G20: Affordability and Social Impacts of Energy Transitions

Governments are increasingly recognizing that taking a people-centred approach to clean energy transitions, one that maximizes the benefits for all people, is essential to their success.

As one of its three priorities in the Energy Transitions Working Group, Brazil is focusing on the social dimension of energy transitions and building on its leading programmes in the area, such Luz Para Todos, its electrification programme and the Amazonas regions clean cooking programme. As the G20 President, Brazil has highlighted the need for clean energy transitions to generate positive social impacts including affordability and increased energy access for all members of society, with a special focus on local communities and the most vulnerable segments of the population.

In April 2024, the IEA launched the Global Commission on People Centred Clean Energy Transitions: Designing for Fairness. Co-chaired by Minister Silviera from Brazil and Minister Ribeira from Spain, the Commission is integrating lessons and experiences from around the world on designing clean energy policies to maximise positive social impacts, which will feed into G20 and ultimately COP.

This G20 side event offers a policy exchange on the positive social impacts of clean energy transitions, including improving affordability and energy access to benefit local communities and the most vulnerable segments of the population.

The event will start with a presentation and special launch of IEA’s report, Strategies for Affordable and Fair Clean Energy Transitions, which shows that intentional and targeted policy design within different contexts can lead to a range of benefits including increasing clean energy affordability and access, improving health outcomes, and driving economic development.

The presentation will be followed by a panel discussion with key stakeholders including government, community representatives and civil society. The panellists will discuss how to ensure positive social impacts of clean energy transitions, including affordability, can be maximised for all with case studies and lessons learned from their unique perspectives.

Ensuring positive social impacts of clean energy transitions: Spotlight on affordability

The side event will take the format of a roundtable discussion among participants, with a panel of high-level speakers.

Opening remarks & scene-setting [10-15 minutes]

• Opening remarks by Mariana de Assis Especie, Director of Energy Transition, Brazilian Ministry of Mines and Energy
• Scene setting presentation of the IEA flagship report Strategies for Affordable and Fair Clean Energy Transitions, Jane Cohen, IEA Senior Policy Analyst

Policy exchange moderated by Rachel McCormick, Director General of International and Intergovernmental Affairs, Natural Resources Canada

• Panel interventions [5-7 minutes each, introduction of country/organisation’s work on this topic]

1. Michael Apicelli, Director of Multilateral Climate and Clean Energy Engagement, United States Department of Energy
2. Camila Bomfim, Superintendent of Tariff Management and Economic Regulation, ANEEL (Brazilian Electricity Regulatory Agency)
3. Christian Stenberg, Deputy Permanent Secretary, Danish Ministry of Climate, Energy and Utilities
4. Espen Mehlum, Head of Energy Transition Intelligence and Regional Acceleration, World Economic Forum

• Discussion [30 minutes, based on discussion questions]

Discussion questions:

• What are best practices to ensure the benefits of clean energy policies, including affordability, are distributed fairly across population segments?
• What are examples of successful programmes aimed at increasing the affordability of clean energy technologies and services, particularly for vulnerable communities? What are lessons learned for policy design?
• What role can businesses play to maximise the positive social impacts of clean energy transitions?
• What are barriers to make energy access universal? How can G20 governments partner to achieve this objective?