A G20 Compact For Responsible Renewable Energy Development

The renewable energy (RE) sector will make a global low-carbon future possible. However, the explosive growth of RE around the world may come with a risk of aggravating existing patterns of energy transitions that have typically been characterized by inequality and exclusion. The sector has a golden opportunity to ensure a people- centered energy transition that prioritizes environmental stewardship and the rights of people and communities. Increased RE will exert pressure on natural lands, biodiversity, and resources on which Indigenous Peoples and vulnerable communities rely. A World Bank estimate suggests a 300% rise in demand for minerals crucial for solar photovoltaic, under a 2-degree climate scenario. This means vast amounts of land may be disturbed or degraded, risking wildlife, waters, and other resources, as well as the surrounding communities and workers. Advancing an inclusive and just transition to RE will require both government support and participation of the private sector – RE buyers, developers and financiers. It should protect and empower communities and ensure that they are active participants and beneficiaries across all stages of the project life cycle. Policy can play a vital role in setting minimum requirements; offering incentives for multiple land-use RE projects, inclusive project siting, robust research and development mechanisms, establishing best practices that appraise ecology and social justice; and fostering international cooperation. The Brazilian Presidency ofthe G20 in 2024 has established three key priorities: social inclusion and the fight against hunger and poverty; sustainable development and energy transitions; and reform of global governance institutions. The energy transition presents a myriad of opportunities, including supporting the fight against hunger, poverty, and inequality. Additionally, in 2023, G20 countries collectively accounted for almost 90% of the global cumulative RE power capacity. Each G20 nation can play an essential role in ensuring a just, and environmentally safe RE transition, while working with RE developers, financiers and investors, and commercial and industrial electricity consumers. This policy brief proposes principles necessary for responsible RE deployment to be brought to action via the T20 and G20 infrastructure.