G-20 countries reach Bali Compact to ramp up renewable energy

Wind turbines Source: Flickr

Energy ministers of the world’s largest economies agreed on the Bali Compact to quicken the energy transition, while geopolitical rifts prevented them from reaching a communique.

The agreement, named after the island on which the meeting was held, set out voluntary principles for how the countries would build up renewable energy, said Arifin Tasrif, energy minister for host country Indonesia after the meeting of Group of 20 officials. The compact includes steps to improve renewable energy infrastructure, financing, investment and technology transfer.

The ministers in the meeting also highlighted “the special circumstances and unique barriers faced by archipelagic island states, remote and island communities, which are found in all corners of the world, particularly in the Pacific,” Tasrif said in a Friday briefing in Bali. Indonesia is the world’s largest archipelago.

Previous G-20 ministerial meetings on climate and finance also failed to reach a joint agreement as member countries clashed over Russia’s invasion of Ukraine. Host Indonesia has instead resorted to chair summaries and other deals struck on the side, such as one on a global health fund.

Energy ministers are under pressure to transition away from fossil fuels faster as high oil and gas prices have driven up inflation. The Bali Compact will later be translated into a Bali Energy Transition Road Map, which will set out how to secure energy access, scale up smart and clean energy technology, as well as advance financing.

© 2022 Bloomberg L.P.

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.