G20 Energy Transitions Investment Forum Pre-Event in collaboration with B20: 2nd Partners in Energy Transitions

The Glasgow Climate Pact reached at COP 26 has underlined the commitment by UNFCCC parties to achieve the 1.5-degree goal of the Paris Agreement, focusing on a 45% of emissions cuts needed for this decade, including calling for phase down of coal use and an uptake in financing for climate change adaptation.

According to IRENA’s World Energy Transitions Outlook (WETO), the pathway that is most likely to drive down energy emissions in the coming decade and put the world on the 1.5-degree track will be powered by renewable energy. However, to ensure a sustainable, climate safe and resilient future, significant investments need to flow into an energy system that prioritizes renewables, electrification, energy efficiency and associated infrastructures. The 1.5-degree scenario shows that cumulative investments of more than USD 24 trillion should be redirected from fossil fuels to energy transition technologies through 2050. In annual terms, over a two-fold rise in energy sector investments to USD 4.4 trillion per year until 2050 would be needed compared to USD 1.8 trillion invested in 2019 or nearly 5% of global estimated gross domestic product today.

During the 2021 G20 summit in Rome world leaders agreed that countries must take more meaningful and effective action to achieve the 1.5-degree goal by 2050 and pledged to stop financing coal power. The G20 has an important mandate to formulate comprehensive recovery strategies to effectively restore productivity and strong growth. At the same time, the G20 also could play a leadership role in laying a solid foundation for accelerating green growth, in line with the global leaders’ commitment pledged at COP26.

The meeting “Partners in Energy Transitions”, initiated by Task Force Energy, Sustainability and Climate Change B20 (TF ESC B20) and MoFA, was undertaken successfully on 1 April 2022, attended by 160 representatives from business entities, government, and non-government institutions. With a view to achieving a successful partnership, TF ESC B20 and MoFA together with IRENA held the second gathering of Partners in Energy Transitions (2nd Partners in Energy Transitions).

In this context, the 2nd Partners in Energy Transitions, in conjunction with IRENA-Indonesia G20 Energy Transition Investment Forum Pre-event, was presented as a key element in the Agency’s strategy to increase its impact on the ground and add significant value in enabling investments in renewable energy projects.

The 2nd Partners in Energy Transitions was intended to support IRENA Members and TF ESC B20 members with the aim to strengthen the ability of decision-makers to produce a strong enabling environment for renewable energy investments and help developers prepare bankable projects and access finance.

This side-event event was held in a hybrid format both in Jakarta, Indonesia and online on 19 July 2022.

The meeting participation was by invitation only.

For more information, please contact regions@irena.org.