G7 Finance Ministers Address Global Economic Challenges in Niigata

From 11 to 13 May 2023, the #G7 Finance Ministers and Central Bank Governors met in Niigata to discuss common global economic challenges and to explore was to mitigate any negative impact.

The aim of the meeting is to lay the groundwork for the G7 Summit in Hiroshima next week. The G7 reiterated their support to Ukraine and to maintain pressure on Russia through economic sanctions.

The G7 Finance Ministers recognize the high inflation engendered by #COVID pandemic and the #Ukraine-Russia war. Therefore, the G7 minister sought solutions towards a more stable and diversified supply chain in order to enhance economic resilience against various shocks.

The G7 Finance Ministers reiterated their support to countries most in need through targeted channeling of Special Drawing Rights (#SDR) of #IMF. The ministers commended additional pledges by Japan and France which together with previous contributions and commitments bring us close to the global ambition of USD 100 billion. The G7 also agreed to pay special attention to countries subject to debt vulnerabilities.

Through the G7 Africa Roundtable, #G20 Compact with Africa and other such initiatives, the G7 will encourage the public as well as private sector to mobilize more funds for Africa. The G7 welcomed the initiative by France to host the Summit for a New Global Financing Pact in June 2023 to specifically address the needs of Emerging Markets and Developing Economies (EMDE).

The G7 remains committed to control global temperature rise within 1.5 degrees Celsius during this critical decade. G7 sees great potential in Carbon Markets to foster reductions in emissions and will intervene at policy level to achieve an attractive carbon pricing to drive innovation and transition to #NetZero. The G7 shall pursue efforts to build up the Just Energy Transition Partnerships (JETP).

G7 reaffirms its goal of mobilizing USD 100 billion annually to finance #ClimateChange actions for adaptation and mitigation. The G7 will explore and synergize links between biodiversity and climate to come up with integrated programs.

The G7 will promote digital money and believe that Central Bank Digital Currencies (#CBDC) will play a substantial in the monetary systems of the future. G7 will step up efforts in Anti-Money Laundering and Countering the Financing of Terrorism (#AMLCFT). The G7 will continue to support the #FATF in overseeing that FATF standards are implemented across its global network.

The G7 expresses strong political commitment towards the implementation of the Two-Pillar Solution within the OECD/G20 Inclusive Framework as per OECD’s “2023 Progress Report on Tax Cooperation for the 21st Century.”