At the G20 summit in New Delhi, member nations pledged to address climate change and other global challenges with climate financing.
"Keeping in mind the challenge of climate change, energy transition is a significant need of the 21st-century world. Trillions of dollars are required for an inclusive energy transition. Naturally, developed countries play a very crucial role in this," said Indian Prime Minister Narendra Modi.
The New Delhi Leaders' Declaration urged countries that have not aligned their Nationally Determined Contributions (NDCs) with the Paris Agreement to review and enhance their 2030 targets.
NDCs are specific climate action plans and goals that countries must set as part of their commitment to the Paris Agreement's temperature goal. The target is to limit global temperature rise to below 2°C above pre-industrial levels, with a stronger push to stay within 1.5°C.
Previously, during the 27th Conference of the Parties to the UN Framework Convention on Climate Change (COP27) in 2022, UN Secretary-General António Guterres cautioned global leaders about humanity speeding toward a climate catastrophe.
The G20 nations collectively contribute to roughly 80 percent of worldwide emissions. These countries recognize that global ambitions and actions to combat climate change fall short of achieving the temperature target. It requires a 43 percent cut in global greenhouse gas emissions by 2030 from the 2019 level.
Climate financing
The G20 members discussed the commitment of 24 developed countries to realizing the 2010 Green Climate Fund, which aims to mobilize $100 billion annually by 2020 through 2025.
It was specifically designed to support developing nations pursuing significant mitigation and transparent climate efforts. Developed country contributors anticipate that this goal will be achieved for the first time in 2023.
The G20 nations will also implement the decision made at COP27 regarding funding arrangements to address loss and damage in developing countries affected by climate change. This commitment includes the establishment of a fund to support these efforts.
The COP was demanded to establish an ambitious, transparent and measurable New Collective Quantified Goal (NCQG) for climate finance in 2024. This goal should start from a minimum threshold of $100 billion annually while considering the requirements and priorities of developing nations to achieve the Paris Agreement and the UNFCCC objective.
Renewable energy, carbon neutrality plan
G20 nations pledge to support a threefold increase in global renewable energy capacity by 2030, using existing targets and policies. They aim to develop zero and low-emission technologies, including those related to emissions reduction and removal, while considering their national situations.
They note the importance of different approaches. It includes the circular carbon economy, socio-economic considerations, technological advancements, market development and the promotion of efficient solutions in reaching this goal.
Acknowledging the imperative for greater worldwide investments to align with the climate objectives of the Paris Agreement, the G20 emphasized the necessity of up to $5.9 trillion in the period leading up to 2030 for developing nations.
This funding is crucial to implement their NDCs. Additionally, there is a need for $4 trillion annually by 2030 to support clean energy technologies. The fund also supports the goal of net-zero emissions by 2050.
Furthermore, the leaders aim to apply the "G20 High-Level Voluntary Principles on Hydrogen." The measures will create a sustainable and fair global hydrogen ecosystem.
Sustainable biofuels play a vital role in achieving net-zero emissions by 2050. The G20 Presidency inaugurated the Global Biofuels Alliance, consisting of the U.S., India, Brazil, Italy, Canada, Argentina and South Africa. This Alliance aims to unite nations to expand and establish fresh markets for sustainable biofuels.