G20 meet: Ministers disagree on language for fossil fuels

As the G20 energy ministers negotiate on a joint statement in Goa on the way forward for energy transition to cleaner sources, observers said there have been disagreements on the language related to phasing down of fossil fuels, scaled up climate finance and trebling of renewable energy deployment by 2030 in the statement to be released on Saturday, people aware of the matter said.

A leaked draft G20 communique of the Energy Transitions Working Group dated July 6 was shared among observers on Friday. The draft note states that the current rate of renewable energy deployment, globally, may be insufficient to implement the goals of the Paris Agreement and achieve universal energy access.

According to International Renewable Energy Agency (IRENA), the annual global deployment of renewable energy needs to triple by 2030. “To that end, and in line with national circumstances, we aim to contribute towards scaling up renewable energy at an accelerated pace, remove barriers hindering its deployment, and bring down costs by strengthening renewable energy capacity,” the draft said.

On fossil fuels, the language is careful. “While we note that fossil fuels continue to be the part of the energy mix for many countries, we also recognise the importance of accelerating efforts towards the phase down of unabated fossil fuels in line with national circumstances. In this regard, we reaffirm our commitment made in 2009 in Pittsburg to phase out and rationalize, over the medium-term, inefficient fossil fuel subsidies that encourage wasteful consumption and commit to achieve this objective, while providing targeted support to the poorest and most vulnerable.”

The draft also speaks of doubling the rate of energy efficiency and a “G20 Action Plan on Doubling the Rate of Energy Efficiency Improvement by 2030” prepared by the Indian Presidency.

The draft also speaks of moderating consumption in line with India’s Lifestyle For Environment movement. “We also recognize that individual actions and sustainable behavioural choices can play a major role in energy conservation. We intend to build upon the efforts by the past Presidencies to emphasize that energy efficiency and affordability gains go hand in hand with efforts relating to responsible consumption that would incentivize and empower sustainable consumer choices. We acknowledge that greater awareness and capacity building for all categories of consumers and coordinated measures are needed to incentivise sustainable consumption patterns. In this endeavour, we welcome the Presidency’s initiative on Lifestyles for sustainable development.”

“Finance and fossil fuels are very sticky issues with certain rich nations resisting talks,” said an observer on condition of anonymity.

Some officials said a communique may not come out on Saturday because of contentions among G20 nations on the Russia-Ukraine security crisis but a summary of the statement is likely to be released.

The COP28 UAE Presidency and the International Energy Agency (IEA) convened the first high-level dialogue through to COP28 around building a 1.5C degree-aligned energy transition. The initiative is being conducted in conjunction with the International Renewable Energy Agency (IRENA) and will be supported by the United Nations Framework Convention on Climate Change (UNFCCC).

The dialogues are intended to build consensus on 1.5C degree-compatible energy transition pathways and the enabling conditions needed to achieve them, as well as momentum around the target energy outcomes for COP28, the Presidency said in a statement from Goa on Friday.

COP28 President-Designate Sultan Al Jaber who is attending the ministerial said “COP28 represents a milestone opportunity for the world to come together, unite around decisive action, and drive progress towards keeping the goals of then Paris Agreement alive and 1.5C within reach. This will require a collective effort and so we need everyone at the table – and that includes the energy industry.