G20 members agree to work on low-cost financing for energy transition
The members also agreed on a voluntary action plan for lowering the cost of finance for energy transition, sources close to the development told ET. A report, under India's presidency, on low-cost financing for energy transition which estimates global annual investment of over $ 4 trillion on such developments, was noted by the group. The unanimous agreements were a result of the major deliberations on the first day of the group’s two-day meeting beginning July 19.
The deliberations will continue Thursday to finalize a joint communique. There are 27 paragraphs in the draft communique, including green hydrogen and biofuels, that are being deliberated upon. The nations aim to work towards facilitating access to low-cost finance for new and emerging clean energy technologies for supporting energy transition.
The need for international finance institutions and multilateral development banks to develop new mechanisms for access to low-cost financing and to mobilize private finance for faster energy transition was also agreed upon. Cooperation in promoting the use of sustainable biofuels through collaboration between producers, consumers and interested countries was also accepted. Members agreed to encourage the development of standards in the sector, facilitating sustainable global biofuels trade.
The members consented on a voluntary action plan that aims at doubling the rate of energy efficiency improvement by 2030. The focus will be on evolving an effective roadmap for achieving the Sustainable Development Goal 7.3, which aims for doubling the global rate of improvement in energy efficiency within this decade. Sustainable Development Goals, also known as the Global Goals, were adopted by the United Nations in 2015 to end
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