SÃO PAULO – A Shift in Climate Policy on the Horizon?

Recent electoral successes for leftist parties in France and the United Kingdom signal a potential transformation in climate policymaking across Europe. The newly elected Labour government in Britain is set to implement ambitious plans to enhance renewable energy capacity, while in France, the far-right's climate skepticism has been effectively countered. This political momentum is anticipated to influence discussions at the upcoming G20 ministerial meeting in Rio de Janeiro on July 24, where Brazil will propose a groundbreaking 2% annual minimum wealth tax on billionaires. This proposed tax, alongside new climate financing initiatives, aims to facilitate investments in green growth and climate adaptation, while also addressing domestic inequalities. However, developing nations continue to face challenges under existing international trade rules, which restrict their ability to foster their own economic models. The shift in advanced economies towards protectionist practices contrasts sharply with the limitations imposed on developing countries, exemplified by Indonesia's struggles at the World Trade Organization for pursuing an industrial strategy in nickel production. As neoliberal policies lose favor in wealthier nations, they are being rebranded for less affluent countries, which must navigate the dual challenges of job creation and decarbonization with limited resources. If developing nations were empowered to craft their own policies, they could leverage climate investments for inclusive growth. Under President Luiz Inácio Lula da Silva, Brazil is advocating for sustainable development and tax reform, aiming to establish a framework for climate justice and social equity in the post-neoliberal landscape.