G20 Declaration stresses on sustainable supply chain energy transition

New Delhi: The G20 Leaders' Declaration released on Saturday stresses on the need for a diversified, sustainable, and responsible supply chain for energy transition including for critical minerals.

The declaration said that the G20 countries support strong international and national enabling environments to foster innovation, voluntary and mutually agreed technology transfer, and access to low-cost financing.

It said that the member countries "support reliable, diversified, sustainable and responsible supply chains for energy transitions, including for critical minerals and materials beneficiated at source, semiconductors and technologies."

Mint earlier reported that G20 summit may pass a marquee declaration to ensure energy and supply chain security including for critical minerals.

The declaration also recognized the importance to accelerate the development, deployment and dissemination of technologies, and the adoption of policies, to transition towards low-emission energy systems, including by rapidly scaling up the deployment of clean power generation, including renewable energy, as well as energy efficiency measures, including accelerating efforts towards phasedown of unabated coal power, in line with national circumstances and recognizing the need for support towards just transitions.

It also recognized the the role of grid interconnections, resilient energy infrastructure and regional/cross-border power systems integration, where applicable in enhancing energy security, fostering economic growth and facilitating universal energy access for all. India has been a supporter of grid interconnections and through the International Solar Alliance (ISA) it has launched the One Sun One World One Grid (OSOWOG) initiative to connect natioal grid of countries across regions.

The focus on energy security gained momentum in the past one year amid the Russia-Ukraine conflict and several countries have been looking to diversifying their supply chains as the renewable energy supply chain and that of related components and technologies have been largely concentrated in China. Amid geopolitical concerns, more so post the Covid-19 pandemic impacting the supply scenario, countries are looking at newer supply sources.

Countries like India and the US are also looking at boosting their domestic manufacturing sectors. India is looking at developing its manufacturing sector in the renewable energy space too and is eyeing to become a major export hub for components and technologies along with new-age fuels like green hydrogen.

The collaboration on critical minerals also gains significance as the minerals are highly required in renewable energy components, along with key sectors like telecom and defence while the minerals are concentrated in few countries.

Recently India was also inducted into the US-led Critical Mineral Partnership a group of 14 countries which aims to catalyze investments in the critical mineral supply chain.