Global corporate tax, supply chain repair, vaccines: 4 takeaways from G-20 Summit in Rome

WASHINGTON — After days of talks among leaders of some of the world's most influential economies wrap up in Rome, world leaders made headway on global economic issues while pushing climate change to later talks.

The G-20 Summit, an annual conference of leaders from 20 of the world's most influential countries, is meant as a forum for leaders to solve pressing economic and global issues. 

The group played an instrumental role in responding to the 2008 financial crisis and is a place of dialogue for major countries to negotiate on issues like trade, climate change, international security and, most recently, the coronavirus pandemic.

Here are the major takeaways from the meeting of the most influential economies in the world.

15% global minimum corporate tax

The gathered countries agreed to an unprecedented global minimum tax rate of 15% on multinational corporations. The policy comes after years of rising concerns about tax evasion and exploitation by the world's most powerful companies.

The Biden administration has lobbied governments for the tax since entering office. Treasury Secretary Janet Yellen made executing a global minimum tax a central goal of her term.

“This deal will remake the global economy into a more prosperous place for American business and workers,” the secretary said in a statement.

Biden said he was "proud" the G-20 endorsed the plan in remarks at the summit's conclusion, arguing the policy will put a stop to "nations competing against one another by bottoming out corporate tax rates" and ensure corporations pay taxes "no matter where they're headquartered."

While the group's endorsement is a significant step toward implementing the global tax, the policy will need to be put into law by individual countries. In the U.S., Congress will have to sign off on any changes to the corporate rate, which Democrats are pushing for in their reconciliation package.

More:Biden will talk tax policy, COVID-19 at the G-20 summit. What is the Group of 20?

Much concern, few commitments on climate

While G-20 leaders reaffirmed their commitment to lowering greenhouse gas emissions to curb climate change, the group didn't announce any further steps to meet their stated targets or outline more ambitious goals.

"We recognize that the impacts of climate change at 1.5 degrees Celsius are much lower than at 2 degrees Celsius. Keeping 1.5 degrees Celsius within reach will require meaningful and effective actions and commitment by all countries," a joint statement from the group reads, repeating past agreements.

Italian Prime Minister Mario Draghi said the group was close to an agreement on providing $100 billion per year in climate funding to developing countries, and talks are ongoing.

More:Majority in US concerned about climate, new poll finds

United Nations Secretary-General Antonio Guterres said he left Rome "with hopes unfulfilled – but at least they are not buried," referencing the group's lack of commitment to any new climate policies.

Biden blamed the lack of new commitments from China and Russia, whose leaders did not attend the gathering in person, for the lackluster mood around climate action. Biden also faces skepticism that U.S. commitments on climate are ambitious enough or can be enacted, due to domestic American politics.

Leaders are due to leave Rome on Sunday night for Glasgow, Scotland, where the United Nations Climate Change Conference will be taking place through Nov. 12.

"If Glasgow fails, then the whole thing fails," UK Prime Minister Boris Johnson said at the end of the G-20 summit.

70% global vaccination target by mid-2022

Global vaccine inequality amid the coronavirus pandemic was a major point of discussion during meetings in Rome. G-20 leaders agreed to target for at least 40% of the world population to be vaccinated by the end of 2021 and 70% of the world to be vaccinated by mid-2022. 

To advance that effort, G-20 countries promised they "will take steps to help boost the supply of vaccines and essential medical products and inputs in developing countries and remove relevant supply and financing constraints."

At the end of October, 38.9% of people around the world are vaccinated against the virus that causes COVID-19, according to the World Health Organization, though deep inequalities exist between rich and poor countries.

Only 3.6% of people in low-income countries are vaccinated, while most G-20 countries have well over half their populations vaccinated. 

Global cooperation amid supply chain crisis

The G-20 also responded to the mounting challenge of disrupted global supply chains. The globalized trade system is still reeling from the coronavirus pandemic, leading to shortages and misaligned trade routes around the world.

In remarks, President Biden said that world leaders discussed how to solve global supply chain pileups to "reduce the backlog that we're facing."

The administration will also provide "technical assistance" to Mexico and Central American countries to solve backlogs in the supply chain and help Southeast Asian nations with customs procedure bottlenecks.

Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo will also hold a conference next year to address supply chain issues. 

"Coordination is key," said Biden. "We need to work together."

Follow Matthew Brown online @mrbrownsir.