The Role Of Global Governance Institutions In Fostering Clean Energy Transitions

As one of the three main priorities of the Brazilian G20 Presidency, clean energy transitions will play a significant role in reducing carbon emissions to mitigate the impacts of climate change (Engels & Snower, 2023). Transitioning to renewable energy sources and enhancing energy efficiency can result in significant benefits for climate action, poverty alleviation and equality. However, meeting the energy needs of a large population, while fostering an inclusive transition poses major challenges and requires the support of global governance institutions. Among other pressing issues, developing countries, particularly in Africa and Latin America, will also need to overcome poverty and improve their income distribution. For the green transition to provide avenues for economic development based on sustainable use of resources and on poverty alleviation, it is critical that the mechanism financing these transitions has an institutional setting that fosters interconnectedness between global and domestic realms. This policy brief provides key recommendations on how the G20 can bridge the gap between domestic and global governance to enable inclusive energy transitions. The key messages include the following: the development of financing mechanisms to increase the accessibility for renewable energy resources; the adoption of supporting income policy mechanisms that allow households to adopt cleaner sources of energy; the adoption of best practices in term of standards and guidelines, for renewable energy, as well foster technical assistance and knowledge spreading between domestic and international actors.