G20 in Bali provides impetus for negotiations at COP27: $20 billion to phase out Indonesian coal, Europe-Australia bilateral affirms Paris goals
|G20 Leaders Plant Mangroves In Bali Photo via PM Albanese via twitter|
So what did the G20 meeting say on climate and how will it affect the UN Climate Change conference COP27 in Sharm El-Sheikh, Egypt?
“Mindful of our leadership role, we reaffirm our steadfast commitments, in pursuit of the objective of UNFCCC (United Nations Framework Convention on Climate Change) to tackle climate change by strengthening the full and effective implementation of the Paris Agreement and its temperature goal,” a declaration issued at the end of the meeting said.
The declaration maintains the 1.5C temperature goal.
There was also an important bilateral meeting between Biden and Xi that cleared blockages for climate co-operation.
And a $20 billion financing package for Indonesia to phase out coal and increase renewables as part of it’s energy transition and reduction in greenhouse gas emissions.
Australia -Europe joint statement which in point 9 affirmed “deeply committed to full implementation of the Paris Agreement, noting the urgency to limit global warming to 1.5 degrees through rapid, deep and sustained reductions in greenhouse gas emissions in this decade and to achieve net zero emissions by 2050, and will spare no effort to bring about ambitious action by all members of the international community.“
“We resolve to pursue efforts to limit the temperature increase to 1.5°C. This will require meaningful and effective actions and commitment by all countries,” the G20 statement said.
“We will play our part fully in implementing the (COP26) Glasgow Climate Pact,” the G20 leaders said.
- U.S. Special Climate Envoy John Kerry said on Saturday that a few countries had resisted mentioning the 1.5C goal in the official text of the COP27 summit
- The G20 declaration urged delegates at COP27 to “urgently scale up” efforts at the summit on the issue of mitigating and adapting to climate change.
- It also made reference to the need to accelerate “efforts towards the phasedown of unabated coal power, in line with national circumstances and recognising the need for support towards just transitions.”
- India, the world’s second-biggest buyer of coal, wants countries to agree to phase down all fossil fuels rather than a narrower deal to phase down coal that was agreed at COP26 last year.
- The statement also reaffirmed an international goal to phase out “inefficient fossil fuel subsidies” and urged developed nations to meet their commitments to provide $100 billion a year for climate mitigation.
$20 billion package to phase out coal, increase renewables in Indonesia
15 November: On the sidelines of the G20 was a non-binding agreement to support Indonesia in an energy transition program to phase out coal and increase renewables, with a finance package of $20 billion, half public half private.
A similar package at COP26 was negotiated for South Africa, worth $8.5 billion to phase out coal.
Today, at the Partnership for Global Infrastructure and Investment (PGII) event at the G20 Summit, President Joko Widodo of Indonesia and leaders of the International Partners Group (IPG) of likeminded countries, co-led by the United States and Japan, and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom, issued a Joint Statement, launching a Just Energy Transition Partnership (JETP) developed with Indonesia during its G20 Presidency. The landmark partnership pursues an ambitious and just power sector transition in Indonesia, supporting a trajectory consistent with keeping 1.5 °C global warming limit within reach.
Indonesia will work, with support from international partners, to develop a comprehensive investment plan to achieve significant new targets and policies to reduce GHG emissions and support impacted communities by:
Peaking total power sector emissions by 2030, shifting its projected emissions peak forward.
Capping power sector emissions at 290 megatons of CO2 in 2030, down from baseline value of 357 MT CO2.
Establishing a goal to reach net zero emissions in the power sector by 2050, bringing forward Indonesia’s net zero power sector emissions target by ten years.
Accelerating the deployment of renewable energy so that renewable energy generation comprises at least 34 percent of all power generation by 2030, which would roughly double the total renewables deployment over the course of this decade compared to current plans.
To achieve these targets, this long-term partnership intends to mobilize an initial $20 billion in public and private financing over a three-to-five-year period, using a mix of grants, concessional loans, market-rate loans, guarantees, and private investments. Contributions to the JETP include $10 billion in public sector pledges, and a commitment to work to mobilize and facilitate $10 billion in private investment from an initial set of private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), including Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG, and Standard Chartered. The partnership will also leverage the expertise, resources, and operations of the multilateral development banks.
A successful partnership is expected to help shift Indonesia’s power sector peaking date forward by approximately seven years and result in a cumulative reduction of more than 300 megatons in greenhouse gas emissions through 2030 and a reduction of well above 2 gigatons through 2060 from Indonesia’s current trajectory.
Over the next six months, the Parties will work together to develop a concrete plan for investments, financing, and technical assistance to support these ambitious goals.
Indonesian President Joko Widodo stated that “Indonesia is committed to using our energy transition to achieve a green economy and drive sustainable development. We are grateful for the cooperation and the support from our international partners to realize its full implementation that will accelerate this transition. This partnership will generate valuable lessons for the global community and can be replicated in other countries to help meet our shared climate goals through concrete collaborative actions.”
Australia-Europe G20 side meeting statement
16 November: On the side of the G20 the Prime Minister of Australia, Anthony Albanese, the President of the European Council, Charles Michel, and the President of the European Commission, Ursula von der Leyen, held the second Australia-EU Leaders’ Meeting. Items discussed included:
- Russia’s war of aggression against Ukraine;
- Climate change, environment, and energy transition;
- cooperation in response to growing challenges in the Indo-Pacific;
- prioritise the conclusion of an ambitious and comprehensive trade agreement and economic relations
- Digital transformation and other bilateral items
Here are the points under climate change and environment:
8. The Leaders emphasised their shared commitment to taking urgent and ambitious action to address climate change, natural disasters, biodiversity loss and environmental degradation, and to support small, developing and vulnerable states, including Pacific Island countries, with resilience building and adaptation in responding to climate change impacts.
9. They remain deeply committed to full implementation of the Paris Agreement, noting the urgency to limit global warming to 1.5 degrees through rapid, deep and sustained reductions in greenhouse gas emissions in this decade and to achieve net zero emissions by 2050, and will spare no effort to bring about ambitious action by all members of the international community.
10. The Leaders resolved to continue to work together in multilateral forums including at COP27 to deliver ambitious climate change outcomes in pursuit of the goals of Paris Agreement. We emphasise the urgent need to accelerate the transformation to renewable energy in this decade
11. Australia commended the EU’s leadership on climate action, including through the European Green Deal. The EU welcomed the Australian Government’s determination to tackle climate change, its strengthened 2030 target to reduce emissions to 43% below 2005 levels by 2030, as well as its decision to join the Global Methane pledge launched by the EU and the US in 2021.
12. Reflecting their shared resolve to accelerate the transition to becoming net zero/climate neutral economies by 2050, the EU and Australia are committed to deepening cooperation on climate change and global just energy transition towards climate neutrality pathways, including energy efficiency, renewable energy, renewable and low-carbon hydrogen and cleanenergy supply chains. They will bring together experts, business and governments on both sides to discuss concrete solutions. The responsible Ministers will meet in the first half of 2023 to push high impact opportunities for collaboration, and the next Australia-EU High Level Dialogue on Climate Change and High Level Dialogue on Energy will take place in 2023.
13. The Leaders also committed to cooperate to build resilient, ethical and sustainable critical minerals supply chains, by working together in relevant international initiatives, and by supporting greater trade and investment in critical and strategic minerals and energy through the future Australia-EU trade agreement. In parallel, they also agreed to an early start of discussions with a view to establishing a bilateral partnership on sustainable critical and strategic minerals.
14. They highlighted the importance of promoting best practice and alignment on sustainable finance, and the EU welcomed Australia’s interest in joining the International Platform on Sustainable Finance.
15. They recognised that climate change is a driver for disaster risks and noted their intention to expand their cooperation on climate change adaptation, including through disaster risk reduction and by building their respective capabilities in this respect.
16. The Leaders will continue to champion together global environmental ambition, including conservation of biodiversity, circular economy, negotiation of an ambitious international legally binding instrument on plastic pollution by 2024, the sustainable use of the ocean and promoting sustainable forest management. They committed to work together towards the adoption of an ambitious post-2020 Global Biodiversity Framework (GBF) at COP15.2 in Montreal with clear and measurable goals and targets and a robust monitoring mechanism, and are committed to working towards the conclusion of a new legally binding instrument on the conservation and sustainable use of marine biodiversity beyond national jurisdiction at the resumed fifth Intergovernmental Conference in 2023.
Leaders earlier gathered at a mangrove forest in Bali which plays a crucial role in climate change mitigation.
Indonesian President Joko Widodo has been keen to showcase his commitment to tackling the global issue and encourage his fellow leaders to do the same.
Mr Albanese said the leaders agreed their nation’s economies needed to be transformed to deal with the impacts of climate change.
“The last couple of days has been extremely successful for Australia being able to put forward our position on the challenges which the global economy faces,” he said.
- Reuters, 16 November, 2022, G20 agrees to pursue efforts to limit temperature rise to 1.5C https://www.reuters.com/business/environment/g20-agrees-pursue-efforts-limit-temperature-increase-15c-declaration-2022-11-16/
- Climate Home, 14 November 2022, Biden and Xi unshackle Cop27 climate teams to formalise talks https://www.climatechangenews.com/2022/11/14/biden-and-xi-unshackle-cop27-climate-teams-to-formalise-talks/
- Whitehouse.gov, 15 November 2022, Indonesia and International Partners Secure Groundbreaking Climate Targets and Associated Financing https://www.whitehouse.gov/briefing-room/statements-releases/2022/11/15/indonesia-and-international-partners-secure-groundbreaking-climate-targets-and-associated-financing/
- See also the joint statement (PDF) https://www.whitehouse.gov/wp-content/uploads/2022/11/Joint-Statement.pdf
- Prime Minister of Australia, media release, 16 November 2022, Prime Minister, President of the European Council, President of the European Commission https://www.pm.gov.au/media/eu-australia-leaders-meeting-2022