Snapshot: G20's energy-related announcements

The availability of financing for decarbonizing the global energy matrix, especially in developing nations, was at the center of discussions during the 19th G20 meeting, which took place in Rio de Janeiro on November 19.  

“We defined key principles on trade and sustainable development and adopted a commitment to triple global renewable energy capacity by 2030,” Brazilian President Luiz Inácio Lula da Silva said at the closing session of the G20.  

The presidency of the group of the world’s 20 largest economies was officially handed over to South Africa.  

In the days preceding the G20 meeting and during the event, a series of energy-related announcements were made by Brazilian authorities and companies.  

Brazilian development bank BNDES and Latin American development bank CAF signed the first contract between the two institutions to open a credit line from CAF to BNDES for 2.7bn reais (US$470mn). 

The funds will be earmarked for powershoring to support new or refurbished industrial plants with high energy consumption, encouraging the production of green manufactured goods, such as steel, cellulose, cement and chemicals, with a focus on reducing carbon emissions and making environmental improvements.  

In addition, projects to produce green hydrogen (H2V), a clean and sustainable energy source, will be supported. It is also planned to improve the infrastructure needed to attract new sustainable industrial plants, including investments in transmission lines, gas pipelines, railroads and highways. 

Another area of focus is the green portfolio, aimed at projects that promote the green and social economy, covering sectors such as energy efficiency, renewable energies, forests, sustainable agriculture, infrastructure, sanitation, education and urban development. This initiative will particularly benefit small and medium-sized companies, financial institutions and sub-national entities, broadening the scope of the positive impacts on society. 

BNDES signed an MOU with the Asian Infrastructure Investment Bank (AIIB) to make 16.7bn reais available from the AIIB to BNDES for investments in Brazil. 

The objectives include the promotion of economic integration between Brazil and Asia in the sectors of transport infrastructure, energy and digital connectivity, water and sanitation. 

Petrobras and four other large national public companies – Banco do Brasil, Caixa Econômica, BNDES and Itaipú Binacional – handed the minister of management and innovation in public services, Esther Dweck, a letter with proposals for the heads of state that make up the G20. In the document, the companies present 32 contributions related to the energy transition, the reform of global governance and the fight against poverty and hunger, among other topics. 

The letter was included in the G20 social declaration, which was delivered to President Lula at the end of the forum, which runs parallel to the G20.  

The aim of the five leading companies in strategic sectors in Brazil is to contribute to the effective fulfillment of the global sustainable development agenda. The letter can be accessed in full here, in Portuguese. 

Brazil and China 

The mines and energy ministry (MME) took part in the launch of the Alliance for Innovation and Technology Sharing in the Electricity Sector (EISA). An MOU was signed by the founding entities from Brazil and China, with the support of the MME. 

National grid operator ONS and energy research company EPE, linked to the MME, signed the document together with the company State Grid Brazil Holding; electric energy research center Cepel; Universidade Federal Fluminense, the foundation for the coordination of projects, research and technological studies, Coppetec; and the innovation center of Universidade de São Paulo (InovaUSP); CPFL Energia; and CET Brazil Equipamentos de Energia Elétrica e Tecnologia. 

Other entities also signed the MOU, including Nari Brasil; EPPEI Brasil; China Electric Power Research Institute; Tsinghua University; State Grid Economic and Technological Research Institute Co; North China Electric Power University, and Wuhan University. 

G20 declaration  

In the G20 leaders' declaration, the heads of state endorsed the principles of a just and inclusive energy transition, recognizing the urgency of increasing investments in all sources and financial channels to bridge the financing gap for energy transitions, with a special focus on developing countries. 

The leaders also stressed the importance of technology-neutral, integrated and inclusive approaches to the development and deployment of low-carbon solutions, including renewable energies, sustainable fuels and technologies.  

The countries pledged to accelerate efforts to ensure universal access to clean cooking by 2030 by formulating enabling policies and providing financial and technological support to emerging countries.