G-20, COP-27 energy discourse must include more demand-side requirements: TERI

NEW DELHI: Global clean energy transition mechanisms need to be inclusive and just beyond the context of coal, says a policy brief prepared by the environment think-tank The Energy and Resources Institute (TERI), which has also urged the G-20 countries — the presidency of which India is set to take over this year — to focus on demand-side perspectives in the energy transition of vital sectors such as agriculture, Micro, Small and Medium Enterprises (MSMEs) and transport.

The policy brief, “Inclusive Energy Transitions: Messages for the G20 Forum”, produced by TERI as a part of its Act4Earth SDG Charter initiative, analyses the three energy and carbon intensive sectors of agriculture, MSMEs, and transport in G20 countries. It emphasises the need for the G-20 forum to aid consensus building and spur the push for normative shifts to bring in more attention to the energy demand aspects of the three sectors. The policy brief also highlights the gap in gender inclusion policies covering the transport, MSMEs, and agriculture sectors in the G-20 countries.

Energy transitions, the key factor to achieving sustainable development and climate goals, in recent times have been dominantly centered on ‘just transitions’ in the coal sector with the emphasis firmly on energy supply and mitigation aspects. Just transitions have gained traction in the climate change discourse since COP-26 (Conference of the Parties of the UNFCCC) and they will also be a priority for the COP-27 presidency as well, says a statement issued by TERI.

Commenting on the urgent need to plug the gaps, Ajay Shankar, distinguished fellow, TERI, and former secretary, department of industrial policy and promotion, Government of India, said, “The G-20 consumes over 70 per cent of global energy. As India assumes the G20 presidency at the end of the year it would have the responsibility of shaping a consensus not only on faster energy transition but also on it being just and inclusive especially from the gender perspective.” The TERI paper, he pointed out, asserts the need for a holistic approach in the energy transition agenda for the sectors of transport, MSMEs and agriculture.

Shailly Kedia, senior fellow and associate director, TERI, emphasised that energy systems need to be inclusive of both supply and demand perspectives. “Markers on just transitions concerning energy systems should factor in energy demand and not just supply. The G-20 can push for global indicator frameworks on SDGs (sustainable development goals) to report and monitor energy demand-side indicators along with gender disaggregated data,” she added. The discourse on just transitions at COP-27 needs to engage with inclusive energy demand interventions as well as adaptation. Transitions need to be both ‘just’ and ‘inclusive’, she noted. “The focus on energy supply and mitigation is not in line with the principles of equity and climate justice,” she said.

More than one-third of the world’s energy — 71.6 per cent in 2019 — was consumed by G-20 countries and the EU. With the attention skewed towards supply-side, the policy brief also underscores the need to focus on the demand side policy interventions during India’s G-20 presidency through the dedicated working group on energy transitions under the sherpa track. India, it notes, can assume a normative leadership role in energy demand side management areas when it comes to inclusive energy transitions and strengthen the priority areas.
Pointing out that reliable energy supply is essential for inclusive energy transitions, the policy brief moots that demand-side measures would also need reliability of energy supply to enable lifeline energy consumption for various energy demand uses. It also underlines the need to fill missing gender disaggregated data on clean energy transitions. “For gender inclusion in the energy sector, data on gender at disaggregated level is required which is missing at this point, specifically for the three sectors, that is, transport, MSMEs, and agriculture,” notes the policy brief.

The G-20 can also push for global indicator frameworks on SDGs to report and monitor in energy demand side indicators. “Presently, energy-related indicators in SDGs are limited to supply side measures along with reporting on household cooking and lighting indicators,” it added.