Steering International Dialogues

As Brazil takes on the G20 presidency, it finds itself at a crucial intersection of global economic and environmental challenges. In the G20 Dialogues initiative, we bring together a rich tapestry of insights from experts and scholars, reflecting our commitment to understanding the multifaceted dynamics at play. These analyses delve into the core issues shaping Brazil’s tenure at the G20, including debt sustainability, climate change financing, and the restructuring of global economic governance.

Debt sustainability is one of the most pressing issues that will be high on the G20’s agenda under Brazil’s leadership. This year, Brazil’s G20 presidency coincides with the IMF’s review of its Debt Sustainability Framework for Low-Income Countries, presenting a unique opportunity to address high levels of debt distress more effectively.

Moreover, Brazil’s presidency came at a time when increasing financing for climate change was vital. The G20’s commitment in the New Delhi Declaration to significantly increase renewable energy capacity by 2030 is ambitious but will require substantial financial backing. President Lula’s emphasis on matching policy goals with necessary resources sets the tone for a pragmatic approach to climate finance. This includes critically evaluating climate vertical funds like the Global Climate Fund, ensuring that financial commitments are met and not merely promised. 

Another significant aspect of Brazil’s G20 presidency is the potential to make global economic governance more representative. The IMF’s 16th General Review of Quotas is unlikely to adequately address emerging markets and developing countries’ concerns. Furthermore, Brazil can build on the groundwork laid by the Indian G20 presidency in strengthening Multilateral Development Banks (MDBs), potentially opening the door to reforms that address imbalanced governance and increase concessional finance for climate and development goals. 

As we discussed in another blog post, by 2026, Brazil will have led the United Nations Security Council, Mercosur, BRICS, and G20 and will also host the significant UN Climate Change Conference in late 2025. The nation’s assumption of the G20 presidency, culminating in a Rio de Janeiro summit in late 2024, is an important platform for Brazil in its race to grow influence in global economic dialogues. Interestingly, Brazil strategically postponed its BRICS presidency to 2025 to manage both prominent roles effectively.