G20’s Energy Transition [UPSC Notes]

India has assumed the presidency of the international grouping, the G20, in 2023. Among other things, climate change and the transition to a greener economy and sustainable development are important points on the agenda for the grouping. In this context, it is important to understand the G20’s energy transition and how it can be led by an all-around consensus. This topic is important for the IAS exam IR and environment segments.

G-20 and Energy

• For a global economy to be sustainable, energy has been a key topic on the G20 agenda since 2009. 
• About 80% of the world’s greenhouse gas emissions and 75% of the world’s energy demand are accounted for by G20 signatory nations.
• The aim of net-zero carbon emissions was stated in the Energy Ministers Communiqué released during Italy’s 2021 presidency, and this objective was reaffirmed during Indonesia’s 2022 leadership as well. 
• Achieving India’s net zero goal by 2070 would depend heavily on an energy transition, which also holds the key to preventing the worst effects of climate change—possibly the greatest challenge humanity has ever faced.  

Challenges: 

• Geopolitical conflicts: Even though the world economy has been jolted by a pandemic and growing inflation, as well as the horrific battle in Ukraine and its aftermath of rising energy costs and diminishing energy security, energy remains one of the primary drivers of current geopolitical arrangements.
• Environmental Concerns: 90% of carbon dioxide (CO2) emissions and about 75% of global greenhouse gas (GHG) emissions are attributed to the energy industry.

Significance of G-20 Group for India’s Energy Interests

• India has a lot of potential to work with G-20 countries to implement renewable energy transition strategies. 
• As the G-20’s president, India can forge international alliances to hasten the advancement and application of sustainable energy technology while ensuring low-income nations’ access to electricity. 
• Cooperation in providing equal access to affordable energy and a consistent supply of fossil fuels is a potential area of cooperation during India’s G-20 presidency. 
• In order to achieve a cleaner and more sustainable energy future with policies that support equal access to clean technology, the G-20 Energy Transitions Working Group emphasizes the need for coordinated efforts from all member countries.

What steps can be implemented by India?

• India should prioritize its energy transition goals by encouraging green development, climate funding, and technical advancement within the auspices of the G-20. 
• India is increasingly acting as a role model for other nations by exemplifying how environmental protection and economic growth may go hand in hand.
• While working with G-20 nations to promote solar energy adoption and investment in solar projects, the International Solar Alliance (ISA) can support India in spreading solar energy around the globe. 
• India may use the ISA to gain financial backing for its anti-climate change measures, including raising awareness of renewable energy sources and cutting carbon emissions.

Conclusion: India’s G-20 leadership position offers a special chance to encourage member countries to adopt clean energy sources more quickly. India can close the gap between the Global South and the North and hasten the implementation of the 2030 Agenda for Sustainable Growth by allowing technological transfers, encouraging green growth, and supporting climate finance. All of the member nations would profit from this win-win arrangement.

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