Finance ministers and central bankers from the world’s top economies have gathered in South Africa this week for a high-stakes G20 meeting, but the event has been marred by the absence of key figures and ongoing disputes over critical global issues such as climate change, debt, and inequality.
While historically challenging to reach consensus, this year’s talks have been especially fraught, with stark divisions between major powers such as China, Russia, the European Union, and the United States. Additionally, some finance ministers were absent, citing domestic political concerns as their reason for not attending.
Notably, Japan’s Finance Minister Katsunobu Kato has opted to focus on a parliamentary debate instead of attending the summit. U.S. Treasury Secretary Scott Bessent and EU Economy Commissioner Valdis Dombrovskis also skipped the event, further reducing the likelihood of a united front on key global issues.
South African President Cyril Ramaphosa, who has made climate finance and debt relief central themes of his presidency, expressed concern that these discussions would falter. He pointed to a longstanding lack of adequate financial support from wealthier nations to help poor countries combat climate change and address mounting debt burdens.
Alex van den Heever, a political scientist at the University of Witwatersrand, warned that without cooperation from the U.S. and developed countries, progress on these global priorities might be unattainable. “Those global priorities are at risk,” van den Heever stated, emphasizing that issues like the debt of poorer nations are not high on the agenda for the U.S. or other wealthy countries.
Climate Finance Disputes at Forefront
South Africa had hoped the G20 meeting would serve as a platform to exert pressure on developed nations to increase their financial contributions toward climate action, particularly for vulnerable countries facing the brunt of climate change. President Ramaphosa called on the nations most responsible for climate change to take responsibility and support poorer nations in their green energy transitions.
“What the American presidency does, effectively, is reconfigure the conversation,” said South Africa’s Energy Minister Kgosientsho Ramokgopa, expressing frustration over U.S. policies that he believes undermine progress on climate goals. Ramokgopa also noted the potential for countries to reconsider their pace in transitioning from fossil fuels to green energy, due to the shifting global dynamics.
Some experts view the absence of the United States as a potential opportunity to advance key initiatives without its influence. “There could very well be synergies between large portions of what’s left by excluding the U.S. on particular issues,” said Daniel Silke, director of the Political Futures Consultancy. “It’s an opportunity for South Africa to take its leadership role.”
As the summit unfolds, it remains uncertain whether the G20 can overcome these deep divisions and reach any significant agreements on issues critical to the global economy and the future of climate action.
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