The 2021 edition of the G20 summit, which was held in Venice, addressed major areas of concern that ranged from the global tax reforms, the risk from emerging variants of COVID-19 and the price of carbon around the globe. The meeting also included historic outcomes such as a collective endorsement for a minimum tax rate for companies with large revenues.

The global minimum tax rate, which has been set at 15% after two days of deliberations, is being viewed as a “historic agreement on a more stable and fairer international tax architecture”, according to reports from AFP quoting a collective statement of the finance ministers present at the meet.

The new policy aims to charge big companies, which set up their operations on foreign soil, a part of their profits that are earned through third-party business practices. 

However, the agreement has not been finalised so far and a final deal is likely to be reached later this year.

The G20 also hailed an economic return to the pre-pandemic levels in multiple countries following a strong COVID-19 vaccine rollout but also noted and warned that the threat posed by the disease is not yet over and urged countries to remain cautious. 

“The recovery is characterised by great divergences across and within countries and remains exposed to downside risks, in particular the spread of new variants of the COVID-19 virus and different paces of vaccination”, the final statement from the meeting read, according to reports from AFP.

The diplomatic meeting also addressed the possibility of setting up a floor price for carbon output as a way of combating climate change and promoting a healthy environment. 

The initiative was backed by France’s Bruno Le Maire and United States’ Janet Yellen, who urged other country representatives present at the G20 summit to decarbonise the economy of the world.