📅 31 August – 01 September 2022
Bali, Indonesia
According to IRENA’s World Energy Transitions Outlook, the pathway that is most likely to keep the world on the 1.5°C pathway will be powered by renewable energy in conjunction with electrification, energy efficiency, green hydrogen, and sustainable modern bioenergy. The Agency’s analysis also shows that with the right policy frameworks and adequate financing in place, this pathway fosters economic growth, creates jobs, improves welfare, and would close the energy access gap.
Sharp adjustments in capital flows and a reorientation of investments are necessary to align the global energy sector with such a positive economic and environmental trajectory. The Outlook suggests that cumulative investments of over USD 24 trillion should be redirected globally from fossil fuels to energy transition technologies till 2050, corresponding to an increase in energy transition investments from USD 1.8 trillion in 2019 to USD 4.4 trillion per year until 2050. In addition to money, reaping the vast benefits of the transition will also require adopting a comprehensive policy approach that considers the wider implications of the energy sector’s economic and social context.
The IRENA Investment Forums are a key element in the Agency’s strategy to support the mobilization of investments in energy transitions. The G20 Investment Forum 2022 is co-hosted by IRENA and the G20 Presidency of Indonesia, in collaboration with international and regional partners. It will convene decision-makers from the public and private sectors including the financial community, development partners, and other relevant stakeholders to drive energy transition investments, with particular emphasis on the Southeast Asia region. The Investment Forum aims to strengthen the ability of decision-makers to foster a strong enabling environment for energy transition-related investments as well as help developers prepare bankable projects and access finance more easily.
The Forum will also tie in with the broader G20 Climate Action agenda. During the 2021 G20 Summit in Rome, leaders agreed that countries must take more meaningful and effective action to achieve the 1.5°C goals by 2050 and pledged to stop financing coal power. The G20 has an important mandate to formulate comprehensive recovery strategies and ensure that economic activity is sustainable and effectively contributes to broad prosperity. At the same time, the G20 could play a leadership role in laying a solid foundation for accelerating green economic activity, in line with the global leaders’ commitment pledged at COP26, and mobilising the financing required for the energy transition.