South Africa unveiled a global blueprint to make industrial policy work for people and the planet, the first of its kind in G20 history.
The G20 Principles for Sustainable Industrial Policy Report, launched under South Africa’s G20 Presidency, outlines how countries can transform their growth models to tackle inequality, create decent work and drive the low-carbon transition.
Co-hosted by the Department of Trade, Industry and Competition (DTIC), the Department of International Relations and Cooperation (DIRCO), and the Institute for Economic Justice (IEJ), the launch of this report marks a defining moment in South Africa’s G20 Presidency. It is a significant step toward shaping a global economy that prioritises people, the planet and shared prosperity.
Key messages from the Report:
- Sustainable industrial policy is essential for achieving equitable, inclusive, and low-carbon growth.
- The G20 Principles for Sustainable Industrial Policy provides a global framework for integrating development, climate and equity objectives.
- South Africa’s G20 Presidency highlights Africa’s leadership in shaping the global sustainable industrialisation agenda.
- Collaboration among government, research institutions and civil society is fundamental to building resilient economies and enabling just transitions.
The G20 Principles for Sustainable Industrial Policy provides a blueprint for countries to align economic development with climate action and social inclusion, transforming industrial policy into a tool for sustainable development, rather than competition and extraction.
The report comes as countries worldwide re-evaluate their industrial strategies in the wake of global supply chain disruption, rising protectionism and the accelerating climate crisis. For Africa, where industrial growth has lagged behind global averages for two decades, these principles offer a framework for rebuilding economies that are both productive and just.
A global framework for just, resilient growth
Minister of Trade, Industry and Competition, Mpho Parks Tau said:
“The G20 Principles for Sustainable Industrial Policy are a call to action for all economies to invest in transformation that is not only productive and competitive, but also just, inclusive and sustainable. These principles recognise that a fair global economy begins with fair industrial policy.”
Lead co-author Professor Fiona Tregenna, South African Research Chair in Industrial Development, added:
“This report is about building an industrial future that creates decent work, fosters innovation, and protects our environment. It reflects the lessons of the Global South and the urgency of making industrialisation serve both people and the planet.”
Dr Basani Baloyi, Programme Director at the IEJ, emphasised that the report is both a policy tool and a political commitment:
“Industrial policy can no longer be treated as a narrow economic instrument. It is the foundation of how we transition to equitable, low-carbon economies. The G20 Principles make clear that sustainable industrialisation is central to solving inequality, unemployment, and the climate crisis.”
Africa shaping the global agenda
Kamal Ramburuth, IEJ’s G20 Project Lead, said:
“For the first time, the G20 is meeting on African soil, and that gives the continent a unique opportunity to lead the conversation. South Africa has chosen to discuss a hot topic. Less than a decade ago, industrial policy was a swear word. It was something that the Global North did, but did not allow the Global South to do in a global world order, with the USA at its centre. As this world order continues to unravel, industrial policy has become something most countries are doing. This priority, and this report, bring honesty to the multilateral system. We are all doing industrial policy, but how do we ensure it is sustainable? How do we remove barriers to development for the Global South? How do we ensure that it is just?”
The report brings together leading international economists, including Professor Jayati Ghosh (UN High-Level Advisory Board on Effective Multilateralism), Professor Fiona Tregenna (University of Johannesburg, SARChI Chair in Industrial Development) and Dr Basani Baloyi (Institute for Economic Justice), making it one of the most globally representative industrial policy frameworks yet produced under the G20.
Key highlights from the report
- The report shows that developing countries face major structural barriers—across trade, investment, IP, and finance regimes—that limit their ability to implement sustainable industrial policies.
- It explains how rules at the WTO, bilateral trade agreements, ISDS systems, and TRIPS restrict “policy space” and lock countries into low-value, carbon-intensive roles.
- It highlights financial constraints such as high capital costs, biased credit ratings, limited development finance, and debt burdens that impede green industrialisation.
- The report calls for a reformed multilateral system that enables technology sharing, fair financing, and greater flexibility for countries pursuing just and sustainable industrial transformation.
A collective call for action
The G20 Principles for Sustainable Industrial Policy centres on four pillars:
- Inclusive growth: Industrialisation must create decent work, reduce inequality and promote gender equity.
- Low-carbon transition: Industrial policy should drive climate resilience and sustainable production.
- Global cooperation: The G20 must foster equitable trade, technology transfer and investment for shared prosperity.
- Institutional alignment: Policies must link social, environmental and economic objectives into coherent development strategies.
Through these principles, the report seeks to guide both developed and developing countries in building industries of the future that respect ecological boundaries while ensuring no one is left behind.
A moment for solidarity and sustainability
The G20 Principles for Sustainable Industrial Policy Report demonstrates South Africa’s commitment to leading the global dialogue on sustainable development and industrial transformation.
It reflects close collaboration between government, research institutions, and civil society, reinforcing that equitable industrial policy must be co-created through dialogue, evidence, and shared accountability.
The report is available on the official G20 and IEJ websites.
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