A ‘sustainable’ New Delhi Declaration: G20’s acceleration on the SDGs

As India assumed the Group of Twenty (G20) Presidency on 1 December 2022 against the backdrop of the aftermath of the COVID-19 pandemic and Russia-Ukraine tensions, it had embraced an inclusive governance approach to foster multilateralism and address the sustainable development priorities of the Global South. Adopted in 2015, the United Nations Sustainable Development Goals (SDGs) Agenda 2030 set out an ambitious blueprint for addressing global challenges and serves as a crucial framework for fostering a comprehensive and interconnected response to global challenges.

A two-way causality exists between domestic and international business environments and the SDGs, with the private sector and multilaterals playing essential roles in achieving these goals. Notably, the private sector is shifting away from short-term profit maximisation to embrace sustainability as a foundation for long-term business strategies. This shift is driven by the recognition that SDGs create favourable business conditions through several vital mechanisms.

Firstly, addressing SDGs reduces long-term environmental, political, and social risks. By proactively tackling these challenges, businesses safeguard their market competitiveness, even in the face of impending policy changes, and diminish long-term "transaction costs" for businesses. Secondly, the pursuit of SDGs promotes transparency in sustainability risks and impacts. This transparency is a positive externality, reducing information asymmetry and enhancing business governance processes.

Thirdly, aligning business solutions with the SDGs unlocks significant market expansion potential, revenue maximisation, and job creation opportunities. This occurs through forming partnerships at various levels, allowing businesses to tap into emerging markets driven by sustainable practices. And fourth, deepening partnerships for SDGs and integrating them into national and corporate budgets enhances business competitiveness, market resilience, and goodwill.

This contention is rooted in the recognition that the SDGs bolster the availability of four critical types of capital: Physical, natural, social, and human. These capitals—the economic linkages highlighted in the following figure—are essential for businesses to thrive and are integral to addressing the multifaceted challenges in the longer horizon.

Figure 1: SDGs and Capitals

Source: Bhowmick (2021), ORF Issue Brief No. 433

However, as the world approaches the halfway point to 2030, it has become evident that progress toward these goals is off-track. The following figure illustrates a blue line representing progress towards the SDGs without COVID19 impacts and a purple line depicting progress affected by those impacts. The grey dashed vertical line indicates the cumulative effects of shock loss and growth delay loss during the recovery phase. To be sure, the extent of progress loss is contingent on the resilience of the respective countries.

Figure 2: Conceptual Description of the Impacts on SDG Progress

Source: Yuan et. al. (2023), Communications Earth & Environment, Vol. 4 No. 184

With only 12 percent of the targets on track, the G20 nations have reaffirmed their commitment to the SDGs and have outlined a comprehensive plan in the G20 New Delhi Leaders' Declaration, which was launched at the 18^th meeting of the G2 hosted by India from 9-10 September 2023. Ten key elements of this commitment include:

1. Harnessing Digital Advances: Acknowledging the transformative role of digital technologies, artificial intelligence (AI), and data advancements in advancing the SDGs, the G20 lends its support to the G20 Principles on Harnessing Data for Development (D4D). These principles underscore the responsible and inclusive utilisation of data to drive sustainable development outcomes. Additionally, the G20 welcomes the inauguration of the Data for Development Capacity Building Initiative and other concurrent efforts that harness data as a potent catalyst for development.

Acknowledging the transformative role of digital technologies, artificial intelligence (AI), and data advancements in advancing the SDGs, the G20 lends its support to the G20 Principles on Harnessing Data for Development (D4D).

2. Mobilising Global Financial Flows: The G20 member nations reiterate their unwavering commitment to mobilise affordable, sufficient, and accessible financing from diverse sources to support developing countries' efforts to implement the 2030 Agenda. They call upon developed nations to honour their Official Development Assistance (ODA) commitments, which complement and stimulate development financing from myriad sources, encompassing public, private, domestic, and international sectors.

3. Role of Tourism and Culture: Within the G20's framework, tourism and culture emerge as pivotal forces driving sustainable socio-economic advancement and prosperity. The G20 recognises these sectors as potent agents for realising the SDGs and acknowledges the Goa Roadmap for Tourism as an instrumental conduit for their achievement. Consequently, they pledge support to initiatives harmonising tourism and culture with sustainable development objectives.

4. Forging Collaborative Pathways: The G20 makes an unequivocal commitment to amplify cooperation and partnerships. Under the aegis of the Secretary-General's initiatives aimed at bridging the SDG financing gap, the United Nations receives a wholehearted endorsement. The G20 also stands as a staunch supporter of the United Nations 2023 SDG Summit and other pertinent processes, underlining their dedication to global sustainable development.

5. Responsible Capital Mobilisation: The G20's recognition of the paramount importance of sustainable finance in SDG alignment finds expression in their endorsement of the G20 Sustainable Finance Roadmap. This comprehensive roadmap encompasses recommendations for amplifying the adoption of social impact investment instruments. It serves as a strategic guide for nations to tailor their actions in promoting sustainable finance in alignment with their unique circumstances.

6. Eliminating Hunger and Malnutrition: The G20's commitment to bolstering global food security and nutrition hinges on recognising the significance of nutritious food accessibility and sustainable agricultural practices. Emphasising the need for research collaboration on climate-resilient and nutritious crops and the efficient utilisation of fertilisers, the G20 underscores the imperative of soil health improvement.

7. Mitigating Market Volatility: Mindful of the potential volatility in food and energy markets, the G20 takes cognisance of the macroeconomic ramifications of food and energy insecurity. They emphasise the vital role of replenishing the resources of the International Fund for Agricultural Development (IFAD) in combating food insecurity, thereby ensuring market competitiveness and resilience ahead of policy implementations.

8. Comprehensive Healthcare Mandate: The G20 underscores the World Health Organisation's (WHO) central role. They focus on advancing Universal Health Coverage and pandemic preparedness, with commitments encompassing strengthening health services, primary healthcare, and health workforce development, as well as combating infectious diseases, including AIDS, tuberculosis, malaria, and hepatitis.

9. Finance-Health Collaboration: Within the collaborative sphere of Finance and Health Ministries, the G20 aspires to fortify the global health architecture dedicated to pandemic prevention, preparedness, and response. Recognising the economic vulnerabilities and risks stemming from pandemics, they advocate for measures to bolster the rapid and efficient deployment of essential financing resources, aligning with discussions in global forums.

10. Human Capital Development: The G20's unwavering commitment extends to inclusive, equitable, high-quality education and skills training, underscoring the pivotal role of human capital development. Their dedication encompasses a multifaceted approach, encompassing the promotion of foundational learning, digital inclusivity, technical and vocational education, and the enduring pursuit of lifelong learning.

The G20 emphasises the transformative role of culture in achieving the SDGs. The commitment to accelerating progress on the SDGs reflects a collective determination to address global challenges and improve the well-being of all people.

Furthermore, the G20 emphasises the transformative role of culture in achieving the SDGs. The commitment to accelerating progress on the SDGs reflects a collective determination to address global challenges and improve the well-being of all people. Through a combination of digital transformation, financing, sustainable agriculture, healthcare strengthening, and education, the G20 nations show strong determination towards shaping a sustainable future.

Soumya Bhowmick is an Associate Fellow at the Observer Research Foundation

• Sustainable Development
• India

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