G20 Summit 2023 and Renewable Energy

As the world grapples with the urgent need to reduce carbon emissions, this commitment emerges as a beacon of hope, holding the potential to avoid 7 billion tonnes of carbon dioxide emissions by the end of the decade[2]. Additionally, the summit witnessed the formation of the Global Biofuel Alliance, a strategic initiative aimed at advancing sustainable practices in biofuel research, development, and implementation[3]. This alliance, alongside the commitment to triple renewable energy capacity, underscores the G20's proactive stance in diversifying the energy mix and promoting cleaner alternatives.

These commitments/outcomes not only signify a paradigm shift in the G20's approach to climate action but also underscore the crucial role of global cooperation in achieving sustainable energy transition. As we delve into the intricacies of this commitment, it becomes evident that while it brings immense promise, it is not without its share of challenges. This analytical article aims to dissect the various dimensions of the G20's commitment, exploring its implications, the challenges on the path to realization, and the opportunities that lie ahead in the context of renewable energy and climate change. Through a comprehensive analysis, we will unravel the layers of this pivotal commitment and assess its significance in shaping the future of global climate action.

Tripling Global Renewable Energy Capacity[4]

The commitment to triple global renewable energy capacity by 2030, emerging as the centrepiece of the G20 Summit of 2023, signifies a paradigm shift in global climate action. This ambitious goal, acknowledged as the most significant climate-related outcome from the summit, holds immense potential to address the urgent challenges of climate change. According to the International Energy Agency's assessment, achieving this target could result in the avoidance of a staggering 7 billion tonnes of carbon dioxide emissions by 2030, showcasing its substantial impact on reducing greenhouse gas emissions. Despite initial reservations from fossil fuel-producing nations like Russia and Saudi Arabia, the tripling of renewable capacities is identified as one of the lowest-hanging fruits for the G20 in tackling climate issues.

However, this ambitious target is not without its complexities. Currently, the global installed capacity of renewable energy is just shy of 3,400 GW, and to triple this within seven years, the world must add nearly 1,000 GW of new capacity annually. Agencies such as the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), along with climate activists and civil society organizations, have emphasized the need for a significantly stronger policy push from governments to achieve this objective. The commitment to triple renewable capacity emerges as the single most important lever to bring about the necessary reduction in carbon dioxide emissions by 2030. Furthermore, it is projected to lead to a substantial decrease in coal-fired power generation, the largest source of energy-related CO2 emissions.

The key challenge lies in the mobilization of adequate financial resources and the creation of opportunities, encompassing infrastructure, policy environment, and skill development, particularly in countries with low energy access. While approximately 135 countries have pledged to enhance their renewable energy capacities as part of their climate action plans, the bulk of new capacity additions currently occur in a handful of large developing countries, with China and India accounting for over 50% of global capacity additions in recent years. To extend the impact of this commitment, the G20 must actively engage developing countries, particularly in Africa, through initiatives like the International Solar Alliance (ISA). However, the achievement of this ambitious target alone may fall short of the 1.5-degree Celsius goal, necessitating broader and more comprehensive climate decisions in subsequent COP conferences.

Formation of the Global Biofuels Alliance (GBA)[5]

The recently concluded G20 Summit in New Delhi heralded another pivotal moment in global climate action with the formation of the Global Biofuels Alliance (GBA), an initiative spearheaded by India. Biofuels, derived from organic matter, have gained prominence as a potential solution in the pursuit of renewable energy sources to combat climate change. The GBA, designed to be an alliance of governments, international organizations, and industry players, aims to promote the adoption of biofuels on a global scale. Biofuels, including solid, liquid, and gaseous forms such as wood, bioethanol, and biogas, offer renewable alternatives with advantages like reduced greenhouse gas emissions, enhanced energy security, and increased income for farmers. However, concerns about their viability, such as competition for land and water resources, environmental implications, and potential impacts on food production, have been raised.

The GBA, launched under India's G20 presidency, has garnered support from 19 countries and 12 international organizations, including major biofuel producers and consumers like the US, Brazil, and India. The alliance's significance for India is multifold, ranging from learning best practices and accelerating progress in the biofuel sector to achieving ambitious targets like E20 (percentage of ethanol in the gasoline blend) by 2025-26.The GBA is expected to facilitate the transfer of technologies, mobilize international climate funds, and contribute to climate action by reducing reliance on fossil fuels. While the alliance presents opportunities for India, concerns about geopolitical contestation, funding limitations, and import restrictions on biofuels need to be acknowledged.

Overall, the formation of the GBA reinforces India's commitment to the global fight against climate change and positions the nation as a key player in advancing sustainable biofuel solutions. It not only holds the promise of environmental benefits but also offers economic opportunities, including increased employment, improved financial status for farmers, and the potential for India to become a major player in biofuel exports. As the GBA takes its place on the global stage, navigating challenges related to technology transfer, geopolitical dynamics, and sustainable financing will be crucial to realizing the alliance's goals and ensuring a greener, more sustainable future.

Way Forward

Ø Six Pointer Strategy for Tripling Global Renewable Energy Capacity

The commitment to triple global renewable energy capacity by 2030, as established in the G20 Summit of 2023, presents an ambitious yet imperative challenge for the international community in addressing climate change. To chart a successful way forward, several unique and targeted strategies are necessary.

·        Firstly, fostering global collaboration is paramount. The G20 countries should establish a Renewable Energy Cooperation Platform to facilitate the exchange of technological expertise, research findings, and best practices. By pooling resources and knowledge, nations can collectively overcome hurdles in scaling up renewable energy capacity.

·        Secondly, incentivizing private sector involvement is crucial. Governments must create a conducive policy environment that encourages private investment in renewable energy projects. This can be achieved through tax incentives, subsidies, and streamlined regulatory processes. Public-private partnerships can further accelerate the deployment of renewable technologies and attract substantial capital into the sector.

·        Thirdly, prioritizing research and development is essential. Increased funding for research institutions and innovation hubs will spur technological advancements, making renewable energy solutions more efficient and cost-effective. Emphasis should be placed on breakthroughs in energy storage, grid integration, and next-generation solar and wind technologies.

·        Fourthly, tailoring strategies for developing countries is imperative. Recognizing that energy access is a critical challenge in many regions, the G20 members should collaborate with organizations like the International Solar Alliance to implement decentralized renewable energy solutions in underserved areas. This involves investing in mini-grids, off-grid solutions, and capacity building to empower local communities.

·        Fifthly, robust financial mechanisms are needed. The G20 forum should establish a dedicated fund for renewable energy projects in developing countries, providing concessional loans and grants to kickstart initiatives that may face economic barriers initially. This financial support will catalyse sustainable development while ensuring a just transition for all.

·        Lastly, continuous monitoring and reassessment are vital. The member countries should institute a comprehensive review mechanism to evaluate the progress of each member nation towards the renewable energy target. Regular assessments will allow for adaptive strategies, enabling swift course corrections and fostering accountability among participating countries.

Ø Action Plan for Global Biofuel Alliance[6]

Looking towards the future, the Global Biofuels Alliance (GBA) can chart a transformative course by focusing on strategic initiatives that enhance the sustainability and viability of biofuels. One crucial aspect is the optimization and fortification of biomass supply chains. The GBA should actively collaborate with member nations to streamline and strengthen the production and supply of biomass, ensuring a reliable and sustainable source for biofuel production. This involves establishing efficient agricultural practices, exploring innovative crop options, and implementing robust supply chain management systems.

Another pivotal step in the way forward for the GBA is the prioritization of technology transfer for the production of second-generation ethanol from agricultural residue. By fostering international cooperation in the exchange of cutting-edge technologies, the GBA can accelerate the development of advanced biofuels. This technology transfer should encompass research and development breakthroughs, efficient conversion processes, and sustainable practices, ensuring that biofuel production evolves to be more resource-efficient and environmentally friendly.

Sustainable financial support is a cornerstone for the success of bioenergy projects. The GBA should actively advocate for and facilitate the establishment of financial mechanisms that support the entire bioenergy value chain, from research and development to commercial-scale production. By showcasing pilot-scale production facilities for Sustainable Aviation Fuel (SAF), the GBA can demonstrate the viability of biofuels in critical sectors, attracting investments and promoting widespread adoption.

Inspired by the success of the International Solar Alliance (ISA) in the renewable energy sector, the GBA, with India leading the way, can emerge as a trailblazer for biofuel advancements. Leveraging the collective strength of member nations, the GBA should work towards establishing global standards, certifications, and best practices for biofuel production. This harmonization can foster cross-border collaboration and trade in biofuels, creating a more interconnected and resilient bioenergy landscape.

Conclusion

Reflecting on the G20 Summit of 2023 in India, a notable watershed was witnessed in global climate action. The commitment to triple global renewable energy capacity by 2030 signalled a significant departure in the approach to climate change by G20 nations. This ambitious pledge, considered the most substantial climate-related outcome of the summit, embodies a collective determination to address the urgent challenges posed by climate change. The transformative potential of this commitment lies in its capacity to substantially reduce carbon emissions, fostering a cleaner and more sustainable energy landscape.

Concurrently, the establishment of the Global Biofuels Alliance (GBA), under India's leadership, adds another layer of significance to the summit's outcomes. The GBA, uniting governments, international organizations, and industry players, aims to advance sustainable biofuel solutions on a global scale. Biofuels, in various forms like solid, liquid, and gaseous, present renewable alternatives that reduce greenhouse gas emissions, enhance energy security, and offer increased income for farmers. However, this initiative is not without its challenges, encompassing concerns about resource competition and potential impacts on food production.

The transformative potential of these commitments goes beyond individual nations, signaling a collective global effort to diversify the energy mix and promote cleaner alternatives. In a world grappling with the pressing need for decisive climate action, the G20 Summit's emphasis on renewable energy and biofuel initiatives instills hope for a more sustainable and resilient future. The collaborative spirit and commitment showcased in these endeavors set the stage for a united global response to climate change, highlighting the urgency and shared responsibility in navigating the complex challenges that lie ahead. By aligning these transformative initiatives with ongoing efforts, the G20 nations collectively pave the way for a greener, more sustainable, and resilient global future.

End Notes

[1] Sinha, Amitabh. “G20 Summit: Promise to Triple Global Renewable Energy Capacity by 2030 a Significant Step, but with Challenges.” Indianexpress.com. The Indian Express, September 11, 2023. https://indianexpress.com/article/world/climate-change/g20-summit-triple-global-renewable-energy-capacity-2030-challenges-8934610/. 

[2] Ibid

[3] Mishra, Richa. “Are Biofuels a Viable Energy Source?” BusinessLine, September 29, 2023. https://www.thehindubusinessline.com/opinion/are-biofuels-a-viable-energy-source/article67362908.ece.

[4] This section has been based and referenced from the source ‘ Sinha, Amitabh. “G20 Summit: Promise to Triple Global Renewable Energy Capacity by 2030 a Significant Step, but with Challenges.” Indianexpress.com. The Indian Express, September 11, 2023. https://indianexpress.com/article/world/climate-change/g20-summit-triple-global-renewable-energy-capacity-2030-challenges-8934610/.’

[5] This entire section on Global Biofuel Alliance is based on the source, ‘Mishra, Richa. “Are Biofuels a Viable Energy Source?” BusinessLine, September 29, 2023. https://www.thehindubusinessline.com/opinion/are-biofuels-a-viable-energy-source/article67362908.ece.’

[6] This section is based on the source,’Drishti IAS. “Biofuels and Global Biofuels Alliance,” 2023. https://www.drishtiias.com/daily-updates/daily-news-editorials/biofuels-and-global-biofuels-alliance.’

Bibliography

•             Sinha, Amitabh. “G20 Summit: Promise to Triple Global Renewable Energy Capacity by 2030 a Significant Step, but with Challenges.” Indianexpress.com. The Indian Express, September 11, 2023. https://indianexpress.com/article/world/climate-change/g20-summit-triple-global-renewable-energy-capacity-2030-challenges-8934610/. 

•          Mishra, Richa. “Are Biofuels a Viable Energy Source?” BusinessLine, September 29, 2023. https://www.thehindubusinessline.com/opinion/are-biofuels-a-viable-energy-source/article67362908.ece.

•          ’Drishti IAS. “Biofuels and Global Biofuels Alliance,” 2023. https://www.drishtiias.com/daily-updates/daily-news-editorials/biofuels-and-global-biofuels-alliance.’

Pic Courstey- Pankaj Jha

(The views expressed are those of the author and do not represent views of CESCUBE.)