Climate, the epidemic and international taxes.. What to remember from the G20 summit in Rome

The heads of state and government of the G20 met in Rome, Italy, on Saturday 30 and Sunday 31 October. Before joining Glasgow (Scotland), where the COP26 conference began, they specifically addressed the issue of climate, but also taxation of multinationals, post-pandemic recovery and aid to poor countries. This is what we can learn from him.

Green light for taxation of multinational corporations

G20 leaders first gave the green light to reform the tax system for multinational corporations, in particular planning to introduce taxes of at least 15%. This tax is expected to generate approximately $150 billion in additional revenue annually. Under the auspices of the Organization for Economic Co-operation and Development, 136 countries, which account for more than 90% of global GDP, pledged in early October to introduce more equitable taxation of multinational corporations with the ambition of ending tax havens.

From now on, each country must translate this universal agreement into its own legislation. However, the first part of this reform, which is to tax companies that make profits, regardless of their head office, is already facing strong reluctance in the US Congress. This measure is already affecting US Internet giants, such as Google, Amazon, Facebook and Apple (Gafa), who tend to practice tax optimization by setting up their headquarters where taxes are low.

This tax reform is also considered insufficient by some emerging countries, especially since the average corporate tax rate in the world is now 22%, compared to 50% in 1985.

Tense discussions between Paris and London over fishing licenses

At the end of a face-to-face meeting on Sunday between British Prime Minister Boris Johnson and Emmanuel Macron, the Elysee said he was working on “Practical” and operational measures in a “next few days” Favor “De-escalation” In the dispute over fishing between France and the United Kingdom. A point will be made on Tuesday about whether or not to implement retaliatory measures by Paris.

“If the French government wants to make proposals for de-escalation with regard to the threats it has formulated, they would be welcome”A spokesman for the British Prime Minister told reporters at the G20 summit in Rome. ‘Our position has not changed’But he added.

The ball is in Britain’s court., reiterated Emmanuel Macron at a press conference on Sunday. “If the British do not take any clear step, the planned measures will have to be implemented from November 2”, to caution.

France criticizes the UK for giving too few post-Brexit licenses to its fishermen. It promised, for lack of improvement, to prevent British fishing vessels from Tuesday from offloading their cargo in French ports and to strengthen customs controls on trucks. These decisions have been judged “Disproportionately” London which, on rare occasions, summoned the French ambassador and threatened, in response, to strengthen the control of European ships that spawn in its waters.

Ending subsidies for new coal-fired power plant projects abroad

With the opening of COP26 in Glasgow (Scotland), the G20 countries agreed to stop, from this year, supporting new coal-fired power plant projects offshore, which generate massive emissions of gas. Global Warming. “We will end international public financing for new coal-fired power plants by the end of 2021.”, refers to a draft press release seen by AFP.

On the other hand, no target for coal abandonment has been set at the national level and no clear date has been set for the complete removal of coal or fossil fuels.

The goal of limiting temperature rise to +1.5°C has been confirmed

The final statement of the G20, negotiated overnight from Saturday to Sunday, reaffirms the goal of the 2015 Paris Agreement, namely: “Keep average temperature rise well below 2°C and continue efforts to limit 1.5°C above pre-industrial levels.” But he insists, adding: “Maintaining 1.5°C in the range will require targeted and effective actions and commitments from all countries.” either a “A stronger language” That in 2015, he confirmed to AFP two sources involved in the negotiations.

As for when it will be set to achieve carbon neutrality 2050 or 2060, “mid century” It is the formula adopted by the Group of Twenty. A less accurate horizon than the 2050 date that the Italian G20 presidency wants.

Finally, the G20 “Reaffirm” commitment “We aim to mobilize $100 billion annually (…) until 2025” To enable developing countries to deal with climate change. This question is one of the crucial points discussed in Glasgow. The signal sent by the G-20 – which brings together major advanced economies (the European Union and the US) and large emerging countries such as China, Russia, India or Brazil – was more predictable because these countries account for 80% of global greenhouse gas emissions.

Elimination of customs duties on steel and aluminum imports

In Rome, the United States and the European Union reached an agreement to remove tariffs on steel and aluminum imports. And US Commerce Secretary Gina Raimondo announced the deal “Historical” who will allow Limited quantities of European imports of steel and aluminum enter the United States duty-free..

The tariff fight has damaged trade relations between Washington and Brussels since the Trump administration imposed the taxes.

Helping the poorest countries face the Covid-19 epidemic

“To help achieve the global goals of vaccinating at least 40% of the population in all countries by the end of 2021 and 70% by mid-2022.”As recommended by the World Health Organization, the G20 countries have committed to Measures to help boost the supply of essential vaccines and medical products in developing countries. To this end, the G20 promised toAvoiding export restrictions and increasing transparency and clarity in vaccine delivery.

The Canadian government is also committed to providing At least 200 million doses of vaccines In addition to poor countries to combat the Covid-19 epidemic By the end of 2022Justin Trudeau said in a statement. On the financial aid front, the G20 countries pledge to return $100 billion to countries at risk from the global amount of $650 billion in Special Drawing Rights (SDRs) issued by the International Monetary Fund to respond to the crisis caused by the coronavirus pandemic. .