Shazia Ramzan
The recent G20 Summit in Brazil, held on November 18-19, brought together leaders from the world’s 19 largest economies, along with representatives from the African Union and the European Union, to discuss the pressing global challenges of climate change, poverty, and inequality. While the summit addressed the catastrophic humanitarian crisis in Gaza and expressed support for a just and lasting peace in Ukraine, much of the global community was left disillusioned by the lack of concrete commitments, particularly regarding climate finance and tackling extreme wealth inequality.
In their final statement, G20 leaders acknowledged the urgency of addressing climate change and promoting sustainable growth. They also emphasized the need to tax the ultra-wealthy and took a step forward in agreeing to international cooperation on these matters. However, when it came to the critical issue of climate finance—funding that is desperately needed by developing nations to mitigate the effects of climate change—the summit fell short. Leaders failed to make binding pledges or concrete commitments to raise the trillions of dollars required to address this global crisis. Instead, they simply stated that funding would come from “all sources,” offering no clarity or commitment on how exactly this would happen.
This disappointing outcome follows closely after the UN’s COP29 climate change summit in Azerbaijan, where calls for greater action from G20 leaders were made in response to the growing climate emergency. Officials at COP29 urged the G20 to step up, with a focus on increasing climate finance for developing nations most affected by climate change, especially those facing rising sea levels, droughts, and extreme weather events. However, the G20 summit’s vague and noncommittal language about funding left many wondering whether the world’s richest countries are truly willing to step up to the plate.
The G20 is made up of the world’s wealthiest nations—those with the greatest capacity to generate resources and drive global change. These nations control a significant share of global wealth, making them key players in solving the challenges of climate change and inequality. However, their promises often fall flat when it comes to taking meaningful action. Year after year, pledges are made at G20 summits, but when it comes to delivering on these promises, the gap between rhetoric and action remains glaring. The lack of concrete financial commitments to address climate change is a glaring example of this failure.
While the acknowledgment of the need to tax the ultra-wealthy was a positive step forward, it also highlights a broader hypocrisy within the system. The capitalist policies that dominate the global economy have disproportionately benefited the wealthiest individuals and corporations, often at the expense of the environment and the poorest populations. These policies have led to significant emissions and environmental degradation, contributing to global warming and its devastating effects on millions of people in developing countries. The irony is clear: the very systems that have created climate change and inequality are now being protected by the same powerful governments that should be addressing these issues.
Oxfam, a global anti-poverty organization, praised Brazil for using its G20 presidency to push for action on tackling extreme inequality, hunger, and climate breakdown. Oxfam specifically applauded the G20 for its groundbreaking commitment to cooperate on taxing the world’s super-rich, highlighting this as a significant achievement. However, the organization also raised critical questions about the disconnect between these promises and the G20’s failure to champion a climate finance goal that could truly address the global crisis. Oxfam pointed out the glaring inconsistency in arguing that climate justice is unaffordable when the G20 has already agreed to raise trillions of dollars through taxes on the ultra-wealthy.
The numbers speak for themselves. Over the past two decades, the wealth of the richest 1% in G20 countries has surged by nearly 150%, amounting to a staggering $68.7 trillion. This elite group now controls 31% of the total wealth in these countries, up from about a quarter just two decades ago. Meanwhile, the bottom half of the population holds less than 5% of the total wealth, a decline from 6% in the early 2000s. These figures paint a stark picture of an increasingly unequal world, where the rich get richer while the poor are left behind. The G20, despite being made up of nations that control a significant portion of global wealth, seems to be turning a blind eye to this growing divide.
This trend of increasing wealth inequality is a direct result of policies that favor the wealthy, allowing them to accumulate vast fortunes while ordinary people suffer. The capitalist system has not only exacerbated the climate crisis but also contributed to the widening wealth gap. Governments that are beholden to the interests of the rich are reluctant to take decisive action that would challenge the status quo. Instead, they continue to rely on the poor and middle classes to bear the burden of taxation, while the super-wealthy remain largely untouched by the tax systems that exist.
Former Pakistani climate change minister Sherry Rehman has called for the United Nations to require “internationally determined contributions” from wealthy nations that align with the climate plans of the most affected developing countries. This proposal reflects a growing recognition that wealthy nations must take greater responsibility for the climate crisis, given their historical contribution to global emissions and their disproportionate control of global wealth. The wealth inequality in G20 countries, combined with the refusal to commit to substantial climate finance, reflects a fundamental injustice in the global system—one that is increasingly difficult to ignore.
The G20’s failure to deliver concrete commitments on climate funding and its half-hearted approach to wealth taxation highlight the deep flaws in the global economic system. The leaders of these powerful nations have the resources and the ability to make a real difference in the fight against climate change and poverty. Yet, they continue to shy away from taking the necessary steps to correct the injustices that their policies have perpetuated. As the gap between the rich and the poor continues to grow, the need for urgent action has never been more pressing. The world can no longer afford to wait for the G20 to act. Their failure to do so will have dire consequences for the planet and for future generations.
