B20 Brazil (2024)

Recommendation: Promote effective Natural Climate Solutions to mitigate climate change and enhance biodiversity.

Policy Action: Ensure a thriving Natural Climate Solutions (NCS) global market by 2030, widening protection and restoration projects and scaling the international carbon market.

It is paramount to scale protection, restoration, and sustainable management projects to ensure a thriving NCS global market by 2030. For this, four specific actions should be discussed and implemented:

• Accelerate negotiations and cooperative implementation of Paris Agreement Article 6 to enable a high-integrity carbon market.
• Foster operationalization and accounting integrity of NCS through the improvement of infrastructure, knowledge and development of protocols.
• Facilitate investments in CDR projects from NCS through offtake agreements and carbon pricing mechanisms.
• Grow protection projects by establishing a global endowment fund while actively involving local and traditional communities.

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B20 India (2023)

Recommendation: Enhance efforts to improve the availability of and access to climate finance

Policy Action: Develop harmonised international carbon markets for monitoring and reporting emissions, accounting, transparency, and environmental integrity

• For international carbon markets, explore harmonised or reciprocal standards for monitoring and reporting emissions, accounting, transparency and environmental integrity. Standards and protocols for harmonisation should be carefully crafted based on Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC) of the G20 nations. Such Carbon pricing incentivises emissions reduction by creating economic incentives and cost effective mechanisms.
• Linking carbon markets can increase the cost effectiveness of emissions reductions, support investment into lower income countries and support international cooperation.

Policy Action: Secure investments in emerging technologies through public-private partnerships and cooperation between developed and developing nations

• Linking carbon markets can increase the cost effectiveness of emissions reductions, support investment into lower income countries and support international cooperation.
• Similar to Japan’s Joint Crediting Mechanism (JCM), other developed countries may also take a similar bilateral route to offer decarbonising technology, services etc., to help implement climate change projects in developing countries and utilise the credits for meeting their emission reduction targets and NDC commitments.
• Developing a mechanism for developed nations to meet their financing commitments to developing nations by exploring option of contracts for the offtake of clean energy solutions.

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B20 Indonesia (2022)

Recommendation: Drive collaboration between countries to accelerate a just transition towards a net-zero world

Policy Action: Improve the investment climate for decarbonization projects

• G-20 governments should make progress towards enabling the incorporation of voluntary carbon credits as part of compliance markets and stipulating that carbon credits should meet certain eligibility criteria to be internationally recognized as high quality.
• The G-20 should recognize the value of the work of IC-VCM in developing and promoting new threshold standards for high-quality carbon credits. The G20 should look into options on evaluating the appropriateness of the CCPs following their issuance, and develop mechanisms for coordination.
• G-20 governments should make progress towards implementing Article 6 of the Paris Agreement (agreed at COP26) in local and international legislation
• The G-20 should commission a strategy for the achievement of an interoperable carbon market, including strategies to mitigate the adverse impacts such as differential pricing for different trading flows.
• MDBs and other DFIs should support governments in building their regulatory capacity for carbon markets, and accelerate the deployment of specific funds and mechanisms for green infrastructure investments, including providing guarantees for and insuring carbon offset projects.
• G20 governments should work together to implement consistent definitions for “carbon neutral” and “net zero” so that infrastructure investors and developers can determine the appropriate use of carbon credits to meet their decarbonization targets.

Recommendation: Make trade and investment impactful drivers for a greener and more sustainable development in line with Sustainable Development Goals

Policy Action: Facilitate cooperation in voluntary carbon-trade consistent with World Trade Organization rules and Article 6 of Paris Agreement

• Establish homogenous standards in Voluntary Carbon Markets.
• Grow and enable interoperability across carbon markets.
• Capacity building and exchange of best practices on VCMs.

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B20 Italy (2021)

Recommendation: Provide effective policy pathways to foster sustainable growth and secure the energy transition

Policy Action: Drive carbon pricing

• The G20 should drive effective and robust car¬bon pricing taking into account the local markets peculiarities and promote strategic dialogue to lay the foundation for global mechanisms to valorize environmental externalities, while quickly phasing out direct or indirect inefficient energy subsidies.
• Drive the adoption of effective carbon markets in local jurisdictions.
• Foster linking of local carbon markets through agreeing to and enforcing Article 6 of Paris Agreement considering solutions to limit the risk of relocation of industrial activities due to different national climate ambitions and carbon related regulation, while taking into account the principle of common but differentiated responsibilities.
• Harmonize carbon pricing metrics and leverage new technologies for carbon data acquisition and analysis.
• Reorganize current fiscal policies to complement carbon markets schemes with non-market-based initiatives where needed.
• Phase out inefficient energy subsidies vs carbon neutral targets, and provi¬de adequate incentives by advancing fiscal tools for the energy transition to promote affordable and carbon neutral energy sources.

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