Earlier, at the G20 summit in Rome, Italy, from Oct. 30 to 31, it agreed to "limit the global average temperature increase to less than 1.5 degrees by 2100 compared to before industrialization (1850 to 1900), but failed to set the carbon neutral time to 2050. Representatives from more than 190 COP26 countries will hold working-level consultations until November 12, but critics point out that there is a limit to narrowing the carbon neutrality gap between developed and developing countries (developing countries) leadership groups ranging from 10 to 20 years.
In fact, on November 1, the first day of the COP26 Climate Summit, Indian Prime Minister Narendra Modi suggested the time of carbon neutrality as 2070. Not only India, the world's third-largest carbon emitter, but also China, the No. 1 country, are refusing to comply with the demands of developed countries to unify the point of carbon neutrality. It adheres to the point of carbon neutrality in 2060 proposed last year. Chinese President Xi Jinping was also absent from the COP26. President Xi said in a written greeting, "Advanced countries should not only act more to respond to climate change, but also support developing countries to respond better." They say that developed countries, which have produced enormous carbon for more than 200 years since the Industrial Revolution, should be responsible for some of the carbon reduction in developing countries, where carbon emissions are increasing belatedly increasing. Some developing countries in Africa and Southeast Asia seem to support the position of leaders in developing countries such as China and India, which are advocating responsibility for advanced countries, as if they regret joining the declaration of carbon neutrality in 2050.
The U.S. has started to check China's move to claim to be the eldest brother of developing countries. U.S. President Joe Biden aimed at President Xi and criticized, "It is a big mistake that China did not attend the meeting," adding, "It is losing its influence on the world."
The decarbonized frostbite dream between the leaders of developed and developing countries is also revealed in the "2030 pledge to reduce methane gas emissions by 30%" agreed by COP26 leaders. The leaders of more than 100 countries signed, but China, Russia, and India were excluded. The Wall Street Journal (WSJ) said, "The world's leaders have not been able to find a breakthrough in resolving climate change."
G20 leaders, digital tax on IT dinosaurs.
"In the digital age, you have to pay taxes to countries that make money".
On October 31, the G20 leaders officially approved an agreement to implement a digital tax for multinational companies from 2023.
The digital tax is a system that requires global IT conglomerates to pay taxes not only on corporate taxes in their headquarters but also on countries that actually provide services and generate sales. Big Tech such as Google, Apple, and Facebook in the U.S., which have generated huge profits overseas due to the expansion of the online market but have only paid taxes based on the location of their business sites like existing offline companies, is also called the "Google Tax." In the case of Korean companies, Samsung Electronics and SK Hynix are mentioned as targets for digital taxes.
The digital tax agreed at the G20 summit consists of "allocation of taxation rights to countries generating sales (Pilla 1)" and "introduction of global minimum tax (Pilla 2). The main goal of the taxation rights of the countries that generate sales is to allocate taxation rights on sales of large companies with annual sales of 20 billion euros (about 27 trillion won) and profits of more than 10%. Starting in 2023, Big Tech will have to pay taxes to each market location country on 25% of excess profits that usually exceed 10% of global sales.
According to the Organization for Economic Cooperation and Development (OECD), more than 100 global companies around the world are subject to the distribution of taxation rights to countries generating sales, which is expected to redistribute $125 billion (about 149 trillion won) annually.
The global minimum tax is a concept that applies a tax rate of at least 15% to global companies with sales of more than 750 million euros (about 1 trillion won) in any country. The move is aimed at preventing big tech companies from setting up corporations in tax havens or low-tax countries and siphoning off profits to reduce taxes. The OECD predicts that an additional $150 billion (about 179 trillion won) in taxes will be collected annually around the world as a global minimum tax.
German Prime Minister Angela Merkel, who attended the G20 summit, said, "The digital tax agreement is a clear sign of justice being implemented in the era of digitalization."
US Biden to convene 14 allies during the G20.
"Dirty China". "Encouraging the supply chain to China".
U.S. President Joe Biden urgently convened the summit of 14 major U.S. allies, including South Korea, the European Union (EU), the U.K., Japan, India, Indonesia, Singapore and Congo, who attended the G20 summit on October 31. Analysts say that the summit was urgently convened to discuss global supply chain measures and is delaying the U.S. economic recovery due to the recent worsening "logistics crisis." At the same time, it is pointed out that it has confirmed its willingness to reorganize its highly dependent global supply chain with its allies. Participating Congo is believed to be an intention to check China's large-scale investment in cobalt, a key raw material for electric vehicle batteries.
President Biden said on the same day, "Our supply chain must be diverse in order not to rely on one source that can fail." President Biden also hinted at taking measures such as providing additional funds to Central American countries such as Mexico and issuing administrative orders related to the use of defense reserves to resolve the global supply chain problem.
President Biden did not use the word "China" in his remarks released that day. However, he did not hide that "Our supply chain should be free from forced labor and child labor, and sustainable by supporting the dignity and voice of workers." Currently, the United States continues to raise human rights issues, including China's forced labor centered on Xinjiang. President Biden attended a joint press conference after agreeing to end the steel and aluminum tariff dispute at the summit with the EU and said, "We will restrict dirty steel from accessing our market in countries like China."
At the G20 summit attended by video, Chinese President Xi Jinping indirectly refuted the U.S.-led Anti-China meeting, saying, "Artificially creating small groups or drawing lines with ideology only creates gaps and increases obstacles."