G20 leaders ink pact to triple renewable energy capacity globally by 2030

G20 Summit 2023: In a major development for renewable energy sector, the G20 countries came to a consensus on September 9 to significantly increase global renewable energy capacity and reaffirmed their commitment to achieving worldwide net-zero emissions by 2050.

The announcement came during Day 1 of the two-day G20 Summit in New Delhi, where Prime Minister Narendra Modi unveiled the New Delhi Leaders' Declaration, a surprising move as it was initially anticipated to be released on the concluding day (September 10) of the Summit.

The declaration prominently features a section on the 'Green Development Pact,' outlining a multifaceted strategy for a sustainable future. This strategy emphasised upon the implementation of clean, sustainable, just, affordable, and inclusive energy transitions.

The key highlight of the declaration is the commitment by G20 member nations to triple global renewable energy capacity by 2030, building upon existing targets and policies. 

Additionally, the leaders expressed their intention to pursue similar ambitions for other zero and low-emission technologies, including technologies for emission reduction and removal, tailored to their respective national circumstances. The declaration also recognised the 'Voluntary Action Plan for Promoting Renewable Energy to Accelerate Universal Energy Access'.

Furthermore, the declaration acknowledged a voluntary action plan to double the rate of energy efficiency improvement by 2030. Negotiations leading up to the summit had hinted at the inclusion of topics like tripling renewable energy capacity, doubling energy efficiency, reducing unabated coal usage, and rationalising inefficient fossil fuel subsidies in the final G20 document.

In terms of financial commitments, the declaration stressed the need for $5.8-5.9 trillion in funding for developing countries to implement their Nationally Determined Contributions (NDCs) by 2030. Additionally, it reiterated the necessity of mobilising $4 trillion annually for clean energy technologies by 2030 to achieve the goal of net-zero emissions by 2050.

Notably, the communique expanded on the previously agreed-upon $100 billion commitment by developed nations to support developing countries, broadening the scope of climate financing to include private climate finance.

It also urged the development of financing mechanisms such as blended finance, de-risking instruments, and green bonds to fund projects in developing nations. Recognising the importance of supporting developing countries in transitioning to low-carbon and low-emission economies, the G20 countries pledged to facilitate low-cost financing for these nations.

Another crucial aspect of the declaration was the commitment to phase out and rationalise inefficient fossil fuel subsidies that promote wasteful consumption. The G20 nations also reiterated their commitment to accelerating efforts toward the phase-down of unabated coal power, aligning these efforts with national circumstances and emphasising the need for just transitions and support.

However, the New Delhi Leaders' Declaration represents a significant step forward in global efforts to combat climate change and transition to sustainable energy sources.

The G20, consisting of 19 member nations and the European Union, collectively represents a substantial portion of the world's population, trade, economy, and carbon emissions. The declaration also called upon member countries that have not updated their NDCs to do so by the end of 2023, aligning their targets with the goals of the Paris Agreement.

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