Advisory council recommends establishing sovereign funds for transition to sustainability
The G20 must resolutely advance and implement both the Paris Agreement and the 2030 Agenda for Sustainable Development, according to a special report by German Advisory Council on Global Change (WBGU), an independent scientific advisory body. The nations should view the shift to sustainability and decarbonisation as a “modernisation project for the global economy that offers significant opportunities,” the report says. The “weal and woe of the planet” depends on the G20, which are responsible for 80 percent of global GDP and 82 percent of global greenhouse gas emissions. The report – presented to the German federal government in Berlin today – makes policy and project proposals for the German G20 presidency and beyond. Among other things, it recommends setting up transformative sovereign wealth funds (future funds) – financed by pricing CO2 emissions and a reformed estate tax – that invest in industries key to the transition. However, environment minister Barbara Hendricks said at the press conference this method of financing would not find majority political support in Germany, either now or in the foreseeable future.
For background read the CLEW article IEA director calls on Germany to lead on climate during G20 presidency.