Addressing Energy Poverty and Accelerating Clean Energy Transition: The Role of the G7

The Urgency of Addressing Energy Poverty and Accelerating Clean Energy Transition

With the deadline to achieve the Sustainable Development Goals by 2030 fast approaching, urgent action is required. The Group of Seven (G7), representing the world’s largest developed economies, plays a crucial role in leading the international community towards ending energy poverty and expediting a clean energy transition in alignment with Sustainable Development Goal 7.

The G7 Leaders’ Summit, scheduled in Fasano, Italy, marks a pivotal moment in striving for this collective objective. The focus will be on the G7 leaders and their efforts to drive a just and inclusive energy transition. Building on commitments from the previous summit in Hiroshima, where G7 leaders pledged to cooperate for a transition to clean energy economies, expectations are high for concrete steps to accelerate emission reduction and support the development of emerging and developing economies.

Challenges in Meeting Renewable Energy Targets

The G7’s commitment to significantly increase global renewable energy capacity, as demonstrated by the pledge to triple renewable capacity at COP28, faces scrutiny due to indications that current targets may fall short. Recent studies suggest that the collective efforts of the G7 would only double renewables, highlighting the need for more ambitious actions.

During the G7 Ministers meeting in Turin, a commitment was made to phase out unabated coal power generation within the first half of the 2030s. However, this goal, while commendable, may not be ambitious enough, especially in the context of the rising viability of renewable energy sources. The message sent to non-G7 nations, particularly emerging and developing economies, must emphasize the urgency of transitioning to cleaner energy sources.

Enhancing Global Clean Energy Financing

The G7’s pledge to ensure an international financial system that aligns with the goals of the Paris Agreement is essential. Despite this commitment, global investments in clean energy remain predominantly focused on developed countries, with limited funding directed towards emerging and developing economies. To address this disparity, greater efforts are needed to mobilize diverse sources of financing and support clean energy projects in regions with limited access to funding.

Promoting Just and Inclusive Energy Transitions

To increase ambition and achieve the 2030 and mid-century goals, support for initiatives like the Just Energy Transition Partnerships (JETPs) needs to be expanded. These partnerships, already endorsed by G7 members in countries such as South Africa and Indonesia, should be scaled up to cover more regions. Understanding the unique contexts of different countries and deploying finance effectively are key factors in enabling energy access and infrastructure development.

The G7 can address the challenge of achieving universal access to clean cooking by investing in clean cooking technologies and fuels. By directing resources towards this goal, the G7 could positively impact the lives of over 2 billion people, making significant progress towards meeting SDG7 targets.

Empowering Economic Development through Renewable Energy

Encouraging countries to move towards higher-value activities like mineral processing can enhance economic development and promote renewable energy manufacturing. By scaling up renewable energy capabilities, countries can create jobs, ensure energy security, and improve access to clean energy technologies. This approach aligns with multiple global goals and can facilitate cost-competitive rates for renewable energy technologies.

Addressing Financial Challenges and Multilateral Support

Private lending to low-income countries has decreased, emphasizing the role of multilateral development banks like the World Bank in providing essential financing. The G7 should support efforts to replenish funds like the International Development Association to assist the world’s poorest countries. By complementing existing initiatives related to energy access, transport, education, and health, the G7 can contribute significantly to sustainable development and poverty reduction.

Call to Action for the G7 Leaders

The G7 leaders have a responsibility to translate their commitments into tangible actions that drive global progress. By setting an example and increasing ambition, the G7 can inspire collective action worldwide. Failing to do so risks impeding energy security, economic growth, and the achievement of global goals by 2030.

Damilola Ogunbiyi is the CEO and Special Representative of the UN Secretary-General (UN SRSG) for Sustainable Energy for All and Co-Chair of UN-Energy.

At Euronews, we value diverse perspectives. Contact us at view@euronews.com to contribute to the dialogue.