Opening remarks by Minister of Petroleum and Natural Gas and Housing and Urban Affairs, Shri Hardeep Singh Puri at the Energy Ministers’ Session of the 2nd Voice of Global South Summit (November 17, 2023)
Excellencies
I extend a very warm welcome to all of you to this Energy Minister's session within the second edition of the Voice of Global South Summit. Together with you, I look forward to a focused and productive dialogue on the theme of affordable and inclusive energy transition for sustainable development.
Excellencies
The inaugural edition of Voice of Global South Summit had underlined the perspectives of developing countries in the international sphere. We were gratified by your widespread participation during the summit. Based on those productive discussions, India utilized its G20 presidency to give resonance to the voice of the Global South by inter alia, highlighting common concerns in the energy sector, dealing essentially with issues relating to availability, affordability and sustainability. During the G20 summit, under the theme ‘One Earth, One Family, One Future’, India put forth the proposal for the African Union to attain permanent membership status within the G20. The proposal was welcomed by all participating nations. I would therefore like to join all of you in extending a very warm welcome to the nations of the African Union on your new status as permanent members of the G20.
Building on the momentum established during the Energy Minister's session held within the first Voice of Global South Summit in January 2023 and drawing on the lessons and gains from the G20 summit, today we can go deeper into issues pertaining to affordable energy transition and sustainable development.
Excellencies
In recent time, the world faced a truly global energy crisis, born of increased energy demand from the post-COVID recovery, geopolitical disruptions, resulting in spikes in conventional fuel prices, effects of this extreme volatility are magnified in developing economies. Against this backdrop, achieving energy transition is contingent on global partnerships. Such collaborative approach will result in optimum resource distribution, technological tie-ups and the sharing of best practices.
Excellencies
Currently India ranks as the third largest energy consumer globally. We are on a rapid trajectory to becoming a $5 trillion GDP economy by 2025. Consequently, our energy demand is poised to grow exponentially. It is estimated that India alone will account for around 25% of the global energy incremental demand growth between 2020 and 2040, the largest incremental share by any nation. The government of India has taken a pragmatic and astute middle path that underscores commitment to mitigating climate change while supporting national interests and meeting India's energy demand. India's broad diversification of its energy policy will help facilitate enhanced energy security. Towards this, the government of India, Excellencies, has taken several steps, including transformational policy reforms while focusing on waves of future, that is non-conventional energy, including biofuels, compressed biogas, green hydrogen, solar and wind.
The success of the biofuel story of India requires, Excellencies, a special mention here, as our experience has shown that any country which has land for agriculture and water, can both produce and consume biofuels. This would lead to multiple benefits, including enhanced energy security, greater prospectivity and prosperity for our farmers, environmental sustainability.
The stage is set for India to share the Indian experience in biofuels, which is also a story to support our agricultural sector. From a meager 1.5% biofuels blending in 2014, India achieved 10% blending of ethanol in petrol in May 2022, which was well ahead of the November 2022 deadline.
India has also advanced its target of 20% ethanol blending in petrol from 2030 and has brought the target five years earlier. This has helped in boosting farmers' income with the payment of over US$8.7 billion and also in lowering carbon dioxide emission by more than 40 million metric tons in the last nine years. Underscoring the importance of biofuels towards energy transition, India, along with the leaders of eight countries, launched the Global Biofuels Alliance (GBA) during the G20 Leaders’ Summit on 9 September 2023. The GBA, Excellencies, is a multi-stakeholder alliance of governments, international organizations and industries which is intended to expedite the global uptake of biofuels. The alliance presently has 22 member countries and 12 international organizations and is continuously expanding.
Excellencies
I would like to take this opportunity of my interaction with you to invite countries of the Global South, those that have not already joined the Global Biofuels Alliance, to join us where we can collaborate further towards a cleaner and greener future.
Excellencies
India now stands committed to achieve net zero by 2070, reaching India's non-fossil energy capacity of 500 GW and meeting 50% of our energy requirements for renewable energy by 2030.
Today, India has become the world's third largest producer of renewable energy with 40% of our installed electricity capacity coming from non-fossil fuel sources, achieving the commitment of intended national determined contribution of COP21 ahead of the target of 2030 in 2021. We enjoy the lowest cost of large-scale solar power in the world as solar tariffs were around Indian rupees 7 per unit in 2014, now they have fallen to rupees 1 and 99 paisa per unit. Similarly, the cost of wind power has fallen from Indian rupees 3.5 per unit in 2014 to Indian rupees 2.77 per unit.
Excellencies
India launched a National Green Hydrogen Mission with target of producing 5 million metric tons by 2030, making India a global hub for the production, usage and export of green hydrogen and its derivatives. Moreover, India's updated nationally determined contribution also underscores a mass movement called LiFE, Lifestyle for Environment, as a key to combating climate change. The vision of LiFE is to live a lifestyle that is in tune with our planet and does not harm it, calling it for a shift from GDP-centric view of the world to human-centric view. At the same time, the Government of India is keen for getting international investment for domestic exploration and production activities for traditional hydrocarbon and has created an enabling environment for attracting investments.
Excellencies
these initiatives offer easy replication for achieving our respective energy security goals. India is keen to collaborate with countries of the Global South, including for knowledge sharing, technology transfer, joint R&D activities, development of human capabilities, to name just a few areas. I would like to thank you for making the time. I look forward to hearing your ideas. That would be helpful in achieving greater collaboration in this important area.
Thank you very much.