G20 summit pledges equitable Covid vaccine distribution

Leaders of the G20 group of economies ended their two-day virtual summit yesterday with a call for equitable global distribution of anticipated anti-Covid-19 vaccines and medicines, while endorsing a plan to a extend suspension on debt service payments by the poorest countries through to June 2021.

"We remain determined to support all developing and least developed countries as they face the intertwined health, economic and social effects of Covid-19," said a closing statement issued by the summit, which was held virtually and was hosted by Saudi Arabia that has held the G20 presidency over the past year.

The G20 statement acknowledged the "significant debt vulnerabilities and deteriorating outlook in many low-income countries" as a result of the Covid-19 crisis, adding that further debt relief to those countries would be considered beyond mid-2021 "on a case-by-case" basis. Private creditors would be encouraged to participate in the debt relief efforts, it added.

The conference also endorsed Saudi Arabia's Circular Carbon Economy platform, which would integrate hydrocarbon production with renewable energy production into the energy transition through carbon capture and reuse, or through carbon capture and storage.

"We endorse the Circular Carbon Economy platform, with its 4Rs framework (reduce, reuse, recycle and remove), recognising the key importance and ambition of reducing emissions, taking into account system efficiency and national circumstances," said the statement.

Saudi investment minister Khalid al-Falih earlier told the conference that Saudi Arabia sees itself producing exporting equal amounts of hydrocarbons and renewable energy to the world as part of a future energy transition.

"The kingdom believes that the energy transition that the world is going to need all energy sources, and that the transition from fossil to all-non-fossil fuels is a multi-decade, perhaps a multi-generational, journey that we have to take deliberately and carefully and make sure it does not disrupt and break the global economy," said al-Falih, who was the country's energy minister for three years until September 2019.

Al-Falih, a former long-standing chief executive and chairman of state-controlled Saudi Aramco, said he expected Saudi Arabia's oil exports to continue at current levels for many decades.

"I wouldn't be surprised if we continue to export at the level we are exporting for decades to come, in terms of oil and gas, because the world needs it," he said.

"But at the same time maybe we will be exporting the same level of energy that is generated from renewables and exported in different forms. One of them will be blue and green ammonia," al-Falih added.

Saudi Arabia's crude exports were 6.21mn b/d in October, according to Argus tracking estimates. The country, which also exports refined products and petrochemicals, has no gas exports, but Saudi energy officials have said the country expects to export gas in the future.

Saudi Arabia handed over the G20 presidency to Italy at the summit's closing session.

By Samira Kawar