G20: Evolution, Members & Working | 19th G20 Summit 2024

Table of contents

Recently, in November 2024, the 19^th G20 Summit held in Rio de Janeiro, themed “Building a Just World and a Sustainable Planet,” emerged as a landmark event emphasising inclusivity, climate action, taxation reforms, and sustainable development.
Hosted by Brazil, it marked the historic inclusion of the African Union as a full member and set ambitious goals for global cooperation amid ongoing geopolitical and economic challenges.

About G20

Group of Twenty (G20) is a forum for international economic cooperation consisting of 19 countries, the EU, and the African Union.

Evolution

G20 was founded in 1999 after the Asian financial crisis.
It was started as a forum for Finance Ministers and Central Bank Governors to discuss global economic and financial issues.
It was upgraded to the level of Heads of States in the wake of the 2007 global financial crisis.
In 2009, it was designated the “premier forum for international economic cooperation”.
It initially focused on broad macroeconomic issues but now expanded its agenda to include sustainable development, health, energy, environment, climate change, and anti-corruption.

Member Countries

G20 Presidency

G20 Presidency is responsible for bringing together G20 agenda in consultation with other members.
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023.
As the G-20 presidency, India sets the agenda for the year, identifies the themes and focus areas, conducts discussions, and works out outcome documents.

Troika

The Troika supports the Presidency. It consists of the previous, current, and upcoming presidency.
During India’s Presidency, the Troika comprised of Indonesia, India, and Brazil.

G20 Sherpa

Sherpas are special envoys of G20 leaders.
They are representatives of member countries and are appointed directly by the Head of Government. Amitabh Kant is India’s 2023 G20 Sherpa.

Working of G20

G20 has no fixed headquarters or a permanent Secretariat. The secretariat moves by rotation between the countries hosting the Presidency of the grouping each year.
The G20 Presidency leads the G20 agenda for one year and hosts the Summit.
The G20 consists of two parallel tracks:
1. Finance Track is led by Finance Ministers and Central Bank Governors of the member countries.
2. Sherpa Track is led by the Sherpas of member countries.
There are Working Groups in which representatives from the relevant ministries of the members, invited, and various international organisations participate.
- These working groups meet regularly throughout the term of each Presidency.
There are Engagement Groups that bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses, and researchers of the G20 countries.

G20 Summit

The G20 Summit is held annually under the leadership of a rotating Presidency.
The first G20 Summit was held in 2008 in Washington, DC.
The US is the only country that hosted the summit twice in 2008 and 2009.

18th G20 Summit 2023 (Hosted by India)

The 2023 G20 summit was India’s first G20 summit as a host country. PM Modi is the current G20 Chairman.
India invited Bangladesh (India did not invite any other neighbour), Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain, and UAE as Guests for the 2023 G20 summit held in Kashmir.

Theme of 2023 G20 Summit

The theme of the 2023 G20 summit is Vasudhaiva Kutumbakam or “One Earth, One Family, One Future’. It is drawn from the ancient Sanskrit text of the Maha Upanishad.
It affirms the value of all life — human, animal, plant, and microorganisms — and their interconnectedness on earth and in the broader universe.

Highlights of G20 Summit 2023

The African Union becomes the permanent member of G-20.
PM Modi launched the Global Biofuel Alliance.
PM Modi launched the India-Middle East-Europe mega economic corridor.
G20 leaders adopted the New Delhi Declaration.

Global Biofuel Alliance (GBA)

It is an initiative by India as G20 Chair.
A total of 19 countries and 12 international organizations have so far agreed to join the alliance.
It includes both G20 members and non-member countries.
Founding members include India, Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius, and UAE.
It aims to:
- Boost demand and technology transfer to produce biofuels and enhance trade.
- Foster global collaboration for the advancement and widespread adoption of biofuels.

Brazil, India, and the United States are the leading biofuel producers and consumers.
According to the International Energy Agency (IEA), global biofuel production would need to triple by 2030 to achieve the target of net zero emissions by 2050.

Biofuel

It is a fuel produced from biomass.
It can be produced from plants or from agricultural, domestic, or industrial biowaste.

Biofuel Generations

First-generation biofuels

It includes Bioalcohols, Biodiesel, Vegetable oil, Bioethers, and Biogas.
These are made from food sources such as sugar, starch, vegetable oil, or animal fats using conventional technology.
First-generation (1G) plants produce bioethanol from molasses by fermentation and biodiesel from non-edible oilseeds by esterification.

Second generation biofuels

These are produced from non-food crops (portions of food crops that are not edible) e.g., stems, husks, wood chips, and fruit skins and peeling.
Second-generation (2G) plants utilise surplus biomass and agricultural waste to produce biofuel.

Third generation biofuels

These are produced from micro-organisms like algae.

For more information on Biofuels > Biofuels, Important Biofuels, National Policy on Biofuels 2018 – PMF IAS

India-Middle East-Europe Economic Corridor

It is a network of transport corridors (railway lines and sea lanes).
It consists of two separate corridors:
1. East Corridor which connects India to West Asia.
2. North Corridor that connects West Asia to Europe.
It is part of the Partnership for Global Infrastructure Investment (PGII).

Partnership for Global Infrastructure and Investment (PGII)

It is a joint initiative to fund infrastructure projects in developing countries.
It was launched by G7 countries in 2022.
It aims to counter China’s Belt and Road Initiative.

The infrastructure plan was first announced in June 2021 during the G7 Summit in the UK.
US President Joe Biden had called it the Build Back Better World (B3W) framework.

New Delhi Declaration

On Ukraine war: All states must act in a manner consistent with the purposes and principles of the UN charter in its entirety.
On Food Security: It called for immediate and unimpeded deliveries of grain, foodstuffs, and fertilizers from the Russian Federation and Ukraine.
On Climate Change: Need to accelerate efforts to phase down unabated coal power, in line with national circumstances.
1. Calls on parties to set an ambitious, transparent, and trackable New Collective Quantified Goal of climate finance in 2024, from a floor of $100 billion a year.
2. Recall and reaffirm the commitment made in 2010 by the developed countries to the goal of mobilizing jointly $ 100 billion climate finance per year by 2020, and annually through 2025.
- Developed country contributors expect this goal to be met for the first time in 2023.
Clean Energy: It calls to encourage efforts to triple renewable energy capacity globally through existing targets and policies.
- It will work towards facilitating low-cost financing for developing countries to support their transition to low carbon.

On global debt vulnerabilities: Commit to promoting resilient growth by urgently and effectively addressing debt vulnerabilities in developing countries.
- Call for swift conclusion of the debt treatment for Ethiopia.

India’s G20 Presidency: Positive Impacts

It raised India’s profile as a leader in the Indo-Pacific region.
It has sowed the seeds of confidence in the countries of the so-called ‘Third World’ (countries that were not aligned with either the US or the Soviet Union).
India’s G-20 Presidency made efforts:
- To address global energy and debt concerns.
- To promote a vision for a sustainable, inclusive, and equitable world.
- For the inclusion of the Global South (especially Africa in global affairs).
India’s G-20 Presidency launched.
- Global Sovereign Debt Roundtable.
- Global Biofuel Alliance.
- India-Middle East-Europe mega economic corridor.

Global Sovereign Debt Roundtable

It is a joint initiative of the IMF, World Bank, and India (G-20 Presidency), launched in 2023.
The objective is to build an understanding among key stakeholders involved in debt restructurings.
It discusses debt sustainability and restructuring challenges and ways to address them.
The roundtable focuses on process and standards, not on discussing country cases.

19^th G20 Summit 2024

Major Outcomes

Social Inclusion and Hunger Eradication:
- Global Alliance Against Hunger and Poverty: Launched to reduce hunger and poverty, aiming to assist 500 million people by 2030.
- Basic Needs and Equality Commitments: For the first time, resources were pledged for sanitation, drinking water, and combating systemic discrimination.
Climate Action and Energy Transition: A Task Force on Climate Mobilisation was established to address barriers to private capital flows for climate action, particularly in developing nations. Leaders also endorsed COP29 in Azerbaijan, highlighting the need for robust financing mechanisms, though specific actionable plans remain.
Tax Reforms: Brazil led the initiative (Taxation of Billionaires) for a global wealth tax on ultra-high-net-worth individuals, gaining partial consensus despite sovereignty concerns.
Reforming Global Governance Institutions: Endorsed the G20 Roadmap to reform Multilateral Development Banks (MDBs) for addressing global challenges like poverty and climate change.
Sustainable Development Goals (SDGs): Introduced SDG 18 on Ethnic-Racial Equality, addressing systemic discrimination and advocating for inclusive policies for marginalised groups.
Conflict Resolution: Advocated for diplomatic solutions to the Russia-Ukraine war and Middle East conflicts, emphasising peace, humanitarian aid, and conflict resolution.
Energy Transition and Food Security: Focused on renewable energy and reducing food loss, but commitments to phasing out fossil fuel subsidies remained absent.

Challenges Confronting the G20

Representational Inequity: Despite the inclusion of the African Union, smaller and emerging nations remain underrepresented, raising questions about equitable decision-making in the proposed “G21” framework.
Geopolitical Rivalries: Tensions between major powers, such as the US-China competition & the Russia-Ukraine conflict, often derail discussions, making consensus-building on critical issues challenging.
Divergent Economic Priorities: Sharp divides between developed nations focused on sustainability and developing countries prioritising growth impede agreements on climate financing and resource-sharing mechanisms.
Structural Weaknesses: The non-binding nature of G20 decisions reduces their enforceability, weakening the forum’s ability to address pressing global challenges effectively.
Competition from Other Platforms: Rising influence of groups like BRICS and SCO challenges the G20’s centrality in global governance, with overlapping agendas creating further fragmentation.

Way Forward

Global Challenges: Strengthen partnerships with international organizations to address food insecurity, and energy crises, and promote sustainable agricultural practices and clean energy solutions.
Inclusive Climate Action: Develop inclusive frameworks that balance economic growth with climate priorities, ensuring equitable access to climate finance for all nations.
Geopolitical Engagement: Establish specialised working groups to address persistent geopolitical conflicts like the Russia-Ukraine war, fostering diplomacy and conflict resolution.
Accountability Mechanisms: Implement robust mechanisms to ensure accountability on climate finance, debt relief, and the achievement of sustainable development goals.
Representation of Global South: Expand G20 membership to include more countries from the Global South and increase their advisory roles to amplify their voices in global decision-making.
Institutional Strengthening: Set up a permanent G20 secretariat to ensure greater policy continuity, enhanced coordination, and more effective execution of global initiatives.

As PM Modi emphasized in his G20 2024 speech, “Back to Basics and March to the Future,” the G20 must focus on inclusivity, resolve geopolitical tensions, and create enforceable solutions for shaping a sustainable and cooperative global future.

Reference: PMF IAS: G20 | Firstpost | Indian Express

PMF IAS Pathfinder for Mains – Question 21

Approach

Introduction: Briefly introduce the answer by mentioning about 19^th G20 Summit.
Body: Discuss the major outcomes of 19^th G20 Summit and its alignment with India’s foreign policy.
Conclusion: Write a concised way forward and conclude by highlighting the need for a shift.