IS A GLOBAL PUBLIC GOODS BANK NECESSARY?

The document examines the systemic under-supply of funding for global public goods (GPGs), such as climate mitigation and pandemic preparedness, relative to the trillions of dollars required. It analyzes current G20 initiatives and the roles of the IMF and World Bank, while discussing a proposal from the Indian Council for Research in International Economic Relations (ICRIER) to create a consolidated GPG bank. The author provides recommendations for the South African G20 presidency to lead on consolidating funding windows, establishing equitable governance, and exploring global taxes to bridge the financing gap.

• There is a significant disparity between the financial demand for global public goods and the actual supply. The UN Department of Economic and Social Affairs (UNDESA) estimates that meeting the Sustainable Development Goals (SDGs) requires an additional annual investment of $4 trillion, or approximately 4% of global GDP.
• The current Multilateral Development Bank (MDB) system is underperforming relative to GPG targets, lending approximately $100 billion in 2023, which represents only 2.5% of the target.
• A 2023 proposal by the Indian Council for Research in International Economic Relations (ICRIER) suggests creating a GPG bank as a fourth lending window of the World Bank Group. This bank would focus on climate change mitigation and biodiversity protection—referred to as planetary public goods (PPGs)—rather than adaptation, as adaptation is already integrated into general SDG infrastructure spending.
• The IMF has introduced the Resilience and Sustainability Trust (RST) in 2022 to address climate change risk and pandemic preparedness, offering longer maturities of 20 years compared to other Poverty Reduction and Growth Trust (PRGT) facilities.
• Developed countries only surpassed their 2009 commitment to provide $100 billion annually in climate finance to developing countries in 2022; the target had not been met in any preceding year.
• The author recommends that the South African G20 presidency advocate for the consolidation of multilateral, bilateral, and philanthropic funds into specialized GPG funding windows and explore global taxes, such as a wealth tax or base erosion and profit sharing (BEPS) measures, to mobilize necessary resources.

APA

van Gass, C. (2024). IS A GLOBAL PUBLIC GOODS BANK NECESSARY? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2024/10/SAIIA_PN_9_G20GlobalPublicGoods.pdf

Chicago

van Gass, Conrad. IS A GLOBAL PUBLIC GOODS BANK NECESSARY? South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2024/10/SAIIA_PN_9_G20GlobalPublicGoods.pdf.

Wikipedia

{{cite report |last1=van Gass |first1=Conrad |title=IS A GLOBAL PUBLIC GOODS BANK NECESSARY? |publisher=South African Institute of International Affairs |date=9 September 2024 |url=https://saiia.org.za/wp-content/uploads/2024/10/SAIIA_PN_9_G20GlobalPublicGoods.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vangass2024global, author = {van Gass, Conrad}, title = {{IS A GLOBAL PUBLIC GOODS BANK NECESSARY?}}, institution = {South African Institute of International Affairs}, year = {2024}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2024/10/SAIIA_PN_9_G20GlobalPublicGoods.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }