INTRODUCTION
Since 2009, energy has been central to G20 discussions based on the sector’s contribution to sustainable development. A dedicated Energy Sustainability Working Group was established in 2013 to discuss various energy-related matters. In 2014, the G20 Energy Sustainability Working Group (ESWG), co-chaired by Australia and India, focused on ways in which to improve the operation of global energy markets and strengthen collaboration between developed and emerging economies.
Subsequent ESWG Chairs, following India and Australia, have been introducing slight amendments to the working group’s agenda based on their country priorities. In this regard, a fundamental shift towards the just energy transition emanated from the signing of the Paris Agreement and the Congress of Parties (COP) outcomes.
More recently, with Japan as Chair of the ESWG, innovation was introduced as a priority area, as innovation is seen as being a key driver in enabling just energy transitions and sustainable growth.
In 2020, Saudi Arabia’s Presidency introduced the concept of circular carbon economies, comprising a variety of energy solutions and technologies that are underpinned by research, development and innovation (RDI) to ensure cleaner, more sustainable, and affordable energy systems.
As South Africa assumes the G20 Presidency, the focus on the Just Energy Transitions Workstream will address critical issues of energy access and affordability, sustainable finance, and creating the jobs of the future in the energy sector innovation. This approach will be anchored in four key pillars:
- Energy Security and Diverse Local Supply Chains
- Just, Affordable and Inclusive Energy Transitions
- Social and People-Centred Energy Transitions
- Research and Innovation. This issue note outlines the Department of Mineral Resources and Energy’s (DMRE) strategic priorities and objectives for each pillar to drive an inclusive energy transition agenda.
PRIORITY AREA 1: ENERGY SECURITY
Outcomes: Energy Security
- Energy planning principles document.
- Beneficiation of sustainable fuels and critical minerals at source principles.
Outcomes: Universal Access
- Access to clean cooking and affordable energy usage.
- Linked to African agenda, expand universal access, focusing on microgrids,
- Develop principles to enable achievement of universal energy access by 2030.
- Technology choices to support affordability.
PRIORITY AREA 2: DIVERSE LOCAL SUPPLY CHAINS, REGIONAL INTEGRATIONÂ AND INTERCONNECTIVITY
Outcomes: Diverse Local Supply Chains
- Facilitate dialogue: create a platform for sharing best practices, challenges, and innovative solutions in energy generation and transmission.
- Financing of large infrastructure projects on the African continent. (Case studies: Grand Inga, Lesotho Water Highlands, and the Small Modular Reactor to Power)
- G20 initiative to support local clean manufacturing to boost economic development
- Beneficiation of hydrogen, sustainable fuels, and critical minerals.
- Promote regional collaboration: encourage partnerships between countries to enhance regional energy trade and interconnectivity (regional power pools).
- Identify funding opportunities: encourage financing mechanisms, including public-private partnerships, to support infrastructure development.
- Establish action plans: develop concrete action plans and timelines for interconnectivity projects that can be presented at the G20 Leaders’ Summit.
PRIORITY AREA 3: JUST, AFFORDABLE AND INCLUSIVE ENRGY TRANSITIONS
Outcomes:
- G20 action plan on affordable, secure, and just energy transitions based on G20 principles.
- Advance the G20 Clean Energy Investment Roadmap and develop outcomes across the G20 Finance and Sherpa tracks (ETWG, Sustainable Finance WG, Research and Innovation WG, Framework WG).
- G20 calls for a new Global New Energy Investment Pact for Africa.
PRIORITY AREA 4: SOCIAL AND PEOPLE-CENTRED TRANSITION
Outcomes:
- G20 action plan on social and inclusive, people-centred transition.
- Capacity-building pact to support implementation of action plan on inclusive, people-centred transition.
- Financing of infrastructure projects designed to ensure inclusion of local businesses.
PRIORITY AREA 5: RESEARCH AND INNOVATION
Outcomes:
- Research and skills capacitation pact.
- G20 pact on beneficiation at the source of critical minerals required for energy transitions.
- Identify technology transfer models for energy transitions.
