The B20 and the global business community have been and continue to play a vital role in shaping actions and producing instruments to address today’s pressing challenges.
India’s G20 presidency comes at a time when most countries are in the midst of post-pandemic recoveries, rising inflation and global energy security issues. Keeping in mind the fact that G20 countries collectively account for over 75% of energy consumption globally, issues on energy, climate change and resource efficiency demand paramount attention from the G20 nations and businesses.
Globally, major economies are speeding up efforts to accelerate the adoption of clean energy technologies with the converging goals of achieving net zero transitions, enhancing energy security, and participating in the new energy economy.
Energy transition across G20 nations is driven by multiple goals, including access to innovative and diversified energy solutions (hydrogen & allied opportunities), reduction in dependence on carbon (fossil fuels), improvement in energy storage and access to finance. In addition to this, carbon markets can possibly act as doorkeepers to the much-needed monitoring and evaluation of how the efforts are paying off not just to society but also to businesses and investors.
As industry and businesses, we have a key role to play in the global movement towards net-zero emissions and a more resource efficient and sustainable future. Reducing GHG emissions from industry presents a set of unique challenges as the diversity of sectors, associated activities and infrastructure feature a large set of processes. While there are relatively straightforward low-carbon substitutes and solutions available, in several cases they may not exist yet or might be at economically unviable costs. Industry can be enabled to decarbonize only through a diverse set of approaches tailored to the specific needs of each subsector. The overall global industry transition to low carbon pathways can be calibrated by businesses contingent on receiving the necessary and confirmed support from respective G20 governments and policymakers.
Role of B20 taskforce on Energy, Climate Change and Resource Efficiency is critical in focusing on the right set of priorities to achieve rapid decarbonization of the global economy alongside access to modern energy for all. The key themes the taskforce has identified as vital and of the highest priority across all nations – especially including those of the Global South and other developing nations, are:
Energy Transitions focusing on enhancing global cooperation to accelerate net-zero transitions.
Climate Finance focusing on improving the quantum and flows of climate finance.
Just and Resilient Transitions focusing on ensuring the transition to a new energy paradigm is just, equitable and builds resilience.
Resource Efficiency and Circular Economy focusing on creating enabling regulatory frameworks, policies, business, and financing models for promoting circular economy and resource efficiency in businesses.
The taskforce, through its recommendations, aims to help coordinate and align the efforts of G20 member countries and businesses, foster international co-operation and ensure just transition for all nations.
This article was contributed by Mr T.V. Narendran, Co-Chair, B20 India Taskforce on Energy, Climate Change and Resource Efficiency; Immediate Past President, CII and CEO & Managing Director, Tata Steel.
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