G20 leaders agree to speed up energy shifts through collective pathways

While reaching a consensus to work towards facilitating access to low-cost financing for developing countries to support energy transitions, G20 leaders on Saturday (September 9) agreed to accelerate energy transitions through collective pathways that would enable the bloc to achieve climate objectives.

According to the G20 New Delhi Leaders’ Declaration, the participating countries have also agreed upon supporting enabling environments to foster innovation, voluntary and mutually agreed technology transfer, and access to low-cost financing.

“We commit to accelerating clean, sustainable, just, affordable and inclusive energy transitions following various pathways, as a means of enabling strong, sustainable, balanced and inclusive growth and achieve our climate objectives. We recognise the needs, vulnerabilities, priorities and different national circumstances of developing countries,” the declaration said.

The leaders emphasised the importance of maintaining uninterrupted flows of energy from various sources, suppliers and routes, exploring paths of enhanced energy security and market stability.

Low-cost financing

Recognizing that developing countries need to be supported in their transitions to low carbon/emissions, the declaration said the leaders will work towards facilitating low-cost financing for them.

The leaders have also agreed to support the acceleration of production, utilisation as well as the development of transparent and resilient global markets for hydrogen produced from zero and low-emission technologies and its derivatives such as ammonia. This will be done by developing voluntary and mutually agreed harmonising standards as well as mutually recognised and inter-operable certification schemes.

“To realise this, we affirm the ‘G20 High Level Voluntary Principles on Hydrogen’, to build a sustainable and equitable global hydrogen ecosystem that benefits all nations. We take note of the Presidency’s initiative to establish the Green Hydrogen Innovation Centre steered by the International Solar Alliance (ISA),” the Declaration said.

The countries have also reached to consensus to work towards facilitating access to low-cost financing for developing countries, for existing as well as new and emerging clean and sustainable energy technologies and for supporting the energy transitions.

“We note the report on 'Low-cost Financing for the Energy Transitions’ prepared under the Indian Presidency and its estimation that the world needs an annual investment of over USD 4 trillion, with a high share of renewable energy in the primary energy mix,” it said.

Supply chains

They have also agreed to support reliable, diversified, sustainable and responsible supply chains for energy transitions, including for critical minerals and materials beneficiated at source, semiconductors and technologies.

Further, the leaders have taken note of the Presidency's ‘Voluntary High Level Principles for Collaboration on Critical Minerals for Energy Transitions”, it said.

The participating countries will promote responsible nuclear decommissioning, radioactive waste and spent fuel management and mobilising investments, and sharing knowledge and best practices, through strengthening international cooperation to promote nuclear safety globally.

The G20 leaders have recognized the role of grid interconnections, resilient energy infrastructure and regional/cross-border power systems integration, where applicable in enhancing energy security, fostering economic growth and facilitating universal energy access for all, it added.

(With agency inputs)