ANALYSIS:

SCO Summit 2024: Power plays in clean energy, digital revolutions, and financial shakeups

According to a Joint Communiqué seen by The Thursday Times, this year's SCO Summit in Islamabad reinforced the Eurasian allies' commitments to clean energy, digital revolutions, and financial integrity—majorly, paving the road for an SCO Development Bank.

ISLAMABAD (The Thursday Times) — The 23rd Meeting of the Council of Heads of Government (CHG) of the Shanghai Cooperation Organisation (SCO) took place on 15-16 October 2024 in Islamabad, bringing together the Prime Ministers and high-level officials from member states, observer countries, and invited guest states. The meeting, chaired by Pakistan’s Prime Minister Muhammad Shehbaz Sharif, aimed to deepen cooperation across a broad spectrum of issues, including economic development, environmental sustainability, and cultural diplomacy.

According to a Joint Communiqué seen by The Thursday Times highlighting the results of this year SCO moot, the summit focused on furthering international collaboration under the SCO framework, addressing regional and global challenges, and enhancing ties in areas such as trade, security, energy, and culture. The communiqué is particularly significant because it provides a detailed summary of the summit’s proceedings, offering a transparent account of the agreements forged.

What is a Joint Communiqué?

A Joint Communiqué is an official statement issued by participants following a high-level meeting, summarising agreements reached, positions adopted, and joint commitments. It is an essential diplomatic tool for conveying the outcomes of multilateral summits and serves as a record of the cooperation and shared objectives between member states.

Emphasis on sovereignty and peaceful dispute resolution

One of the primary themes reiterated by the Heads of Government was the emphasis on mutual respect for sovereignty, independence, and territorial integrity. The SCO leaders reaffirmed their commitment to maintaining peaceful international relations through dialogue and consultation. The communiqué highlighted that the member states prioritise the right of nations to independently determine their political, social, and economic futures, echoing the SCO’s guiding principles of non-interference in domestic affairs. The leaders also reiterated their commitment to resolving disputes peacefully, through diplomatic channels, a stance that underpins the SCO’s foundational charter.

Economic cooperation and resilience against protectionism

The economic segment of the discussions reflected the organisation’s focus on building resilience in global trade amidst increasing protectionism. The leaders stressed the need for open, inclusive, and rules-based international trade, reinforcing their opposition to unilateral sanctions and trade restrictions. According to the Joint Communiqué seen by The Thursday Times, these protectionist measures, particularly those undermining the World Trade Organisation (WTO) principles, were identified as key obstacles to global economic recovery and sustainable growth.

The SCO heads of government emphasised the importance of multilateral economic cooperation as a mechanism for countering protectionism and boosting regional economic integration. The leaders discussed a comprehensive agenda for strengthening trade and investment cooperation, focusing on digitalisation, green development, and technological innovation. They also called for coordinated efforts to support emerging technologies and new areas of economic growth, such as digital assets, artificial intelligence, and e-commerce.

The SCO Development Bank and Fund

An important economic outcome from the summit was the discussion around the establishment of the SCO Development Bank and SCO Development Fund. According to the Joint Communiqué seen by The Thursday Times, these institutions are intended to provide the necessary financial infrastructure to support large-scale regional projects and investments in SCO countries. The bank and fund will serve as conduits for channelling investment into vital areas such as infrastructure development, green technologies, and digital economies. The communiqué underscored the need for member states to intensify consultations on establishing these financial mechanisms, signalling an important step toward a more integrated regional economy.

In addition, the leaders considered proposals to develop an independent settlement-clearing mechanism and to harmonise payment systems between SCO member states. Such financial innovations are aimed at reducing dependency on external financial systems and promoting the use of national currencies in mutual trade, as part of a broader effort to foster regional financial independence.

Commitment to green development and climate action

Green development emerged as a central pillar of the discussions, reflecting the SCO’s recognition of the urgent need to address climate change and environmental degradation. According to the Joint Communiqué seen by The Thursday Times, SCO member states reaffirmed their dedication to the principles outlined in the UN Sustainable Development Goals (SDGs) and committed to advancing the SCO Green Belt Programme. The initiative promotes environmental sustainability across the region through the development of renewable energy projects, ecosystem conservation, and the promotion of sustainable industrial practices.

SCO leaders recognised the need for deeper cooperation on renewable energy and energy security. They discussed plans for strengthening cross-border energy infrastructure and agreed on the necessity of a more cohesive regional energy policy. The communiqué highlighted the member states’ agreement to work collaboratively on attracting investment into renewable energy technologies, with a focus on solar, wind, and hydropower.

The leaders also discussed sustainable development in broader terms, addressing issues such as biodiversity conservation, waste management, and the transition to a green economy. According to the Joint Communiqué seen by The Thursday Times, the member states agreed on a roadmap for the implementation of the SCO Green Belt Programme and reaffirmed their commitment to achieving climate resilience across the region.

Digital transformation and technological innovation

Technological innovation was another key focus area, with the leaders discussing the role of digital transformation in driving economic growth and modernisation. According to the Joint Communiqué, SCO member states reiterated their commitment to reducing the digital divide and promoting digital inclusion. The communiqué outlined plans for expanding digital public infrastructure, improving cross-border data exchanges, and promoting e-commerce and digital business development.

The SCO’s focus on technology extends to fostering innovation ecosystems, with a particular emphasis on startups and new business ventures. According to the Joint Communiqué seen by The Thursday Times, member states recognised that technological innovation is essential for enhancing economic competitiveness in the region. The SCO Startup Forum and other initiatives provide platforms for collaborative innovation, supporting the growth of new enterprises and the adoption of cutting-edge technologies.

Cultural cooperation and people-to-people diplomacy

Beyond economics and technology, the summit placed a strong emphasis on cultural cooperation, recognising its role in harbouring mutual understanding and strengthening regional ties. According to the Joint Communiqué, the SCO heads of government stressed the importance of preserving cultural diversity and promoting inter-civilisational dialogue. The leaders agreed on measures to facilitate cultural exchanges and expand cooperation in education, tourism, and sports.

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