In 2025, Fundar once again participated in Think20, this time based in South Africa. This G20 engagement group brings together think tanks, research centres from member countries and other civil society organisations with the aim of generating policy proposals and recommendations based on the analysis of specific issues.
Our participation in global forums aims to bring our policy proposals to international exchange spaces and capture trends that strengthen our policy suggestions at the local and regional levels. These spaces—such as the T20 or the Conferences of the Parties (COP)—allow us to position Latin America in strategic debates and raise our voices and needs to global stages. We believe that the Global South has knowledge, tools, and key cases that bring new dimensions of analytical depth to G20 discussions. We believe in influencing the specific policies pursued by its leaders.
Promoting Sustainable and Inclusive Global Value and Supply Chains: Bridging the North-South Gap
Authors
Leonardo Park, Fundar 🇦🇷
María Victoria Arias Mahiques, Fundar 🇦🇷
Pablo de la Vega, Fundar 🇦🇷
Charline Depoorter, University of Basel 🇨🇭
Elisabeth Hoch, Climate and Company 🇩🇪
Sabine Papendieck, ESTRATECO 🇦🇷
Paula Pinto Zambrano, Climate and Company 🇩🇪
Valeria Piñeiro, IFPRI 🇺🇸
Sofia Helena Zanella Carra, Climate and Company 🇩🇪
Abstract
The Global Value Chains (GVCs) account for nearly 70% of international trade and are increasingly seen as a key avenue to address environmental, labour, and human rights issues, among others. Over the past three decades, this has led to the proliferation of Voluntary Sustainability Standards (VSS) and other voluntary commitments. On top of these, mandatory approaches (including due diligence requirements, certifications, and others) have more recently emerged, mostly in the Global North, with the adoption of demand-side measures and unilateral approaches such as the Carbon Border Adjustment Mechanism (CBAM), the EU Corporate Sustainability Due Diligence Directive (CS3D), and the European Union Deforestation Regulation (EUDR).
While regulations are key in promoting supply chain sustainability, the current framework generates a complex landscape of multiple coexisting and overlapping commitments and obligations, with uncertain potential impacts, within a turbulent and volatile global context. Some studies highlight excessive and, in some cases, infeasible compliance costs on Emerging Markets and Developing Economies (EMDEs), which might generate exclusionary effects, market segmentation, and loss of competitive advantages. While these new compliance challenges come on top of the existing ones that EMDEs face in integrating into GVCs, as recognised by the “G20 Generic Framework for Mapping GVCs”, some argue that they could lead to market access advantages. It is important to find ways to foster inclusiveness and to avoid goods that cannot meet these regulations being redirected to markets with lower sustainability requirements.
The WTO has not made enough progress in fostering discussions on the implementation and resolution of conflicts regarding these new sustainability-linked trade regulations. Consequently, global governance institutions need to evolve to surpass these trade challenges and provide adaptive and collaborative responses.
This policy brief recommends the G20 to launch a G20-backed “Global Coalition for Sustainable and Inclusive Trade” that will serve as a dedicated platform to share knowledge, foster dialogue, and align efforts for sustainable and inclusive trade. Ultimately, the Coalition will strengthen global governance and support businesses, especially Micro, Small and Medium Enterprises (MSMEs), in their integration into GVCs, which is crucial in an increasingly uncertain and fragmented global regulatory landscape.
Institutions
Fundar | Climate and Company | ESTRATECO | Sustainability Research Group, University of Basel | IFPRI
Reforming SDR Allocation Criteria to Enhance its Role in Global Crisis Response and Sustainable Development Financing
Authors
Emiliano Libman, Fundar 🇦🇷
Florencia Asef Horno, Suramericana Visión 🇦🇷
Maia Colondenco, Suramericana Visión 🇦🇷
Martín Guzmán, Suramericana Visión 🇦🇷
Abstract
Emerging Markets and Developing Economies (EMDEs) face acute financing constraints due to elevated debt burdens amidst growing development and climate-related needs. The structural asymmetries of the international monetary system exacerbate these challenges, particularly through pro-cyclical capital flows toward EMDEs that lead them to accumulate reserves for precautionary purposes. Special Drawing Rights (SDRs) offer a concrete alternative to address these asymmetries and financing needs. However, its current design and allocation system pose challenges. In this policy brief, we focus on the ones related to SDR allocation criteria and propose some guidelines and concrete alternatives on how this could be reformed to harness the use of SDRs for crisis management and financing for development. The current allocation mechanism largely favours advanced economies – countries that neither need nor significantly use SDRs. Therefore, we propose a needs-based approach that incorporates metrics of financial and structural vulnerabilities. While acknowledging the political challenges of such reform, the brief outlines recommendations for designing a technically feasible and transparent allocation framework.
Institutions
Fundar | Suramericana Visión | Columbia University Initiative for Policy Dialogue (IPD) | ECCO
Equitable Critical Mineral Value Chains: Developing Production and Technological Capabilities in the Global South Through South– South–North Cooperation
Authors
Tomás Allan, Fundar 🇦🇷
Martina Zanetto, Fundar 🇦🇷
Víctor Delbuono, Fundar 🇦🇷
Carlos Freytes, Fundar 🇦🇷
Martín Obaya, Centro de Investigaciones para la Transformación de la Universidad Nacional de San Martín 🇦🇷
Lauren Hermanus, Southern Transitions 🇿🇦
Anthony Dane, Southern Transitions 🇿🇦
Pranati Chestha Kohli, Columbia University 🇺🇸
Diego Murguía, Centro de Investigaciones para la Transformación de la Universidad Nacional de San Martín 🇦🇷
Abstract
The urgent need to accelerate the global energy transition, vital for achieving climate goals, will significantly increase demand for a range of ‘critical’ minerals. For example, by 2040, lithium demand is projected to grow nearly ninefold, driven by expanding EV battery production, while graphite demand – key for battery anodes – is expected to nearly quadruple. Copper consumption is also poised to nearly double, due to its critical role in electrical conductivity.
As demand rises, new economic opportunities emerge for resource–rich countries in the Global South. However, there is a risk of missing the window of opportunity to develop production and technological capabilities. The high global demand for minerals, within a context of asymmetric relationships between countries specialised in mining activities and those with consolidated positions in downstream segments of the value chain, as well as with end-user countries, pushes the former ones to export raw materials with low value–added processing.
Many Global South countries have sought to move beyond extractivism by developing production linkages with mining activity – whether backward, forward, or sidestream. While there have been some notable successes, most mineral–rich countries in the Global South continue to face significant obstacles. These include limited technological capabilities, the absence of close large–scale electromobility markets, high concentration in the more advanced segments of the value chain, restrictive trade barriers in key export destinations, and the predominance of foreign capital ownership.
This policy brief proposes measures to advance just transition–aligned critical mineral value chains through international cooperation oriented towards developing production and technological capabilities in resource-rich countries of the Global South. In particular, we suggest: (i) adopting shared principles and standards for mineral value chain governance; (ii) establishing a roadmap for technology collaboration and R&D cooperation; (iii) and calling for action to address trade barriers limiting value addition in Global South, supply–side countries. These recommendations prioritise supporting Global South efforts and global stability, benefitting both resource–rich and mineral–demanding countries. Fostering production and technological capabilities in resource– rich countries is in the interest of diverse G20 members as it contributes to the augmentation of global economic and political stability – core to the G20’s original mandate.
Institutions
Fundar | Centro de Investigaciones para la Transformación de la Universidad Nacional de San Martín | Southern Transitions | Columbia University
