FACTBOX-How is G20 doing on summit pledges?

TORONTO, June 18 (Reuters) - Leaders from the Group of 20 rich and developing nations gather in Toronto on June 26-27 to discuss how to prevent a repeat of the global financial crisis and resulting recession.

Here is a summary of progress so far on pledges the leaders have previously made:

MACROECONOMIC POLICY: Europe's debt troubles have cast doubt on some of the key principles agreed when world leaders gathered in Pittsburgh last September. Until about six weeks ago, when fears of a Greek debt default rattled global financial markets, the economic recovery appeared to be strengthening. Now, there are fresh doubts, particularly about Europe's growth prospects, which makes G20 policy coordination even trickier.

A Pittsburgh pledge to withdraw emergency supports in a "cooperative and coordinated way" appears to be in jeopardy as the United States and Europe clash over how quickly to shift the focus to fiscal restraint. U.S. President Barack Obama wrote a sharply worded letter to his colleagues, reminding them that their policies should "suit the needs of the global economy" and not just domestic priorities. European leaders counter that without sound fiscal policies, there can be no economic stability.

The cornerstone of Pittsburgh was agreement on a framework for balanced growth, which envisioned replacing the old economic model built on debt-financed U.S. consumption and export-led growth in countries such as China. That appears to be in danger of an early demise as well. Global imbalances have swelled in recent months, and top exporters China, Germany and Japan see exports as the key to their own economic growth. China said the value of its currency was a sovereign matter and had no place on the G20 agenda, which means no progress is likely on an issue at the heart of global rebalancing.

REGULATORY OVERHAUL

BANK CAPITAL: The G20 has pledged to introduce by the end of 2012 much higher bank capital and liquidity requirements to prevent a repeat of the funding crunches that brought down Lehman Brothers and pushed other banks to the brink of collapse in 2008. The G20 also wants derivatives trading to be carried out through clearing houses to give regulators a better idea of risks building up in the financial system.

The Basel III reform of capital is due to be finalized in November but there are differences over how to cap leverage, and treatment of minority stakes and deferred taxes for the purposes of calculating capital requirements. A longer phase in is also expected to give banks more time to adapt. Banks have said the changes could crimp their ability to lend and hurt growth.

OTHER REFORMS: The United States is due to adopt a sweeping reform of Wall Street shortly that incorporates many of the G20 pledges in one go. The European Union won't propose a draft law on derivatives until September but has already moved to regulate debt ratings agencies with reforms of supervision and hedge funds likely to be approved in coming weeks.

The United States looks likely to adopt the Volcker Rule as part of its reform, which would ban proprietary trading at deposit-taking banks, but the EU has said it won't follow suit, raising the prospect of possible market distortions. The United States may also adopt more radical means than the EU to make derivatives markets safer.

ACCOUNTING: Efforts to meet a G20 pledge for a single set of global accounting rules by June 2011 are facing difficulty as standard setters differ over the scope of valuing bank assets at the going market rate. Principles to curb excessive pay packages at banks have already been introduced in Europe and United States.

TRADE

RESIST PROTECTIONISM: G20 leaders reaffirmed their pledge to fight protectionism at the Pittsburgh summit in September, and despite some transgressions are generally given high marks for avoiding the type of steep tariff hikes that many believe exacerbated the Great Depression of the 1930s.

PUSH FOR DOHA DEAL: G20 leaders have been far less impressive in living up to their promise in Pittsburgh to push for an "ambitious and balanced" agreement in the Doha round in 2010 that will remove some of the unfair distortions from the global trading system and help poor countries prosper through trade while opening markets. Negotiators have given up hope of a deal this year barring a political miracle. Business groups nonetheless hope leaders will reaffirm their commitment to the nearly nine-year-old talks, the longest in the history of the rules-based trading system.

ENSURE ADEQUATE TRADE FINANCE:

G20 leaders have asked regulators to show flexibility in setting tougher rules on financial regulation to ensure they do not make trade finance -- the lifeblood of global commerce -- more expensive or harder to access. So far only Britain has agreed to make some waivers in this way. Bankers involved in the market say current proposals would drive up costs and make it harder for small businesses in poor countries to finance exports.

COMBATING CLIMATE CHANGE

Environmentalists lament that climate change is not higher on the agenda of the Toronto summit, which is focusing largely on the economy, but the group's most recent energy achievement -- an agreement last year to phase out subsidies for oil and other fossil fuels over the "medium" term -- will resurface.

Leaders are expected to bring plans and timelines to Toronto laying out how they intend to enact that phase-out.

The G20 nations are also expected to discuss ways to raise money to help poor and developing countries fight climate change, including through a financial transaction tax.

The G20 was seen as a potentially new forum to take leadership on climate issues after U.N. talks in Copenhagen last year failed to produce a robust, binding agreement to reduce greenhouse gas emissions. Those talks did result in 120 nations agreeing a non-binding pact to limit a rise in average world temperatures to below 2 degrees Celsius (3.6 F).

REFORM OF BRETTON WOODS INSTITUTIONS

The G20 kept its promise from the last summit in Pittsburgh to increase the voting power of emerging market countries in the World Bank by at least 3 percent. On April 25, the Bank's member countries approved a 3.13 percent increase, which pushed China into third place in terms of voting power in the World Bank behind the United States and Japan and above Germany, Britain and France.

Now the focus turns to reaching a similar deal at the International Monetary Fund, which is politically more difficult given the institution's role in global economic policies. China and others are likely to make a last-ditch push for developed countries to follow through on the Pittsburgh agreement, which calls for at least 5 percent shift in voting power to under-represented emerging market economies. Countries are aiming to reach an agreement by the next G20 meeting in Seoul, South Korea, in November.

DEVELOPMENT COMMITMENTS

Five years after the G8 meeting in Gleneagles, Scotland, promised an additional $50 billion in aid to poor countries by 2010, there are signs that industrial countries have fallen short on that promise. The Organization for Economic Cooperation and Development reports that the G8 is likely to fall short by $20 billion of those promises.

A draft G8 communique obtained by Reuters dated May 26 showed that the G8 plans to reaffirm its commitment to increasing aid but does not give figures. The communique notes there had been progress in meeting the UN's Millennium Development Goals (MDGs) by 2015, but emphasized that the global financial crisis "has jeopardized advancement toward meeting some of the 2015 targets". The MDGs are international development goals agreed by 192 U.N. member states that include halving extreme poverty by 2015, combating HIV/AIDS and other diseases, improving maternal health, cutting child mortality, promoting gender equality and sending more children to school.

With advanced economies facing budget pressures, the G8 is likely to look to the bigger G20 for a commitment to increase development aid through the World Banks fund for the world's poorest countries. [ID:nN12168162] (Reporting by Huw Jones, Lesley Wroughton, Jeff Mason, Doug Palmer and Emily Kaiser; Editing by Jeffrey Hodgson and Leslie Adler)