B20 TF ESC Generates Potential Project Value Over 11.5 Billion US Dollars

November 19, 2022 - The Task Force on Energy, Sustainability, and Climate Change (TF ESC-B20) at the B20 conference succeeded in producing a potential project value of more than 11.5 billion US dollars.

"The discussion between stakeholders in TF ESC-B20 targets to find the most realistic implementation of a sustainable energy transition with an energy independence concept," said Chairman of TF ESC-B20, Nicke Widyawati.

The B20 Summit took place in Bali from November 13-14, 2022. The first main TF-ESC B20 task or mission is to accelerate the new renewable energy use worldwide.

The second is ensuring a fair and affordable energy transition, as well as to improve energy security.

From the three main discussions, it was mentioned that both developed and developing countries should have more developed global cooperations.

TF ESC is a catalyst in global cooperation with the achievement of cooperation agreements as many as 38 from across countries. 11 countries are at least involved in the "business action" process in realizing the low-carbon projects with a total project value of more than 11.5 billion US dollars.

Another implementation action is TF ESC as a venue for global business alignment. Twelve cross-country cooperation opportunities were realized after the B20 event.

From this cooperation opportunity, five businesses agreed on a project to reduce and become low-carbon.

Another business action achieved was two business investment collaborations established at the B20 conference.

In general, TF ESC B20 serves as a bridge for countries that wish to reach a mutual agreement on global energy transition issues. The ESC B20 task force provides an understanding of cooperation for countries going through an energy transition period with countries that have abundant fossil energy sources, such as Saudi Arabia. The evidence from TF ESC to bridge the energy transition understanding is the Carbon Captures Utilization Storage (CCUS) technology development. CCUS (Carbon Capture, Utilization, and Storage) is a technology that can capture Carbon Dioxide that has been released into the atmosphere. Thus, clean energy can be achieved with this step.

Furthermore, the second function and vision are TF ESC as an accelerator/catalyst to realize global agendas, for example, NZE, energy transition, and others. NET Zero Emission (NZE) or carbon neutrality in 2060 is a work agenda and a sustainable process for transitioning energy use. From polluting fossil energy to clean, minimal emission, and environmentally friendly energy resulting from the New and Renewable Energy (NRE) development.

Following the conference's goal, PT Pertamina Group of Indonesia, became the main actor in organizing the Government 20 Summit (KTT-G20) and Task Force Energy, Sustainability and Climate Business 20 (TF ESC-B20). Pertamina is ready to oversee three main recommendations discussed intensively by 152 participants from 25 representative countries.

The three final recommendations from TF ESC-B20 in question includes accelerating the transition to sustainable energy use by reducing the carbon intensity of energy use. Second, ensuring a just and affordable transition, and third, increasing access and consumers’ ability to consume clean and modern energy. Nicke Widyawati, as the President Director of PT Pertamina (Persero), explained that Indonesia’s supports of industrial decarbonization will accelerate the net zero emissions target for 2060 or sooner.

Generally, B20 TF ESC participants come from various companies around the world. Participants from Indonesia include Pertamina, Vale Indonesia, EMITS, Jababeka, WIKA, Pupuk Indonesia, Indonesia Stock Exchange, Grab Indonesia, Astra Agro Lestari, WIMA, Krakatau Steel, Unilever Indonesia, Badak NGL, Indonesia Battery Corp, L'oreal Indonesia, and Hitachi Astemo Indo.

Meanwhile, from East Asia and Southeast Asia are Japan (JBIC, NYK, Tepco, Inpex, Chiyoda, JOGMEC, Mitsubishi, MHI), China (Sepco, CATL, Zheijang Huayou Cobalt), Korea (KIS), and Singapore (Ignis, Cobalt). One of the cooperation agreements was also established regarding the "Pre-Feasibility Study Related to E-Methane Development" between PT Pertamina and IHI Corp. from Japan towards a low-carbon industry.

Then from North America, attended by Exxon Mobil, Chevron, and Ormat. From the Middle East are Saudi Arabia (Saudi Aramco, ACWA Power) and the UAE (Masdar, ADNOC).

Companies from Europe were attended by Turkey (BOTAS), the Netherlands (Pondera), Spain (Semba Corp), and France (Schlumberger).

The three TF ESC formulations, accelerating the transition to sustainable energy use by reducing the carbon intensity of energy use, ensuring a just and affordable transition, and increasing access, follow the strategic G20 Presidency issues and the Sustainable Development Goals (SDGs).

Nicke Widyawati also conveyed that preventing global warming and climate change are complex matters. These massive efforts require changes on a global scale, including changing technologies, financial markets and products, supply chains, business models, governance frameworks, and well-rooted political economy considerations.

Equally important, the energy transition should not become an obstacle to the development agenda in developing countries, where the economic power funding is below the developed countries in terms of income per capita, energy consumption, and emissions.

These are the challenges, concerns, and objectives of the Energy, Sustainability, and Climate Task Force.

Developed countries are ahead in the energy transition because of their governance strength framework, institutional capacity, market development, and financial capacity. While developing countries lack these strengths. To overcome this, Nicke provides solutions to increase global cooperation in capacity building, as well as doubling annual financial support for developing countries. "Without this collaboration, it is a tough challenge for developed countries in terms of energy transition funding," she said.**