Need ‘orderly & inclusive’ energy transition, fossil fuels will continue playing key role: BRICS declaration

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Acknowledging that fossil fuels will continue to play an important role in the world’s energy mix, particularly in emerging markets and developing economies, BRICS countries have called for “just, orderly, equitable and inclusive” energy transitions while stressing the need to reduce greenhouse gas emissions in line with global climate goals.In its declaration, issued on Saturday in New Delhi, the countries also stressed the principle of “technological neutrality” and “common but differentiated responsibilities and respective capabilities” in pursuing energy transitions, while recognising that countries’ pathways would need to take into account their respective national circumstances, needs and priorities.The declaration came as leaders of the 11 BRICS countries gathered in India for the 18th BRICS summit, with the grouping seeking to strengthen cooperation and boost growth prospects across the Global South.Beyond the energy transition, the declaration also focuses on the digitalisation of energy systems and greater cooperation on critical minerals, while emphasising the need for resilient energy supply chains.“We recognize that energy security is a crucial foundation for social and economic development, national security and the welfare of all nations. We highlight the need to enhance energy security by ensuring energy market stability and maintaining undisrupted flows of energy from diverse sources, strengthening value chains, ensuring resilience and protection of critical energy infrastructure, including cross-border infrastructure,” the declaration read.In its declaration, the countries also underscored the importance of balanced and diversified energy mixes reflecting national circumstances.They recognised that a wide range of energy sources and technologies including but not limited to renewable energy, bioenergy, fossil fuels, nuclear energy, hydropower, hydrogen, low carbon technologies, energy storage technologies, would play an important role in achieving the Sustainable Development Goals (SDGs) and energy security.Story continues below this ad“We underscore the role of all available energy sources, resilient energy supply chains and enhanced cooperation among BRICS countries through deliberations in the energy track. In this regard, we encourage BRICS collaboration on interoperable standards and certification frameworks for zero/ low-emissions hydrogen and appreciate the ongoing work on the BRICS Joint Report on Hydrogen Value Chains in this regard,” the declaration added.The countries also highlighted the growing role of digitalisation in energy systems including technologies such as artificial intelligence and advanced data analytics.They said it offers significant potential to improve system planning, grid management, renewable integration, operational efficiency and a strengthened cyber-resilient energy infrastructure.“In this regard, we welcome the BRICS Guiding Principles on Smart Grids and Energy Storage. We note the Chairship initiative on establishing the BRICS Digital Centre of Excellence for Smart Grids and Energy Storage under the Smart Grids Workstream of the BRICS ERCP as an enabling voluntary dialogue mechanism to advance cooperation,” the declaration said.Story continues below this adThe countries also reaffirm their commitment to deepen cooperation in the field of competition law and policy among BRICS nations to foster fair, competitive, and resilient market environments across sectors, including critical and emerging areas while respecting each country’s national priorities, laws and regulations.“We note the discussion under the theme ‘Strengthening Cooperation to Promote Fair Competition, including in Renewable Energy Markets’, with a view to support sustainable energy transitions. We further encourage continued cooperation among BRICS competition authorities to identify and effectively address emerging competition challenges, with a view to safeguarding contestable and well-functioning markets that support innovation and promote consumer welfare,” it added.On critical minerals, the countries affirm the need to promote “reliable, responsible, diversified, resilient, fair, sustainable, and just” supply chains of critical minerals to guarantee benefit sharing, value addition and economic diversification in resource-rich countries, while fully preserving sovereign rights over their mineral resources, as well as their right to adopt, maintain and enforce measures necessary to pursue legitimate public policy objectives.“We recognize the key role of critical minerals for the development of zero- and low- emission energy technologies, energy security, and resilience of energy supply chains,” the declaration added.