JAKARTA, Indonesia, Feb. 16, 2022 /PRNewswire/ — The Energy, Sustainability & Climate Task Force has prepared three recommendations for a green energy transition which will be presented at the G20 Summit in Bali in November 2022. The three recommendations were agreed upon at the Inception Meeting Business 20 (B20) held virtually at the end of January 2022.
Chair of Energy, Sustainability, and Climate Task Force, Nicke Widyawati emphasized the importance of green energy transition, as stated by President Joko Widodo.
According to Nicke, the energy transition is a challenge, but it should also be seen as an opportunity to create a future and sustainable economic growth, by implementing strong scenarios and roadmaps, especially for the financial aspect.
“Energy, Sustainability, and Climate B20 Task Force have the same priorities as the G20 Indonesia, where we must be a strong green recovery catalyst and go together with the principles of energy security, equity, and environmental sustainability,” said Nicke.
Nicke said that the Energy, Sustainability, and Climate Task Force will formulate policy recommendations for a sustainable energy transition focusing on three priority issues.
First, accelerating the transition to sustainable energy use; to ensure global warming is limited to a maximum of 1.5 degrees Celsius. The main topic identified for policy development is the development of alternative fuel industries around hydrogen and biofuels. Second, ensuring a fair and affordable transition; global cooperation on impact mitigation, and support for adapting to change. Third, global cooperation in increasing energy security; for households and MSMEs to end extreme poverty and accelerate the energy transition to sustainable energy use.
“The three priority issues will form the basis to formulate Policy Recommendations from the Energy, Sustainability and Climate Task force by considering other critical issues such as carbon pricing, global cooperation, livelihoods, and institutional development for financing, and technology adoption,” added Nicke.
Nicke also said that energy is a binding constraint for sustainable economic growth and is very much needed for economic development to recover from the impact of the pandemic. According to her, urgent and focused action is currently needed to address various global trends, including the lagging rate of the energy transition, climate change due to anthropogenic greenhouse gas emissions that have become a critical issue, and economic growth that utilizes fossil fuel energy consumption, which contributes for the majority of GHG emissions.
Nicke also emphasized that the transition needs to be accelerated globally while still increasing energy security and equity to sustain economic growth and reduce extreme poverty. Moreover, the financing gap must be bridged, the investment must be shifted to energy transition infrastructure, and can be paid by carbon pricing.
It is also important to ensure equity by increasing access and affordability of clean and modern energy, which is not only essential for a successful transition but also delivers environmental, gender, and economic benefits.
“Renewable energy-based power plant, electrification, and energy efficiency are the main pillars of the energy transition, technology investment, and the energy transition sector to accelerate. However, developing countries lack the framework, well-established governance, markets, advanced financial services, a trained workforce, and access to advanced technology. All of them are owned by developed countries and are needed for these changes,” added Nicke.
At the Inception Meeting B20, Deputy Chair Agung Wicaksono also said that to seek input from business people, the Task Force also surveyed 13 potential issues. Namely institutional development, global cooperation, alternative energy sources, differential rates per sector, preventing new carbon lockouts, carbon pricing, financial impact mitigation, mitigating loss of livelihoods (livelihoods), standardized ESG frameworks, ensuring orderly transitions, increasing access, affordability, and adoption of end-user technologies.
According to him, the survey results became the basis for the Task Force to formulate recommendations. He also acknowledged that the transition would require structured and committed global cooperation in improving governance capacity, market development, channeling finance and technology, and upgrading workforce skills.
“The spirit, hard work, and commitment of this meeting will continue, which will bring global change for the better after the COVID-19 pandemic so that we can Recover Together, Recover Stronger,” said Agung.