The International Energy Agency (IEA) has urged the G20 nations to prioritise clean energy investment during the ongoing meetings under India's presidency. Fatih Birol, the Executive Director of IEA,, emphasised the need for increased financial resources to mobilise clean energy technologies in developing countries. Furthermore, Birol highlighted the potential benefits of adopting India's lifestyle for the environment, or life initiative, in accelerating the global transition to clean energy.

Birol said a significant portion of clean energy investment currently comes from affluent nations like China. In contrast, emerging countries often lack the necessary financial resources to deploy technologies such as solar, wind, electric cars, and hydrogen.

"A big chunk of clean energy investment comes from the rich countries and China ... one task for India in my view should be to convince the rich countries, advanced economies, and the international financial institutions such as World Bank, to facilitate clean energy investment in developing countries," Birol said.

Birol also mentioned Prime Minister Narendra Modi's life initiative, which aims to foster sustainable practices and reduce the carbon footprint. He said aligning with India's life initiative could significantly expedite the achievement of climate goals worldwide, while also delivering economic benefits. Therefore, India should strive to ensure that G20 countries and others take measures in line with the life initiative, enabling a collective effort to combat climate change.

"Only a few months ago in Bengaluru, Prime Minister Modi asked me if the world would adopt India's life initiative. What will be the effects of that? If the world adopts these practices, we can reach our climate goals much faster and in a much more economical way. So the second job in my view for India would be to make sure that the G20 countries and beyond take measures in line with the life initiative," Birol said.

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Birol highlighted that in 2023, the total investment in the energy sector reached $2.7 trillion, with a significant portion, approximately $1.7 trillion, allocated to clean energy projects. These figures indicate that the transition to cleaner sources of energy is gaining momentum faster than anticipated.

The IEA's estimate suggests that the global market for clean energy technology manufacturing will reach nearly $800 billion by 2030. This projection underscores the immense potential for economic growth and job creation in the clean energy sector. By prioritising clean energy investments and promoting the development and manufacturing of clean energy technologies, countries can position themselves at the forefront of this emerging market.

Watch the video for the entire discussion.

First Published:Jun 13, 2023 8:21 PM IST