The recently concluded G20 Leaders’ Summit in Delhi called for a dedicated fund for the energy transition efforts of developing countries, phasing down unabated coal power and rationalizing inefficient fossil fuel subsidies.

The declaration reaffirmed the commitment of G20 nations to take significant action in increasing sustainable finance. It stressed the vital role of financial support for green and sustainable projects. However, the declaration did not provide a specific roadmap for achieving the necessary $4 trillion annually for a green energy transition by 2030 to reach net zero by 2050.

It called on parties to set an ambitious, transparent, and trackable New Collective Quantified Goal (NCQG) of climate finance in 2024, from a floor of $100 billion a year, taking into account the needs and priorities of developing countries in fulfilling the objective of the UNFCCC and implementation of the Paris Agreement.

The declaration recalled and reaffirmed the commitment made in 2010 by developed countries to mobilize jointly $100 billion in climate finance per year by 2020 and annually through 2025. Developed country contributors expect to meet this goal for the first time in 2023.

The declaration also acknowledged the substantial financial needs of developing countries, estimated at $5.8-$5.9 trillion before 2030, especially to support their emission reduction targets.

G20 leaders collectively agreed to an ambitious goal of tripling global renewable energy capacity by 2030.

They urged developed countries to fulfill their promise to at least double their collective provision of adaptation finance from 2019 levels by 2025. This aligns with the goals of the UNFCCC and the Paris Agreement.

The last Intergovernmental Panel on Climate Change report highlighted that the promised mobilization of $100 billion under the Paris Climate Accord had not materialized for the developing countries.

At the G20 Summit, a notable commitment came from Britain, which pledged $2 billion to the Green Climate Fund (GCF) to help developing countries cope with the impacts of climate change. Established under United Nations climate negotiations, the GCF is the world’s largest fund-channeling resource to help economically disadvantaged nations reduce carbon emissions, promote cleaner energy sources, and adapt to a warming world.

During the Summit, India played a central role in advocating climate change initiatives. India’s G20 declaration placed significant emphasis on climate change and clean energy. This included the launch of the Global Biofuel Alliance—a coalition aimed at advancing the world’s transition to net-zero energy systems, promoting the circular economy, enhancing energy security, and tripling global sustainable biofuel production by 2030.

According to the International Renewable Energy Agency, global investments in energy transition technologies achieved a historic milestone by reaching a record high of $1.3 trillion in 2022, a 19% increase over 2021 and a 50% jump from the pre-pandemic levels of 2019.