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The G20 Rome Summit in Rome will set the tone for the subsequent UN Climate Change Conference in Glasgow.
The leaders of the world’s 20 major economies have passed a global agreement that will take measures to set the minimum income tax rate for large companies at at least 15%.
Previously, outsiders worried that multinational companies would shift their profits to jurisdictions with low tax rates.
All leaders attending the G20 summit in Rome unanimously agreed to this agreement.
Climate change and the new crown epidemic are also on the agenda of the summit. This is also the first time that leaders of various countries have come to meet in person since the beginning of the global pandemic.
However, two members of the Group of 20, composed of 19 countries and the European Union, were absent from the live meeting-Chinese President Xi Jinping and Russian President Putin chose to participate through a video connection.
According to Reuters, this tax agreement was proposed by the United States and is expected to be formally adopted on Sunday (October 31) and formally implemented in 2023.
U.S. Treasury Secretary Janet Yellen said that this historic agreement is a “critical moment” for the global economy and will “end the vicious competition of corporate tax rates.”
She said on Twitter that American companies and workers will benefit from this agreement, although many large companies in the United States will also pay higher taxes.
After the G20 summit, the highly anticipated 26th United Nations Climate Change Conference (COP26) was held in Glasgow on Monday. The agenda at the G20 summit may set the tone for COP26, and many countries still have sharp differences on their respective commitments to address climate change.
Italian Prime Minister Mario Draghi delivered an opening speech for the two-day G20 summit with the theme of unity. He said to world leaders: “It’s not an option to act alone. We must do our best to resolve our differences.”
Experts have warned that if there is no urgent action to reduce carbon emissions, the future will become more and more severe.
British Prime Minister Boris Johnson described climate change as “the greatest threat to mankind” in an interview with the BBC, saying that it brings “the risk of civilization retreat.”
However, he admitted that neither the G20 summit nor COP26 will prevent global warming, but if appropriate measures are taken, it may “limit the rise in the earth’s temperature.”
According to Reuters, a draft announcement listed the commitments of the G20 countries to limit the temperature rise to 1.5 degrees Celsius (2.7 degrees Fahrenheit), stating that it “will require meaningful and effective action by all countries.”
The draft also mentions that “developed countries need to allocate US$100 billion (£73 billion) from public and private resources each year from now to 2025 to address the needs of developing countries” so that they can cope with climate change. This promise was first made in 2009, but rich countries have not fulfilled it.
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Signal to Iran
On the other hand, the United States, Germany, France, and the United Kingdom will meet to discuss “increasing concerns” about Iran’s nuclear activities. Iran is not a member of the G20.
The leaders of several countries urged Iranian President Ebrahim Raisi to “change course…to avoid a dangerous escalation.”
Former US President Donald Trump abandoned the agreement in 2018 and re-imposed severe sanctions on Iran. Since then, Iran has increased its nuclear activities, seriously violating this multinational agreement.
Negotiations with the Tehran government have been suspended for many months and will be restarted in November.
Analysis: From sweeping the door to rethinking global interests
BBC Foreign Affairs Correspondent James Landale
In the past few years, the world has seen many countries sweeping their doors. They make their own vaccines, build their own trade barriers, and place their economic growth above alleviating the climate crisis.
Draghi’s point is that this must stop. What the Italian Prime Minister said is that if the G20 leaders want to stop global warming, end vaccine inequality, and find a way to recover the economy, they must start to think and act in more ways.
Just holding a summit is not enough. Sometimes it means placing wider global interests on narrow domestic affairs. This is an embarrassing requirement because it often means challenging voters. So far, not all world leaders are ready to do so.
In addition, there are still many disagreements on whether the much wealthier countries are ready to reduce carbon emissions, contribute more new crown vaccines to developing countries, and stabilize floating energy prices.
The G20 summit will produce a lot of speech, but the most important thing is action, the most important of which is about climate change, because this will largely determine the success or failure of the COP26 summit in Glasgow.
Basic overview of the COP26 climate summit
- Climate change is one of the most pressing issues facing the world. Governments must commit to more demanding greenhouse gas emission reduction plans in order to avoid a more serious temperature rise;
- The Glasgow Summit is where change may happen. You need to pay attention to the promises made by the world’s largest polluters, such as the United States and China, and whether poor countries can get the support they need;
- Our lives will change. Decisions made here will affect our work, the way we heat our homes, what food we eat, and how we travel.