US Secretary of State for the Treasury Scott Bessant has decided not to attend the meeting of G20 Finance Ministers and Central Bank Governors in South Africa on 17–18 July. It is the latest move underlining the new US administration’s withdrawal from global efforts on sustainable finance.
The US objects to the South African presidency’s overall G20 summit themes of solidarity, equality and sustainability. Critically this includes the work of the G20 Sustainable Finance Working group, which is focused on three priorities – strengthening the global sustainable finance architecture, scaling financing for adaptation to climate change and just transitions, and unlocking the financing potential of carbon markets.
In addition, the US has sought to block further work on climate risk in the Financial Stability Board, with the result that the organization has not extended its medium-term work plan. Scott Bessant has called for an overhaul of the IMF, describing its extensive work on the macroeconomic and financial stability aspects of climate change as ‘mission creep’. The US has also pushed the boards of the World Bank and European Bank for Reconstruction and Development (EBRD) to drop references to climate change from their strategy documents.
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