G20 vows on 3-fold green power capacity by 2030, net zero by mid-century

The declaration or the formal communique includes a chapter on the 'Green Development Pact' for a sustainable future through a multi-pronged approach such as implementing clean, sustainable, just, affordable and inclusive energy transitions.

It stated that the member countries "will pursue and encourage efforts to triple renewable energy capacity globally through existing targets and policies, as well as demonstrate similar ambition with respect to other zero and low-emission technologies, including abatement and removal technologies, in line with national circumstances by 2030". The declaration also took note of the ‘Voluntary Action Plan for Promoting Renewable Energy to Accelerate Universal Energy Access’.

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It also acknowledged a voluntary action plan to double the rate of energy efficiency improvement by 2030. Moneycontrol reported on September 8 that topics such as tripling renewable energy capacity, doubling energy efficiency, phase-down of unabated coal and rationalising inefficient fossil fuel subsidies were likely to be included in the final 2023 G20 document amid fierce negotiations.

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Climate finance

The declaration cited the need for $5.8-5.9 trillion in the pre-2030 period for developing countries for their needs to implement their nationally determined contribution (NDCs). Besides, it reiterated the requirement of $4 trillion per year for clean energy technologies by 2030 to reach net zero emissions by 2050.

The communique for the first time went beyond the $100 billion commitment made by the developed countries to the developing nations and widened the scope of climate financing to include private climate finance. The countries agreed to encourage the development of financing mechanisms such as blended finance, de-risking instruments and green bonds for projects in developing countries.

Developed country contributors expect this goal to be met for the first time in 2023, the document stated.

For long there had been a debate between the developed and developing countries on what could count towards the joint $100 billion contribution. The G20 communique for 2023, widened the scope of climate finance through this move.

The G20 countries agreed that developing countries need to be supported in their transitions to low carbon/emissions. It stated that the G20 will work toward facilitating low-cost financing for developing countries.

Phase down unabated coal & phase out inefficient fossil fuel subsidies

Over the medium term, the member countries also agreed to phase out and rationalise inefficient fossil fuel subsidies that encourage wasteful consumption and commit to achieving this objective, while providing targeted support for the poorest and the most vulnerable.

Continuing the language from the Bali Leaders' Declaration, 2022 (the last G20 Summit held in Indonesia), the G20 countries agreed to accelerate efforts toward the phase-down of unabated coal power.

The countries recognised the importance of accelerating the development, deployment and dissemination of technologies and adoption of policies to transition towards low-emission energy systems.

They agreed to do so "by rapidly scaling up the deployment of clean power generation, including renewable energy, as well as energy efficiency measures, including accelerating efforts towards phase-down of unabated coal power, in line with national circumstances and recognizing the need for support towards just transitions".

"We reiterate our commitment to achieve global net zero GHG emissions/carbon neutrality by or around mid-century, while taking into account the latest scientific developments and in line with different national circumstances, taking into account different approaches including the circular carbon economy, socioeconomic, technological, and market development, and promoting the most efficient solutions," read the New Delhi Leaders' Declaration.

The G20 comprises 19 nations and the European Union. The 19 countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States. Spain is invited as a permanent guest.

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The G20 comprises countries that collectively account for 65 percent of the global population, 79 percent of world trade, a significant 84 percent of the world's economy, and 79 percent of worldwide carbon emissions.

The declaration also called upon member countries, which have not updated their NDCs to do so. "We urge all countries that have not yet aligned their NDCs with the temperature goal of the Paris Agreement, to revisit and strengthen the 2030 targets in their NDCs, as necessary, by the end of 2023, taking into account different national circumstances, and we welcome those who have already done so," it stated.

India on its part has updated its NDC targets under which it has committed to reducing the emission intensity of its GDP by 45 percent by 2030, from the 2005 level and achieving about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.