Brazil Presidency Must Lead G20 To Mitigate Environmental And Social Spillovers Of The Energy Transition

This policy brief focuses on the international collaboration necessary to equitably progress towards the sustainable energy transition. In that context, it addresses SDG 12 – responsible consumption and production, and in particular SDG target 12.2 – achieving sustainable management and efficient use of natural resources. Based on recent research, this policy brief summarises the negative social and environmental impacts resulting from international value chains of energy-related commodities that are essential for countries’ transition towards circular and low-carbon economies. In this transition, developing countries tend to provide the natural resources necessary for developed countries’ circular economy aspirations. On the surface, this approach offers social and economic co- benefits to developing countries in exchange for the exported natural resources, but the resource extraction also causes social and environmental changes and risks, that together result in an unbalanced distribution of social and environmental costs and benefits across the value chain and across countries. This, in effect, helps only some countries progress towards meeting their SDG and climate change commitments, while other countries are left behind. The authors of the policy brief argue that G20 is well-positioned to propose solutions to this international challenge. Among others, the G20 Brazilian presidency can lead the improvement of international natural resource governance in order to address the negative environmental and social spillovers resulting from global commodity value chains. The brief makes initial proposals to that end – ensuring also continuity and synergies with existing G20 work and initiatives.