G20: India looks to forge alliance on fuels of future & climate finance

In the upcoming G20 ministerial meeting on energy transition, India is looking to push its agenda for forging an alliance on ‘fuels of the future’ and self-sustainable climate financing among the group, senior officials said. Under its presidency, energy transition is one of the core discussion points for India and is expected to garner financing agreements. 

The meeting, which is set to take place in Goa this week, would be preceded by the 4th Energy Transition Working Group meeting. The ministerial is expected to receive participation from energy and climate departments of the G20 member nations, along with the Indian counterparts. Union minister for power and new and renewable energy R K Singh will hold bilateral meetings with the European Union (EU) and seven countries -- Japan, Singapore, South Korea, USA, Germany, France and Australia on the sidelines of the working group meeting, said a government statement.

Among the ‘fuels of the future’ are biofuels and hydrogen. India has already announced the creation of a Global Biofuel Alliance (GBA), of which the US would be the founding member. “Most G20 nations have in-principle approved the Alliance, and we are hopeful of strong commitments,” said an official involved in the planning. Brazil -- one of the key producers of biofuels -- is also working with the two nations in building the contours of the GBA, with other interested nations.

Hydrogen, another key fuel, is slowly gaining importance in leading nations. India, which launched a Green Hydrogen Mission earlier this year, is seeking to draft clear technical definitions of hydrogen, according to the source.

“Once defined, it would also help us (G20 nations with plans of hydrogen production and export) draft the export policies, necessary production and export regulations. It would also give clarity on the market of the fuel,” said a power ministry official.

Under the Green Hydrogen Mission, India is aiming for a production of 5 million tonnes (MT) of green hydrogen annually. Green hydrogen, as the name suggests, is produced using green energy. Last month, the ministry of new and renewable energy announced the first phase of incentive-bound projects under the mission. This would entail the setting up of a 1.5-gigawatt (GW) electrolyser manufacturing facility which would have 0.3 GW of indigenous capacity. It also announced a tender to invite bids for the production of 4 lakh tonnes of green hydrogen.

As India has continued to push for coal usage along with development of green energy, senior officials requesting anonymity said the country would counter any proposal by any developed nation which involves having an expiry date of coal. The  Just Energy Transition Partnership (JETP) proposed by G7 has mandated phasing out coal for financing the energy transition efforts of the developing nations. South Africa and Indonesia have signed JETP with the US, UK, EU, Canada, and Japan.

India has till now stonewalled any similar JETP deal. “Climate financing cannot entail shutting down a sector which is the backbone of the sector. India has taken aggressive steps in green energy and energy transition. We would similarly work on the transition of our fossil fuel sectors through coal gasification, blending of green fuels, etc.,” said an official.

With the focus on energy transition, India is also looking to build partnerships on ‘green tech’ and climate financing. Officials in the thick of G20 deliberations said low-cost financing to fill the tech gaps in the green energy sector is a priority area of the discussion Group. “The idea is to build a self-reliant climate financing pool which can accommodate the demands and needs of the Global South. Universal energy access through grid interconnections, energy storage, decentralised solar and mini grids, energy efficiency should be the key focus area,” said an official.

Priority areas for the Energy Transitions Working Group

(i) Energy Transitions through addressing technology gaps

(ii) Low-cost financing for energy transitions

(iii) Energy security and diversified supply chains

(iv) Energy efficiency, industrial low-carbon transitions, and responsible consumption

(v) Fuels for Future

(vi) Universal access to clean energy and just, affordable, and inclusive energy transition pathways.