At the midpoint of 2025, the G20 Sustainable Finance Working Group (SFWG) has made significant strides under the South African Presidency. This update reflects the progress achieved so far across the group’s key priorities: strengthening the global sustainable finance architecture; Scaling up financing for adaptation and just transitions; and Unlocking the financing potential of carbon markets, capturing the Working Group’s collaborative spirit driving sustainable finance forward.
Since our last update, momentum has continued to build, with strong engagement across member countries, institutions, and the private sector.
Second and third G20 SFWG meetings held
The SFWG’s second meeting was held in George, followed by the third in Cape Town, during which the members continued technical work across all three priorities. The discussions focused on refining deliverables, reviewing early inputs, and strengthening implementation planning.
Second meeting summary | Third meeting summary
During and in between the two meetings, several side events were held: a side event on Vertical Climate and Environmental Funds (VCEFs), a Joint Framework Working Group (FWG) and Sustainable Finance Working Group (SFWG) side event to explore synergies between the two groups towards a holistic approach to scaling up sustainable finance and reducing climate-related risks, as well as Scaling-up Finance for Adaptation and Just Transitions side event, organized by the Presidential Climate Commission (PCC) & the Banking Association South Africa (BASA).
Italy joins as SFWG Co-Chair
We are pleased to welcome The Ministry of Economy and Finance (Italian: Ministero dell’Economia e delle Finanze), also known as MEF, as the new co-chair of the Sustainable Finance Working Group.
The SFWG was re-established during Italy’s G20 Presidency in 2021. In that same year, with the People’s Bank of China and the U.S. Department of the Treasury serving as co-chairs, and under the Italian leadership, G20 Leaders endorsed the G20 Sustainable Finance Roadmap developed by the Group, laying the foundation for its work in the years that followed. We look forward to reviving this close collaboration with the Italian team and benefiting from their guidance as we continue implementing the Roadmap.
We extend our heartfelt appreciation to the outgoing co-chair team from the U.S. Department of the Treasury, for its leadership and dedication to the work of the SFWG since 2021. Over the past four years, their steady guidance, collaborative spirit, and deep commitment to sustainability have helped shape the group’s direction and impact. We look forward to continued collaboration in their G20 Member capacity.
Private Sector Roundtable held in Cape Town
In June, the G20 Sustainable Finance Working Group (SFWG), in partnership with the Glasgow Financial Alliance for Net Zero (GFANZ) and the International Emissions Trading Association (IETA), hosted a high-level roundtable with private sector representatives in Cape Town.
The event brought together financial institutions, investors, standard setters, development banks, and policymakers for a candid discussion on the practical enablers and persistent barriers shaping the mobilization of private finance into emerging and developing economies (EMDEs). It provided a clear view of what policy measures the SFWG could consider to unlock greater climate finance to EMDEs, in support of a just and equitable transition.
Now available: Input papers for 2025
CPI, FICS and AfDB
Strengthening Collaboration to Scale Climate and Development Finance
This paper lays out how VCEFs, MDBs, and NDBs can work better together by co-financing, data sharing, risk pooling to unlock more capital for climate-aligned investments.
NGFS
Integrating Adaptation and Resilience into Transition Plans
This paper provides a five-pillar framework: governance, foundations, implementation, engagement, and metrics, to help institutions embed adaptation into their strategic plans.
IAIS and WBG
Identifying and Addressing Insurance Protection Gaps
This paper presents a layered approach to reduce natural catastrophe risks. Tools like public-private insurance programs, regional pools, and parametric insurance are explored, particularly for EMDEs.
OECD and AfDB
Scaling Finance and Investment for Climate Adaptation
This report explores how the G20 can support the diverse needs of Emerging Market and Developing Economies (EMDEs), and Africa in particular, given their disproportionate vulnerability to climate impacts and specific development needs.
All previous and incoming input papers are accessible in our Document Repository.
Public consultation for Delivery of a Common Carbon Credit Data Model by the CDSC
Under the South African G20 Presidency, ‘unlocking the financing potential of carbon markets’ has been one of the G20 Sustainable Finance Working Group three priorities for 2025 with a specific focus on their interoperability, accessibility, transparency and scalability. As Lead Knowledge Partner for this work, the Climate Data Steering Committee (CDSC) Secretariat has prepared a Technical Consultative Note for consultation. It includes a suggested set of Principles aimed towards building a Common Carbon Credit Data Model, as a voluntary resource, and a draft Data Model designed to reflect those Principles.
Responses are welcome and encouraged from within and beyond the G20, and should be submitted by Tuesday, 12 August at 5pm SAST. Please contact the CDSC Secretariat if you have any questions.
For more information and to submit your responses, click here.
Finance Ministers and Central Bank Governors and their Deputies met in Durban
South Africa takes the helm of the G20 at a testing time. As climate impacts intensify, the number of people affected by disasters has surged. The rate of affected populations rose by 75%, with an average of 124 million people impacted each year. This reflects growing vulnerability and exposure. It is a moment to mobilize resources for a greener, more inclusive and more sustainable global economy, one that reflects the spirit of Ubuntu, where people and the planet thrive in tandem.
The Road to G20: SFWG Upcoming Events
On the road to the G20 Summit, we have one more crucial SFWG meeting in September, as well as a side event on the Roadmap and the G20 Technical Assistance Action Plan (TAAP). Stay tuned for more updates as we continue our journey toward sustainable finance and a just, inclusive, and resilient world.
Thank you for your continued support and engagement. For more information on the G20 SFWG, make sure to explore our website.