India’s G20 presidency and the green transition

Contact Counsellor

Last Updated16/02/2023

In 2023, during India’s presidency, the geopolitics and governance of energy have become immensely challenging.
It is due to the complications from the shift from fossil fuels to renewable energy, concerns about energy security & the pressure on keeping financial commitments made related to tackling climate change.

20 million more people worldwide without electricity: The worst- affected are in sub-Saharan Africa, which is back to its lowest rate of electrification since 2013.
Situation in Europe: The number of people experiencing inadequate energy supply has risen to 80 million from 34 million in 2021.
Middle-income countries: They face fuel and electricity shortages and high levels of inflation.

Reduced availability of energy: It is hurting economies as industries close, and is impacting public health as safe fuels such as cooking gas become expensive.
Balance of payments crisis: The BoP crisis faced by countries is partly driven by high energy costs.
Energy poverty: It is impacting technology implementation, industry and sustainable development goals.

Resolving the conflicts between short-and long-term energy targets.
Addressing energy disruptions caused by the Covid-19 pandemic and the Ukraine-Russia conflict.
Using creative financing to accelerate development & adaptation of renewable technologies & new business models utilising these technologies.

Focus on providing financial support for those most in need as a cornerstone of climate action and energy transition as reinforced in the Paris Agreement and successive COPs.
Boosting private finance which means continued work is needed to align global financial flows with the Paris Agreement goals.
Creation of a Global Climate Finance Agency
- Aim: To better integrate and drive this global agenda, including at very practical levels.
- Mandate: To lower hedging costs to mitigate a key risk faced by developers of green projects and to insure major clean energy projects from potential losses.
Harnessing power of public procurement system: This can ensure funding and adaptation at scale & can help prevent the winner-takes-all effect that new technologies often create.