Global Energy Crisis Alerts G-20
According to a new report from BloombergNEF (BNEF), the majority of G-20 nations enhanced their low-carbon policies in the year 2022.
The government measures implemented since the rise in electricity prices are not expected to hinder the transition to a low-carbon economy.
On the contrary, many of these measures promote energy efficiency and set goals to replace fossil fuels with renewable or nuclear energy.
Furthermore, most G-20 nations provided support for low-carbon technologies and systems in the year 2022.
As a result, 17 nations maintained or improved their scores on the BNEF’s G-20 Zero-Carbon Policy Scoreboard, which ranks government low-carbon policies.
On average, G-20 countries achieved a score of 54%, representing a two-point increase compared to the 2022 assessment.
While these results are positive, the report highlights that the world’s largest economies are still far from implementing comprehensive policies to address climate change.
Victoria Cuming, BNEF’s Global Policy Lead, emphasized that no G-20 country has sufficient low-carbon policies to fully execute the goals set in the Paris Agreement.
The report analyzes decarbonization policies in seven sectors: energy, transportation, buildings, industry, agriculture, circular economy, and carbon capture, usage, and storage. G-20 countries are responsible for approximately 80% of global greenhouse gas emissions.
Developed countries achieved better average results in their low-carbon policies, with G-20 OECD countries reaching an average score of 64%, compared to 36% for non-OECD countries.
This disparity is concerning, as non-OECD countries include major emerging economies with rapidly developing carbon footprints.
Decarbonization of the energy sector has been a priority for many G-20 governments. As a result, the average score for this sector in 2023 was 61%, a 1.3-point increase compared to 2022.
The transportation sector had an average score of 54%, coming in second.
G-20 policymakers are beginning to focus on the most challenging emission reduction sectors. The average scores for buildings, circular economy, and industry increased by 1.7 to 2.7 percentage points compared to the previous year.
However, more policy support is needed, particularly in sectors beyond electricity and transportation, which have an average score of 47%.
Concrete financial incentives for technologies like clean hydrogen, CCUS (carbon capture, utilization, and storage), carbon utilization and storage, and sustainable agricultural practices, along with stricter energy efficiency standards for buildings, waste regulations, and carbon pricing, can drive change.
In this year’s G-20, European Union member states and the United Kingdom are leading.
Germany maintains the lead, closely followed by France, which performed well in all sectors, particularly in buildings and industry.
The United States saw a significant increase in score, ranking fifth, driven by the implementation of the Inflation Reduction Act.
The G-20 needs to continue increasing financial and policy support for decarbonization to fulfill the goals of the Paris Agreement.
The BNEF report evaluated policies based on government support for emission reduction, the robustness of implemented programs, and the policy formulation process and metrics to estimate progress.
The G20 currently consists of 19 countries representing the following continents:
Representing Euro-Asia, Turkey is present.
From South America, Brazil and Argentina are represented.
From Oceania, Australia is represented.
From North America, Mexico, Canada, and the United States are present.
From Asia, India, Indonesia, China, Japan, and the Republic of Korea are represented.
From Europe, Russia, France, Germany, Italy, and the United Kingdom and the European Union are present.
From Africa, the countries represented are Saudi Arabia and South Africa.
When combined, the G-20 countries account for over 85% of global GDP, more than 75% of global trade, and two-thirds of the world’s population.