G20 nations meeting in New Delhi, India Sept. 9 agreed to support the tripling of renewables globally and acknowledged a $4 trillion/year need to accelerate investment in the energy transition.
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At the same time India announced a new renewables funding initiative with the US, and launched a global biofuels alliance with the US and Brazil as founding members.
The G20 countries, representing over 75% of global trade, released a New Delhi Leaders' Declaration that is likely to serve as a working document for the upcoming COP28 UN Climate Conference in Dubai Nov. 30 to Dec. 12.
"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," the declaration said.
The nations said they had reached complete agreement to "pursue and encourage efforts to triple renewable energy capacity globally through existing targets and policies", and demonstrate similar ambition on carbon abatement and removal technologies, "in line with national circumstances," by 2030.
Fighting shy of wording on fossil fuel phase outs, leaders said timeframes for peak climate emissions "may be shaped by sustainable development, poverty eradication needs, equity, and in line with different national circumstances."
In this context the G20 noted "the need of $5.8-$5.9 trillion in the pre-2030 period required for developing countries" to implement their nationally determined contributions (NDCs), "as well as the need for $4 trillion/year for clean energy technologies by 2030 to reach net zero emissions by 2050."
Leaders also agreed to promote production of hydrogen using renewables and low-emission technologies, and support global markets by working towards harmonized standards and certification schemes.
G20 energy ministers meeting in Goa in July had previously agreed five voluntary principles on low carbon and renewable hydrogen, designed to promote trade in clean hydrogen and derivatives like ammonia, accelerate technology innovation, mobilize finance and support information sharing.
A climate analyst said the 83-point document captured some of the actions needed to restrict global warming to 1.5 degrees Celsius.
"A time commitment on both the renewable energy target and allocation of finance to developing countries could have strengthened the commitment," Vibhuti Garg, Director, South Asia at Institute of Energy Economics and Financial Analysis, told S&P Global Commodity Insights Sept. 9.
Looking to COP28
The leaders said they would work towards a successful conclusion of a first global emissions stocktake at COP28, "that drives enhanced climate action across mitigation, adaptation, and means of implementation and support."
The UN's technical report on the stocktake Sept. 8 said there is a "rapidly narrowing window to raise ambition and implement existing commitments in order to limit warming to 1.5 °C above pre-industrial levels."
The G20 declaration also noted the need to work on carbon markets without detailing actions or timelines.
"We reiterate the importance of a policy mix consisting of fiscal, market and regulatory mechanisms, including, as appropriate, the use of carbon pricing and non-pricing mechanisms and incentives toward carbon neutrality and net zero," the declaration said.
European Commission President Ursula von der Leyen July 6 called for international leaders to cooperate on formulating a plan for a global carbon price at COP28.
With regard to finance, leaders said they expected to meet for the first time this year the goal of mobilizing $100 billion/yr of climate finance for developing countries.
They would also work to implement a decision at COP27 on funding arrangements for loss and damage in developing countries, they said.
"We will support the Transitional Committee established in this regard, and look forward to its recommendations on operationalization of the new funding arrangements including a fund at COP28," they said.
On the sidelines of the G20 meeting, meanwhile, India and US announced the creation of investment platforms to lower the cost of capital and accelerate the deployment of greenfield renewable energy, battery storage and emerging green technology projects in India.
Towards this end, India's National Investment and Infrastructure Fund and the US Development Finance Corporation exchanged letters of intent to each provide up to $500 million to anchor a renewable infrastructure investment fund.
India also launched Sept. 9 the Global Biofuels Alliance, with 19 countries and 12 international organizations participating, including the US, Brazil and Canada, the Ministry of Petroleum & Natural Gas said.
The World Bank, the Asian Development Bank and the World Economic Forum had also agreed to join the alliance, the Ministry said.
Platts, a part of S&P Global Commodity Insights assessed Qatar hydrogen produced via alkaline electrolysis at $1.79/kg Sept. 8, down less than 1% month-on-month.
It assessed Japan hydrogen produced via PEM electrolysis at $4.44/kg Sept. 8, down 5.53% from a month ago.