Solo, 7 July 2022: Three priority issues were discussed during the second working group meeting of the G20 Trade, Investment, and Industry Working Group held in Solo on 5-7 July 2022. The hybrid meeting was attended by delegates from all G20 member countries and international organisations such as the Economic Research Institute for ASEAN and East Asia (ERIA), Organisation for Economic Co-operation and Development, United Nations Conference on Trade and Development, United Nations Economic and Social Commission for Asia and the Pacific, United Nations Industrial Development Organisation, World Health Organisation, World Bank, and World Trade Organisation (WTO). Discussed in the three-session meeting were (1) WTO reform (priority issue number one); (2) trade, investment, and industry response to pandemic and global health architecture (priority issue number three); and (3) spurring of sustainable investment for global economic recovery (priority issue number five).

Mr Koji Hachiyama, ERIA’s chief operating officer, gave the meeting’s opening remarks whilst Dr Lili Yan Ing, ERIA’s lead advisor on Southeast Asia, presented ‘Sustainable Investment for Global Economic Recovery’. The presentation highlighted the scarring effects of the COVID-19 pandemic and cited inequality and climate change as long-standing issues in development. Dr Ing also said that foreign direct investment remains an important tool for growth, recovery, and sustainability and that the world needs international cooperation to reduce financial and institutional barriers to sustainable investing.

Dr Ing underscored the role the G20 plays in facilitating multilateral efforts to encourage countries to review, recommit, and scale up sustainable investment, as well as integrate environmental, social, and governance (ESG) principles in international agreements. She proposed important recommendations to the G20: (1) review, recommit, and scale up sustainable investment and green finance pledges and allocations; (2) enhance the roles of multilateralism and reforms in the international financial architecture to accommodate sustainable investment in increasing value added and creating local jobs; (3) ensure the integration of ‘equity principles’ in the carbon market; and (4) integrate ESG principles in sustainable facilitation framework.