap forward, elevating the success of multilateral cooperation in these tumultuous times. The outcomes of this Summit stand as a testament to the quality of leadership displayed by India this past year.
The G20 leaders successfully adopted the New Delhi Leaders’ Summit Declaration on Saturday, following PM Modi's announcement of unanimous agreement among member states. This marked a significant breakthrough on the opening day of the G20 Summit. Amitabh Kant, India's G20 Sherpa, described the Delhi Declaration as historic and groundbreaking, highlighting that there was complete consensus on all developmental and geopolitical matters. The Prime Minister, too, expressed his appreciation, saying “history has been created with the adoption of the New Delhi Leaders’ Declaration.”
Two other noteworthy announcements were also made: the establishment of the Global Biofuel Alliance and the unveiling of the India-Middle East-Europe Economic Corridor. On the sidelines of the summit, the PM Modi engaged in more bilateral discussions with the leaders of Japan, the United Kingdom, and Italy.
The momentous two-day conclave commenced amidst the opulence of the "Bharat Mandapam," where distinguished world leaders—heads of state and multilateral organizations—were received by Prime Minister Modi. The backdrop to this memorable tableau was adorned with a mural featuring the resplendent Konark Wheel of Odisha (see image above).
The Konark Wheel's dual role as a metaphor for democratic principles is nothing short of poetic. It eloquently reflects the indomitable spirit of democratic ideals, mirroring society's unwavering commitment to progress. As a symbol of the democratic wheel, it resounds with India's status as a revered progenitor of democracy on the world stage. Simultaneously, it serves as a testament to India's multifaceted heritage and cultural legacy, a veritable treasure trove of history and tradition that spans the annals of time.
AU joins the G20 table
At the Summit’s inaugural session, PM Modi announced the permanent membership of the African Union (AU) in the G20 grouping—a moment symbolised by the AU’s Chairperson and President of Comoros, Azaly Assoumani, taking his seat at the table of the G20 leaders. G20 members heartily applauded the expansion of the grouping, expressing confidence that it would amplify voices from the developing world and bring investment prospects to Africa.
This is a big diplomatic victory for New Delhi, translating PM Modi’s slogan of “sabka saath” (with everyone) into action, and a personal win for PM Modi, who is seen as fulfilling the promise he had made to AU leaders in Bali last year. Inducting the AU, the second regional grouping in the G20 after the EU, will certainly bolster India’s record as a leading voice for Global South interests in multilateral negotiations.
Statement on the Ukraine War
Affirming the G20's status as the primary platform for international economic collaboration, leaders at the New Delhi Summit acknowledged that while it may not be the forum for addressing geopolitical and security matters like the Ukraine conflict, it is important to recognize that these issues can wield substantial influence on the global economy—another big breakthrough for India, which (as we covered yesterday) was faced with the near-impossible task of getting G20 member nations to agree on a suitable statement.
G20 leaders have issued a resolute call for all nations to "abstain from employing or threatening the use of force to pursue territorial acquisition" and categorically deemed the prospect of utilizing nuclear weapons as "inadmissible." The statement condemns the conflict in Ukraine but refrains from explicit reference to Russia in its context. Instead, it urges all states to refrain from actions that compromise the territorial integrity of sovereign nations. The declaration emphasizes the importance of upholding international law, including territorial integrity and sovereignty, and advocates for peaceful resolution of disputes—another nod to spirit of the Hague Convention of 1907. This stands in contrast to the previous year's declaration, which had explicitly cited a United Nations resolution and strongly condemned the "aggression by the Russian Federation against Ukraine."
The New Delhi Declaration reflects a notable shift by Western nations, which had previously pushed for stronger language concerning Ukraine and Russia's role in the conflict. Disagreements over the wording of paragraphs addressing geopolitical situations had previously hindered efforts to build consensus. As the host nation, India sought to accommodate the perspectives of both Russia and China while maintaining its role as the President of the G20.
The text on Ukraine underscores the difficult nature of India's balancing act, given its close ties with Russia as a key defence partner, its friendship with Ukraine, its membership in the Quad (with the US, Australia, and Japan), and its G20 Presidency. The unanimous adoption of this declaration under India’s leadership ensures continuity of the G20 tradition of issuing a joint communique following each meeting.
Statement on Climate Change
The G20 summit's overarching focus on strengthening global climate commitments, fostering climate research collaboration, and guiding nations towards more ambitious emissions reduction targets aligns with the goals of the Paris Agreement.
During the inaugural session, titled 'One Earth,' leaders grappled with the imperative to expedite climate action by intensifying mitigation measures and hastening the global transition to net-zero emissions, a contentious issue among participants. The summit also addressed the critical need to phase out unabated coal power, bolster low-cost financing for developing nations' transition to low-carbon economies, and triple global renewable energy capacity by 2030.
Recognizing the disproportionate impact of climate change on women and girls, the G20 has also committed to expediting climate action, with a strong focus on gender equality. In their declaration, G20 countries endorsed the elevation of women's involvement, collaboration, decision-making, and leadership in climate change mitigation, adaptation, disaster risk reduction, and environmental policy frameworks. The G-20 has also adopted the 'Green Development Pact' to promote sustainable and green growth.
Additionally, leaders underscored the importance of scaling up sustainable finance and recognized the necessity of increased global investments to fulfil the Paris Agreement's climate goals. The Declaration noted that there is a pressing need for approximately $5.8-5.9 trillion in funding before the year 2030, particularly to support developing countries in meeting their emission reduction targets. PM Modi highlighted the nation's commitment to climate action and proposed several initiatives, including a global-level effort to boost ethanol blending in petrol and a 'G20 Satellite Mission for Environment and Climate Observation' to facilitate climate and weather data sharing.
In 2023, the world faces alarming climatic trends, with this year ranking as the second warmest on record, accompanied by August's scorching temperatures marking the second hottest month ever. Moreover, the boreal summer of 2023 stands as the hottest Northern Hemisphere summer since 1940, and sea surface temperatures have surged to unprecedented levels. Should these patterns persist, 2023 may soon claim the title of the hottest year on record, necessitating more rigorous climate policies. These extreme weather occurrences underscore the urgency of addressing climate change.
Achievements of the Finance Track
With the adoption of the G20 New Delhi Declaration, Finance Minister Nirmala Sitharaman lauded India's significant accomplishments throughout its presidency in the finance track, concentrating on critical domains encompassing the reform of Multilateral Development Banks (MDBs), the embrace of Digital Public Infrastructure (DPI), the establishment of a robust framework for crypto assets, the resolution of debt vulnerabilities affecting low and middle-income nations, the allocation of resources towards cities primed for the future, and the advancement of climate finance.
Expanding on India’s remarkable progress in DPI, the presidency aspired to disseminate this achievement globally. Notably, DPI has been integrated into the forthcoming G20 Financial Inclusion Action Plan (FIAP) 2024-2026, underscoring the enduring legacy of India's stewardship. The Declaration extends its endorsement to the G20 DPI framework, India's visionary Global Digital Public Infrastructure Repository (GDPIR) proposal, and takes cognizance of India's One Future Alliance proposal, dedicated to assisting lower and middle-income countries in DPI implementation.
The declaration also ventures into the arena of crypto assets, underscoring the imperative of vigilant risk monitoring in our swiftly evolving crypto landscape. It wholeheartedly endorses recommendations geared towards regulating crypto activities and global stablecoins, underscoring the paramount need for consistent global enforcement mechanisms. The G20 acknowledges the IMF-FSB Synthesis Paper and its Roadmap, with the objective of forging a comprehensive regulatory framework for cryptocurrencies, with a specific focus on risk mitigation in emerging markets. Further deliberations on this roadmap are slated for the October 2023 meeting of Finance Ministers and central bank governors. Crypto assets regulation and MDBs are also likely to be taken forward at the upcoming World Bank-IMF meetings in Marrakesh.
Announcement of the India-Middle East-Europe Economic Corridor
During the G20 Summit, Prime Minister Narendra Modi announced the establishment of the India-Middle East-Europe mega economic corridor. This project involves collaboration between India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany, and the US.
It is part of the Partnership for Global Infrastructure Investment (PGII), an initiative by G7 nations aimed at funding infrastructure projects in developing nations, touted as a counter to China's Belt and Road Initiative. The corridor includes a rail link, electricity cable, hydrogen pipeline, and high-speed data cable, symbolizing a "green and digital bridge across continents and civilizations," as described in a document by European Commission President Ursula von der Leyen. No details on the project’s cost or financing have been given, though Saudi Arabia’s Crown Prince Mohammed bin Salman mentioned a figure of $20 billion during his address. The idea of establishing ship and rail connectivity linking India and the Arabian peninsula was first conceived during a meeting between National Security Adviser Ajit Doval and his US counterpart, Jake Sullivan, in May of this year.
The enhanced infrastructure proposed in the India-Middle East-Europe economic corridor would play a pivotal role in fostering economic growth. It is expected to bring Europe, India, and the Middle East together, transforming the region into a hub for economic activity. This vision aims to shift the region's narrative from being a source of challenges, conflicts, or crises, as has been the case in recent history.
What’s in for Day 2?
The first day of the G20 Summit witnessed two extensive sessions, namely "One Earth" and "One Family," which intricately explored the multifaceted dimensions of economics, climate, and technology. These sessions underscored India's stature as a global leader. However, the anticipation remains high for the second day, where the session on 'One Future' is poised to chart the trajectory of the G20's future and further exemplify India's leadership role on the world stage.
This week’s edition comes from Aradhana Gupta and Yashvika Malhan, with inputs from Sujaya Sanjay.