B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCECONTENTS
Foreword by the Task Force Chair

02

Recommendations: Executive
Summary

07

Introduction

09

Recommendation 1

12

Recommendation 2

49

Recommendation 3

74

Annex

94

Enhance global cooperation on accelerating thetransition to sustainable energy use by reducing
carbon intensity of energy use through multiple
pathwaysEnhance global cooperation on ensuring a just,orderly, and affordable transition to sustainableenergy use across developed and developing
countries

Enhance global cooperation on enhancing
consumer level access and ability to consume
clean, modern energy

1B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEFOREWORD BY THE TASK FORCE CHAIR
The Paris Agreement calls for keeping global warming to well below
2oC above pre-industrial levels and pursuing efforts to limit it to 1.5oC
above pre-industrial levels recognizing that this would significantly
reduce the risks and impacts of climate change. The latest assessmentof global warming released by Climate Action Tracker in November 2021
indicates that global average temperature has risen by ca.1.2oC frompre-industrial levels. In the Glasgow Climate Pact agreed at Conferenceof the Parties 26 (“COP26”), the increased urgency of acting to address
global warming and climate change was emphasised by resolving
to pursue efforts to limit temperature increase to 1.5oC, and calling
for rapid, deep and sustained reductions in global carbon dioxide (CO2) emissions by 45% by 2030
compared to 2010 levels and to net zero by around mid-century, as well as deep reductions in othergreenhouse gases. This requires significantly accelerated action in this decade itself, considering thatwith all committed policies and actions, we’re estimated to be on track for ca. 2.7oC warming by
21001, while even considering all current pledges and targets, which are yet to be fully translated into
policies and action, we are estimated to hit ca.2.1oC of warming.
At the same time, energy security continues to be a major concern across the globe. Energy is crucial
to all human and economic activity, and a significant expansion in the supply of secure and affordable
energy has been a key enabling factor for sustained economic growth that has lifted millions out ofpoverty. However, overwhelming and continuing reliance on fossil fuels for primary energy supply has
resulted in a sustained increase in CO2 emissions. In 2019, CO2 emissions accounted for ca.74% of
global greenhouse gas emissions and energy use accounted for ca.93% of CO2 emissions2. Clearly, theenergy transition is key to averting catastrophic global warming and climate change. However, thiscannot be to the detriment of the unfinished development agenda in the developing countries of theworld which are historically and currently below developed countries, and even global averages, interms of per capita incomes, energy consumption and emissions. Therefore, developed countries must
support developing countries in accelerating their transition to sustainable energy use if we are to haveany chance of meeting the global warming targets set by the Paris Agreement and reiterated in the
Glasgow Climate Pact. This is essential to ensure that the development agenda is not derailed, and the
distributional impacts of the transition do not undo decades of progress on economic and social fronts.
This is not just the morally and ethically right thing to do; it is also the pragmatic thing to do. If thetransition is not carefully guided and supported to ensure that it is a people centric and just transition,
the likely loss of social and political support for the transition will delay or even disrupt the transition,and collectively, we will fail in our attempt to avert catastrophic climate change. This support fromthe developed world requires an acknowledgement of the unique facts and circumstances and thediffering stages of economic development of individual countries, as a “one size fits all” solution will
not be successful.

12

https://climateactiontracker.org/global/cat-thermometer/
climatewatchdata.org, BPStat 2021, PwC Analysis

2B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEIn the spirit of the G20 Indonesian Presidency theme of “Recover Together, Recover Stronger”, and theB20 Indonesia theme of “Advancing innovative, inclusive and collaborative growth”, we have madecollaboration between developed and developing countries a central theme of our call to action onsustained and accelerated energy transition that is just and enhances energy security and development
outcomes for the world’s poorest. In Indonesia we call this “gotong royong” – working together formutual benefit.
Given the urgency of the situation, we need greater vision and ambition, we need greater commitment
to innovative, inclusive and collaborative action, and we need it now. Businesses understand this better
than most, as the long-term sustainability of our businesses is inextricably linked to the needs of our
stakeholders. We cannot miss this opportunity to act.

Sincerely,

Nicke Widyawati

Chair of the B20-Taskforce on Energy, Sustainability & Climate
President Director & CEO, PT Pertamina (Persero)3

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEFOREWORDS BY THE TASK FORCE CO-CHAIRSCO-CHAIRSFOREWORDS

Paddy
Padmanathan
CEO, ACWA Power

Seiji Izumisawa

CEO, Mitsubishi Heavy
Industries

Ricardo Mussa
CEO, Raizen

Mohammed Y.
Al-Qahtani
Senior VP Downstream, Saudi
AramcoTo re-establish the delicate balance betweensocial prosperity, economic development, andpreservation of the planet, our home, the nationsof the world need to collaborate with the private
sector and with each other to enable the provisionof energy for all reliably, responsibly and at thelowest cost; and the business community of theG20 nations stand ready to step up and lead byexample.

To achieve climate goals and realize asustainable future, we need to accelerate theenergy transition. This requires that we balanceenvironmental targets with energy security andeconomic considerations, and pursue a realistic,“all-of-the-above” approach to technologicalsolutions, based on each country’s natural
resources and energy needs.

Energy is the main source of GHG emissions in
the world – and we need to immediately reducethem efficiently. Raizen is an integrated energy
company, with a large renewable and sustainably
produced portfolio and we hope to contributewith B20 in this global challenge of fast andsustainable energy transition.

Meeting the world’s energy needs in a sustainable
manner while minding energy security, reliability
and affordability is more essential today thanever before. This task force is an exemplary modelof how industry plays a key role in leveraging
existing capacities and aligning collectively tosolve energy transition challenges.

4B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEFOREWORDS BY THE TASK FORCE CO-CHAIRSCO-CHAIRSFOREWORDS

We are facing an unprecedented crisis. IPCC
alerts and proposes mitigation to climate change
at each new report. Energy is a key driver, andwe must act now to accelerate the developmentof renewable and low-carbon solutions. Eachcountry shall define short-term objectives,
ensuring access to clean energy for all.

Jean Pierre
Clamadieu
Chairman, Engie

Climate change is moving faster than we are,thus the world needs to accelerate the transition
to cleaner energy. A just and orderly transition
will require lots of essential minerals that shouldcome from the sustainable mining and processing
activities. None of this can be achieved without
our collective work.

Febriany Eddy
CEO, PT Vale
Indonesia Tbk

Gianfranco
CasatiCEO, Accenture GrowthMarkets

Getting to net zero by 2050 will hinge on the
progress we make in the next decade – the goodnews is that technologies such as renewables are
already available and also help us to increaseenergy security of countries that deploy them.
Investment will be key to ensure the transition is‘just’, leaving no one behind.

With the premise of ensuring energy security,
we should focus on implementation actions andadhere to the principles of CBDR and respective
capabilities, in view of different national
circumstances, strengthening cooperation to
implement the UNFCCC and the Paris Agreement
in an accurate, balanced and comprehensive
way, and based on existing consensus.

Ma Yongsheng
Chairman, Sinopec

5

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCETASK FORCE COORDINATION GROUPDEPUTY CHAIR

POLICY MANAGER

Agung
Wicaksono

Oki Muraza

SVP Research &Technology Innovation,
PT Pertamina (Persero)

Managing Director,
PT Jababeka
Infrastruktur

KNOWLEDGE PARTNERS

NETWORK PARTNERS

6

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCERECOMMENDATIONS:EXECUTIVE SUMMARY
Recommendation 1: Enhance global cooperation on accelerating the transition to sustainableenergy use by reducing carbon intensity of energy use through multiple pathways
Policy Action 1.1: Enhance the pace of energy efficiency improvement across the transport, buildings,
and industrial sectors
Policy Action 1.2: Progressively reduce the carbon intensity of electricity by reducing emissions
from coal fired generation and accelerating renewable energy deployment, according to national
circumstances
Policy Action 1.3: Accelerate the mitigation of carbon emissions from hard-to-abate sectors
Policy Action 1.4: Progressively enhance the quantum, predictability & ease of financing flows todeveloping countries
Policy Action 1.5: Support climate technology innovation by supporting start-ups, and research
universities with technology, financing, skilled manpower, knowledge & facilities sharing

Recommendation 2 – Enhance global cooperation on ensuring a just, orderly, and affordable
transition to sustainable energy use across developed and developing countries
Policy Action 2.1: Ensure an orderly transition in primary energy sources
Policy Action 2.2: Ensure MSMEs participation in energy transition activities with financing andcapacity building
Policy Action 2.3: Assist transition readiness by ensuring human capital ability to accommodatechange (e.g., transfer knowledge, upskilling & workshop)
Policy Action 2.4: Ensure sustainable practices for mining of essential minerals for energy technologies

7B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Recommendation 3 – Enhance global cooperation on enhancing consumer level access andability to consume clean, modern energy
Policy Action 3.1: Accelerate deployment of integrated electricity access solutions, including off
grid with community participation and grid-based electrification to expand energy access andenhance economic prosperity
Policy Action 3.2: Facilitate adoption of technology by households and MSMEs for efficient, clean,modern energy usage
Policy Action 3.3: Ensure broad basing of the transition by addressing affordability barriers indeveloping countries

8B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEINTRODUCTION
Current and Emerging Challenges: Energy Sustainability
Energy is a crucial input to all economic activity, and a secure and affordable energy supply has
been a key enabling factor for global economic growth that has lifted millions out of poverty. Overthe period from 1900 to 2018, global per capita gross domestic product (GDP)3 has increased fromca. USD 2,200 to ca. USD 15,2004, and the incidence of extreme poverty,5 which was as high as
36% in 1990, has declined to 9.9% in 2015. This has been accompanied by an overall improvement
in income inequality measures, although significant differences exist between and within countries,
with implications for energy poverty and future growth in energy demand under business-as-usual
scenarios. Over the same period, global primary energy consumption6 increased from ca. 12,000
TWh to ca. 171,200 TWh, with the proportion of fossil fuels in the primary energy supply at ca. 84%7
in 2019. Greenhouse gas emissions from energy use account for ca. 73% of global greenhouse gas
emission (GHG) emissions of 49.4 GtCO2e in 20168. The total GHG emissions consist of ca. 74%
carbon dioxide (CO2), with the rest being accounted for by methane (CH4), nitrous oxide (N2O) andF-gases.

Under the aegis of the Intergovernmental Panel on Climate Change (IPCC), anthropogenic greenhousegas emissions and their impact on global warming and climate change has been documented andincreasingly better understood. The Sixth Assessment Report, titled “Climate Change 2021: The
Physical Science Basis’’9, represents the latest scientific understanding of the global climate systemand climate change. According to the report, the global average surface temperature increase
to date is ~1.1oC compared to 1850-1900. Over the past several decades, key indicators of theclimate system are increasingly at levels unseen in centuries to millennia and are changing at rates
unprecedented in at least the last 2000 years. Since 2012, strong warming has been observed, withthe past five years (2016–2020) being the hottest five-year period on record since at least 1850.
Human-caused climate change is driving detectable changes in the global water cycle, accelerating
ocean stratification and oxygen loss, sea level rise, and increased frequency and intensity of extreme
weather.

Progress has been made in the battle against global warming and climate change, compared toa business-as-usual scenario where no interventions are made. However, there remains a gap
between the expected outcomes from the current policy basket and expected outcomes if all
current pledges and targets are achieved, indicating the need for enhanced policy measures justto meet current targets. Even with enhanced policy measures to achieve all current pledges andtargets, the expected global warming is 2.1oC above pre-industrial levels10, which is well above
3
4
5
6
7
8
9
10

In constant 2011 USD
https://ourworldindata.org/economic-growth#the-world-economy-over-the-last-two-millennia, Nov 2021
Consumption of < USD1.9 per day, which also defines the International Poverty Linehttps://ourworldindata.org/energy-production-consumption#how-much-energy-does-the-world-consume, Nov 2021
https://ourworldindata.org/energy-mix?country=, Nov 2021
https://ourworldindata.org/emissions-by-sector?country=#total-greenhouse-gas-emissions-by-sector, Nov 2021
https://www.ipcc.ch/report/ar6/wg1/#TS, Nov 2021
https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions, Nov 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

the Paris Agreement target of limiting global average temperature rise to well below 2oC above
pre-industrial levels and pursuing all efforts to limit the global average temperature rise to 1.5oC
above pre-industrial levels. The scientific evidence, which is also explicitly captured in the Glasgow
Climate Pact, indicates that climate and weather extremes and their adverse impacts on people andnature will continue to increase with every additional increment of rising temperatures. In 2020, therate of global decarbonisation, measured as the reduction in carbon intensity per dollar of GDP, was
2.5% whereas, an annual rate of 12.9% is now required to limit warming to 1.5oC11, the lower end of
the Paris Agreement target. This indicates the need for enhanced ambition and targets, supported
by complementary, efficient, and effective policies, laws, regulations, institutional structures andcapacities, financing models, business models, technology solutions and behavioural changes.
However, with an estimated remaining carbon budget of only 500 GtCO2e from 1 January 202012, thewindow of opportunity to limit global warming to a peak of 1.5oC is narrow and closing fast, especiallyconsidering that remaining carbon budgets depend on the amount of non-CO2 mitigation and arefurther subject to geophysical uncertainties. Therefore, this decade has been widely acknowledged
as the time period when urgent and sharp reductions in GHGs have to be achieved to hit 2030 SDG(Sustainable Development Goal) targets13 as an interim milestone and continue on to net zero or evennegative emission scenarios by mid-century to prevent catastrophic warming and climate change.

Achieving the energy transition from ca. 84% fossil fuels in the primary energy supply to sustainableenergy use reflecting net zero and beyond, will be a very complex endeavour. This is due to therequired global scale of change, within an increasingly narrow window of opportunity, involving
disruption to established technology, financial and product markets, supply chains, businessmodels, governance frameworks and political economy considerations that are well entrenched.
This disruption and reordering of the global energy supply and consumption framework has tobe orchestrated without disrupting the economic growth needed to recover from the economic
devastation of the pandemic and continue the achievements in reduction of extreme poverty14, adding
another layer of complexity. Ensuring an orderly transition will require a carefully managed pace thatis set depending on the national circumstances of individual countries, considering amongst otherthings the capacity of governance institutions, level of industrial development, alternative energy
sources available, availability and cost of technology and finance, and affordability considerations
for the economically weakest.

In parallel, significant work remains to be done on ensuring universal energy access15 and eradicationof energy poverty. In 201916, ca.10% of the global population17 (ca. 770 million people) had noaccess to electricity, and ca. 34% (ca. 2,620 million people) did not have access to clean cooking
fuels. Poor energy access is strongly correlated to low incomes, with causality determined by acomplex interaction of factors. The obvious causality is low income creating affordability barriers
to transitioning from traditional biomass to modern, clean fuels and technology for domestic
11
12
13
14
15
16
17

https://www.pwc.co.uk/services/sustainability-climate-change/insights/net-zero-economy-index.html
Climate Change 2022, Mitigation of Climate Change - Summary for Policymakers, July 2022
SDG 7 – Affordable & clean energy, and SDG 13 – Climate action
SDG 1 – No poverty, and SDG 10 – Reduced inequalities
To modern, commercial fuels.
https://trackingsdg7.esmap.org, Nov 2021
https://population.un.org/wpp/Publications/Files/WPP2019_Highlights.pdf, Nov 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

cooking. However, the time and effort expended in collecting and preparing solid fuel and using
it for cooking, which typically falls on women and girl children is a continuing driver of genderinequalities along the vectors of educational achievement and productive employment outside thehome, presenting a formidable barrier to economic empowerment. Further, indoor air pollution fromrelying on solid fuels for cooking is a significant driver of poor health outcomes, including premature
death, which drive families into poverty and cut short opportunities for economic advancement. The
second leg of addressing energy poverty to ensure that energy equity is maintained or enhancedin the transition is to address the affordability problem for the bottom of the pyramid. In many
developing economies, this is currently addressed by directing subsidies to fossil fuels that are (a)in the final energy consumption basket and (b) that are the primary energy sources for producing
final consumption basket components. However, these subsidies distort the market and lead to false
comparisons between subsidized cost of fossil fuels and unsubsidized cost of clean energy, acting
as a barrier to rapid adoption of clean energy. Further, this is before explicit consideration of thecost of externalities from the use of fossil fuels through appropriate carbon pricing measures. In
2019, global fossil fuel subsidies to consumers added up to ca. USD 320 billion, a significantly
higher amount than the USD 280 billion global spending in renewable energy capacity investments
and USD 250 billion global spending in energy efficiency enhancements18. The reform of fossil fuelsubsidy regimes with explicit redirection of savings, and revenues from pricing of carbon towards
enhancing deployment of sustainable energy, adoption of technology to utilize clean energy andtargeted application of consumption subsidies will be critical to addressing energy poverty, in thecontext of the energy transition.

Finally, one of the most contentious issues that must be addressed is that of differentiatedresponsibilities in addressing current and expected global warming and climate change. The natureof the problem and its complexity are driven by differentiated responsibility between the developed
and developing world for historical stock of emissions in the atmosphere, which has locked the world
into a particular warming trajectory, and the source of current emissions, respectively. On a percapita basis, the developing world is still far short of the emissions impact of developed countries.
Energy systems in the developing world are currently geared to the use of fossil fuels, and as citizen’s
aspirations for improving their standard of living are fulfilled by governments, per capita emissions
will continue rising, unless focused action is taken. The scale of the change required is beyond theinstitutional and financial capacity of many of the developing countries of the world.

The reaffirmation of the commitment to channel USD100 billion per annum by 202019 and annually
through 2025 to developing countries20 is a timely acknowledgement of earlier estimations of required
support and commitments. Recognizing that sources of continuing planet warming emissions are
local, but the problem that causes is global, a global compact that channels technology, institutional
capacity and finances to the developing world will be crucial in achieving net zero emissions andbeyond.

18 https://www.iisd.org/system/files/2021-07/cutting-emissions-fossil-fuel-subsidies-taxation.pdf, May 2022
19 COP16, Cancun 2010
20 Joint G20 Energy-Climate Ministerial Communique dated 23 July 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCERECOMMENDATION 1
Enhance global cooperation on accelerating the transition to sustainable energy use by reducing
carbon intensity of energy use through multiple pathways

12

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEPOLICY ACTIONSPolicy Action 1.1 - Enhance the pace of energy efficiency improvement across the transport, buildings,
and industrial sectors
Policy Action 1.2 - Progressively reduce the carbon intensity of electricity by reducing emissions
from coal fired generation and accelerating renewable energy deployment, according to national
circumstances
Policy Action 1.3 - Accelerate the mitigation of carbon emissions from hard-to-abate sectors
Policy Action 1.4 - Progressively enhance the quantum, predictability, and ease of financing flows todeveloping countries
Policy Action 1.5 - Support climate technology innovation by supporting start-ups, and research
universities with technology, financing, skilled manpower, knowledge & facilities sharing

LEADING MONITORING KPI21,223

			

BASELINE

TARGET

Global energy-related CO2 emissions (Gt CO2)23
Includes carbon dioxide emissions from the
combustion of fossil fuels and non-renewable wastes,from industrial and fuel transformation processes(process emissions), and will require removals throughNbS and CCUS deployments

36.3(2021)24

21.125 - 2526
(2030)

Global share of renewables in total final energy
consumption (%)
Includes solar, wind, hydro, solid, liquid and gaseous
bioenergy, and other renewables

17.7%(2019)27

30%25 - 38%26(2030)

Global energy intensity CAGR (%)
Computed as Total Energy Supply/GDP (GJ per USD
1000, PPP)

-1.2%
(2018 – 2020)26-2.7%28 to -3.5%29(2030)

Low carbon hydrogen production (Mt pa)
Blue & green hydrogen

0.8(2020)25

15030 - 15425(2030)

Captured CO2 (MtCO2 pa)3143.7(2021)25

84032 - 220025(2030)

21 This chart sets forth third-party KPI baseline- and target numbers. They are reproduced here for descriptive purposes; the B20 ESC task force co-chairs
and members take no position as to their accuracy or applicability to all countries. This task force stresses that CBDR principles are essential to understanding aspirational target numbers such as the above
22 The principle of CBDR is crucial to achieving this peaking and reduction of total CO2 emissions. Developed countries must accelerate their transition toachieve peaking and reduction as soon as possible to create space for the lagging transition of developing countries and provide support to accelerate
the transition in developing countries. Also, this decarbonisation must be done in a manner that addresses energy security and affordability considerations, especially in light of recent disruptions to the global energy markets
23 A slightly relaxed target compared to the requirement of 43% reduction by 2030 identified by the UNFCCC (https://unfccc.int/news/the-evidenceis-clear-the-time-for-action-is-now-we-can-halve-emissions-by-2030#:~:text=This%20assessment%20shows%20that%20limiting,by%20a%20
quarter%20by%202030.) is required due to the effects of the conflict in Europe
24 https://www.iea.org/news/global-co2-emissions-rebounded-to-their-highest-level-in-history-in-2021
25 IEA Net Zero by 2050
26 IRENA WETO 2022
27 UN, Tracking SDG 7, 2022
28 IHS Markitt Green Rules Scenario
29 IRENA WETO 2022 target of -3.1% as median value with relaxation considering the conflict in Europe
30 https://www.iea.org/reports/world-energy-model/policies#sustainable-development-scenario-assumptions
31 CCUS technology is evolving and requires support for R&D and scaling up manufacturing for cost reductions. Current estimates of cost are USD 1525/tCO2 for industrial processes with concentrated streams and USD 40-120/tCO2 for dilute streams.
32 https://www.iea.org/reports/ccus-in-clean-energy-transitions/ccus-in-the-transition-to-net-zero-emissions#abstract

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

SDGs IMPACTED

Recommendation 1 contributes to SDG1 – No poverty – since growth in green sectors is expected toyield additional economic output through avoided losses due to climate change and higher productivity.
Also, by ensuring healthier ecosystems during the energy transition, ecosystem services essential to lifeand human well-being will be provided to communities and residents, thereby contributing to SDG3 –Good health and well-being.
Additionally, Recommendation 1 also furthers SDG7 – Affordable and clean energy – through efficiency
measures and transitioning to cleaner primary and secondary energy sources which are fundamental tosustainable energy use.
Furthermore, Recommendation 1 promotes SDG9 – Industry innovation and infrastructure – by suggesting
significant investment in grid infrastructure to safely integrate a higher proportion of renewable energy
and climate tech innovation
Finally, energy transition to sustainable energy use is fundamental to addressing global warming andclimate change. Recommendation 1 contributes to SDG13 – Climate action – by advocating different
ways for the transition to take place across sectors.

RELEVANT G20 INDONESIA PRESIDENCY PRINCIPLE

Recommendation 1 contributes to addressing G20 Indonesia's key priorities, digital transformation,and sustainable energy transition.
The pace-up of energy efficiency involves digitalizing buildings and industries, thus, promoting the
adoption of digital technologies and shifting towards more efficient technologies.

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Moreover, accelerating renewables deployment and phasing-down coal powerplants to reduce carbon
emissions, including in hard-to-abate sectors, suggest that energy transition should address all sectors
to reduce the environmental impact and achieve long-term decarbonization.
Finally, the support of climate technology innovation to mitigate climate change in the long term
represents a critical driver to achieving sustainable energy transition.

15

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCECONTEXTEXHIBIT 1 | GLOBAL PRIMARY ENERGY CONSUMPTION (PEC)

Source: British Petroleum, Statistical Review of World Energy (2021), PwC Analysis

Energy input is critical to all economic activity, and significant economic growth since 2000 has beenenabled by expanded primary energy supply and consumption. Total energy consumption grew by
47% over the period 2000-2019. The economic impact of the COVID-19 pandemic saw a reduction
in total primary energy consumption from 582 exajoule (EJ) in 2019 to 557 EJ in 2020, but withrelaxation of restrictions and pick-up in economic activity, energy consumption has recovered and is
expected to increase by 4.6% in 202133. Reflecting the trend since 2000, almost 70% of the projected
increase in global energy demand is in emerging markets and developing economies, where demandis set to rise to 3.4% above 2019 levels, whereas in advanced economies it is on course to be 3%
below pre-Covid levels34.
EXHIBIT 2 | G20 - ENERGY CONSUMPTION & FUEL MIX

Source: British Petroleum, Statistical Review of World Energy (2021), PwC Analysis

33 IEA, Global Energy Review 2021, 2021
34 IEA, Global Energy Review 2021, 2021

15

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEThe need for continuing economic growth in the developing world to address unfulfilled portions of
the development agenda will continue to drive energy consumption growth. The key requirements
to address the climate change challenge at the same time are acceleration of (a) economy-wide
energy efficiency gains, (b) transition from fossil fuels to renewable energy and other sustainableprimary energy sources, and (c) climate-technology innovation, all supported by global cooperation
between developed and developing countries, and enhanced quantum, predictability, and ease offinancing flows to the developing world.

However, the decarbonisation deficit continues to grow with each passing year that action lags what
is required. According to the latest estimates35, the annual average reduction in carbon intensity ofthe economy needs to increase by five times to keep the Paris Agreement and Glasgow Climate Pactlimits within reach.
EXHIBIT 3 | THE GLOBAL DECARBONISATION DEFICIT CONTINUES TO GROW

Source: PwC, Code Red - Asia Pacific’s Time to Go Green (2021), PwC Analysis

Key highlights from the International Energy Agency’s (IEA’s) Global Energy Review 2021 also makeclear that the pace of the transition needs to be accelerated immediately, with specific focus on
the developing world, to ensure that peak emissions is achieved as soon as possible, and ideallyby 2030, to remain true to the Paris Agreement target of limiting global average temperature rise towithin Paris Agreement and Glasgow Climate Pact targets.

35 https://www.pwc.com/gx/en/asia-pacific/net-zero/asia-pacific-code-red-to-go-green.pdf

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Policy Action 1.1 Enhance the pace of energy efficiency improvement across the transport,
buildings, and industrial sectors
Executive Summary
G20 members should moderate the increase in energy usage with efficient technologies, fuelswitching, and sustainable socio-economic behaviour. These improve energy intensity while reaping
economic benefits in industrial, commercial, and residential sectors (including transportation,buildings, and cities). Policy action aims to push for clear energy efficiency pathways, programs,
mandates, incentives, infrastructure development, and global cooperation.

Background and Context
Energy efficiency is one of the key pillars of decarbonization as a critical contributor toward net zero
emission targets. Globally, our energy efficiency improved by an estimated 13% between 2000 and201736. Global energy use in 2017 would have been 12% higher if unabated, according to numerous
studies36. For example, the advent of cryptocurrencies has increased energy consumption, with
Bitcoin mining exceeding the energy consumption of some countries37.

36 IEA, Multiple Benefits of Energy Efficiency Savings, 2021
37 https://www.nytimes.com/interactive/2021/09/03/climate/bitcoin-carbon-footprint-electricity.html, May 2022

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEEXHIBIT 4 | ENERGY-RELATED GHG EMISSIONS, WITH AND WITHOUT EFFICIENCY, 2000-2017(LEFT) AND 2000-2040 (RIGHT)

Source: IEA, Net Zero by 2050. A Roadmap for the Global Energy Sector (2021)

In addition, cost-effective energy efficiency measures can have a positive macroeconomic impact andcatalyse economic productivity. The higher the energy efficiency in delivering various services andactivities, the more resources can be freed up for other value-adding activities. Estimates measure
the positive impact of energy efficiency, directly and indirectly, on GDP, where a 2% increase is
expected when an ambitious action plan for energy efficiency is estimated in 2030, compared to the2007 baseline38. Energy efficiency is also expected to create jobs through newly acquired skillsets
and green jobs, with the EU’s “Eco-Design Directive” projects expected to create 0.8 million jobs39.

While energy intensity, a key energy efficiency measure, has improved by 1.3% annually over the
past five years, it still falls below the 4% prescribed in the Net Zero Emissions by 2050 Scenario over2020-203040. Over the next decade, around 80% of additional energy efficiency gains will result inoverall net cost savings to consumers after accounting for the initial cost of measures and lower
operating costs40. This will help increase affordability and mitigate price volatility.

Levers for Action
Archetypes for Energy Efficiency Actions
From the latest IEA estimates, we can save almost 90% (~300 EJ) of additional energy demand by
2050 compared to business as usual41. This is driven by adopting energy-efficient technologies,
behaviour change, electrification, and fuel switch measures across sectors, where efficiency andbehaviour measures cover >50% of the potential savings41.

38
39
40
41

IEA, Multiple Benefits of Energy Efficiency, Economic Benefits, 2021
EC Europa, Ecodesign Impact Accounting, 2016
IEA, Energy Efficiency, 2021
IEA, Net Zero by 2050, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEEXHIBIT 5 | TOTAL FINAL ENERGY CONSUMPTION AVOIDED BY ENERGY EFFICIENCY

Source: IEA, Net Zero by 2050. A Roadmap for the Global Energy Sector (2021)

1.

Energy efficiency technologies: Emerging technologies accelerating industrial and consumer
energy consumption are imperative to driving efficiency. For example, appliance modernizationand energy-saving components could significantly reduce unnecessary energy demand. With
the adoption of AI and machine learning under Industry 4.0, all sectors can optimize their energy
inputs and reduce energy input costs.

Digital technologies are crucial in ensuring energy efficiency with the stock of connected
devices expected to reach 9 billion in 202140. Most of these are measuring devices, like sensors
and smart meters, with other devices achieving market take-off more recently.
o

For industry: Improvement and modernization of energy-consuming machineries andappliances can provide significant savings. Moreover, industrial usage of sustainable
materials, designed to reduce energy consumption and resilient to climate change, is criticalto accelerating decarbonization goals.

oFor buildings/households: Although the construction sector is a significant
contributor to global energy consumption and related emissions, the renovation
rate of existing buildings is <1%42. Efficient energy usages include applying
zero-carbon-ready building standards & renovations and using energy efficient
appliances within buildings. Technologies such as Internet of Things (IoT) cananalyse data to optimize resource consumption and encourage behaviour changes43.
Such technologies include efficient hot water systems, improved air conditioning systems,
heat pumps, and other efficient equipment connected with building energy systems.
Building efficiency technologies and systems can save energy by 20-30%, mostly from HVAC

42 World Green Building Council, From Thousands to Billions, 2017
43 IEA, Net Zero by 2050, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE(Heating, Ventilation, and Air Conditioning) improvements44. Replacing heating & coolingequipment with higher efficiency equipment could also reduce energy use by 50% for electricheating and cooling systems and 10% for gas furnace heating systems44. Air conditioning
technologies include evaporative cooling technologies or smart thermostats45.
Furthermore, cooling can be developed within a network, on a district basis, allowing themto leverage on the cooling needs of a given district and provide a more efficient system interms of consumption and GHG emissions46,47. Machine learning can also reduce energy
used for cooling in data centres by ~40%48.
o2.

For transport: Manufacturers’ continuous modernization of Internal Combustion Engine(ICE) vehicles will further improve engine efficiency. Increasing fuel efficiency standards
for all vehicle types is important. 80% of passenger cars on the road in 2030 will still be
ICE vehicles even as Europe has proposed to phase-out ICE vehicles by 203543,49. Due tocargo requirements and lower fuel economy, medium- and heavy-duty vehicles are lessefficient than other highway transportation modes. Advances in fuel economy include
utilizing alternative freight modes like rail and waterways and alternative fuels in highly
efficient engines (redirecting energy waste to productive energy use with a wide variety of
applications). Additionally, slow steaming and wind assistance technologies can increaseenergy efficiency in the maritime sector. In contrast, fuel efficiency technologies forairframes and engines and operational improvements such as air traffic management canincrease energy efficiency in the aviation sector.

Behaviour changes and action: Behavioural changes in the energy sector can be achieved withactive and willing participation across all sectors.
oFor industry: Employees’ active participation in energy savings through clear Standard
Operating Procedures (SOP) can change energy usage behaviour. This can be applied
through energy management systems that monitor energy usage and behaviour. Process
improvements can also reduce energy consumption by 25% through recurring energy audits
and efficiency gains50.

o

For buildings/households: Societal choices are essential for a sustainable energy system.
This includes reducing wasteful energy consumption (e.g., turning off lights and fans whenleaving premises) through household digital solutions such as IoT to automate energy
efficient behaviours (e.g., timers, digital reminders).

o

For transport: Energy efficient transport habits, such as using public rail or roadtransportation, carpooling with a ride-sharing app, eco-driving mode, cycling and walking,are estimated to reduce emissions by ~55%43.

44 https://rpsc.energy.gov/tech-solutions/hvac#:~:text=Innovations%20in%20HVAC-,High%20Efficiency%20HVAC%20Equipment,Department%20
of%20Energy%27s%20eeCompass%20guide, Apr 2022
45 https://srmi.biz/energy-saving-tips/energy-efficient-air-conditioning-cooling-cost/evaporative-cooler-savings/, Apr 2022
46 https://www.districtenergyinitiative.org, Apr 2022
47 https://www.emsd.gov.hk/energyland/en/building/district_cooling_sys/dcs_benefits.html, June 2022
48 https://www.deepmind.com/blog/deepmind-ai-reduces-google-data-centre-cooling-bill-by-40, May 2022
49 S&P Global, EU set to sideline ICE vehicles by 2035 with tougher car emissions proposal, 2021
50 IRENA, Global Renewables Outlook: Energy Transformation 2050, 202020

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3.

Electricity / Electrification: Direct electrification, especially in the transport sector, is essential
to moderate energy usage. This includes switching from non-electric to electrical appliances,which tend to have a higher energy conversion rate.
o

For industry: Electrifying heavy machineries and equipment can reduce operating costs
by >$30 billion due to higher energy efficiency51. For example, direct reduction electric arc
furnace production emits 0.7 t CO2 per ton of steel, less than half the current best available
conventional production emits, when the electricity used is 100% renewable52.

o

For buildings/households: Energy usage for electrical appliances (e.g., electrical furnaces,
electric boilers) is on average two to four times more efficient than non-electric heating
systems53.

o

For transport: Shifting from ICE vehicles to EVs which offtake power from clean energy
sources, represents a viable decarbonization lever. The switch can increase the fuel-to-wheel
ratio significantly, with fuel efficiency of 12-30% increasing to over 77%54. Furthermore, EVs also
emit less heat and noise, improving air quality, reducing health risk, and improving liveability.

EV’s GHG emission reduction depends on the proportion of renewable energy in the mix and thecarbon lifecycle across its value chain. If utilizing 100% renewable energy sources and addressing
the carbon emission throughout the lifecycle, EVs can emit 70% less GHG emissions than ICE55
and do not generate emissions from fuel consumption on the road in general54. Efficient ICE,
like Hybrid EV (HEV), when combined with low-carbon fuels, like renewable fuels; the GHG
reduction potential can be high. Transport policies should focus on reducing the overall lifecycle
emission.
To accommodate timely EV take-up and realize spill-over socio-economic benefits from EV
adoption, enablers are required to overcome barriers to consumer adoption, capture industry
growth opportunities, and safeguard against downside risks. The greening of the power mix also
needs to be pursued in parallel to maximize the benefits of decarbonization.

4.

Other fuel switch: Another key driver of emissions is fuel inputs. Switching fuel consumption
to alternatives like hydrogen-related fuels, bioenergy, solar thermal, geothermal or district heatshould be encouraged. For example, with improved commercial viability, biomethane produced
from upgrades of Palm Oil Mill Effluent (POME) biogas facilities can provide an alternative
low carbon source to decarbonize natural gas used in the industry. This can be enforced via
government programs such as mandating the use of sustainable and economical biofuel.

51 https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/harnessing-momentum-for-electrification-in-heavy-machinery-and-equipment, Apr 2022
52 Industrial Efficiency Technology Database, Electric Arc Furnace, 2021
53 IRENA, Global Renewables Outlook: Energy transformation 2050, 2020
54 ICCT, A Global Comparison of the Life-cycle of Greenhouse Gas Emissions of Combustion Engine and Electric Passenger Cars, 2021
55 The Environmental Benefits of Electric Vehicles as a Function of Renewable Energy (harvard.edu), Apr 2022

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEKey Challenges and Enablers for Energy Efficiency
There are various challenges to adopting energy-efficient practices across industries, consumers,
and transport sectors. This includes an unclear national plan on energy efficiency, lack of awareness,wide knowledge gaps in implementing energy efficiency initiatives, lack of financing for relatively
unknown energy efficiency projects, and lack of institutional capacity in national energy efficiency
planning. Some key lessons learned from successful energy efficiency programs include:oClear roadmap of energy efficiency programs, usually government-led (e.g., national anddistrict-level energy efficiency programs): To ensure accelerated and timely implementation,energy and electrical efficiency saving targets with specific initiatives and tracking methodologies
are required. For example, Industries and businesses could implement large scale power
management systems. More than 120 countries have implemented mandatory standards andlabels for key appliances, helping to halve the energy consumption of major appliances incountries with the longest-running energy efficiency initiatives56. The appliances include air
conditioners, refrigerators, lighting, televisions, washing machines, and cooking appliances.

EXHIBIT 6 | GOVERNMENT-LED ENERGY EFFICIENCY INITIATIVES IMPACTS
o

Source: BCG & WWF, Net Zero Pathway (2021), BCG AnalysisoGreater awareness of standards, and guidelines for implementation and knowledge ofenergy efficiencies, including for industrial, transport, buildings, and household sectors, forexample through enhanced energy efficient labelling on products57. Additionally, guidelines
by authorities on recommended building temperatures for commercial buildings andshopping centres can also encourage energy saving behaviour. Other guidelines include
standards for industrial and transportation energy usage such as the Euro emission standards.

56 IEA, A call to action on efficient and smart appliances, 2021
57 Science Direct, How to make energy efficiency labels more effective: Insights from discrete choice experiments in Ghana and the Philippines, 2022

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEo

Strong regulatory support and incentives to accelerate technology adoption. Financial/fiscal incentives can include grants or tax incentives, performance-based grants,
concessional loans, and higher maximum loan amounts. Non-financial/non-fiscal incentives
can include simplified approval processes for energy efficient appliances and machinery,
simplified importing of efficient products, and support programs for efficient appliances. These
can catalyse energy efficient ecosystems and a case-by-case approach should be consideredbased on each country’s resources and needs.

oWidespread & enabled ecosystem and governance (within and outside the country’s ecosystem
in private and public sectors) includes nurturing energy efficient ecosystems for customers,
business owners, and operators. Scaling up and nurturing ESCOs (Energy Service Companies)that provide services to reduce energy usage is imperative to advance energy efficiency initiatives.
For example, in a developing country, a government led ESCO has conducted programmes that
resulted in over 50,000 GWh of annual electricity savings, created jobs, and boosted living
standards58. ESCOs help consumers to identify, finance, and implement projects, reducing theburden of upfront capital expenditures and facilitating access to commercial financing. IEA
estimates that ESCO projects deliver average energy savings of more >25%58. Additionally,building strong awareness of developments in energy efficient technologies through ESCOs
will be essential for the timely scale-up of commercial energy efficiency technology solutions.

Specifically, to accommodate timely EV take-up and realize spill over socio-economic benefits
from EV adoption, enablers that overcome barriers to consumer adoption, capture industry
growth opportunities, and safeguard against downside risks will be required59:o

The lack of charging infrastructure is a significant barrier. The timely building of charging
infrastructure networks, a right balance of charger types, proper distribution across highways
and major road arteries, and an optimized network of charge points at homes and workplaces,is critical. The public sector needs to establish a base infrastructure before investments can be
attractive to private investors. Over time, transition to public-private partnerships and eventually
private sector infrastructure buildouts will be needed to scale charging infrastructure acrosscountries sustainably. Policies and regulations for charging infrastructure interoperability, EV
data usage, platforms, and safety standards that safeguard consumer interests will also be
required.

oTimely build-up of local EV manufacturing and supply chain capabilities, workforce
reskilling for EV-specific requirements, and investments to ensure fit-for-purpose facilities for EV
manufacturing will accelerate EV adoption. Developing a strong domestic EV manufacturing andmaintenance hub can also reduce EV costs for consumers and mitigate adverse trade impacts froman EV transition. Additionally, mandating the EV industry to provide and publicize their maintenancefacilities, on-site or home service, will support buyers’ anxiety about lacking maintenanceaccess. Supportive supply-side policies and financial/fiscal incentives will be needed to
grow domestic capabilities in the supply chain for EV manufacturing competitiveness.

58 IEA, Energy Service Companies, ESCOs, 2021
59 BCG & WWF, Net Zero Pathways, 2021

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Leveraging adjacent industries like the electrical and electronics sector and building new
capabilities at a pace through international partnerships and technology transfer will be needed
to capture industry growth opportunities in an increasingly competitive market.
oAdvanced planning to mitigate key downside risks will be required for the EV transition. The timely
decarbonization of the power grid and ensuring sustainable end-to-end supply chains help
ensure that EV demand avoids adverse impacts. This includes advocating for sustainable socialand environmental upstream practices in extractive industries for EV production, including
battery manufacturing. Also, ensuring strong frameworks for EV component recycling or secondlife use and sustainable waste disposal will reduce the environmental impact of the EV cradleto-grave cycle.

oAccommodating higher EV uptakes should be balanced by pairing EVs’ electricity demandwith renewable energy. Several approaches, such as: offering various charging cost models,
shifting charging time when there is an excess of electricity, and coupling on-site EV charging
stations with on-site renewables, could match renewable energy with EV charging60.

Sub-Policy Actions
Considering these findings, we propose for G20 countries to take actions related to energy efficiency
efforts through:1.

Develop clear government pathways, programs, and mandates related to energy efficiency.
G20 countries must activate programs and mandates to enforce end-to-end energy efficiency
priorities across transport, building/household, and industrial sectors to ensure accelerated,coherent, and structured acceleration of energy efficiency. This can be done through nationalenergy-efficiency plans and programs, such as energy audits, supports for businesses orbuildings, or awareness-building programs.

2.

Scale energy efficiency activities and technology up through financial/fiscal and nonfinancial/non-fiscal incentives.
Financial/fiscal and non-financial/non-fiscal incentives are required to nurture the rightcustomer environment and business activities. These incentives can include grants, a simplified
import process for energy-efficient products, or other forms.

3.

Scale energy efficiency activities and technology up through financial/fiscal and nonfinancial/non-fiscal incentives.
Financial/fiscal and non-financial/non-fiscal incentives are required to nurture the rightcustomer environment and business activities. These incentives can include grants, a simplified
import process for energy-efficient products, or other forms.

60 World Resources Institute, Using Renewables for Electric Vehicle Demand, 201924

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

4.

Accelerate infrastructure development and access to energy efficiency, including EV
ecosystems.
Robust infrastructure, like charging networks, needs to be created to spearhead the adoptionof the right technologies, including EVs. This includes the proper build-out of charging
infrastructure networks through public-private partnerships.

5.

Catalyse and actively participate in cross-country and intra-country collaboration
initiatives to build an energy-efficient ecosystem.
There needs to be a robust ecosystem to accelerate energy efficiency by transferring knowledge,
sharing best practices, and conducting joint programs, like the Energy Efficiency Hub61. G20
countries should also build and support ESCOs to facilitate the implementation of energy
efficiency programs.

61 IEA, Energy Efficiency Hub, 2022

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Policy Action 1.2 Progressively reduce the carbon intensity of electricity by reducing emissions
from coal-fired generation and accelerating renewable energy deployment, according tonational circumstances
Executive Summary
Electricity demand growth in the developing world has expanded rapidly in support of economic
growth and has largely been supplied from coal-fired generation. In the developed world, electricity
demand growth has been moderate, and more importantly, has been supplied from a declining
proportion of coal-fired generation. At COP26, global agreement was reached on phasing down
unabated coal fired electricity generation. Analysis shows that coal-fired generation should fall by
80% by 2030 compared to 2010 levels, Organization for Economic Co-operation and Development(OECD) nations should completely end coal use by 2030 and all coal fired stations must be shut by
2040 at the latest to meet the objectives of the Paris Agreement62. However, given the urgency of
required action on emissions reduction, in the interim, the carbon intensity of coal-fired generationmust be reduced through biomass or ammonia co-firing and deployment of CCUS technology.
Developing countries will require support in terms of finance to accelerate retirement of unabatedcoal-fired generation, and in terms of capacity building and finance to accelerate the deploymentof renewable energy.

62 Based on the circumstances of individual nations, abated CFPPs might continue to be in use

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Background and Context
EXHIBIT 7 | G20 ELECTRICITY GENERATION

Source: British Petroleum, Statistical Review of World Energy (2021), PwC Analysis

Electricity generation in developed G20 countries has increased by less than 1000TWh (terawatthour) over the period 2000-2020, but in developing G20 countries it has increased more than
threefold from ca.4,000TWh in 2,000 to ca.12,700TWh in 2020, resulting in the share of G20
developing countries in global electricity generation rising from 26% to 47%.

The share of coal-fired generation in G20 developed countries has declined from 39% to 19%(ca.1,700TWh reduction), while in G20 developing countries, it has increased from 48% to 53%(ca.4,800TWh increase). During this period, the size of the global coal fleet has doubled to ca.2,050
GW (gigawatt) driven largely by unprecedented growth in capacity in China and India. A further
500GW is at various stages of development globally63. Together, the estimated lifetime CO2 emissions
from this pipeline and operational capacity is ca.278 GtCO2, representing 93% of the remaining
carbon budget of 300 GtCO2 associated with an 83% probability of limiting global warming to 1.5oC.

Over the same period, the share of renewable energy in electricity generation has risen in bothdeveloped and developing country groupings of the G20, from 2% to 17% and 1% to 10% respectively.
The bulk of the increase in the developing countries grouping is on account of China alone, which
accounts for 68% of total renewable energy generation in 2020 in developing countries of the G20, andtogether with India (12%) and Brazil (9.5%) accounted for 90% of total renewable energy generationin the developing countries grouping. The transition to renewable sources-based generation needs
to be accelerated across the board, but especially in the other developing member countries of theG20 grouping itself, since the bulk of electricity demand growth going forward is expected to befrom the developing countries of the G20.

63 Global Coal Plant Tracker, Global Energy Monitor, Feb 2022

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Reflecting the concern with the carbon intensity of coal-fired generation and the emissions impact
on global warming and climate change, several countries, subnational jurisdictions, and companies
have signed on to the pledge to accelerate the transition away from unabated coal power generationand scale up the deployment of clean power to accelerate the energy transition by making clean
power the most affordable and accessible option globally. One of the key pledges is to rapidly scale
up technologies and policies in this decade to achieve a transition away from unabated coal power
generation in the 2030s for major economies and in the 2040s globally.

In line with this commitment and keeping in mind the urgency of action to address global warming
and climate change, during the interim period prior to retiring and decommissioning operating
plants that remain unabated, carbon emissions from coal-fired generation will have to be reduced
through multiple pathways – co-firing biomass / ammonia, deploying CCUS for existing capacity,and planning for accelerated retirement of old and inefficient coal fired generation plants. However,each country must be able to consider its best pathway, within the overall framework of the Paris
Agreement.
EXHIBIT 8 | CHEAPEST ENERGY GENERATION TECHNOLOGY BY COUNTRY

Source: Bloomberg NEF, New Energy Outlook (2021)

At the same time, the ‘lost’ energy will have to be replaced by rapidly scaling up the deployment of
renewable source-based generation. The cost of new build renewable energy plants has reduced significantly
since 2010 driven by technological advancements, efficient manufacturing, availability of competitively
priced finance and growing competitive pressure in procurement of new capacity through auctions. This hastaken renewables past the first tipping point of being cheaper than new build fossil fuel capacity, and insome cases, past the second tipping point of being cheaper than operating fossil fuel capacity.
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Levers for Action
Biomass Co-firing
The value proposition of co-firing a coal power plant with biomass is that it reduces greenhouse gas
emissions, power generation has higher efficiency than in a pure biomass plant, and incremental
investment is significantly lower than for setting up a dedicated biomass power plant. The economic
feasibility of co-firing biomass depends largely on the delivered cost of an assured supply of
biomass of required quality. Ideally, biomass feedstock that is locally sourced from waste streams
from forestry, agriculture, pulp and paper, and sugar industries should be used to minimize cost andto de-risk fuel supply. Especially in cases where high-density processed biomass has to be sourced
from a wider area, long-distance transportation and logistics play an important role in economic
viability of co-firing. Especially in developing countries, the use of waste streams from agriculture
and forestry creates additional value to producers and potentially additional jobs.

Biomass co-firing has enormous potential for reducing CO2 emissions as biomass can replace
between 20% and 50% of coal. Biomass co-firing can be considered as a transition option towards acompletely carbon-free power sector.

Ammonia Co-firing
Ammonia is a potential energy carrier for power generation, which can play the role of decarbonizing
generation from coal fired generation in the interim period to full retirement, provided the productionof ammonia is decarbonized. Currently, the production of ammonia primarily uses hydrocarbons
as feedstock to produce hydrogen which is then converted into ammonia. This produces ‘brown
ammonia’, in a highly energy intensive process requiring ca.8MWh per ton of ammonia. Current
annual production of ca. 176 Mt/yr consumes ca. 1.8% of global energy output each year andproduces ca. 500 MtCO2/yr. The bulk of energy consumption (ca. 80%) happens in steam methane
reformation of the natural gas feedstock and the production of hydrogen is responsible for ca. 90%
of CO2 emissions.

Decarbonising the production of hydrogen by applying carbon capture, utilisation, and storage(“CCUS”) technology to energy and process emissions, using renewable energy for SMR energy
needs, or hydrogen production using electrolysis driven by renewable energy will be critical toproducing decarbonisation gains.

Carbon Capture, Utilisation and Storage (CCUS)
Studies have shown the importance of CCUS for deep mitigation pathways based on its multiple roles
to limit fossil-fuel emissions in electricity generation, liquids production, and industry applications
along with the projected ability to remove CO2 from the atmosphere when combined with bioenergy64.
64 https://www.ipcc.ch/sr15/chapter/chapter-2/, May 2022

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As of 2020, 21 commercial CCUS facilities with a total capacity of 40Mtpa CO2 are operating. The
cost of capturing CO2 from power stations has halved over the past decade and the next generationof capture technologies offer further reductions in cost. The lowest cost opportunities for CCS candeliver multi-million-ton CO2 abatement at a single facility, at a cost of less than USD20/ton65. The
deployment of CCUS plants as retrofits to coal fired power plants is likely to be an important partof the strategy for reducing carbon emissions from electricity generation, in the interim period toaccelerated retirement of unabated coal fired generation.

Currently, CCUS capacity is not being deployed at the required pace and scale due to uncertainty
regarding the position of CCUS in national plans for net zero, absence of a sufficiently remunerative
revenue stream for emissions reductions, and high perceived risk because the industry is yet to reachmaturity.

Retirement of Unabated, Old, and Inefficient Plants
Coal fired electricity generation can have carbon intensities as high as 1.2t/MWh depending ontechnology, age, and coal quality. However, the demand for critical energy input to necessary
economic growth, cost competitiveness and in some cases, resource abundance, led to a significant
buildout in coal-based generation capacity since 2000, especially in Asia. Considering the continuing
need for electricity to power necessary economic growth, the growth in demand will have to be met
from low and no-carbon sources, and old and inefficient coal fired plants that remain unabated will
have to be retired before the end of their contractual or economic life. This follows from the Glasgow
Climate Pact which calls upon parties to accelerate the phasedown of unabated coal power.

Globally, the projected coal-fired capacity in 2030, if all proposed projects are realized andretirements are not accelerated further, is almost 2,400 GW, while the amount of capacity consistent
with the IPCC 1.5oC pathways is 1,100 GW. An additional 1,350 GW will therefore need to becancelled or retired to meet the emission budgets consistent with 1.5oC66. While market forces andcarbon pricing will provide commercial incentives to retire coal plants in developed countries withadvanced market structures, most developing country markets operate based on long term PPAs
that commit utilities to payment streams well into the future. Accelerating the retirement of theseplants will require support from developed to developing countries to provide finance at scale toincentivise developers to surrender their PPAs, with capital recycling into renewable energy plants
at decommissioned sites or elsewhere.

Accelerate Deployment of Renewable Energy
Enhancing the perception of the risk-reward position of a jurisdiction is crucial to procuring
competitively priced renewable energy at scale. This is dependent on the institutional capacity and

65 Global CCS institute, Remove: Carbon capture and storage, 2020
66 Boom & Bust 2021, Green Energy Monitor, 2021

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structure, governance frameworks for power markets and related sectors, maturity and depth ofpower markets, and the private sector participation models possible. The strength of developed
markets across multiple vectors has allowed them to innovate as needed and use market mechanisms
to transition to renewable energy at scale. However, developing markets are often deficient in one ormore of these areas, reflected in higher costs for renewable energy-based generation. Broad basing
the transition will require global support on strengthening the capacity of developing countries
to deploy renewable energy at scale as a matter of commercial viability itself, rather than throughproviding subsidies. The improvement of developing country jurisdictions’ capacity to deploy
renewable energy at scale is an action that must be initiated immediately, considering that it willtake time to show results, due to the complex nature of changes required.

In the short term, the creation of bilateral markets for renewable energy will present a business
opportunity that can be tapped to increase deployment rapidly, which reduces the demand for
utility power from fossil fuel-based generation and creates interest in a jurisdiction’s market. It also
provides an opportunity for domestic companies to emerge across the value chain and contributeto economic growth and job creation. A key example is the rooftop solar market that has beencreated in Indonesia. Bilateral markets can also be created for utility-scale projects by allowing open
access to the grid but is a more complex market mechanism to operationalize from technical andcommercial perspectives.
The major renewable energy sources, solar and wind, are intermittent by their very nature. Thisposes a problem for securely operating electricity grids as renewable penetration increases, whichhave traditionally been managed by controlling generation to maintain supply-demand balanceand operate the grid securely to provide reliable power supply to consumers. Grid strengthening,enhanced operational processes and higher flexing of coal fired plants have been used to integrate
higher proportions of variable renewable energy (VRE), but going forward, the deployment at scaleof storage systems such as Battery Electric Storage Systems (BESS) and increased digitalization will
be required to address the challenges posed by VRE at scale. Global support on providing low-costfinancing for grid strengthening and BESS will be required to support the transition to renewableenergy in developing countries, at scale and at required pace, in an affordable manner that securesand maintains social and political support for the transition.

Sub-Policy Actions
1. On Biomass Co-firing:oWork towards setting up sustainably sourced biomass supply.

oIncentivise the logistics industry to deploy spare capacity towards creating an efficient
supply chain for biomass.

o

Deploy technology to ensure consistent supply of biomass that is of required quality.

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2. On Ammonia Co-firing:oAdopt sustainable (blue, green) ammonia co-firing in coal plants as a legitimate pathway for
decarbonizing electricity generation in primary energy constrained countries.

o

Accelerate sharing knowledge and harmonising standards for equipment, safety andcertifying emissions.

oEarmark a portion of carbon-pricing revenue (inefficient fossil fuel subsidy reform, carbon tax,
emission permits auction) for enhanced Research & Development (R&D) in the production,
storage and transportation of green hydrogen (one of the key low carbon solutions) with theaim of reducing costs.

3. On Carbon Capture, Utilisation and Storage (CCUS):oExplicitly adopt CCUS as a part of national strategies for net zero.

oEstablish a carbon price that provides adequate revenues to CCUS plants.

o

Use a portion of carbon pricing revenue to provide a pool of concessional capital for grantand blended finance (low-cost equity and debt, junior debt, extended tenor debt) for CCUS
deployment in developing countries.

4. On retirement of unabated, old, and inefficient plants:o

Use a portion of carbon pricing (inefficient fossil fuel subsidy reform, carbon tax and carbon
credit) revenue to fund a pool of concessional capital for blended finance to accelerate
retirement of unabated, old, and inefficient coal plants in developing countries.

o

Use a portion of carbon-pricing (inefficient fossil fuel subsidy reform, carbon tax and carbon
credit) revenue to fund a pool of capital grants for ensuring a just transition for communities
and workers affected by the transition to secure and maintain social and political acceptanceof transition from coal in developing countries.

5. On accelerating deployment of renewable energy:oAccelerate and intensify the capacity building of developing countries’ institutional capacity,
governance frameworks, market structures, and models for private sector participation in
renewable energy generation.

oEncourage the creation of non-utility markets for renewable energy to build early momentum.

oUse a portion of carbon pricing revenue to fund a pool of concessional capital for blended
finance to accelerate deployment of BESS and strengthen grids.

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Policy Action 1.3 Accelerate the mitigation of carbon emissions from hard-to-abate sectors
Executive Summary
G20 members should accelerate the mitigation of carbon emissions from the hard-to-abate sectorsof their economies. To achieve this, in the short-term, G20 members can look to nature-based
solutions (NbS) and adoption of circular economy practices. To accelerate mitigation of carbon
emissions in the medium term, governments can look toward increasing adoption of blue hydrogenand biofuels, as low-carbon fuels to phase-down the use of fossil fuel. Renewable energy and CCUS
are also expected to play an important role in both production of carbon free fuels and in direct
mitigation of emissions from industrial processes. Finally, in the long-term, decarbonization can beachieved through the sustained adoption of biofuels and green hydrogen. This can be carried out
through incentivizing the industry’s use of alternative fuels, supporting innovation to reduce endto-end costs, and devising clear frameworks for the roles of the alternative fuels in each of the G20
members’ economies.

Background and Context
Energy Consumption
Energy consumption has tended to rise in proportion to economic activity. Overall, global energy
demand is continuing to grow, with supply still overwhelmingly reliant on fossil fuels, which accountfor ~84% of total consumption, resulting in energy use accounting for ~73% of greenhouse gas
emissions. Exhibit 9 shows current and projected future electricity generation by source. A prominent
source of the greenhouse gas emissions, after coal-fired generation, is the generation from naturalgas, which currently accounts for 24% of global electricity generation. While some countries arestarting to transition away from fossil fuels, most have been developed countries with the necessary33

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infrastructure and fiscal capacity to invest in the transition.67 In particular, the hard-to-abate
sectors, including steel, cement, petrochemicals, cement, and fertilisers are responsible for roughly
22 percent of global CO2 emissions. This figure is projected to grow as demand for basic materials
develops, highlighting the need for the accelerated mitigation of carbon emissions of the hard-toabate sectors68.
EXHIBIT 9 | GLOBAL NET ELECTRICITY GENERATION BY SOURCE

Source: International Energy Outlook, US EIA (2021)

The Role of the Circular Economy
One promising practice that is expected to help reduce carbon emissions from four major industry
sectors (plastics, steel, aluminium, and cement) by up to 40% globally by 2050 is the implementationof a more circular economy. This includes two major developments: (i) improving the use of existing
stocks of materials through enhanced reuse and recycling, and (ii) reduced materials requirementsfor products across their value chains through improved product design, extended product lifetimes,
and the introduction of new business models that reduce demand for additional products69.

In addition, to accelerate the reduction of carbon emissions from the hard-to-abate sectors,
electrification using renewable and low-carbon electricity sources where possible is key. By
mapping out and gradually adopting processes that can be electrified using renewable and lowcarbon electricity sources, the immediate consumption of fossil fuels can be reduced.

Levers for Action
The decarbonization of energy consumption, which is currently dominated by fossil fuels, canbe achieved by firstly electrifying the need for energy where possible (e.g., electrification of low
and medium heat industrial applications) using renewable and low-carbon sources, and further
accelerating the transition to low-carbon fuel sources such as biofuels and blue hydrogen. Blue

67 PwC Strategy&, The Road to Responsible Growth: How to navigate the energy transition: aligning growth with purpose and decarbonisation, 2022
68 Bataille, C.G.F., Physical and Policy Pathways to Net-Zero Emissions Industry, WIREs Climate Change, 201969 Energy Transitions Commission, Mission Possible: Reaching Net-Zero Carbon Emissions From Harder-to-Abate Sectors by Mid-Century, 201834

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hydrogen can be produced at an increasing rate in the short and medium term, to aid the shift
to fully green hydrogen in the medium and long term. Additionally, CCUS and carbon offset
solutions, including but not limited to NbS and carbon trading, will play a key role in the removal andcompensation of the remaining carbon emissions.

Biofuels as an Alternative Solution to Reduce Emissions from the Hard-to-abate Sectors
Biofuels have been a significant alternative fuel since their introduction, especially in transportationand industry. The US Energy Information Administration (EIA) categorises biofuels into four maincategories; ethanol which contributed to 82% of global biofuel consumption in 2021; biodiesel whichconstituted 12%; renewable diesel which accounted for 5%; and other biofuels including sustainableaviation fuel (SAF), renewable heating oil, and other emerging biofuels that are in various stages ofdevelopment which accounted for the remaining 6%.70 They have promise as a direct replacement
for fossil fuels or blending with fossil fuels to reduce overall emissions in uses such as for energy
generation, SAF, boilers, furnaces, etc., provided these uses can avoid long-term lock-in effects
and land use that displaces agriculture and forestry at the expense of intensive fuel dedicatedcultivations.71,72 For example, estimates based on early trials suggest that SAF could reduce carbon
emissions from flights by between 53% and 71%.

Several studies on drop-in biofuel technologies73 indicate that their production costs are higher thanfor petroleum-based fuels74. For palm-oil-based biofuel, these higher costs are mainly attributable
to high feedstock prices. In fact, the use of palm oil-based biofuel is going to be phased out in theEuropean Union (“EU”) by 2030, due to the deforestation required to produce the palm oil75. For othertypes of biofuels, meanwhile, the higher costs are due to more complex and expensive processing
equipment. Using waste products such as used cooking oil (UCO) as a feedstock could help reduce
production costs, although an effective collection mechanism would need to be devised.

Biofuels produced using waste as feedstock, such as crop residues and organic solid waste canpromote a circular economy. For this to work, it is imperative that G20 members improve their waste
management and collection processes. At present, the cost of biofuel production is in the range of€65 to €158/MWh for biomass feedstock-based production, and €48 to €104/MWh for wastebased production. This further illustrates the cost advantages of using waste feedstock76.

70 US Energy Information Agency (EIA), BIofuels explained, 2022
71 Lock-in effects refer to when the intensiveness of the current fossil-based energy system prevent, delay or prevent the transition to low-carbon alternatives.
72 PwC Strategy&, Sustainable Aviation Fuels: How to travel without emitting CO2?, 2019
73 Biofuels can be generally classified into oxygenated (biodiesel and bioethanol) biofuels and non-oxygenated (renewable diesel and biojet) or “drop-in”
biofuels. Due to their chemical composition, oxygenated biofuels are unable to substitute for petroleum without modifying the processing engine or
infrastructure, whereas drop-in biofuels are compatible with existing engines and infrastructure.
74 IEA Bioenergy, Drop-in Biofuels: the key role that co-processing will play in its production, 201975 European Parliament, Palm Oil: Economic and Environmental Impacts, 2020
76 IEA Bioenergy, Advanced Biofuels - Potential for Cost Reduction, 202035

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Hydrogen is Expected to Accelerate Energy Transition in the Medium and Long-term
In addition to biofuels, hydrogen is also expected to play a key role in the energy transition.
Hydrogen’s main use today is as industry feedstock for processes such as petroleum refining and the
production of methanol and ammonia. It is also increasingly being used in other industries, including
electronics, medicine, global logistics, energy storage, power, and transportation. Hydrogen’s
attractiveness is apparent in its lightweight, reactivity, high energy content per unit of mass, andsuitability for industrial scale production. Additionally, hydrogen is capable of being used without
the direct emission of air pollutants and greenhouse gasses and can be produced from multiple lowcarbon sources. Exhibit 10 highlights that a majority of hydrogen technologies are at the demand or
prototype stage in terms of maturity, highlighting the importance of a collective effort to help evolvethese technologies into mature technologies that are ready to be deployed in the medium and longterm futures.
EXHIBIT 10 | TECHNOLOGICAL READINESS OF HYDROGEN TECHNOLOGIES

Note: Technologies included are at large prototype or at a more advanced stage.

Source: IEA, Energy Technology Perspectives (2020)36

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEThe hard-to-abate sectors are a particular focus for hydrogen uptake, with many countries exploring
how hydrogen can help decarbonize hard-to-abate sectors. Other end-use applications are also
gaining traction, for instance the use of hydrogen for space heating, with research looking into
repurposing existing infrastructure (e.g. blending hydrogen with natural gas for use in power plants,
converting natural gas pipelines for hydrogen, repurposing boilers, etc.).

Countries with abundant and low-cost renewable resources are the most attractive production markets
for hydrogen. Green hydrogen production is currently more expensive than traditional processes,
being roughly twice as much as grey hydrogen. However, advances in electrolysis technology, thedecreasing costs of renewables, and increased economies of scale should significantly reduce its
production cost and make it an economically viable solution77, 78. Exhibit 11 shows a breakdown of
the evolving costs of the different types of hydrogen.
EXHIBIT 11 | HYDROGEN COSTS BY PRODUCTION TYPE

Source: International Energy Outlook, US EIA (2021)

The carbon emissions of hydrogen depend significantly on its method of production. In 2020, a highproportion of hydrogen was produced solely using natural gas or coal (grey hydrogen) and accounted
for 98% of global production; blue hydrogen produced from fossil fuels with CCUS79 accounted for~0.6%, while green hydrogen produced with renewable energy represented ~2%. Major hydro andgeothermal based renewable electricity generation is especially suited to the production of greenhydrogen due to its reliability. In addition to the barrier represented by the high production costs ofgreen and blue hydrogen slowing the shift to cleaner hydrogen, once hydrogen is produced, its low

77 Higher hydrogen production capacity is expected to reduce the production cost of hydrogen.
78 World Energy Council, EPRI, and PwC, Working Paper: Hydrogen Demand and Cost Dynamics, 2022
79 In the development process, it is imperative to use a CCUS technology that captures at least 90% of the emitted CO2 and has minimal methane leakage.

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density makes it relatively more difficult to transport and store than other fuels. Estimates suggestthat if hydrogen were entirely to replace natural gas in the global economy today, a significant
amount of more storage infrastructure would need to be built80. To tackle these problems, researchand development, along with public and private investments in hydrogen, will be crucial.

A promising solution to the emissions from high-carbon fuels is the use of synthetic fuels (also called
synfuels), which are artificially produced from a combination of renewable energy and captured
carbon. Synthetic fuels are chemically identical to fossil-based fuels, and hence can be used as acarbon-neutral alternative in existing fossil fuel-based infrastructure for use in sectors like aviation,
steelmaking, and transportation.

Sub-Policy Actions
We propose G20 countries accelerate the mitigation of carbon emissions from hard-to-abate sectors
in the following ways:
1.

Incentivizing the acceleration of the industry’s use of biofuels and green and blue hydrogen.
Much of the alternative-fuel market today is constrained by dependence on existing technologies
with higher capital costs compared to the capital costs associated with conventional fuels. The
attractiveness of developing biofuels and green and blue hydrogen projects could be increased
through fiscal support, including taxes, levies, tariffs, and subsidies. The incentives might
include ways of preventing future stranded costs and long-term lock-in effects. In addition, a
globally aligned hydrogen certification standard can help foster the further growth of hydrogen.

2.

Supporting innovation which will be vital for reducing the costs of production, storage,transportation and end-use of biofuels, green and blue hydrogen.
This could be realised through support between nations for collaboration, funding for researchand development, the provision of grants and the rolling out of projects (e.g. renewable energy
and CCUS development). It is also crucial that national governments set out clear targets foradvancing these alternative fuel technologies.

3.

Devising clear frameworks and targets for the role of biofuels and green and blue hydrogen.
Clear and long-term energy policies (including the financing framework for green investments)
with well-defined roles for biofuels, and green and blue hydrogen in each national energy
mix need to be developed and promoted. This will in turn help spark foreign and domestic
investment, further interest in these alternative fuels, and renewed international collaboration.

80 Bloomberg NEF, Hydrogen Economy Outlook: Key Messages, 202038

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Policy Action 1.4 Progressively enhance the quantum, predictability, and ease of financing
flows to developing countries to accelerate energy transition
Executive Summary
G20 countries should progressively enhance the quantum, predictability, and ease of financing
flows from developed countries to developing countries using existing bilateral funding platforms,
multilateral institutions, and Development Finance Institutions (“DFI”), while enhancing the overall
transparency of climate-related reporting. This joint effort should include the private sector byaligning its goals with climate risk and opportunity. This will require an ongoing collaboration
between the private and public sector. Transparent and comparable reporting of climate-specificfactors may be achieved through globally aligned sustainability reporting standards and assurance
that give relevant and credible information to investors and other stakeholders.

Background and Context
In clean energy transitions, availability of capital is vital. The ability to borrow and service a larger
share of debt and to ensure adequate risk-adjusted returns on investment for equity holders is criticalto attract investment and help shift capital allocations to clean energy. In 2021, emerging market anddeveloping economies accounted for only one-third of global investment and 20% of clean energy
investment81. In addition, energy investment in emerging and developing countries relies heavily on
public sources of finance, including state-owned enterprises.

81 IEA, Financing Clean Energy Transitions in Emerging and Developing Economies, 2021

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Many clean-energy technologies such as wind, solar Photo Voltaic (PV), and electric vehicles (EVs)have relatively high upfront investment requirements that are offset over time by lower operating
and fuel expenditures. The shift towards a more capital-intensive energy system means that keeping
financing costs low will be critical to accelerating energy transitions affordably. However, for the
moment, capital is significantly more expensive in developing economies than in developed countries.
Mobilising capital on a much larger scale will require a significant increase in the role of the private
sector, and an enhanced role for international and development finance institutions will be criticalto catalyse this investment. Although there are already existing climate finance commitments aiming
to channel $100 billion per year from developed to developing economies, it is yet to be realised
and access to developing countries tends to be limited. Accessing international capital markets canalso be difficult for many developing countries due to a lack of data on country-level climate risk
and vulnerability data, limited information services that can be used to guide investment decisionmaking, lack of clarity on the government’s capital investment gaps to achieve transition goals and/or on where private investment is needed, and low perceived or actual risk adjusted returns on
investment82.

Levers of Action
Establish Global Sustainability Reporting Standards
To address those issues, international investors with global investment portfolios are increasingly
calling for high quality, transparent, reliable, and comparable reporting by companies on climate
and other environmental, social and governance (ESG) matters. There is a need for a comprehensive
global baseline of sustainability-related disclosure standards that provides investors and othercapital market participants with information about companies’ risks and opportunities to help themmake informed decisions and be able to compare and contrast between different entities operating
in different jurisdictions.

The voluntary sustainability standard setters have made significant progress with convergence,
resulting in several key organisations folding into the International Financial Reporting Standards(IFRS) Foundation’s new International Sustainability Standards Board. Some geographies have beenrequiring specific sustainability reporting to improve the quality of climate information for user
decision making; however, there are still varying information requirements across jurisdictions withdifferent objectives and areas of focus. This leads to varying interpretations of the sustainabilityrelated performance of large corporations, and small and medium enterprises (SMEs). Investors andother stakeholders may struggle to identify sustainable financial products due to inconsistent, andoften voluntary, use of many different metrics and standards.

82 The World Bank Group and the Global Facility for Disaster Reduction and Recovery (GFDRR) - Enabling Private Investment In Climate Adaptation & Resilience, 2021

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Hence, comparable and consistent standards of sustainability reporting that encompass both generaland sector-specific metrics will allow businesses to build public trust through greater transparencyof their sustainability performance. These global reporting standards should consider Common but
Differentiated Responsibilities (CBDR) principles as formalized by the United Nations Framework
Convention on Climate Change (UNFCCC) and take into account respective capabilities.

Incentivize Green Investments
Specifically, for clean energy transitions, the action must be designed in a way that ensures energy
system resilience during the transition and avoids under-investment in specific sectors needed forregional economic growth and affordable energy access. Also, it should not only look at the risk ofincreasing emissions, but also the impact of emissions83 and climate change, especially on humans
and economies. Such actions that may support the clean energy transition include: NDC program,eliminating inefficient subsidies on fossil fuels and other carbon-intensive production, implementing
a carbon tax, and introducing a carbon cap-and-trade system.

Sub-Policy Actions
G20 countries should take actions to progressively enhance the quantum, predictability, and ease offinancing flows to developing countries in the following ways:
1.

Advance public policy to incentivise green investments.
In line with the Paris Climate Agreement, countries should collectively put in place policies that
impede high-carbon activity and emission growth. The Nationally Determined Contributions(NDC) program and the agreement of guidelines covering Internationally Transferred Mitigation
Outcomes (ITMOs), including the accounting method adopted to calculate NDC, could
be the initial step of future policy plans. Such a system can promote transparency, integrity,
and an integrated approach to understanding an individual country’s effort to reduce carbon
emissions. This would help with identifying the portion of international carbon activity thatneeds our attention the most. Although currently each country sets its own NDC targets toachieve, all parties involved should strive to progressively set more ambitious NDC targets anddemonstrate commitment to meet the specified goals and targets. A step towards a stricter andmore enforceable NDC could be considered to accelerate our collective goal towards net-zeroemissions.

The role and support of government at respective developing countries are also paramount.
Government in developing countries could utilize national policies that enhance capacitybuilding actions and creating a conducive environment for foreign investments and promote
shifts towards circular economy in developing countries. Some possible actions worth
exploring may include eliminating inefficient subsidies on fossil fuels and other carbon-

83 Saudi Aramco as Co-Chair considers the economic value of carbon to be an important factor in achieving emissions reductions, as reflected by the following article https://scceu.org/materials-transition-is-critical-for-a-net-zero-future/41

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intensive production, implementing a carbon tax, and introducing a carbon cap-and-tradesystem. In addition to enforcing consequences for carbon emissions, other policy instruments
should also be considered, such as reduced tariffs on importing the necessary technologies forgreen-energy projects and investment incentives, tax credits for companies or private investors
contributing towards green investments, or circular economy related activities.
Moreover, government should also collaborate with institutions such as ministry of finance andcentral bank to create a stable economic environment through sound economic and financial
policies, so that local financial institutions could facilitate the required financing flow in asafe and clear-regulated environment. Overall, policies should incentivise green investments,
unlock capital inflow from private sources, transform investors’ perception of high risk related toenvironmental investment, and not incentivise carbon-intensive economic activities.

2.

Enable global coordination through Common but Differentiated Responsibilities (CBDR)
and harmonisation of sustainable finance taxonomies.
CBDR is a principle of international environmental law establishing that all states are responsible
for addressing global environmental destruction yet not equally responsible. It considers thedifferent circumstances in each state. G20 countries could collectively agree on a target ofclimate finance to be mobilised from developed countries to developing countries. In achieving
the agreed target value, developed countries with higher financial capabilities should contributea higher portion than other developed countries that are not as wealthy. The annual fund collected
could then be budgeted to support the needs of developing countries to build facilities andgreen technologies.

Besides CBDR, harmonised sustainable finance taxonomies could also be adopted. It is usefultools available to all financial market participants to help identify sustainable assets, reducing
the costs of developing their own classifications. Harmonised sustainable finance taxonomies,
such as in the EU, are clarifying definitions, helping to ensure a level playing field, improving
consistency and may limit reputational risks from incomplete reporting. By identifying its green
activities, a company can diversify its investor base. A common approach to taxonomies could
also help companies to leverage the energy transition, inform their long-term business strategy
and support their financing requests. Harmonised sustainable finance taxonomies will support
G20 with establishing aligned policies, regulations, and standards and with articulating clear
plans, including the private sector’s specific responsibilities for complying with the necessary
requirements. Such policies/regulations/standards should also consider giving appropriate
incentives to help achieve the necessary market behaviour (e.g., through fair taxation).

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3.

Support the move to establish global sustainability reporting standards that give relevant
information to investors and other stakeholders.
B20 should support the International Sustainability Standards Board (ISSB) as the leading
effort to consolidate some of the main recognised standards into a baseline set of global
sustainability reporting standards. We also welcome the establishment of the G20 Sustainable
Finance Working Group (SFWG), and we endorse the G20 Sustainable Finance Roadmap andthe Synthesis Report.84

In general, sustainability reporting standards should cover governance, strategy, risks, andopportunities, as well as targets and metrics to measure performance against strategy andthe value created. Connectivity of financial and sustainability information is also important tounderstand. Standards should be designed to allow for third-party assurance of information toensure it can be relied on for decisions. In particular, sustainability reporting standards should
help company management teams, investors and other stakeholders to understand how priority
ESG topics are affecting the business or will affect it in future.

By setting comparable and consistent standards of sustainability reporting and assurance, itwill allow businesses to build public trust through greater transparency of their sustainability
performance. These comparable and consistent standards should encompass both general andsector-specific metrics that enable cross-comparison of businesses that are within identicalsectors. In the longer term, it will also be helpful to investors and broader audiences in thecontext of society demanding action to combat climate change and achieve the Sustainable
Development Goals (SDGs).

84 G20, G20 Rome Leaders’ Declaration 2021, 2021

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Policy Action 1.5 Support climate technology innovation by supporting start-ups, and research
universities with technology, financing, skilled manpower, knowledge & facilities sharing
Executive Summary
G20 countries should foster climate innovation to accelerate the pathway to Net Zero, while creating
economic value. This can be carried out through a combination of robust knowledge sharing activities,
ecosystem building, and financing efforts across developed and developing countries.

Background and Context
Technology and innovation play key roles in successfully delivering climate change mitigations.
Accelerating climate action and thriving to limit global average temperature rise to 1.5°C requiresa shifting mindset to view climate change as an opportunity. By promoting the development anddeployment of carbon-neutral technologies and business models that will keep global warming at
a maximum 1.5°C above pre-industrial levels, climate innovation connects 1.5°C compatibilities toorganizations’ advantage and value creation so that all stakeholders can reap the benefit equitably.
In addition, rapid technological developments, such as accelerating renewable energy technologies,
electric mobility, digital technologies, battery storage, and many other clean technologies, must be
made accessible and affordable for G20 developing countries.

Despite the improvements in climate technology, a technology gap exists for the world to achieve
Net Zero by 2050—approximately 20% to 30% of climate technologies required to achieve Net Zeroare not yet available. Moreover, for the 70% to 80% of technologies that are available, just over halfof them are technologies in early adoption where an increase in the pace of delivery is required.

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Parallelly, new business models and changes in policy will be required to maximize the rollout ofavailable technologies85.
EXHIBIT 12 | GLOBAL CLIMATE INNOVATION GAP TOWARDS NET ZERO

Source: BCG & WWF, Net Zero Pathway (2021), BCG Analysis

Levers for Action
Climate Innovation Areas
In order to successfully achieve Net Zero, G20 countries need to recognize the existing challenges
for each sector, including manufacturing, electricity, agriculture, transport, and buildings sectors, aswell as create targeted solutions in order to solve these challenges and mitigate carbon emissions.

Manufacturing, or “how we make things” is one key industry which must be addressed. It approximately
contributes to 31% of the total share of global emissions produced today86. The sector’s current
challenges include a fundamental resource-intensive operating model, which involves substantial
emissions of carbon dioxides. Clean electricity and production methods will provide a pivotal step
toward a more sustainable and low-intensity industry, with innovations to capture and store carbon
instead of emitting it, offering a more promising future for manufacturing.

Electricity is a key enabling industry, and the question of “how we plug in” will dictate much of our
future opportunities. The sector accounts for around 27% of the global emissions produced today86;
yet, electricity is still heavily generated from fossil fuels and other non-green technologies, whereas
global demand is projected to increase by 50% in 2050 at the same time86. This frames a dire need toestablish cleaner ways to generate, store, and utilize low-carbon electricity globally.

Agriculture, or “how we grow things” is another question for the future. The industry produces
19% of total global emissions produced today86. A significant challenge for food production is an
85 BCG & WWF, Net Zero Pathway, 2021
86 https://www.breakthroughenergy.org/our-challenge/the-grand-challenges, May 2022

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ever-increasing demand for meat and other resource-intensive products, making it difficult for theindustry to reduce its emissions. There is a real need to minimize resource consumption and waste
in current food production lifecycles while at the same time promoting new technologies to replacemeat and dairy products.

Transport, or “how we get around” will also dictate our future, with the industry contributing 16% of
the share of global emissions produced today86. The current challenge is a strong connection withthe current global transport ecosystem and fossil fuels, leading to projections that emissions will
increase by 50% by 204086. There is a pressing need to transform the end-to-end transport sector,
including electrification and movement towards low-carbon fuels for transport.
Buildings, and the question of “how we live” poses a final significant challenge. The industry
contributes around 7% share of global emissions produced today86. A significant challenge to carbon
emission exists when building and using the properties. With the total stock of properties expected
to double by 2060, there is an urgent need for greener materials, cleaner industrial processes, andways to build without emitting carbon86.

Catalysing Innovation with ‘Common but Differentiated Responsibilities’ Lens
As the engine for maturing climate ideas into reality, the climate technology gap should be an
opportunity for growth amongst G20 countries. Given the significant demand and global natureof climate change, collaborative climate breakthroughs made by government, corporates, orindividuals can also result in substantial financial and competitive advantage upsides. However,different countries will have different roles to play.

Through the lens of Common but Differentiated Responsibilities (CBDR), G20 countries areencouraged to work together, leveraging their different strengths to bridge the climate technology
gap. This reflects that different countries have different resources to tackle varied innovation models
across the climate innovation canvas87. For example, large industrial and developed nations can focus
on the need to invent and reboot new technologies, such as technologies for high-risk breakthroughapproaches like nuclear fusion and hydrogen fuels. These nations can also contribute their resources
to provide funding and ecosystem support for scaling up key technologies in the re-imagine and reengineer categories in developing countries.

On the other hand, exploring and funding the scale-up of existing technologies (re-imagine andre-engineer) could be better suited for developing countries, for example, focusing on scaling up
biofuel and developing new solutions such as mobility-as-a-service. This is because developing

87 BCG, Governments that Invest in Climate Innovation Invest in Growth, 201946

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countries face limited resources, lack of capabilities, and funding constraints that may limit theirhigh-risk technology innovation opportunities (invent and reboot). These efforts should be examinedon a case-by-case basis depending on a given country’s particular capabilities and resources.
EXHIBIT 13 | CLIMATE INNOVATION CANVAS

Source: BCG&InvestWWF,inNet
Zero Pathway(2021),
Analysis
Source: BCG, Governments
that
ClimateInnovation
InvestBCG
in Growth(2019), BCG Analysis

Enabling Programs to Encourage and Promote Innovations for Countries
Clear national mission pathways and priorities would alleviate the lack of a coherent, concentrated,
mission-based climate innovation ecosystem. Fragmented markets and ecosystems with a limited
pool of entrepreneurs and leaders without clear nationwide ambitions and priorities are seen to
limit the potential of climate change innovation. The government could adopt a mission-driven
approach to climate innovation, assessing the impact of change (including financial and climate),
coherency with other policies or regulatory direction, and market attractiveness (including looking
at technology maturity, funding gaps, and general barriers).

Strong funding support across the innovation lifecycle, including through cross-collaboration
with multiple entities and countries, would address gaps in funding. This is especially crucial in
the early stages of the funding lifecycle with different multi-institutional collaborations. Dedicatedclimate innovation funding entities in developed countries are seen to successfully plug market gaps
in funding and spark participation of private funds75.

Strong innovation and knowledge building by leveraging the combined strengths of academia,
NGOs, and private and public sectors would reduce the capability gap for technology adoption
and innovation. Strong knowledge building through fostering collaboration, open data access,and knowledge accumulation is imperative amongst G20 countries, including agile partnerships
between developed and developing countries. The creation of hubs for climate innovation facilitatesinteractions required to agglomerate growth and innovation breakthroughs.

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Another important aspect that G20 countries should take note of is the ability to find strong test
beds for innovation or technology pilots and deployments in real-life settings. Common challenges,
which inhibit the availability of test beds for innovation, include the inconvenience and disruption
to entities’ (either business or governmental) routines with pilots, limited incentives for end-users
or asset owners to support technology pilots, as well as the potential risks to operations or plants
with the adoption of new technologies. Addressing the challenges includes partnerships between
academia, private-sector innovators, and industry associations as the key point of contact88.

Sub-Policy Actions
Therefore, we propose for G20 countries to take actions related to climate innovation through:1.

Set up clear government pathways & focus, backed by establishment of climate innovation
centres.
Act as first-mover and push towards coherent, mission-based climate innovation action plans.
It can be achieved through a coherent roadmap, program, and initiatives related to climate
innovation, and through establishing climate innovation centres.

2.

Lay out policies, regulations, and incentives for climate innovation.
Align with mission pathways to entice climate innovation faster. This can be achieved throughconcrete policy and regulatory instruments as well as inventive structures to mitigate financial
and risk barriers.

3.

Support funding across all stages of climate innovation.
Fill gaps in funding and financing across all innovation stages through direct, targeted funding
via grants, debt, or equity investments, or indirectly to enabling ecosystem such as universities,
NGOs, or other institutions.

4.

Foster global and intra-nation ecosystem for knowledge, technology, financing, andfacilities sharing.
Enable and ensure equitable and accelerated climate innovation. This can be done throughecosystem building (e.g., hubs, zones) to consolidate innovation efforts, further supported by
global collaboration programs and knowledge sharing to speed up scientific and cutting-edge
discoveries.

88 Impact Hub Berlin, Collaborative Innovation for Urban Climate Futures, Better Together Award, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCERECOMMENDATION 2
Enhance global cooperation on ensuring a just, orderly, and affordable transition to sustainableenergy use across developed and developing countries49

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEPOLICY ACTIONSPolicy Action 2.1 - Ensure an orderly transition in primary energy sources
Policy Action 2.2 - Ensure MSMEs participation in energy transition activities with financing andcapacity-building
Policy Action 2.3 - Assist transition readiness by ensuring human capital ability to accommodatechange (e.g., transfer knowledge, upskilling & workshop)
Policy Action 2.4 - Ensure sustainable practices for mining of essential minerals for energy transition
technologies

LEADING MONITORING KPI89,90

			

BASELINE

TARGET

Additional green jobs in Million
People working in clean energy, efficiency, and low
emissions technologies globally

NA91

3092
(2030)

Global share of low carbon energy in total energy
supply (%)93
Target including reduced carbon intensity CFPP, gas,
nuclear, biofuels, in addition to renewable energy

40%(2020)8962%89(2030)

SDGs IMPACTED

Recommendation 2 contributes to SDG7 – Affordable and clean energy – because it is advocating anenergy transition that is inclusive and does not jeopardise energy access for lower income countries thatare still dependent on fossil fuels.
It also contributes to SDG8 – Decent work and economic growth – as it seeks to ensure that jobs gained
exceed job losses during the transition to sustainable energy sources. Also, Micro, Small, & Medium
Enterprises (MSMEs) that participate in energy transition activities contribute to economic growththrough productive employment.

89 This chart sets forth third-party KPI baseline- and target numbers. They are reproduced here for descriptive purposes; the B20 ESC task force co-chairs
and members take no position as to their accuracy or applicability to all countries. This task force stresses that CBDR principles are essential to understanding aspirational target numbers such as the above
90 The principle of CBDR is crucial to achieving this peaking and reduction of total CO2 emissions. Developed countries must accelerate their transition toachieve peaking and reduction as soon as possible to create space for the lagging transition of developing countries and provide support to accelerate
the transition in developing countries. Also, this decarbonisation must be done in a manner that addresses energy security and affordability considerations, especially in light of recent disruptions to the global energy markets
91 Baseline is zero as target reflects incremental increase
92 IEA Net Zero by 2050
93 The role of abated coal, gas, nuclear, and biofuels during the transition and beyond is important to ensuring energy security50

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Additionally, by advocating raw materials for electrification and infrastructure are secured in sustainable
manners through innovation by market players, recommendation 2 support SDG 9 – Industry innovationand infrastructure.
Finally, since Recommendation 2 supports the adoption of waste, water, and scrap management, it
supports SDG12 – Responsible consumption and production. This ensures that resources are responsibly
consumed while products are designed to minimise wastage.

RELEVANT G20 INDONESIA PRESIDENCY PRINCIPLE

Recommendation 2 contributes to addressing G20 Indonesia's key priority, sustainable energy
transition.
In particular, promoting low-carbon fossil fuels should address orderly transitions for primary energy
sources. This is because energy transition should be orderly and sustainable without jeopardizing energy
security.
Moreover, all stakeholders must be measured so no one is left behind. Sustainable energy transition
should address the environmental and socio-economic impacts, including MSMEs and workforce
readiness for the energy transition.
Finally, mining practice must be sustainable as well, given that essential minerals are required to build
clean and low-carbon energy infrastructure. These minerals play a crucial role in energy security to ensure
the higher availability of energy sources.

CONTEXTThe current system of energy supply that is heavily dependent on fossil fuels is a massive global
industry that creates value for a range of stakeholders covering governments, shareholders,financiers, employees and technology suppliers. Managing the transition of this critical global
industry to renewable energy sources will have to address the issue of mitigating impacts andsupporting adaptation to new realities.

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Policy Action 2.1 Ensure an orderly transition in primary energy sources
Executive Summary
G20 countries should ensure an orderly transition in primary energy sources through developmentof a proper roadmap for transition to clean energy, strategic plans for decarbonisation throughadvanced technology, establish a clear energy policy that promotes global cooperation and support
on access and sharing clean energy, including nuclear and its necessary governance frameworks forsafe operations.

Background and Context
Energy transition cannot jeopardize energy security and it is key that energy security is amongst
the highest key measurements of the success of the transition itself. Primary energy sources fromunabated fossil fuels need to be reduced in line with the 2050 Net Zero timeline to limit the global
temperature rise to 1.5°C, the lower end of the Paris Agreement target, since the impacts of climatechange are expected to be significantly reduced at the lower level of temperature increase. It isclear that switching between unabated consumption of fossil fuels, on its own, does not provide along-term answer to climate change, but there can nonetheless be significant CO2 and air quality
benefits, in specific countries, sectors and timeframes, from using less emissions-intensive fuels.
The clearest example is the ‘quick win’ for emissions from running existing gas-fired plants insteadof coal-fired plants to generate electricity.

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Levers for Action
Role of Gas in the Pathway Towards Sustainable Energy Sources
The IEA reported in 2019 that coal to gas switching has helped prevent faster growth in emissions
since 2010 as shown in the table below. Based on the US Energy Information Administration datain October 2021, on average natural gas produces 116.65 pounds of CO2 per metric million British
thermal unit (mmBTU) of useful heat, which is 46% lower than the average CO2 produced by coal.
EXHIBIT 14 | CO2 SAVINGS FROM COAL-TO-GAS SWITCHING BY REGION COMPARED WITH
2010

Source: International Energy Agency, The Role of Gas in Today’s Energy Transitions (2019)

Natural gas is a reliable and affordable energy source in the short and medium term and enables
innovation in the longer term by being a transition energy source in the hydrogen revolution.
Hydrogen is expected to play a key role in a future climate-neutral economy, enabling emissionfree power generation, heavy transport, heating and industrial processes as well as inter-seasonalenergy storage. Research and industrial innovation in hydrogen applications is an EU priority andreceives substantial EU funding through the research framework programmes. In the European
Parliament, the Committee on Industry, Research and Energy (ITRE) adopted an own-initiative reporton the EU hydrogen strategy in March 2021 which is likely to be adopted in other parts of the world.
Natural gas is a key tool in the fight against energy poverty given its plentiful supply and distribution
networks across the world, especially in developing parts of the world such as Africa where thecurrent dependence on coal and oil is still unavoidable. Inclusion of natural gas in the energy mix
with renewables will fast-track the energy transition to lower emission primary energy. Along withcarbon capture, utilisation and storage, it can transform and decarbonise the energy sector even in
the longer term.

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Nuclear Adaptation and Scaling Down the Technology
Nuclear power and hydropower form the backbone of low-carbon electricity generation, as these areboth firm sources. Over the past 50 years, the use of nuclear power has reduced CO2 emissions byover 60 gigatons – nearly two years’ worth of global energy-related emissions. However, in advanced
economies, nuclear power has begun to fade, with plants closing and little new investment made, justwhen the world requires more low-carbon electricity. Nevertheless, while nuclear energy remains
the world’s second most important low-carbon source of electricity, new nuclear construction is not
on track with the targets of the Net Zero Emissions by 2050 Scenario94.
EXHIBIT 15 | GLOBAL NUCLEAR POWER CAPACITY IN THE NET ZERO SCENARIO, 2005 - 2050

Sources: International Energy Agency, Nuclear Power (2021)

Average yearly new nuclear capacity of 20 GW is required between 2020 and 2050 to meet Net
Zero goals. This rate of construction is comparable with the pre-Fukushima period when, in 2010,
construction began on 17 GW of nuclear capacity. Although 59 GW of new nuclear capacity was
under construction at the end of 2020, the rate at which new projects are completed remains nearly
half that required under the Net Zero Scenario, with the gap widening even further after 2035.

94

IEA Report, May 2019 and November 2021

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Sub-Policy Actions
To ensure an orderly transition in primary energy sources that provide direct and quick impact inthe short-term and sustainable solutions in the longer term, G20 countries should promote certain
actions as follows:1.

Establish a short-term roadmap and detailed actions, including increasing private sector
participation, to accelerate phase-down of coal and replacement with lower emission
energy sources such as natural gas in conjunction with a longer-term roadmap for advanced
technology implementation for decarbonisation through hydrogen, ammonia and Carbon
Capture, Utilisation and Storage.
A detailed roadmap with private sector participation is key to the success of primary energy
transition in electricity generation developing countries. This should be done in parallel withthe development of a longer-term plan to decarbonise electricity use through investment inadvanced technology.

2.

Establish a clear nuclear energy policy providing certainty on regulations, incentives, andapplication of nuclear as an alternative energy source and promoting global cooperationon access and sharing of technology.
Clear policy towards nuclear energy is critical to ensure implementation and adoption is in linewith Net Zero targets and that businesses can participate in providing access to affordable,
clean energy in developed and developing economies.

3.

Provide global support on developing institutional capacity and governance frameworks
for safe operation of nuclear assets and spent fuel handling.
Long-term experience of prudent operation of nuclear assets and spent fuel handling indeveloped countries should be shared globally to increase access to nuclear energy, and safe
handling of spent fuel, particularly in developing economies which have the potential to develop
nuclear generation.

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Policy Action 2.2 Ensure MSMEs participation in energy transition activities with financing andcapacity-building
Executive Summary
G20 countries should support the participation of MSMEs in energy transition activities by establishing
incentives and catalysing attractive and accessible funding for MSMEs. Capacity-building programs
should also be established to ensure MSMEs have the awareness and capabilities to participate in
the energy transition value chain. Additionally, a global collaboration to push MSME participation
should also be strengthened to catalyse knowledge and funding programs.

Background & Context
MSMEs play a major role in most economies, accounting for as many as 90% of all enterprises andmore than 50% of employment globally95. Emerging economies alone contribute about 45% of total
employment and 33% of GDP95. Although many MSMEs are relatively traditional in their operations,
there are growing numbers of innovative and emerging small enterprises seeking untapped
opportunities to innovate in the energy transition - primarily start-up companies95. For example,
MSMEs account for more than 20% of patents in Europe - a key measure of innovation. This highlights
the significant contributions that MSMEs make as an important driver of economic and businessgrowth.

MSMEs operate and create opportunities across a wide array of geographic areas and sectors,
employing different labour force segments like low-skilled labour and offering a pathway to equitable

95

World Bank, Small and Medium Enterprises (SMEs) Finance, May 2022

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opportunity and job creation. With larger firms leading the energy transition into sustainable
resources, MSMEs risk being left behind without knowing how they can participate during theenergy transition. As a result, just transition includes the inclusion of MSMEs to be part of energy
transition activities.

Levers for Action
MSMEs’ Participation in Traditional Business in Energy Value Chain
There are numerous studies on how MSMEs can participate in the energy value chain. In a circular
economy, waste recycling is an important activity that leads to higher demand for the acquisition ofwaste raw materials (e.g., feedstock). The waste raw materials act as a renewable energy source forbiodiesel refinery plants and processing facilities. There are emerging trends of MSMEs participatingby building businesses that collect waste from restaurants, hotels, households, and other food waste
producers to deliver to industrial biodiesel refineries96. Another case is amongst MSME farmers who
participate by collecting waste from their fields (e.g., palm oil mill effluent) for biofuel refineries or
power generation.

Another case study also indicates that MSMEs can participate in operations and maintenance(O&M) of a renewable energy value chain. MSME could join as part of energy transition activities
by becoming the localized O&M provider for hydropower, acting as the third-party O&M service
providers by performing routine maintenance, renewal work, and operations97.

MSMEs Participation by Innovating and Offering Green Products or Services
MSMEs can also participate in energy transition activities by becoming green innovators, usually inthe form of a start-up in developed countries. Eco-innovators can contribute to energy transition
by providing green technological goods or services98. For example, a recent emerging casedemonstrated an initiative to innovate a method to recover metal properties (e.g., gold, silver) byrecycling waste. Given the scarcity of metal resources in several regions, this initiative can promotea circular economy by developing energy-efficient metal recovery technologies99,100. The minerals
can then be used as raw materials for renewable energy technologies to promote the transition toclean energy.

Another case study identified is in the construction value chain. Construction demonstrates theincreasing demand for green building solutions, as the use of sustainable or recyclable material can
reduce costs while mitigating emissions intensity. MSMEs can participate by providing green productsolutions. For example, digital printing technology that coats ceramic tiles using ink-based solvents

96
97
98
99
100

BCG, Neste Transformation Story, 2020
The World Bank, Operation & Maintenance Strategies for Hydropower, 2020
OECD, green entrepreneurship, eco-innovation and SMEs, 2013
Eco-innovation observatory – EC, Eco-innovation in Belgium, 2015
Progress in Materials Science, Metal recovery by microbial electro-metallurgy, 201857

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can reduce up to 30% in energy cost and water consumption instead of spraying chemical solvents.
MSMEs could then participate in the green value chain by supplying digital printing technology forcustomers101,102.

Financing and Capacity-Building Barriers that Limit Energy Transition Participation in MSMEs
There are two clear barriers to supporting MSMEs’ participation in energy transition activities.
The financing gap is one of the barriers hindering interested MSMEs from partaking in the energy
transition initiatives. Approximately 65 million firms, or 40% of MSMEs in developing countries, havean unmet financing need103. With bank loans as the primary source of financing for MSMEs, it iseven more challenging for MSMEs who want to be part of the energy transition to gain funding. Thisis especially relevant for micro-enterprises with more difficulty accessing financing than medium
enterprises. Some of the reasons why MSMEs face financing gaps are the lack of a standardizedenergy transition methodology and review practices (e.g., how to take the positive environmental
impact) and insufficient robust market data about financing performance in sustainable energy104.

From the capacity-building perspective, areas of improvement identified incorporate bothknowledge and skillset improvements. Micro and small enterprises tend to have less network andnumber of employees than medium firms. Thus, information barriers (unaware of the environmental
impact and benefit of the energy transition) and the lack of suitable human capital for green MSMEs,
such as managerial skills and technical skills to innovate new green products to run green MSMEs
firms, represent significant additional barriers for MSMEs seeking to partake in energy transition
activities104. Capacity-building should include generating greater awareness of energy-efficient
market trends and enticing MSME’s participation in energy-efficient activities. This should also lookto promote the role of women as a further measure to encourage equitable participation.

Key Enabling Factors to Close Financing Gap and Accelerate Capacity-Building
Closing financing gaps, including providing financing and funding access to MSMEs, are key toencouraging their participation in energy transition activities. There are two areas to enable MSMEs’
access to funding for the energy-transition activities. First is through enabling direct financing/funding from the government, like government-backed loans, to MSMEs who want to participate inenergy transition activities and to lenders that motivate financing for MSMEs. The second is throughaccelerating private investment. This can be conducted directly by incentivizing lenders to provide
funding or indirectly, for example, through tax rebates to MSMEs who are participating in energy
transition activities.

101
102
103
104

SME United, Green best practices for construction SMEs and how the EU can support, 2021
EC, A novel manufacturing process for photo catalytically active ceramic tiles by digital printing, 2021
IFC, MSME Finance Gap, 2017
OECD, SMEs: Key Drivers of Green and Inclusive Growth, 201858

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Improving MSMEs’ capacity-building can be driven by having access to skilled people andknowledge assets. Skilled people include employees with sufficient technical and managerial skills,
whereas knowledge assets refer to the networks and sources like research centres. Skill development
within MSMEs can be achieved by building their internal capacity through technical assistance andprograms. Moreover, platforms can support access to knowledge assets. Different platforms canbe beneficial for MSMEs’ energy transition, such as knowledge-sharing platforms, agglomeration
platforms, and business synergy platforms. For example, a knowledge-sharing platform that actively
enables the exchange of best practices between MSMEs has driven green growth participation.
Companies from 28 countries have joined the platform to receive education and consultations to
excel in energy transition businesses105.

Supporting business environments, encompassing regulations and infrastructure, are the enabler
to incentivizing, supporting, and motivating MSMEs’ participation in the energy transition.
Regulations include financial/fiscal and non-financial/non-fiscal policies that assist MSMEs inthe energy transition. In contrast, infrastructure refers to digital infrastructure enabling MSMEs
to leverage knowledge-sharing platforms. Fiscal policy, such as direct subsidies or free technicalassistance, can encourage MSMEs to participate in the energy transition. Whereas one of the waysthat non-financial/non-fiscal policy can ease MSME’s participation in energy transition activities
is to simplify the permitting process. It can be especially relevant to developing countries, where
reducing bureaucratic and administrative inefficiencies and complexities can spur competitivenessand transparency.

Furthermore, adequate information and communication technology infrastructure is key toconnecting SMEs to global markets, information markets, and ecosystem platforms. Access to these
services can facilitate MSMEs to close the information barrier. For example, Social Stock Exchanges(SSEs) are trading platforms that aim to connect businesses, including MSMEs, that deliver socialand environmental value with investors seeking both social and financial returns. MSMEs seeking
financing opportunities can list on SSEs and find investors with economic, social, and environmental
goals. As a result, these digital infrastructures assist MSMEs in accessing financial and knowledge
resources.

105

ILO, Greening with Jobs, 201859

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Sub-Policy Actions
Based on the issues identified, we propose that G20 countries intensify MSME participation in theenergy sector through:1.

Provide financial/fiscal and non-financial/non-fiscal incentives for MSMEs in the energy
transition activities.
This is to increase attractiveness and spark participation for MSMEs in the energy transition– which in the long term would lead to a positive socioeconomic impact across all levels of
the economy. This can be in the form of monetary incentives or process-based incentives – alldepending on the country’s specific resources and needs.

2.

Foster funding options from private and public institutions for MSMEs energy transition
activities.
This is to provide assurance and improve the risk-taking ability of MSMEs in the energy transition
value chain. Enticement can be in the form of direct (e.g., to MSMEs) or indirect funding (e.g.,
to micro-finance institutions).

3.

Ensure the knowledge transfer to increase energy transition awareness & skillset for
MSMEs.
This is to increase awareness and the workforce overall capability for keeping up with the latest
updates on energy transition trends. Just upskilling across the comprehensive ecosystem of
MSME is crucial.

4.

Foster multi-institutional collaboration programs for MSME capacity building and funding
programs.
This is an enabler to support the energy transition activity adoption. Both national and international
collaboration may go a long way in helping MSMEs’ energy transition activities and can be in theform of funding and knowledge sharing.

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Policy Action 2.3 Assist transition readiness by ensuring human capital ability to accommodatechange (e.g., transfer knowledge, upskilling & workshop)
Executive Summary
G20 countries should support and assist the transition of all workers and stakeholders who are
directly and indirectly impacted by the energy transition; for example, mid and low-skilled workers
in parts of the fossil fuel sector, youth and upcoming workforce, highly impacted blue collars, andpeople with lower education levels. This can be through clear workforce planning, leading to timely
and structured up-skilling and re-deployments. The transition can also be enabled by clear policies,
regulations & incentives, and workforce-based global & national collaboration institutions.

Background and Context
Given the rapid pace of climate transition, G20 countries must prepare for a workforce just transition
from sectors that are impacted by the energy transition (e.g., parts of the fossil fuel sector) towards
relevant sectors (e.g., high-efficiency ICE sectors, electric vehicles, renewables energy). All
affected stakeholders, including youths, highly impacted blue-collar workers, and a workforce withlower education levels, need to be upskilled and reskilled in the face of the energy transition. The
workforce transition cannot be left to the markets and chance. Instead, it needs to be orchestrated,
coordinated, and managed over time. Market forces typically underprovided for workforce reskilling,
redeployment, and others, and hence government oversight for this enabler will be required. G20
countries must accelerate reskilling and redeployment across the value chain of impacted sectors
typically underprovided by market forces.

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This urgency presents opportunities for G20 countries to create energy transition jobs. Comparedto the business-as-usual scenario, the 2°C energy transition scenario can create around 18 million
jobs worldwide106. These changes include a shift towards renewable energy sources and greater
energy efficiency, such as the projected adoption of electric vehicles, sustainable construction workto achieve greater energy efficiency in buildings, and many other green opportunities. This net job
growth results from creating some 24 million new jobs and the loss of around 6 million jobs by
2030106. This positive outlook needs to be realized by government action and implementation plans.

Levers for Action
Sectors Potentially Affected by Energy Transition
Re-skilling and job changes in the economy have various intensities across sectors. Each G20 country
must conduct detailed worker profiling and value chain assessments to identify each sector’s mostat-risk profiles and demographics.

With the gradual decline in production, some parts of the oil and gas sector may have a change in job
demand creation. This includes exploration and production and Oil and Gas Service and Equipment(OGSE). Jobs in coal power plants are also expected to decline as coal power plants are unabatedly
phasing down, primarily related to the pure operations and maintenance-related roles107. In thetransport sector, low-efficiency ICE vehicle manufacturing and supply chain jobs will shift towards
higher efficiency ICE technologies and EVs at scale. Lastly, the transport fuels value chain, including
refineries and fuel retail stations, will also be impacted as demand for selected petroleum products,
such as pure gasoline and diesel, will be reduced or shifted to the production of greener fuels (e.g.,hydrotreated vegetable oil)108. Each G20 country must conduct detailed worker profiling and value
chain assessments to identify these sectors’ most at-risk profiles and demographics.

Emerging Growth Sectors
There are ample job opportunities expected to emerge with the energy transition economy assuming
a timely economic transition, supportive programs, and enablers. This includes power sector
development, with the renewable power sector driven by large-scale and decentralised energy
production, such as rooftop solar, which can create many jobs in installation, operations, andmaintenance. Other opportunities include the energy efficiency sector, such as increased mandatory
energy audits, energy retrofits, smart technologies, and energy services. The increase in higher
efficient ICE engine technologies and EV demand also means significant job creation contingent
on the timely transition of the automotive sector across the supply chain (e.g., auto-manufacturing,recharging stations). Lastly, emerging green technologies, such as hydrogen, bioenergy, and forestry& nature-related growth will require new skills and a reskilled workforce as these initiatives gain
traction.

106
107
108

ILO, Greening with Jobs, 2018
World Bank, Global Perspective on Coal Jobs and Managing Labor Transition out of Coal, 2021
S&P Global, EV Impact: Electric vehicle growth to sever oil from key market, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEEXHIBIT 16 | JOB AND SKILLS AFFECTED BY ENERGY TRANSITION QUANTIFICATION

Source: ILO, Greening with Jobs (2018)

Importance of Long-Term Strategic Workforce Planning
National and regional strategic workforce planning are imperative, which involves a holistic
assessment of workforce demand and supply at a granular job-family level to identify interventions
required to match demand and supply. This includes forecasting how workforce demand and skill
requirement will shift and accounting for the total workforce supply, factoring in workforce retirement
and pipeline of workforce entrants (such as youth generations). Then, it can identify the key gaps
where demand and supply are mismatched.

Planning for an effective workforce transition can take several steps. This includes projecting
the number and type of jobs based on the pace of emergence, understanding current and futureskill requirements (including types, roles, and lifecycle of sector shift), and demographic profiles(including most at-risk demography impacted, direct or indirect), and prioritising key interventions.
In the process, levers such as shaping higher education, like national higher education, or skillbased training for the workforce pipeline are also important. Finally, it is important to ensure female
participation and equity in job creation and reskilling.

Importance of Optimised, Timely, and Structured Re-skilling for Energy Transition
Based on strategic workforce planning assessment inputs, structured programs for optimised andtimely reskilling and redeployment of the workforce from declining to emerging sectors.

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Reskilling the workforce includes defining adjacent jobs so that individuals can leverage existingskills and knowledge, coupled with re-training in new roles. This is critical to reduce the time needed
for reskilling and increase individual readiness to perform the new position. This includes sequencing
and reallocating the workforce to avoid workforce demand-supply imbalances. Long-term workforce
transition plans should also have short- and medium-term reskilling and redeployment plans.

Executing structured reskilling initiatives entails clarifying the responsible stakeholders for reskilling
and redeployment activities. For example, leading corporates or industry associations with government
support can jointly manage within-sector transitions such as EV manufacturing. Meanwhile, crosssector workforce transitions can be facilitated with greater public sector orchestration, such as
in corporate-academia. For instance, oil and gas companies partnered with local universities in adeveloped country to develop a structured mid-career reskilling curriculum for oil and gas employees
for the green and renewable energy sectors.

Reskilling should also introduce multi-interdisciplinary skills on top of specific skills to ensure theworkforce adapts to the new sectors. These skills include digital capabilities and data knowledge,
project management, change management, and leadership109. Additionally, it is imperative for G20
countries to uphold inclusion in reskilling and include individuals in the informal economy, individuals
with lower levels of education, women, and youth forces.

Another key enabler to achieving competitive advantage in new growth sectors is strong humancapital planning and forecasting with the right skills, adjusted over time to align with the future
demand of green sectors. Increasing the clarity of skill requirements will be critical to ensure thealignment of education curriculums with these requirements.

National and Global Collaboration to Accelerate Re-skilling
Climate change is a global challenge, so sharing the burdens and opportunities between countries
will increase expertise and progress internationally. Leveraging on the current efforts, there aremany knowledge-sharing opportunities through secondments in R&D, operations, and managerial
positions across G20 countries110. In the long term, it will lead to domestic capacity building throughthe sharing of knowledge, reducing information asymmetry across countries and driving higher
technology innovation and adoption from the improved expertise.

109
110

Green Force Taskforce UK, Report to Government, Industry and the Skills Sectors, 2019
UK Pact, UK Pact Overview, 2021

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Sub-Policy Actions
We propose for G20 countries to take actions related to human capital readiness through:1.

Set-up long-term national strategic workforce planning for energy transition.
Strategic workforce planning involves a holistic assessment of the evolution of workforce
demand and supply needs at a satisfactory job family level to identify interventions required to
optimally match the demand and supply of talent and human capital. Planning & assessment
needs to cover all parts of the sector and stakeholders impacted by the energy transition. It willlead to the precise planning of programs and initiatives related to human capital.

2.

Set-up policies, regulations, and incentives to ensure inclusive upskilling for entire
workforce ecosystem, including those indirectly impacted.
Policies, regulations, and incentives should ensure that ‘no one is left behind’ and the most atrisk parties can be addressed through clear government efforts. This can be achieved throughregulatory and policy frameworks and incentives for wider upskilling in the public and private
sectors.

3.

Conduct timely and structured skilling and redeployment for impacted stakeholders inaccordance with the emerging energy transitions.
Based on strategic workforce planning assessment inputs, structured programs are optimised
for timely reskilling and redeployment of the workforce (present and future) from declining toemerging sectors and all parties directly and indirectly impacted. Just execution is essential in
upskilling, transfer of knowledge, and strategic redeployment while considering the specificnuances of each country.

4.

Develop workforce-based institutions with cross-country ecosystems to build skill andknowledge equitably.
An equitable and accelerated workforce transition across all G20 countries requires intra-nation
institutional ecosystems (e.g., implementation bodies for reskilling and deployment at a country
level) and global collaborations (e.g., secondment programs, knowledge building). These areimperative in enabling human capital transition readiness across all countries.

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Policy Action 2.4 Ensure sustainable practices for mining of essential minerals for energy
transition technologies
Executive Summary
G20 countries should spearhead sustainable mining practices in response to the increasing demandfor essential minerals for energy transition (e.g., Nickel, Cobalt, Lithium) through a set of policies& guidelines (including disclosures and reporting standards), multi-lateral funding for sustainable
mining projects (e.g., recycling), upskilling programs, and global cooperation.

Background and Context
Mining and metals are essential to global socio-economic development and are vital for the energy
transition. The global attempt to mitigate climate change requires substantial minerals to build newclean and low-carbon energy infrastructure, including wind turbines, solar photovoltaics, electricvehicles, energy storage, metal recycling, hydrogen fuel cells, and CCUS technologies. With therising deployment of green technology, the mining industry increases energy security by ensuring
higher availability of energy sources and supports decarbonisation by providing raw materials forthese technologies.

Simultaneously, their growth will alter demand patterns for upstream mining commodities. Mineraldemand from clean energy technologies is stipulated to quadruple by 2040111 A faster transition to
hit net zero globally by 2050 would require six times more mineral inputs in 2040 than today111. Clean
energy transitions offer opportunities and challenges for mineral producers. The type and volume ofmineral needs vary widely across energy transition technologies. EVs and battery storage account
111

IEA, The Role of Critical Minerals in Clean Energy Transition, 2021

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for half of the mineral demand growth from clean energy technologies over the next two decades,
spurred by surging demand for battery materials111. Mineral use in EVs and battery storage will grow
30x by 2040, with mineral demand dominated by copper, graphite, and nickel111.
EXHIBIT 17 | CRITICAL MINERALS REQUIRED FOR CLEAN ENERGY TECHNOLOGIES

Source: IEA, The role of Critical Minerals in Clean Energy Transition (2021)

Mineral demand powered by low-carbon and renewable power is projected to nearly triple current
levels in 2040111. Wind power leads demand growth due to large-scale capacity additions and higher
mineral intensity (with growing contributions from offshore wind)111. Solar PV follows closely, withsignificant capacity additions among low-carbon power generation technologies, while hydropower,
biomass, and nuclear have comparatively low mineral requirements111 Hydrogen’s rapid growth
drives demand for nickel and zirconium in electrolysers and copper and platinum in fuel cell electricvehicles (FCEVs).

20 countries should ensure sustainable practices in mineral access for the energy transition. For theenvironment, the production of energy transition minerals has higher GHG emission intensity thanbulk metals111 and can change the land cover, harming biodiversity, displacing communities, anddestroying habitats111,112. Mining and mineral processing is water-intensive and poses contamination
risks through acid mine drainage, wastewater discharge, and tailing disposal. Waste materialcauses large-scale environmental hazards. For society, mining companies are entwined with local
communities. Poor working conditions could lead to human rights issues, and society may beharmed by the child/forced labour and female inequity. Health & safety is also a concern if there
are significant workplace hazards and limited access to safety equipment. For governance, without
112

IUCN - ICMM, Integrating Mining and Biodiversity Conservation, 2004

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standardized sustainability reporting standards, there will be substantial variations in the information
disclosed on ESG performance113. The increase in mining driven by the energy transition may create
additional frameworks that would be costly and inefficient for mining companies to implement anddifficult for stakeholders to interpret and act on114.

Levers for Action
Implementing Sustainable Mining Practices to alleviate ESG Impacts
Sustainable mining minimises negative environmental, social and governance impacts related tomining and processing activities. Mining sustainably addresses the environmental and societal
impacts of the inputs and outputs of each process with positive governance to help alleviate adverse
impacts due to mining activities115.
EXHIBIT 18 | ESG IMPACTS FROM MINING ACTIVITIES

Source: BCG, Mining Needs to Go Faster on Climate (2020), BCG Analysis

Practicing of Reduce, Reuse, Recycle, & Repurpose
Mining producers can reduce, reuse, recycle, and repurpose through waste, water, and scrap
management methods to address ESG impacts from mining and processing metals. This leads toimproved biodiversity, land, and well-being of the surrounding communities, addressing sustainable
mining practices’ environmental and social impacts.

Waste management in mining and processing metals is crucial as it damages soil and water, causingacid mine drainage, and harms biodiversity and the health & well-being of surrounding communities.
Tailings management is mainly done through dams and needs to be prioritised. More stringent
regulations and technologies, including digital and geo-spatial solutions, will help reduce dam
failure in tailings storage facilities116,117. Tailings are usually directly disposed into water bodies, but

113
114
115
116
117

EY, The future of sustainability reporting standards, 2021
https://www.pwc.com/gx/en/services/audit-assurance/corporate-reporting/esg-global-sustainability-standards.html, Apr 2022
Science Direct, A review of sustainable mining and resource management: Transitioning from the life cycle of the mine to the life cycle of the mineral,
2018
Accenture, Intelligent technologies for tailings management, 2019https://www.esri.com/en-us/industries/blog/articles/geospatial-technology-helps-improve-tailings-management/, May 2022

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they could also be recycled for landfilling or processed into tiles and ceramics for sale118. Secondary
metals from smelting and refining could be reused by combining with primary concentrates to
produce purer metals119. These demonstrate that efficient waste management can provide socioeconomic benefits. Besides waste generated from mining and processing activities, mine sites canalso be rehabilitated and repurposed as wetlands, water storage dams, tourist sites, forestation, andmany more120.

Mineral mining and processing are water-intensive, polluting and depleting the groundwater
resources121. High water consumption also causes acid mine drainage which can kill fish, flora,
and most organisms in the water and soils. Water management includes reusing wastewater andconsuming less water. Methods to reuse water include using recycled water, treated wastewater,and desalinated seawater6. Miners can also reduce water usage by using modern technology tounderstand inefficiencies in water usage122. In 1995, 2,400 miles of streams faced acid mine drainage
from old mining operations, costing ~$5 billion to reclaim those waterways123.

Scrap management focuses on waste reuse and improved design of products and manufacturing
processes. The decrease in ore grades has increased energy use and emissions in mining124. A
circular economy should be encouraged as the energy required to melt aluminium from scrap is 20x
less than ore reduction125. Hence, the recovery of metals and minerals at the mining, manufacturing,and end-of-life phases is crucial. Increasing the number of collection points could make recycling
scrap more easily accessible.

Addressing Scope 1 and 2 Emissions
Emissions within mining and mineral processing can be broken down into three broad types: Scope
1 (emissions from managed operations), Scope 2 (emissions from electricity generation), and Scope
3 (emissions from the supply chain and transport). Within mining, scope 1 and 2 emissions are within
the company’s immediate operations and account for 4-7% of global greenhouse gas emissions,which can rise as high as 28% if considering scope 3 emissions126,127.

Coal supplies 37%128 of global electricity output in 2019, which also powers mines. Multiple efforts
will be required to address the principal emissions sources and decarbonise them. Such actions
include a move toward sustainable sourcing, fuels, drivetrains, and a switch to green energy. For
example, a developed country’s government provided $7.8m funding to a mining company to build a

118
119
120
121
122
123
124
125
126
127
128

Springer Proceedings in Energy, Energy and Sustainable Futures Proceedings of 2nd ICESF 2020, 2021
https://miningwithprinciples.com/the-circular-economy-in-mining-and-metals/, Apr 2022
Industry.gov.au, Mine Closure Leading Practice Sustainable Development Program for the Mining Industry, 2015
Sustainalytics, Water Risks in Extractive Industries, 2019
Helmholtz-Zentrum Dresden-Rossendorf, Reducing water consumption in mining, Mar 2019
Science Direct, Acid Mine Drainage, 2020
UN Environment Programme, Metal Recycling, 2013
Science Direct, Making sustainable aluminum by recycling scrap: The science of “dirty” alloys, 2022
Mining-technology, How scope 3 emissions pose the biggest threat to net-zero ambitions, 202
Sustainability Leaders, The Challenge of reducing scope 3 emissions and how companies are addressing it, 2021
IEA, Phasing Out Unabated Coal, 2021

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3MW wind turbine to replace diesel power, reducing 14,424 tons of greenhouse gas emissions overthe last three years129,130.
EXHIBIT 19 | REDUCTION LEVERS FOR SCOPE 1 AND 2 EMISSIONS IN MINING

Source: BCG, Mining Needs to Go Faster on Climate (2020), BCG Analysis

Conducting Pre-assessment and Planning Activities for Land Protection
Mining activities change landscapes significantly. Open-pit mines can spread across several
kilometres, while underground mines require space for processing. Waste management and groundtransport systems also change the ground landscape. Globally, many mines are in regions identified
as biodiversity hotspots131. Mining activities could negatively impact people and biodiversity bylosing organisms, soil erosion, and health concerns. For example, lead ore mining in a developed
country between 1980 and 1985 caused the land to collapse, leading to the abandonment of minesin the area132.

Land-use damage can be mitigated by considering the biodiversity of sites during proactive preassessments and comprehensive planning in the exploration, construction, and operational phases133.
Good governance is crucial and needs to encompass principles of participation, transparency, andaccountability to the public134. This includes implementing proper environmental and social impact
assessments (ESIAs), which evaluate alternatives based on environmental and social impacts. This
ensures that decision-making considers the current environment’s biodiversity and the consequencesof proposed mining actions.

Partnering with Employees and Surrounding Community to Increase Social Impact
Training & development for technical and operational skills can reduce fatalities on-site. Safety canbe improved through digital technologies like augmented reality135. Governments and companies

129
130
131
132
133
134
135

IEA, The Role of Critical World Energy Outlook Special Report Minerals in Clean Energy Transitions, 2021
http://mission-innovation.net/our-work/mission-innovation-breakthroughs/glencores-raglan-mine-a-wind-turbine-success/, May 2022
MSCI, Mining’s Impact on Biodiversity: A Rising Risk?, 2021
World Atlas, What Is The Environmental Impact Of The Mining Industry?, 2017
ICMM, Good Practice Guidance for Mining and Biodiversity, 2006
Science Direct, Governance in mining: Management, ethics, sustainability and efficiency, 2021
World Economic Forum, How industry could use augmented reality to improve workplace safety, 2021

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can increase inclusiveness through collaborations with key stakeholders such as community
representatives and businesses on projects like game farming, agriculture, agro-processing andbiofuels, water delivery, and waste recycling. Other social concerns include child labour, slavery,and human rights violations, with 160 million children engaged in child labour and 40 million people
trapped in modern slavery worldwide136,137. Governments need to enact and implement policies
and work with communities and companies to eradicate these concerns. Governments can also
work with mining companies to assist host communities with infrastructure, education, jobs, basic
services, and communications networks.

Firms’ social performance can be assessed and compared through metrics including work hours,
accidents, days away, fatalities, training hours, volunteering hours, and financial support for local
community initiatives. Tracking these metrics also help companies focus on human rights, safety, andwell-being for socio-economic development.

Adopting Consistent and Transparent Guidelines and Reporting Standards
While most large mining groups have ESG disclosures, the overall quality of reporting remains poor,
as outlined in the Responsible Mining Index of 2020138. When the best-scoring companies fallconsiderably short of society’s expectations in reporting economic development, business conduct,
lifecycle management, community wellbeing, working conditions, and environmental responsibility138.
This may be due to a lack of a common global vision for the sector regarding sustainable operations(including KPIs at the mine site level)139.

Companies require more guidance for ESG reporting, especially with the numerous and diverse
reporting frameworks, standards, and initiatives that have emerged in recent years139. Governments
should cooperate in electing or devising clearer frameworks adapted from existing ones (including
GRI, ICMM, TSM, etc.) to standardize further and improve the sustainability reporting of mining
companies. This includes reporting of sustainability performance at the mine level (and verified bythird parties) as encouraged by several national and international initiatives140. Governments should
engage with mining companies, relevant communities, and stakeholders and align the policies toenhance the sector’s sustainability and transparency while considering SDGs’ national agendas. For
example, in a developed country, the government promoted a reporting standard established by the
local mining association based on eight protocols with 30 indicators that are qualified by externalverifiers141. As a result, >10 companies have successfully delivered sustainable mining practices
based on the defined standards, with other countries expressing interest in adopting the program142.

136
137
138
139
140
141
142

ILO, The role of social protection in the elimination of child labour, 2022
https://www.antislavery.org/slavery-today/modern-slavery/, May 2022
RMI, Responsible Mining Index 2020, 2020
UNEP, Sustainability Reporting in the Mining Sector, 2020
https://mining.ca/towards-sustainable-mining/how-tsm-works/, Apr 2022
The Mining Association of Canada, How TSM Works, May 2022
Canadian Institute of Mining, Metallurgy and Petroleum, Towards Sustainable Mining (TSM) Awards, May 2022

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Barriers and Enablers to Adapt towards Sustainable Mining Practices
Sub-optimal standardization of sustainable practice disclosures presents a significant barrier tosustainable mining practices. Numerous sustainability reporting frameworks (e.g., GRI, SASB,
IIRC, etc.) have emerged but are not specific to the mining sector and are designed for different
stakeholders139. Governments can enhance and promote reporting standards through policies or
guidance on priorities for sustainability disclosure targets in the national/local context regarding
minerals/metals and support the attainment of SDGs.

Talent gaps in the mining sector are another barrier to sustainable mining from the social aspect.
The global talent pool has not kept up with the exponential growth in global mining production,
especially since mining requires specific skills to ensure safety during mining operations, resulting ina lack of geologists, hydrologists, technologists, technicians, and others143. Talent gaps may be due
to a lack of expertise in new sustainable mining practices144. Governments should roll out educational
programs to upskill the workforce in sustainable mining practices. Governments can also leverage
digital tools to accelerate the training and enable cross-border knowledge transfer.

Surrounding communities may not socially accept mining companies. Governments can aid
sustainable mining companies in securing social licenses to operate (acceptance of mines by
employees, stakeholders, and the public)145. This includes partnering with miners in community
engagement projects, subject to mines meeting specific sustainability standards, simplifying set-up
procedures, and encouraging sustainable mining practices.

Mining producers also face an initial CAPEX barrier in adopting sustainable mining practices. For
example, deploying autonomous haulage vehicles requires hefty investments but makes for safer
workplaces, improves labour well-being, cheaper operations, and reduces fuel consumption
and GHG emissions146,147. The initial CapEx barrier arises from the financial resources required148.
Governments can overcome this and facilitate quicker adoption of green technology by providing
specific funding (potentially with private sector assistance) for sustainable mining investments,
including innovative waste solutions, energy efficiencies, and recycling technologies149. Subsidies
for renewable energy usage (including photovoltaics, wind, hydropower, tidal power, profoundgeothermal energy, biomass energy, etc.) also reduce ongoing costs and accelerate the adoption ofsustainable mining practices.

143
144
145
146
147
148
149

Zambia Chamber of Mines, Searching for talent: Skills and Employment in the Global Mining Industry, 2017
IIED, Baseline Study and Gap Analysis on Mining in Indonesia, 2001
BDO, Social License to Operate in Mining, 2020
Mining Technology, Autonomous haulage systems for mining industry: Leading manufacturers, 2021
NS Energy, How autonomous technology could make mining safer and more valuable, 2019
Mining Technology, Autonomous mining: the challenges of independently minded vehicles, 2018https://www.mining.com/sweden-announces-19-5-million-grant-for-sustainable-mining-innovation/, Apr 2022

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Sub-Policy Actions
Therefore, we propose for G20 countries to take actions related to sustainable mining practicethrough:1.

Adopt standardised sustainability reporting guidelines and targets to monitor sustainable
mining progress for essential minerals.
Governments should cooperate and devise clearer frameworks or adapt existing ones. This
will help standardise and improve ESG disclosure transparency in the entire supply chain foressential minerals and align companies with prioritised SDGs.

2.

Provide incentives to support reuse, reduce, recycle, and repurpose in sustainable mining
practice.
Practicing reuse, reduce, recycle, and repurpose is crucial for sustainable mining practices.
Governments can support adoption by providing financial incentives (e.g., grants) or nonfinancial incentives (e.g., an infrastructure hub to collect product wastes).

3.

Support the adoption of sustainable mining practice through multilateral funding ofsustainable mining projects for essential minerals.
Transitioning into sustainable mining practices may require substantial investments. Governments
can support adoption by helping resource-rich developing countries implement sustainable andresponsible practices through funds for projects (e.g., recycling, innovation waste projects) withclear socioeconomic benefits.

4.

Build skillsets for sustainable mining practices through targeted training and upskilling
programs.
Workforce capacity-building should be addressed to ensure that mining companies adopt
sustainable mining practices. This can be achieved through programs to educate the workforce,
including standardised intellectual capital and direct training targeted for industrial development,
innovation, and skills.

5.

Cooperate between countries to accelerate the implementation of sustainable mining
practices for essential minerals with multilateral initiatives and public-private collaborations.
Imperative to set up inter-government cooperation to promote sustainable mining practices.
International collaboration includes collective initiatives in climate, sustainability, responsible
sourcing, labour rights, technical governance, standardisation, funding, or R&D areas.

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCERECOMMENDATION 3
Enhance global cooperation on enhancing consumer level access and ability to consume clean,modern energy

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEPOLICY ACTIONSPolicy Action 3.1 - Accelerate deployment of integrated electricity access solutions, including offgrid with community participation and grid-based electrification to expand energy access and enhance
economic prosperity
Policy Action 3.2 - Facilitate adoption of technology by households and MSMEs for efficient, clean,modern energy usage
Policy Action 3.3 -Ensure broad basing of the transition by addressing affordability barriers in developing
countries

LEADING MONITORING KPI150,151

			

BASELINE

TARGET

Electrification ratio (%)152
Percentage of global population with access toelectricity

90.5%(2020)153

100%148(2030)

Clean cooking accessibility (%)148
Percentage of global population with access to nonpollutive cooking fuels66%(2019)148

100%148(2030)

Quantum of public financing (USD Bn pa)154
Amount of public financing provided by developed
countries to developing countries for climate finance

62.9(2021)149

100 with matching
1:1 private sector
mobilization (min)(2030)

SDGs IMPACTED

Recommendation 3 supports SDG7 – Affordable and clean energy – as it advocates accelerating
centralised and decentralised energy development. This will increase energy access and affordability in
an inclusive manner.
Furthermore, Recommendation 3 contributes to SDG11 – Sustainable cities and communities – bysupporting the increase in affordability of stable electricity through sustainable means. This ensures that
residents’ quality of lives is improved.

150
151

This chart sets forth third-party KPI baseline- and target numbers. They are reproduced here for descriptive purposes; the B20 ESC task force cochairs and members take no position as to their accuracy or applicability to all countries. This task force stresses that CBDR principles are essential tounderstanding aspirational target numbers such as the above
The principle of CBDR is crucial to achieving this peaking and reduction of total CO2 emissions. Developed countries must accelerate their transition
to achieve peaking and reduction as soon as possible to create space for the lagging transition of developing countries and provide support to accelerate the transition in developing countries. Also, this decarbonisation must be done in a manner that addresses energy security and affordability
considerations, especially in light of recent disruptions to the global energy markets

152

Access rates considered are primary source of lighting from local electricity provider, solar systems, mini-grids, and stand-alone systems. Sources
such as generators, batteries, etc. are excluded due to their limited working capacities.92 IEA Net Zero by 2050

153

UN, Tracking SDG 7, 2022

154

OECD, Climate Finance Provided & Mobilised by Developed Countries 2019, 2021

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Finally, Recommendation 3 contributes to SDG13 – Climate action – because it is supporting various
manners for improvement of climate action through adoption of low-emission and cleaner technology.

RELEVANT G20 INDONESIA PRESIDENCY PRINCIPLE

Recommendation 3 contributes to addressing G20 Indonesia's key priority, sustainable energy
transition.
Energy security has to consider that all end-users have access to electricity and have the ability toconsume clean and modern energy. The policy actions aim to promote the deployment of integrated
electricity access solutions, facilitate the adoption of clean and modern energy usage and addressaffordability barriers in developing countries. Thus, end-users can utilize clean and affordable electricity
as part of a sustainable energy transition.
CONTEXT
Energy security does not only consider enough energy supply, but also ensure energy accessibility to
end-users. Accelerating access to clean, modern fuels is a development imperative that also feeds into
ending extreme poverty, mitigating the environmental degradation resulting from the use of solid fuels
for cooking, and emancipation of women.

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Policy Action 3.1 Accelerate deployment of integrated electricity access solutions, including
off-grid with community participation and grid-based electrification to expand energy accessand enhance economic prosperity
Executive Summary
G20 countries, especially developing countries, should adopt an integrated energy solution,
including a combination of decentralised renewable energy sources, such as off-grid & micro-grid
solutions and grid extensions, to ensure energy security and access for all members of society. Thiscan be done through cost-efficient decision-making, MSME & rural community enablement, funding
grid expansions, and the development of distributed energy resources.

Background and Context
The energy trilemma of security, equity, and sustainability is meant to improve national energy system
performances on access to reliable, affordable, abundant, uninterrupted, and sustainable energy fordomestic and commercial usage155. UN has identified universal access to energy by 2030 as a key
enabler for sustainable development, which benefits the overall economy, including socio-economic
development156. COP 26 also agreed to a Just Transition Declaration, which includes accelerating
inclusive access to electricity for all. However, G20 countries should note that they are currently
lagging behind electricity access targets, with less-developed countries having electrification rates
as low as 15%156.

155
156

World Energy Council, World Energy Trilemma Index, 2020
UN, SDG 7 Progress and Information, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEEXHIBIT 20 | PER CAPITA INCOME VS. ACCESS TO ELECTRICITY

Source: IEA, Energy Access Outlook (2017)

759 million people globally have no access to electricity in 2019, with Sub-Saharan Africa accounting
for three-quarters of the population157. If unabated, 660 million people will still not have access toelectricity in 2030157. The global advance in electrification since 2010 masks unequal progress acrossregions157. Energy access helps create jobs and livelihoods to give people the means to get out ofpoverty158.

Decentralised energy solutions are emerging in developed countries due to lower GHG emissions.
As costs of emerging renewable energy technologies (e.g., wind, solar) and enabler technologies(e.g., battery) decrease, decentralised generation can increase local energy affordability, resilience,and security without relying on central grids. Urban planning must be comprehensive to ensure
power stability while adapting to intermittent renewable energy, combined with the baseload power
required by each country. Therefore, a combination of grid extensions and off-grid decentralised
extensions should be considered on a case-by-case basis.

Levers for Action
Archetypes for Increasing Energy AccessTo increase electricity access, there are three comprehensive options:oMicro-grid / Individual Generation Systems: An isolated device and/or generation systemat the household level or small community/district level, usually ranging below 100 kW159. The
systems are typically powered by renewable energy technology (e.g., solar, hydro, wind) or
diesel generation systems.

o

157
158
159

UN, SDG 7 Progress and Information, 2021
https://blogs.scientificamerican.com/observations/to-end-poverty-increase-access-to-energy/, May 2022
GIZ, What size shall it be?, 201678

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEo

Mini-grid Generation Systems: Collection of distributed power systems within a city or large
communities. Power generation systems usually range from 100 kW – to 1 MW, typically using
renewable energy (e.g., solar, hydro, wind), diesel, or small gas power systems160. Supporting
technology, like batteries, inverter, converters, are typically needed to create small systems to
manage the electricity dispatch.

oTraditional Grid Extensions and/or Strengthening: Expanding electricity grids, theconventional method to broaden access, involves adding larger-scale power plants andextending high-voltage transmission lines and distribution networks towards uncovered areas.
The generation technology encompasses large and mid-scale power generation, usually above
1 MW, or combines multiple smaller generation systems below 1 MW160.

Combining all three solutions will accelerate energy access and increase energy security globally.
IEA estimates an additional 952 TWh of electricity generated through combined off-grid, microgrid, and traditional grid extension is required for universal electricity access, with micro-grid andoff-grid solutions providing ~60% (572 TWh)160. The shift towards decentralised solutions increases
the need for localised energy resiliency due to the risk of centralised supply instability (e.g., due tounwarranted central shutdowns).
EXHIBIT 21 | REQUIRED GENERATION FOR UNIVERSAL ELECTRICITY ACCESS

Source: IEA, Energy Access Outlook (2010)

Importance of Cost-efficient Decision Making
G20 countries should consider the most cost-efficient method to deliver electricity for each situation
while avoiding investments that lead to stranded costs and long-term lock-in effects but take into
account sustainability practices. This depends not only on topography and distance from the nearest
grid line to measure the ease of grid implementation but also on the expected energy demand of
the area. Where grid access is challenging, or the power grid is expensive, off-grid or micro-grid
solutions remain affordable enough as alternatives. This is especially true when the cost of renewable
technologies and their enabling technologies (e.g., battery storage) are expected to become morecompetitive in the near and long-term future.

160

https://www.iea.org/topics/energy-access, May 2022

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Therefore, electricity tariff levels should balance social stability, affordability, fairness, energy
efficiency, and cost recovery, especially to address the lower-income population while also ensuringbusiness viability. Governments may need to implement parallel supply- and demand-side subsidies
to reach universal access and affordability– however, this varies as per each country’s circumstances.
At the initial stage of designing such mechanisms, governments should consider the long-termsustainability of subsidy programs and potential exit strategies. All stakeholders should be consulted
at the outset of the design process and think about subsidies in an integrated manner—considering
those in reach of the grid, potential customers of decentralised technologies, and the variety ofservice models to minimise market distortion and fit the mechanisms in each country’s context.

MSMEs and Rural Community Enablement through Decentralised Solutions
Additionally, making the upfront investments necessary to set up distributed renewable energy
systems to satisfy electricity demand and improve supply reliability remains challenging in many
areas, mainly rural communities.

Governments could potentially increase electrification rates among these consumers by supporting
flexible payment models, including charging based on usage/service (tracked by smart meters)
instead of regular fixed amounts or structuring lower upfront costs of appliances for ease of adoption.
Governments can also facilitate mini-grid operators to accept flexible payment methods like cash
payments from local agents, scratch cards from local kiosks, or mobile money. These initiatives will
increase demand from MSMEs and rural communities, leading to more predictable loads, greater
economic growth in rural areas, and lower storage costs.

Funding Mechanism for Grid Electricity Expansion~$73 billion expenditure worldwide is expected from 2020-2030 to facilitate universal access toelectricity. When driven by the national utility, grid electrification, resources are channelled throughthe utility to benefit from lower costs due to economies of scale and scope in planning, finance,
tendering, investment, operation, and maintenance. Governments usually cooperate through publicprivate partnerships (PPP) to drive grid projects financed by a combination of development bankloans and public/state loans and supported by grid development regulations. Some countries havealso successfully opened distribution businesses to private investors under the PPP model.

Enabling Technologies to Develop Distributed Energy Resources
When extending the grid across the power generation archetypes, installing a smart grid system toenable ‘distributed energy resources is essential to balance load and intermittency, power failure,grid overloads, or other problems. These smart grids typically employ a digital-based system with
rapid processing of data analytics and machine learning, smart devices, and solutions to better
integrate power generation sources.

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Additionally, strong energy storage ecosystems, such as batteries, can help plug the gap causedby the intermittent nature of renewable energy used in micro and mini-grids. Typical modern micro
and mini-grids installed today incorporate battery energy storage and generation systems, which
can be charged when the system produces excess electricity and is discharged in evening hours.
This cuts the running time and cost of diesel generators. Battery storage can also bridge outages if
the micro/mini-grids are connected to the main grid. There are several technology options which
include lead-acid batteries and lithium-ion batteries. Additionally, emerging technologies (which
need to be supported in terms of R&D) such as hydrogen cells can be a novel way to store energy.

Key Barriers & Enablers towards Successful Adoption of Off-Grid Solutions & Grid Extension
To successfully increase energy access, challenges need to be addressed through G20 countries’commitment in ensuring strong adoption. Barriers include a wide range of technical, regulatory &policy, commercial, and financing issues:oTechnical: Insufficient skilled manpower in remote locations with the ability to operate andmaintain power generation systems and underdeveloped segments of the value chain (e.g.,
manufacturing). Grid development can also be relatively costly and challenging due to complex
geographical areas (e.g., island-based countries161).

oRegulatory & Policy: Possibility to deprioritise planning for grid electrification from utilities, with
unclear technology definition and timeline. This causes ambiguity in off-grid electrification policy
frameworks and tariff setting, complex licensing process, lack of incentives for decentralised
power solutions (e.g., duty and tax exemptions), and lack of proper market mechanism (e.g.,grid open access/power wheeling).

oCommercial: Opaque regulations & policies can increase uncertainty, hindering financing
support. Additionally, lack of centralised demand aggregation may lead to unviable use cases
economics. Support (e.g., grants, subsidy) is needed to make off-grid solutions economicallyattractive for developers and affordable to rural customers.

oFinancing: Insufficient availability of low-cost financing for developers and consumers, difficultyin gaining approvals, delays in disbursement of concessional funds, and lack of participation by
local financial institutions due to lack of data availability are seen as top financing barriers.

Several key enablers to overcome barriers of successful energy access include:oStrong community enablement, ownership, and awareness: Upskilling the local community
towards energy usage through programs, technical support, and innovative ownership models
can further strengthen local adoption of off-grid systems.

oSupportive regulation and policies: Supportive domestic market regulation is key for theequitable scale-up of distributed generation. For example, optimizing the tariff structure
helps ensure fair and equitable distribution of system costs and prices associated with

161

MGP, SE for All, 202081

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growing green users. Streamlining permit approval processes, increasing CAPEX andusage subsidies, performing holistic mapping, and facilitating link and match will also
accelerate development. Robust national grid expansion policies detailing cost-efficientgrid expansion targets coupled with dedicated institutions in charge of monitoring plans
helps provide transparency in grid development pathways and implementation and certainty
in the right technical approach and expected returns for grid extension investments 162.
Additionally, regulations to facilitate cross-border grid extensions, coupled with mutually
beneficial power trading agreements, can further increase energy equity and energy security.
Global cooperation is crucial in developing institutional structures and governance frameworks
to ensure private sector participation and funding support towards attractive electrification
opportunities, especially in developing countries. To balance grid extensions, optimizationof regulation and market structures for power generation needs to accommodate innovative
mechanisms like direct purchase leveraging existing grids (i.e., open access/power wheeling),
virtual PPAs (vPPAs), peer-to-peer (P2P) electricity trading, or flexibility solutions from distributed
system operators to further incentivize the growth of decentralised power solutions162,163.
oDevelopment of supporting infrastructure: Off-grid development can be facilitated throughcost-efficient batteries and storage, especially for medium-sized mini-grids (above 10 kW).
Digital technologies (e.g., blockchain) can help create robust off-grid infrastructures. Smartgrid and frequency control technologies are also crucial to ensure the security and reliability of
power systems. Technologies like geospatial tools can also help governments assess regions’electrification levels to effectively increase electrification rates in areas of greater need164.

oStrong funding support and collaboration: Provision of grants/subsidies for developers/
users (e.g., performance-based grants), when combined with clear policies, can stimulate
more funding from the private sector and DFIs (Development Finance Institutions).
Additionally, the development of decentralised energy funds would be a strong push forfinancing availability for related projects. For developing countries, support can come fromthe part of the COP 26’s reaffirmation of climate finance pledges to mobilize ~$100 billion
USD to developing countries each year165. Typically, PPP would be the most common funding
scheme with various investment structures depending on risk appetite and the country’s specificconsiderations. Public sector financing, global institution-backed entities, and private funds
could be accompanied by an electrification fund managed by a dedicated national grid entity,usually catalysed by strong government collaboration with DFIs. This also includes implementing
a PPP framework to boost grid extension financing.

162
163
164
165

MGP, SE for All, 2020
Accenture, Understanding European flexibility markets, 2021
World Bank, New Open Source Tool a “Breakthrough” in Electrification Planning, 2017https://commonslibrary.parliament.uk/cop26-delivering-on-100-billion-climate-finance/, May 2022

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Sub-Policy Actions
Therefore, we propose that G20 countries take actions related to accelerating decentralised energy
development to ensure energy access for all:1.

Establish clear short- and long-term targets and goals for deploying off-grid generation,aligned with national and regional electricity planning.
This is to ensure coherency and integrated planning across electricity planning and accessmapping for all stakeholders across all areas in each country.

To foster off-grid (standalone, micro, and mini-grid) solutions:2.

Collaborate with financing institutions across all levels and countries, especially
microfinance institutions, to enable off-grid solutions.
To enable financing in rural areas to reduce adoption costs of off-grid solutions.

3.

Address local communities’ technical capabilities gap by providing technical support andlearning platforms.
To assist local communities in owning and adopting off-grid technologies. This will be crucial inassuring sustainability in implementation and optimization of cost.

4.

Provide financial/fiscal (e.g., tax rebates) and non-financial/non-fiscal (e.g., buy-back
options for community off-grid) support.
To incentivize the acceleration of off-grid technologies and help eliminate risk barriers forbusinesses to participate in the ecosystem.

To foster grid extensions solutions:5.

Foster a robust funding mechanism for extending the grid, collaborating with global
institutions and the private sector to ensure a strong pool of funds.
To ensure strong collaborations with global institutions (such as DFIs) and the private sector toensure a strong pool of funds for grid extensions.

6.

Follow-up grid extension plans with robust generation supply, accelerated by implantationof attractive market mechanism (e.g., open access for transmission & distribution grids).
Both infrastructures should be fully utilised to ensure that grid extension supply is followed bystrong power generation expansion in the area. Governments should facilitate cross-border grid
extensions and mutually beneficial power trading agreements to widen access to energy, andthe power supply will be uninterrupted.

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Policy Action 3.2 Facilitate adoption of technology by households and MSMEs for efficient,clean, modern energy usage
Executive Summary
G20 countries should promote and incentivize low emission and modern technology appliances
usage in households and MSMEs. This is through improving infrastructure accessibility of cleaner
energy usage, especially in rural areas, and incentivising through program support and fiscal andnon-fiscal incentives. Efforts can also be accelerated through global and intra-nation collaborations
for addressing barriers in households and MSME clean energy adoption.

Background and Context
Importance of Households’ Cleaner and Modern Energy Adoption
G20 countries need to support the adoption of end-use clean and energy-efficient technologies inhouseholds as an essential step to limit global warming to well below 2oC, preferably 1.5oC.166,167.
While varying depending on the country’s characteristics and location, residential households’
energy consumption typically ranges from 15%-28% of total energy usage168. he absolute demandfor household energy consumption is also rising, driven by economic growth, growing steadily
at approximately 3-5% per annum169. While this number includes fuel from all sources (including
electricity), it is essential to manage households’ energy consumption due to its significant sharecompared to the total energy consumption.

166
167
168
169

https://www.wri.org/climate/expert-perspective/paris-agreement-strategy-longer-term, June 2022
IEA, Net Zero by 2050, 2021
IEA, World Energy Balances, 2020
BCG & WWF, Net Zero Pathways, 2021

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B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEHouseholds’ critical daily activities have produced significant greenhouse gas emissions, primarily
from fossil fuels. Typically, in developing countries, close to 98% of total household energy demandis estimated to derive from four key sources – residential appliances (e.g., TV, computer chargers,
lighting tools) (63%), cooking (23%), and space cooling or air-conditioning (11%)169. Space andwater heating can account for more than 50%, followed by residential appliances (including lighting)and cooking; in areas with cold climate170. The quantity of greenhouse gas emissions from those
appliances depends on the fuel type but heating and cooking activities account for about 25% of
black carbon emissions worldwide171.

For example, a case in point can be made for lack of access to clean fuels and technologies forcooking. It contributes to 4 million deaths each year in low and middle-income countries linked toheart disease, stroke, chronic pulmonary disease, and cancer171. An estimated USD 1.4 trillion peryear is the economic cost of household reliance on unclean fuels and technologies, equivalent to USD
1,000 for every person lacking access in 2019171. This is mainly contributed by rural communities inlow- and middle-income countries, in which more than 60% of them are still relying on unprocessedbiomass that leads to indoor air pollution171. With no action, the access gap between urban and rural
areas can be seen to outpace the growth in access to clean cooking. Over the past two decades, theincrease in population has been beyond the growth of access to clean cooking solutions.
EXHIBIT 22 | PERCENTAGE OF PEOPLE USING EACH COOKING FUEL TYPE IN LOW AND MIDDLEINCOME COUNTRIES FOR URBAN AREAS, RURAL AREAS, AND OVERALL, 2000-18

Source: Tracking SDG7, The Energy Progress Report (2020)

These facts make a compelling case for G20 countries to focus on managing energy consumption
and extending universal access to cleaner technologies. Specifically for cooking, it is expected totarget more than 3% annual growth for clean cooking accessibility to reach the universal (or 100%)

170
171

IEA, World Energy Balances, 2020
Tracking SDG7, The Energy Progress Report, 2020/2021

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target of clean cooking in 2030172. This is because only two-thirds of the global population had
access to clean cooking fuels (including LPG) in 2019172.

Importance of MSMEs’ Cleaner and Modern Energy Adoption
MSMEs represent a significant source of global emissions, with a CO2 footprint exceeding large
enterprises173. 80% of energy consumption for MSMEs relies on fossil fuels, with absolute numbers
increasing driven by population and economic growth174. Analysis of one continent’s emissions
profile reveals that 60-70% of industrial pollution was contributed by MSMEs175, hinting at the needfor MSMEs to adopt clean and new technology for their business.

Economically, MSMEs can benefit from adopting clean and modern technologies; yet technology
transfer and adoption should be available. For example, for economic development to be sustainable(especially in developing countries), adopting new technologies and sustainable fuels offer newopportunities for MSMEs to apply cost-effective energy efficiency measures that could reduce
MSME’s energy consumption by up to 30%176,177 annually. As a result, MSMEs’ adoption of efficientand cleaner technology is essential to reducing carbon footprint while supporting the economy.

Levers for Action
Clean Cooking Solutions
It is essential to address clean and modern cooking technology for both households and MSMEs,
especially in rural areas, as most of its population’s access to clean energy for cooking is constrained.
This can be mitigated by using alternative clean cooking fuels, primarily gas-based and electricbased cooking. For example, Liquified Petroleum Gas (LPG) acts as an affordable and reliable fuelin the pathway towards sustainable energy sources. It is because LPG is cleaner than kerosene andunprocessed biomass in a developing country. Some countries promoted the use of LPG given thatgas is an accessible source of fuel and emits less carbon dioxide by an estimated 8.4 million tons
annually compared to kerosene178.

Alternative to LPG, biogas is a renewable gas-based cooking fuel that is also considered cleaner. It
utilizes organic waste (e.g., crop residue) to generate gas as an energy source. This demonstrates
that biogas promotes circular economy practice for clean cooking activities and should be utilized toreduce greenhouse gas emissions, primarily in rural areas, by switching towards clean and modern
alternatives.

172
173
174
175
176
177
178

Irena, Tracking SDG 7, 2021
https://news.sap.com/africa/2021/04/smes-small-co2-footprint-big-climate-impact/, April 2022
https://www.iea.org/data-and-statistics/data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource, Apr 2022
OECD, SMEs: Key Drivers of Green and Inclusive Growth, 2018
IPCC, Methodological and technological issues in technology transfer, 2000
https://www.interregeurope.eu/project/events/championing-sustainable-energy-in-smes, April 2022
WLPGA, Kerosene to LP Gas Conversion Programme, 201286

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEOn the other hand, an electric-based induction stove could be more efficient than gas, with 90%of the heat being directly generated to cook the food compared to gas with only 55%179. However,it requires access to electricity in off-grid areas [detailed in Policy Action 1.1 and 3.1]. On top ofaccess to electricity, users need to consider the affordability of adopting induction stoves comparedto LPG or other clean cooking fuels depending on each country’s circumstances and infrastructure
readiness.

Cleaner and Modern Appliances’ Adoption
Households and MSMEs can adopt clean and energy-efficient end-use technologies that may
lead to energy savings, considering an appropriate span of their already-bought appliance’s life
cycle is satisfied. This is especially applicable in urban areas where access to electricity is mostly
available. For example, replacing traditional incandescent bulbs with LED bulbs could reduce energy
consumption and cost by up to 75%180,181. Adoption will benefit both the environment (reduced CO2
emissions) and users (reduced electricity bills and energy cost), motivating households and MSMEs
to adopt clean and modern household technologies.
Specifically, heating can contribute more than half of the total energy demand in households,
requiring additional attention to be addressed. Sustainable technology alternatives to reduce CO2
emissions from heating appliances, like space heating, are ready to be adopted, especially in urban
areas with more access to electricity. For example, electric heat pumps replacing gas boilers could
reduce up to 20% of CO2 emissions and save more than 2 tons of carbon per year182. On top of
reducing CO2 emissions, adopting smart and modern technology is also a cost-effective route todecarbonize large portions of total final energy use.

Specific to MSMEs, they may face different opportunities between rural and urban. In urban areas,
most MSMEs are involved in micro and small businesses such as culinary, cleaning, and retail fashion
activities183 - where both fuel-switching and adopting end-use energy-efficient appliances areapplicable. For example, medium-sized enterprises like restaurants have the exposure to adopt
induction stoves that could be more energy efficient than gas stoves184. Rural areas may have different
types of businesses, such as, but not limited to, farming and manufacturing185. Several modern energy
technologies include hydroponics farming, which adopts micro-sized renewable energy186 or a heatrecovery system that generates energy from heat waste in cement production187,188.

179
180
181
182
183
184
185
186
187
188

P.C. Richard & Son, Induction vs Gas vs Electric Cooktops, 2017
Energy.gov, LED lighting energy saver, May 2022
Sudhir, LED Illumination: A case study on energy conservation, 2016
Avieco, Heat Pumps: Lowering Carbon and Costs, May 2022
https://www.rumah.com/panduan-properti/12-contoh-usaha-kecil-menengah-yang-bisa-ditiru-agar-cepat-punya-rumah-26015, May 2022
P.C. Richard & Son, Induction vs Gas vs Electric Cooktops, 2017https://bukuwarung.com/contoh-usaha-menguntungkan-di-desa/, May 2022
https://www.thegrowcer.ca/blog/hydroponic-farming, May 2021
IFC, Waste Heat Recovery for the Cement Sector, 2014
OECD, resource-efficient practices in the Ukranian concrete products industry, 201987

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEKey Success Factors for Clean Energy Technology Adoption
There are three key barriers for households and MSMEs to adopt cleaner and energy-efficienttechnologies. These are accessibility & affordability, awareness & knowledge (or skills-sets) in clean
technology access, and financing constraints189.

The barrier to infrastructure accessibility to cleaner technologies is a significant constraint, especiallyin rural areas. Accessibility to clean cooking technologies, such as but not limited to LPG, electriccooking technologies, and biogas, are essential to address health, hunger, and other concerns.
For example, a developing country invested in LPG infrastructure (e.g., bulk storage, filling plants)
to ensure LPG availability to the public190. Other options include installing biogas or natural gas
pipelines for channelling resources from processing plants to houses and MSMEs. Lastly, to support
the use of the electric stove, electricity access should first be ensured.

There are two affordability barriers identified, high cost of ownership and affordable financing.
Reducing the cost of ownership is crucial to ensure that households and MSMEs are motivated toadopt new, cleaner appliances and technologies. Lowering the cost of ownership can come from twoareas: reducing the cost of acquisition and the cost of usage or maintenance. Certain government
solutions can be put forward. An example is government-backed rebates to purchase LED lighting.
We have seen a developed country apply for this program with a result of an increase of up to 75%
efficient lighting usage, which resulted in customer cost savings of USD2,600 annually191. On theother hand, affordable financing (particularly micro-financing) that is reachable to households and
MSMEs, especially in the rural areas, is the other key area to promoting clean and efficient technology
adoption. For example, government-backed financial incentives (e.g., grants) can increase MSMEs
participation in adopting cleaner technologies for their business192.

Additionally, enabling the environment to ease knowledge transfer, access to cleaner fuel, andfinancing availability is core to reducing the gaps in awareness, capacity building, and access tofinancing. To reduce information asymmetry and improve their capabilities, both developed anddeveloping countries’ governments can play a role in transferring knowledge. The knowledge transfer
process should be comprehensive (e.g., from financial, legal, and technical aspects) to promote andsupport inclusiveness for civil society and women in the MSME workforce. Governments can alsobuild local capacities through MSME awareness programs and technological know-how192. Someways to transfer knowledge are training programs, awareness workshops, informative programs, andpilot programs to build up households’ and MSMEs’ workforce capabilities to operate modern andenergy-efficient technologies.

189
190
191
192

Springer, what are the drivers and barriers for green business practice adoption for SMEs?, 2021
Energy for Sustainable Development, The Mega Conversion program from kerosene to LPG, 2018
Seattle.gov, The Underground Tour, May 2022
Energy Policy, Financing energy efficiency in developing countries – lessons learned and remaining challenges, 201988

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Sub-Policy Actions
We propose for G20 countries to take actions related to accelerating the adoption of clean andmodern technologies in both MSMEs and households through:1.

Ensure infrastructure accessibility support to households and MSMEs in rural and urban
areas (e.g., decentralized LPG, city gas, off-grid electricity).
Infrastructure accessibility support is important to ensure inclusive technology access across all
stakeholders. This can be either government-driven or community-driven.

2.

Entice technology adoption through targeted incentives (e.g., grants, rebates) in key
household and MSME areas.
Targeted incentives are essential to spark and ignite interest in adopting clean energy
technologies. The incentives can be applied to clean technology solutions providers and users
in the household or MSME communities.

3.

Establish programs, such as training and educational programs or technology mandates,for both household and MSMEs communities.
Supporting programs is essential for clearer, more structured pathways and enablers toward
adopting clean energy. This can be in knowledge or skill-building programs, pilot programs, orclean energy adoption mandates.

4.

Foster national and global collaboration for institutions providing support for households
and MSMEs; including but not limited to funding, technology, and facilities sharing
support.
National and global collaboration is essential as an enabler toward an accelerated clean energy
adoption for all. National-level collaboration amongst local entities or international cooperation
can provide assistance and resources to tackle clean energy technology adoption issues.

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Policy Action 3.3 Ensure broad basing of the transition by addressing affordability barriers indeveloping countries
Executive Summary
Energy-transition investment needs to be significantly ramped up to ensure that the pathway tolimiting global warming to the lower limit of the Paris Agreement target of 1.5oC above pre-industrial
levels remains within reach, with a required doubling in this decade itself. It is important to aim forlimiting global warming to 1.5oC above pre-industrial, the lower end of the Paris Agreement target,
since the impacts and risks of climate change are expected to be significantly reduced at the lower
level of temperature increase. In addition to private-sector financing, public-sector financing too
will have to almost double. This is likely to be beyond the capacity of governments in the developingworld and will require global cooperation between developed and developing countries to ensure
broad basing of the transition. Adequacy and predictability of financing is crucial to planning andimplementing multi-year energy transition programs. To this end, carbon pricing revenue frominefficient fossil fuel subsidy reform, carbon taxes and permit auctions should be earmarked solely
for financing energy transition investments, and a portion of developed country carbon pricing
revenue should be earmarked for funding the financing needs in developing countries as part of the
USD 100 billion per year commitment.

Background & Context
According to IRENA (International Renewable Energy Agency), a massive scale up in energy transition
investments, to reach approximately USD 5.7 trillion/year, is needed across regions and sectors inthis decade itself to ensure that the pathway to limiting global warming to the lower limit of the Paris90

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Agreement target of 1.5oC above pre-industrial levels remains within reach193. This involves scaling
up investments from USD 35 trillion under the Planned Energy Scenario (PES) to USD 57 trillion underthe 1.5oC pathway, implying a near doubling of current levels of investment (USD 2.1 trillion in 2019)
in the energy sector.

Investment decisions in infrastructure are long-lived, with high risks of stranded assets, if not madewithin stable plans and governance frameworks developed on scientific bases with long-term
perspectives. Measures to eliminate market distortions, coupled with incentives for energy transition
solutions, will facilitate the necessary changes in funding structures. Most of the additional capitalrequired is expected to come from the private sector. But public financing will also have to double
to catalyse private finance and create an enabling environment for speedy transition with optimalsocio-economic outcomes. G20 developed countries and G7 countries have a critical role in leading
the global energy transition effort at the international level. Funds and knowledge must be madeavailable to developing nations to advance the quest for an inclusive and more equitable world.
This is in line with the Glasgow Climate Pact that noted that the current provision of climate financeremains insufficient to respond to worsening climate change impacts in developing country parties
and urged developed country parties to urgently and significantly scale up their provision of climate
finance to developing country parties.

EXHIBIT 23 | CUMULATIVE ENERGY SECTOR INVESTMENTS

Source: IRENA, World Energy Transition Outlook (2022)

By 2050, over 80% of the USD 131 trillion required must be invested in essential energy transitionareas like energy efficiency, renewables-based generation, electrification, strengthening grids,
enhancing flexibility, alternative energy sources and innovations designed to transition emerging
and niche solutions to commercial viability. This required investment is a step up of ca. USD 33
trillion from already planned investments of ca. USD 98 trillion to 2050.

193

IRENA, World Energy Transitions Outlook 2022, 2022

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Approximately USD 1.6 trillion in energy sector investment, representing 80% of total energy sector
investment, came from the private sector in 2019, with ca. USD 450 billion coming from the public
sector. As actual investment slightly more than doubles over the period to 2050, the proportion ofprivate capital must increase with public sector funding expected to touch only ca. USD 780 billion.

Public sector funding has four roles to play in the energy transition – (a) public debt funding of firstloss capital to stimulate private sector lending, especially for higher risk technologies and/or higher
risk jurisdictions, (b) concessional finance to reduce cost of capital, (c) supporting the creation of
enabling conditions for an accelerated transition and ensuring that socio-economic impacts are fairly
distributed / mitigated, and (d) R&D into a range of technologies and solutions that are yet to reachmarket maturity. It is especially crucial to ensure public funding of R&D to foster innovation acrossthe various dimensions of the energy transition encompassing technology, infrastructure, financing,business models, market design and regulation, and governance and institutional frameworks, toensure that technology and knowledge access are democratized in the energy transition process.
This is critical to ensure broad basing of the transition which must balance the three aspects of theenergy trilemma – energy security, energy equity and environmental sustainability, and to ‘prime
the pump’ for incentivising private sector investment in the energy transition across developed anddeveloping countries.

Levers for Action
Broad basing the transition, especially across the developing countries of the G20 and beyond,will require a range of measures targeted at reducing the cost of the required energy transition
investments to address affordability barriers. There are two levels of affordability to consider – (1)national level capacity to fund required public sector financing, (2) individual level capacity to fundthe acquisition of technology and consume clean, modern energy.

The required quantum of public sector funding is beyond the capacity of most governments in thedeveloping world. Given the crucial role of public sector funding in financing energy transition
investments, the public sector funding needs of the developing world will have to be supportedby the developed world. This was agreed upon more than a decade ago in the USD 100 billion/
year pledge for transition financing from the developed world to the developing world but is yet
to materialize in its entirety. In addition to the quantum of financing, the predictability of financing
flows is equally important to be able to plan multi-year energy transition programs.

A possible solution is to utilise carbon pricing revenue from inefficient fossil fuel subsidy reform,
carbon tax and permits auction for meeting the funding needs of the energy transition. First, allcountries should earmark carbon pricing revenue solely for energy transition financing, including
addressing the distributional impacts of the transition. Second, a portion of the revenue raised indeveloped countries should be earmarked for funding a pool of capital for financing the energy
transition in developing countries. Third, emissions reductions generated from eligible energy
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transition projects in developing countries should be allowed to be listed and traded in the ETSs ofdeveloped countries to channel financing to the developing world.

Channelling of the funding from the first two should be institutionalized, ideally through existing
multilateral institutions with enhanced transparency and accountability. Global cooperation onchannelling the funding required from the developed economies to the developing economies
through the proposed energy transition financing mechanism is a crucial piece of the puzzle in broadbasing the energy transition. In this instance, the cooperation through the energy transition financemechanism is likely to accelerate the transition by kicking off projects which might otherwise notreach final investment decision, and permanently lowering the cost of capital, resulting in reduced
cost to serve, which addresses affordability barriers at the individual level. The latter is essential tosecuring and maintaining political buy-in for the energy transition and ensuring that energy poverty
does not increase. Residual affordability barriers will have to be addressed through domestic
government programs as detailed in policy action 3.2.

Sub-Policy Actions
1.

Earmark carbon pricing revenue from inefficient fossil fuel subsidy reform, carbon tax andpermits auction for energy transition investments alone.
Ringfencing revenue from carbon pricing enhances transparency and focused applicationcompared to the revenue being part of the general budget, where it is likely to eventually be seen
as just another source of revenue and adding to the costs paid by businesses and customers.
Further, the demand for energy transition investments can be one of the factors to consider in
deciding pricing level and coverage, and securing social and political acceptance for pricing
carbon.

2.

Earmark a portion of carbon pricing revenue in developed countries for funding a pool ofcapital to finance energy transition investments in developing countries.
This is a crucial part of ensuring broad basing of the transition, which is critical to ensure
meaningful progress in the global energy transition, and in line with the principle of common
but differentiated responsibilities.

3.

Allow listing and trading of emissions reductions generated from eligible projects indeveloping countries in the ETSs of developed countries as a way of channelling finance todeveloping countries.
Allowing participation of ERs from the developing world in developed country compliancemarkets will increase the supply of credits, likely leading to more efficient pricing for obligatedentities, and spur the development of energy transition projects in the developing world.

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ANNEX
Acronyms
BECCS

Bioenergy with Carbon Capture and Storage

BESS

Battery Electric Storage Systems

CapEx

Capital Expenditure

CBDR

Common But Differentiated Responsibilities

CCS

Carbon Capture and Storage

CCUS

Carbon Capture, Utilisation, and Storage

CO2

Carbon Dioxide

COP26

Conference of the Parties 26

DFI

Development Finance Institutions

EIA

US Energy Information Administration

EJ

Exajoule

ESCO

Energy Service Company

ESG

Environment, Social, Governance

ESIA

Environmental and Social Impact Assessment

EU

European Union

EV

Electric Vehicles

FCEV

Fuel cell EV

GDP

Gross Domestic Product

GHG

Greenhouse Gas Emission

GRI

Global Reporting Initiative

GW

Gigawatt

HVAC

Heating, Ventilation, and Air Conditioning

ICE

Internal Combustion Engine

ICMM

International Council on Mining & Metals

IEA

International Energy Agency

IFRS

International Financial Reporting Standards

IIRC

International Integrated Reporting Council

IoTInternet of Things

IRENA

International Renewable Energy Agency

ISSB

International Sustainability Standards Board

ITMOSInternationally Transferred Mitigation Outcomes

ITRE

Industry, Research and Energy

kW

Kilowatt

LEDLight-emitting diode

LPG

Liquefied Petroleum Gas

mmBTU

Metric Million British Thermal Unit

MSME

Micro, Small, & Medium EnterpriseMW

Megawatt

NbS

Nature-Based Solutions

NDC

Nationally Determined Contributions

NGO

Non-Governmental Organisation
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O&M

Operation & MaintenanceOECD

Organization for Economic Co-operation and Development

OGSE

Oil and Gas Service and Equipment

PES

Planned Energy Scenario

POME

Palm Oil Mill Effluent

PPP

Public - Private Partnerships

PV

Photo Voltaic

R&D

Research & Development

RE

Renewable Energy

SAF

Sustainable Aviation Fuel

SASB

Sustainable Accounting Standards Board

SDG

Sustainable Development Goal

SFWG

Sustainable Finance Working Group

SME

Small and Medium Enterprises

SOP

Standard Operating Procedure

SSEs

Social Stock Exchanges

TSM

Towards Sustainable Mining

TWh

Terawatt-hour

UCO

Used Cooking Oil

USD

U.S. Dollars

VRE

Variable Renewable Energy

List of Impacted SDG Targets
SDG
TargetDescription

1.1

By 2030, eradicate extreme poverty for all people everywhere, currently
measured as people living on less than $1.25 a day

1.5

2030, build the resilience of the poor and those in vulnerable situations
and reduce their exposure and vulnerability to climate-related extreme
events and other economic, social and environmental shocks anddisasters

3.9

By 2030, substantially reduce the number of deaths and illnesses
from hazardous chemicals and air, water and soil pollution andcontamination

7.1

By 2030, ensure universal access to affordable, reliable and modern
energy services

7.2

By 2030, increase substantially the share of renewable energy in the
global energy mix

7.3

By 2030, double the global rate of improvement in energy efficiency

7.a

By 2030, enhance international cooperation to facilitate access toclean energy research and technology, including renewable energy,
energy efficiency and advanced and cleaner fossil-fuel technology,
and promote investment in energy infrastructure and clean energy
technology

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7.b

By 2030, expand infrastructure and upgrade technology for supplying
modern and sustainable energy services for all in developing countries,
in particular least developed countries, small island developing States,
and land-locked developing countries, in accordance with theirrespective programmes of support

9.4

By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater
adoption of clean and environmentally sound technologies andindustrial processes, with all countries taking action in accordancewith their respective capabilities

11.c

Support least developed countries, including through financial andtechnical assistance, in building sustainable and resilient buildings
utilising local materials

12.2

By 2030, achieve the sustainable management and efficient use ofnatural resources

12.4

By 2020, achieve the environmentally sound management of chemicals
and all wastes throughout their life cycle, in accordance with agreed
international frameworks, and significantly reduce their release to air,water and soil in order to minimise their adverse impacts on humanhealth and the environment

12.5

By 2030, substantially reduce waste generation through prevention,
reduction, recycling and reuse

12.6

Encourage companies, especially large and transnational companies, toadopt sustainable practices and to integrate sustainability information
into their reporting cycle

12.9

Support developing countries to strengthen their scientific andtechnological capacity to move towards more sustainable patterns ofconsumption and production

13.2

Integrate climate change measures into national policies, strategies
and planning

13.3

Improve education, awareness-raising and human and institutional
capacity on climate change mitigation, adaptation, impact reductionand early warning

Schedule of Task Force Exchanges
#

Date

Event

Location

Theme

1

22 February 2022 Task Force Call 1 Virtual

Review of 1st Draft Policy
Paper

2

22 March 2022

Task Force Call 2 Virtual

Review of 2nd Draft Policy
Paper

3

19 April 2022

Task Force Call 3 Virtual

Review of 3rd Draft Policy
Paper

4

24 May 2022

Task Force Call 4 Virtual

Review of 4th Draft Policy
Paper

5

21 June 2022

Task Force Call 5 Virtual

Review of last version
Draft Policy Paper

6

30 August 2022

B20-G20
DialogueMeeting with Government
Stakeholders

96

Nusa Dua,
Bali

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Distribution of Members
Country#Country#

Argentina

6

Germany

4Australia

4

Hong Kong

Brazil6

CanadaCountry#Country

#

Malta

2

South Korea

1

1

Mexico

1

Spain

4

India

8

Russia4

Switzerland

1

2

Indonesia

45

Saudi Arabia 5

Turkey

7

China

15

Italy

18

Singapore

1

UnitedKingdom

4

France

6

Japan

7

South Africa

2

USA

8

Task Force Leadership
Name

Company /Organization

Country

DeputyChair
PT Pertamina(Persero)Indonesia

PT Jababeka
Infrastruktur

Indonesia

PT Pertamina(Persero)Indonesia

Paddy
Padmanathan

ACWA Power

Saudi Arabia

Salman Baray

Seiji Izumisawa

Mitsubishi Heavy
Industries

Japan

Hitoshi
Kaguchi

Ricardo Mussa

RaizenBrazilPaula
KovarskyMohammed Y. AlQahtani

Saudi Aramco

Saudi Arabia

AshrafAhmad Al
Ghazzawi

Jean Pierre
Clamadieu

Engie

FranceArnaud Erbin

Febriany Eddy

PT Vale Indonesia
Tbk.

Indonesia

Budi
Handoko

Gianfranco Casati

Accenture

Italy

Valentin De
MiguelNicke Widyawati

Agung
Wicaksono

Deputy Chair
Agung Wicaksono
Policy Manager
Oki Muraza
Co-Chairs

97

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Coordination Group
Function

Name

Company / Organization

Task Force PMO

Merdiani Aghnia
Mokobombang

PT Pertamina (Persero)

Sacha Winzenried

PricewaterhouseCoopers (PwC)

Yanto Kamarudin

PricewaterhouseCoopers (PwC)

Feliex Taner

PricewaterhouseCoopers (PwC)

Kiran Vergis

PricewaterhouseCoopers (PwC)

Maurice Shawndefar

PricewaterhouseCoopers (PwC)

Fitri Budiman

PricewaterhouseCoopers (PwC)

Sabrina Afiyani

PricewaterhouseCoopers (PwC)

Melania Sirait

PricewaterhouseCoopers (PwC)

Blenda Wijoyo

PricewaterhouseCoopers (PwC)

Rauf Usman

PricewaterhouseCoopers (PwC)

Bernadetha Sirait

PricewaterhouseCoopers (PwC)

Knowledge Partners Lenita Tobing

Network Partners

Boston Consulting Group(BCG)

Dave Sivaprasad

Boston Consulting Group(BCG)

Marko Lackovic

Boston Consulting Group(BCG)

Daven Tjandradjaja

Boston Consulting Group(BCG)

Aufar Satria

Boston Consulting Group(BCG)

Wayne Jiang

Boston Consulting Group(BCG)

Jovin Anwar

Boston Consulting Group(BCG)

Damien Bruckard

International Chamber ofCommerce

Noam Boussidan

World Economic Forum

Noel Peters

Asian Development Bank

Agam Subarkah

World Resources Institute

Clorinda Wibowo

World Resources InstituteTaskforce Members

NameCompany /Organization

Position

Country

Ada Wong

SanofiAsia Public Affairs Lead

Hong Kong

Adri Martowardojo

MMS GroupIndonesia

Head of Corporate
Strategy andCommunication

Indonesia98B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Adriana Ina
Ratnasari

Manha Daya
Mandiri

Corporate Secretary

Indonesia

Adrianto Darmoyo

Medco Power
Indonesia

Head of Renewable

Indonesia

Ahmad Bakri Putra

Visar GroupCEO

Indonesia

Aileen Bernardi

Alvarez Hnos
Sacei

Director

Argentina

Alessandro
Gasparetto

IQT Consulting
S.p.A.

Chair

Italy

Andilo Harahap

Head Business Unit
Siemens Indonesia Energy Generation
PR&SO

Indonesia

Andrea Bos

Hydrogenpark
Scarl

President

Italy

Andrea Cotrufo

Quantum
Investments

Chairman

Italy

Andrea Lovato

ACWA Power

Executive Vice
President Business
Development. Head ofRenewable & Hydrogen

Italy

Andrew Hidayat

MMS GroupIndonesia

Owner

Indonesia

Angelin Sumendap

Barito Pacific Tbk

Head of Corporate
Communication

Indonesia

Anindya N. Bakrie

Indonesia
Chamber ofCommerce andIndustry

Chairman ofSupervisory Board

Indonesia

Anna Tunkel

APCO Worldwide

Head of Global
Strategic Initiatives &Partnerships

United States

Anthony Utomo

Utomo Juragan
Atap Surya
Indonesia

Managing Director

Indonesia

Antony Harsono
AntonySamatorDirector

Indonesia

Arya Rizqi Darsono

Mekko Metal
MiningPresident Director

Indonesia

Babu Khan

Confederation ofIndian Industry

Executive Director

India

Bangkit Kuncoro

Ernst & Young

PartnerIndonesia

Bhairavi JaniSCA Group

Executive Director

India

Bobby Gafur Umar

Indoplas Karya
Energi

ChairmanIndonesia

Burjis Godrej

Godrej Agrovet
Ltd.

Head-Special Projects,
STRATEGY

United States

Carlos Restaino

Argentine
Chamber ofCommerce andServices

Director

Argentina

99

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Carlotta Demofonti

Snam Spa

International Relations
Manager & CEO
Diplomatic Advisory

Italy

Carmelita HartotoAndhika Lines

President Director

Indonesia

Carolina Clemente

Siemens Gamesa

Head of Public Affairs
for Spain and Latam

Spain

Christina Ellerker

Citi

Director

Australia

Dany Qian

Jinko Solar Co.,Ltd.

Vice President

China

Dario Molteni

Schlumberger

Global Account Director
Italy& Chairman Italy

Davi Bomtempo

National
Confederation ofIndustry - CNI

Executive Manager
of Environment andSustainability

Davide Cucino

Fincantieri SpAHead of Brussels Office,
Italy
European Affairs

JacobsDeborah Geideman EngineeringGroup Inc.

BrazilVP and Global Head ofInternational Relations

United States

President Director

Indonesia

Dharsono Hartono

Rimba Makmur
Utama

Diah Suran
Febrianti

Head of Environment
Astra International& Social Responsibility
Tbk
Division

Dian Andyasuri

Shell Indonesia

President Director &Country Chair

Indonesia

Didit Ratam

Binder Indonesia

CEO

Indonesia

Diono Nurjadin

Cardig Aero
Services

Commissioner

IndonesiaDoğan Karadeniz

Karpowership

Board Member

TurkeyDomenico Greco
Dom Greco

Gestioni
Industriali Group
(GIG)

CEO

Italy

Dominik Kummerle

Business at OECD
(BIAC)

Policy Director

Germany

Ebru Tüzecan

Koç Holding

Sustainability
Coordinator

TurkeyEdi Rivai

Director of Legal,
Chandra Asri
External Affairs andPetrochemical Tbk
Circular Economy

Indonesia

Elim Sritaba

Indah Kiat Pulp &Paper, Tbk. (APP
Sinar Mas)

Chief Sustainability
officerIndonesia

Evgeny Fokin

En+ Group

Director, International
Cooperation

RussiaFaisal ALFADL

Saudi Green
Building Forum

Chief Representative To
UN

Saudi Arabia

Fang Liu

Trina Solar

Public Affairs General
Manager

China

100

Indonesia

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Faisal ALFADL

Saudi Green
Building Forum

Chief Representative To
UN

Saudi Arabia

Fang Liu

Trina Solar

Public Affairs General
Manager

China

Francesco Cecchini Gondola Medical
ManaraTechnologies SA

CEO

Italy

Francesco Starace

Enel Group

CEO

Italy

Gabriela Aguilar

Excelerate Energy

General Manager
Argentina / Vice
President SouthAmerica

Argentina

Gary Litman

U.S. Chamber ofCommerce

Senior Vice President,
Global Initiatives

United States

Gianfranco
Caccamo

Icaro Ecology
S.p.A.

Direttore generale

Italy

Gillian Nelson

We MeanBusiness Coalition Deputy Director, Policy
Inc

UnitedKingdom

Giovanni BARONI

X3Energy SPA

President

Italy

Guangbin Sun

JA Solarvice president

China

Guangchao Zhu

State Grid
Corporation of
China

Deputy CTO

ChinaGuangying Liu

China Datang
Corporation Ltd.

Vice President

China

Guido Guida

Terna S.p.A.

Head of International
Public Affairs

Italy

Hari Supriyadi

Kaltim Parna
Industri

President Director

Indonesia

Harjanto Hanawi

Smart TBKHead of Corporate
Affairs

Indonesia

Henry Prini
Estebecorena

Allende & Ferrante
SR of Counsel
Abogados

Hentie Dirker

SNC Lavalin

Chief ESG and Integrity
Officer

CanadaInsub(Kevin) Jung

Hanwha Energy

CEOSouth Koreaİrfan Demirören

The Union of
Chambers andCommodity
Exchanges ofTurkeyPublic Policy Manager

TurkeyIvan Zhidkikh

EuroChem

Head of Special
Projects andSustainability
Department

RussiaJacobo Pombo
GarcíaGlobal Youth
Leadership Forum

President

Spain

James X Zhan

UN SSE

Chair, Governing Board, Switzerland

101

Argentina

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Jarredine Morris

Business Unity
South Africa

Energy and Environment
South Africa
Policy Manager

Jean-Baptise
BaroniMouvement desEntreprises deFranceHead of Energy andClimate Policy

FranceJean-Guy Carrier

Silk Road
Chamber ofInternational
Commerce

Executive Chairman

CanadaJefferson Gomes

Senai

Superintendent

BrazilJie Yuan Zhang

Tibet Summit
vice president
Resource Co., Ltd.

China

Jose ManuelRodriguez

Iberdrola

Head of Institutional
Affairs

Spain

Junko Kamitsuma

INPEX
Corporation

GM Commercial
Coordination Unit, Asia
Projects Division

Japan

Jyoti Mukul

Confederation ofIndian Industry

Principal

India

Karine GUENAN

AirbusVP Financing

FranceKarl Vella

World BusinessCouncil for
Sustainable
Development(WBCSD)

Climate Policy Director

Malta

Karyanto Wibowo

Danone Indonesia

Sustainable
Development Director

Indonesia

Kazuya Honda

INPEX Masela,Ltd.

VP of Business &StrategyJapan

Laila Pinheiro

Syngenta

Head of External Affairs
LATAM & Brazil

BrazilLeyla Gönül Gürbüz Doğuş Group

Corporate Sustainability
TurkeyManager

Liana Bratasida

KADIN

Ketua Komite Tetap

Indonesia

Lin Yang

Yingke Law Firm

Global Partner

China

Lokita Prasetya

DSSE Energi Mas
Utama

President Director

Indonesia

Luca G. Donelli

Donelli

CFO & Exec. Board
Member

Italy

Luca Matrone

Intesa Sanpaolo

Global Head of Energy

Italy

Lucia Karina

Coca-Cola
EuropacificDirector
Partners Indonesia

LUIS CABRA

Executive Managing
Director - Energy
Transition,
Sustainability,
Technology & Deputy
CEO

Repsol102

Indonesia

Spain

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Luis Delmont

SENAI - National
Department

Specialist

BrazilLuis RossanoBlue Quark Group

Founder & Chairman

MexicoMA Yongsheng
Yongsheng

Sinopec Group

Chairman

China

Marco Piredda

Eni

SVP International Affairs Italy

Margaret-Ann
SplawnClimate Markets
and Investment
Association

Executive Director

UnitedKingdom

Mario Pennisi AM
Mario

Biostate Pty Ltd

MD

Indonesia

Masahiro Aika

JGC Holdings
Corporation

Senior Executive
Officer, Technology
Commercialization
Officer, General
Manager, Sustainability
Co-

Japan

Mathieu Gardies

Hype

President and FounderFrenchMayuzar Adamy

IndonesianEmbassy Suva,
Republic of Fiji

Head of Chancery

Indonesia

Meredith Huang

BP

Low Carbon BD
Manager

China

Meta Mhlarhi

Mahlako A Phahla
investment

Co-Founder andDirector

South Africa

Michael Tardif

Ginting &Reksodiputro inassociation with
Allen & Overy

Foreign Legal
Consultant (Partner
Level)

Australia

Michelle Lai

Condé Nast

Global Sustainability
Adviser, Global Public
PolicyUnitedKingdom

Moayyed Alqurtas
MoayyedNational Industrial
Development
Board Director
CenterSaudi Arabia

Muhammad Yusrizki
Basis Investments
Muliawan

Director

Indonesia

Mustafa Oguzcan
BulbulAbdi Ibrahim
Pharmaceuticals

Communications,Sustainability &Government Affairs
Director

TurkeyNaina Subberwal

Asian Venture
Philanthropy
Network Limited

CEO

Malta

Noel Peters

Asian
Principal Safeguards
Development Bank Specialist

AustraliaNurşen Numanoğlu TÜSİAD

Deputy Secretary
GeneralTurkeyPaolo STABELLINI

CEO

Italy

Edilteco Spa

103

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCEPaul Holthus

World Ocean
CouncilFounding President andCEO

United States

Paulo Homem

RaízenHead of International
Relations

BrazilPaulus Tjakrawan
Taningdjaja

Indonesia
Biofuel Producer
Association

Vice Chairperson

Indonesia

Pierre Audinet

World Bank

Lead Energy Specialist

FranceRaghunath
Mahapatra

Excelpot Catalyzer
Co-founderPvt. Ltd.

India

Rana Birden

Kale Group ofCompanies

Head of Corporate
Communications

TurkeyRestrimaya Susiwi

Interport Mandiri
Utama

Head of Strategic
Business Development

Indonesia

Richard Irvine

Condor GroupSRL

Director

Argentina

Richard Woods

Cultivate Partners

Managing Director

Belgium

Ricky Fernando

Indika Energy

Head of CEO Office

Indonesia

Riza Suarga

Agraus Resources

Chairman & C.E.O

Indonesia

Ruggero Arico

Enel Green PowerHead of Institutional
Affairs for Europe,
Africa, Asia andOceania

Italy

Ryan MacFarlane

Crowell & Moring
International

Director

United States

Sachin Joshi

B20 consulting

Consultant

India

Samuel Nathaniel

SUN Energy

Business Development

Indonesia

Sanjiv Paul

Tata SteelVice President Safety
Health & Sustainability

India

Satya Widya Yudha

National Energy
CouncilMemberIndonesia

Sebastián Ferrari

Argentine
Chamber ofCommerce andServices

Leader of International
Relations

Argentina

Seema Arora

Confederation ofIndian Industry

Deputy Director General India

Sergey Machekhin

PJSC RusHydro

Deputy Director
General. Project
Engineering,
Sustainable
Development
and International
Cooperation

RussiaShinji Kobayashi

Mitsubishi
Heavy Industries
Indonesia

President Director

Japan

104

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Shoeil Al Ayed

Riyadh CEment
COmpany

Chief Executive Officer/ Board Member

Saudi Arabia

Sieglinde Feist

Wacker Chemie
AG

SVP Sales &Distribution

Germany

Soewarso
Martomihardjo

Sinar Mas

Director

Indonesia

Subkhan, ST,
M.PSDS IPM

Waskita Karya(Persero) Tbk

Senior Vice President

Indonesia

Suhendra
Wiriadinata

OKI Pulp & Paper
Mills

KomisarisIndonesia

Susana Ecclestone

British Argentine
Chamber ofCommerce

Executive Director

UnitedKingdom

Syarika Bralini

Indonesia Smart
Grid Initiative

Head of Government
Relations

Indonesia

Taufan EN
RotorasikoMulti Kontrol
Nusantara

President
Commisssioner

Indonesia

Taufan Wijaya

Bumiyasa
Indonesia EnergyCEOIndonesia

Tetsuo Onaru

The Kansai ElectricMarketing Director
Power Indonesia

Japan

Ulrike Beland

DIHK e.V.

Referatsleiterin

Germany

Junaid Murtaza

L'Oréal Indonesia

President Director

India

Victoria Lu

Jinko Solar
Holding Co., Ltd

Senior Branding
Specialist

China

Victoria WhitakerDeloitte Touche
TomatsuPartner

Australia

Vlada Shchugoreva

Gazprom neft

Manager of theRussiabusiness analysis stream

Wahyu Budiarto

ChevronIndonesia Country
ManagerIndonesia

Wichard vonHarrachJawa Power

President Director

Germany

William Jannace

Fordham Law
SchoolAdjunct Professor

United States

William Rising

FreeportMcMoRan Inc.

Director, Government
Relations

United States

Xiaobin Xu

JA SolarTechnology Co.,Ltd.

Senior Vice President

China

Xue Xia

State Grid
Corporation of
China

Director of International
Cooperation Dept.

China

Yang Zhang

China Council for
the Promotion of
Junior DIrector
International Trade

Yoshiki Miyazaki

Marubeni
Corporation

Yovie Priadi Yovie

Empat Mitra Indika
President Director
Tenaga Surya
105

General Manager,
Regional Coordination& Administration Dept

China

Japan
Indonesia

B20 INDONESIA 2022 | ENERGY, SUSTAINABILITY & CLIMATE TASK FORCE

Yuwei KAN Yuwei

Air Liquide

Public affairs
director, international
development

FranceZhiyong LI

China Council for Division Director,
the Promotion of
the Department ofInternational Trade International Relations

China

106