Thread by @SimaKammourieh

Folks, the G7 Finance communiqué is out. What does it tell us? Takeaways👇 (1/n) @e3g @KateLLevick @ronan_wifi @aldenmeyer @AlexScottLondon @TPTaskforce

mof.go.jp/policy/interna…

First, let's just restate that this forum matters: we don't have much of an alternative these days to advance climate-safe & inclusive policy, because the G20 is broken for now. I wrote a short calling-card piece on the G7 Finance outcomes we need (2/n).
e3g.org/news/from-wash…

Quick overall take is that the communiqué is a let-down. There are a couple of positives on public finance side (#MDBs, supply chain resilience), but very disappointing on private finance. They need to get more cutting-edge on this, stat (2/n).

On public finance, good to see them call for MDBs to expedite work on business model review (not like polycrises give us luxury of time). Not much new on #SDRs. Language on debt shows how stuck we are on the privately-held debt and comparability of debt treatments issue. (3/n)

New & welcome policy work on supply chain for clean energy and impacts for LMICs. G7 has a plan (RISE Partnership) and timeline (end 2023). Would've been good to see G7 commit to coordinate on own supply chain strategies. Let's see what Leaders will say - watch this space. (4/n)

Private finance is disappointing, for reasons below (5/n).

Big new & good thing is #transitionplans & recognition that they can be used by both public & private sectors. G7 Climate & Energy April language was a bit stronger on need for private sector plans. We're far from mandatory #transitionplans, but it is a start @TPTaskforce (6/n)

Backsliding on disclosures. G7 commits to comparable disclosures, not to their interoperability. ISSB's work no longer recognised as the global baseline. Here too, Climate & Energy Ministers did better, and I'm worried. We can't do the transition with harmonised disclosures (7/n)

Need more progressiveness from G7 central banks on finreg for climate. "Commitment to addressing climate implications to their mandate" is good start but we need much more at this point (8/n).

It's not just that "fin stability is a prerequisite for the orderly transition": orderly transition itself is key to fin stab. @ecb & others have said it many times. How will G7 CBs contribute to the transition? @JuliaSymon_ @Pierre_Monnin @lukasz_krebel @Public_Citizen (9/n)

Positive: commitment to understanding climate change spillover macro-fin effects. But "modelling experts" & data will only take us so far. Climate is radical uncertainty. We need new tools for finreg (e.g. transition plans, watch this space). @David_Arkush (10/n)

We are all looking to the Leaders Summit to fill in the gaps and show true vision & progressiveness across whole-of-finance reform agenda for climate safety & global dev. Rendez-vous next weekend in Hiroshima. (n/n)