Leaders of the Group of 20 largest world economies (G20) have called on the International Energy Forum (IEF) to facilitate an intensive dialogue between producers and consumers to bolster the efficiency, transparency and stability of energy markets.
In a declaration issued after a two-day summit in Rome that preceded COP26 the leaders said: “As we are recovering from the crisis, we are committed to maintain energy security, while addressing climate change, and guaranteeing just and orderly transitions of our energy systems that ensures affordability, including for the most vulnerable households and businesses.
“In this endeavour, we will remain vigilant of the evolution of energy markets, taking into account trends over the years, and promote an intensive dialogue. Accordingly, the G20 in collaboration with the International Energy Forum (IEF) will facilitate a dialogue between producers and consumers to bolster the efficiency, transparency and stability of the energy markets.”
“The IEF is honoured to collaborate with the G20 in the global energy dialogue, particularly at this critical time of transition, when our priorities of market stability, energy security and transparency are being tested by the need to quickly move to more sustainable energy systems,” The secretary general of the International Energy Forum, Joseph McMonigle, said.
The G20 leaders’ declaration in paragraph 29 went on to state:
“We emphasize the importance of maintaining undisrupted flows of energy from various sources, suppliers and routes, exploring paths to enhanced energy security and markets stability, while promoting open, competitive and free international energy markets.”
It underlined the principle of energy security and market stability which are at the core of the IEF mandate, noting that the transition demands an enhanced understanding of energy security.
“We recognize the role of digitalization in enhancing energy security and market stability through improved energy planning, while ensuring the security of energy systems against risks of attacks, including through malicious use of ICT,” the declaration added. “In addition to continuing to address traditional energy security challenges, we are mindful that clean energy transitions require an enhanced understanding of energy security, integrating aspects such as the evolving share of intermittent energy sources; the growing demand for energy storage, system flexibility changing climate patterns; the increase in extreme weather events; responsible development of energy types and sources; reliable, responsible and sustainable supply chains of critical minerals and materials, as well as semiconductors and related technologies.”
The mission of the IEF to strengthen global energy security, market transparency, and facilitate energy transitions remains closely aligned with the core objectives of the G20 to promote global economic stability, inclusive and sustainable growth, as well as to modernize international governance systems.
The latest endorsement of the IEF by the G20 follows several years of close collaboration between the two institutions, which are united on many central issues and growing closer to meet new challenges.
The member countries of the IEF and G20 rely on each other to reduce risks, prevent, and respond to global economic and energy market disruptions, as illustrated by their collaboration during the COVID-19 pandemic.
International engagement has never been more important and valuable for the world economy to achieve shared goals ranging from alleviating energy poverty to implementing effective responses to climate change.
“Global prosperity and wellbeing depend on the secure, sustainable, and transparent functioning of energy markets, including unhindered trade and investment in energy and technology and by building on partnerships in producer-consumer relations,” McMonigle, concluded. “Broadly framed, neutral, and data-driven dialogue, in collaboration with other key international organizations, helps IEF and G20 member countries meet the challenges of the 21st century.”