The world’s most advanced nations met in India, where they resolved to triple the global renewable energy capacity by 2030. India’s President Modi hosted the G20 meeting, highlighting sustainability and the country’s desire to fight climate change.
India powers its economy using coal. But it aims to hit net zero to improve living conditions for its people.
India now relies on coal to fuel 55% of its energy mix, but it has a long-term blueprint to procure much more renewable energy. Specifically, it plans to secure 450 gigawatts of wind, solar, and hydro by 2030 and to hit net zero by 2070. It needs an estimated $160 billion annually to do this.
Asia will remain the world’s biggest consumer of coal, but Bloomberg New Energy Finance predicts it will peak there in 2027. After that, renewables will eat into its market share.
Shri Raj Kumar Singh, minister of Power and Renewable Energy in India, told reporters at an earlier conference that his country has no “philosophical opposition to the energy transition,” provided the financing to do so is forthcoming. He says that developing countries lack the money and knowledge to make this leap, pointing specifically to the cost of battery storage and the production of green hydrogen.
To that end, President Biden prodded the G20 to hit peak global emissions by 2025 — a far cry from achieving that goal. After that, the aim is to cut greenhouse gases by 43% by 2030 and 60% by 2035 using a 2019 baseline.
With that, the assembly agreed to phase down coal use wherever appropriate. That fuel may be the low-hanging fruit — as opposed to natural gas or oil — but it remains a staple of the global electricity markets.
According to the International Energy Agency, coal use jumped by 3.3% last year to 8.3 billion metric tons. That set a new record. The fuel comprises 36% of global electricity markets.
Last year, the globe added a record 300 gigawatts of renewables. The International Renewable Energy Agency said that green energy now makes up 40% of the total installed capacity worldwide. Despite that progress, the agency said the energy transition is off track: renewables must hit 1,000 gigawatts annually to keep 1.5 degrees Celsius alive.
The UN Secretary-General Antonio Guterres used more pointed language, saying the climate breakdown is “spinning out of control.” “The climate crisis is worsening dramatically – but the collective response is lacking in ambition, credibility, and urgency,” he told the assembly. “I have put forward a Climate Solidarity Pact – in which big emitters make extra efforts to cut emissions, and wealthier countries support emerging economies to achieve this.”
However, climate finance remains a critical obstacle to overcome. Since 2019, the most prosperous nations have said they would give $100 billion annually to the least developed countries, although that money has never materialized. Last year’s COP27 meeting in Egypt set up a loss-and-damage fund, but there is no indication of when it will get established.
The first-ever African climate summit concluded before the start of the G20 meeting. Kenya’s president — the meeting host — advocated for a global carbon tax. That may sound reasonable, but it faces overwhelming odds. The United States must participate, which is unlikely given the upcoming presidential race.
Direct contributions are another idea. Norway uses money collected from oil development and sends it to rainforest nations. Those countries got about $2.7 billion between 2011 and 2020 from bilateral and multilateral donors and private philanthropies, equating to $270 million annually. That’s a drop in the bucket.
At some point, though, the Global North will pay in some form. Climate negotiators will ask at least 192 nations to present their progress when they meet in Dubai in December. Warning: Most need to hit their so-called nationally determined contributions.
But the good news is that 17 countries are either net carbon removers or close to it— and thus, they could potentially sell carbon offsets to those that can’t meet their targets. Governments set emissions limits, and those that exceed them can sell credits to those unable to do so. As the ceiling lowers, CO2 levels fall.
Without a viable plan to make carbon finance accessible, the Global South will struggle to reduce emissions and expand its renewable energy programs. India is a case in point — a country moving up and trying to hit carbon neutrality. That’s why President Modi profiled sustainability at this year’s G20.
