India, Brazil, South Africa, and Indonesia are leading efforts in the Global South to reform climate action through international collaborations like IBSA (India, Brazil, South Africa) and BRICS+. Together, these countries represent nearly 25% of the global population and contribute 12% of global emissions, making their energy transitions vital for worldwide emissions reduction.
This report highlights the shared challenges these countries face, including outdated fossil fuel infrastructure, insufficient financial backing, and dependence on narrow supply chains. By uniting their efforts, these nations can bolster their negotiating power, enhance institutional capacity to manage climate finance, standardize climate finance taxonomies, and implement strategies to phase out fossil fuels. They also aim to share best practices and sustain competitive advantages through clean industrial strategies.
IBSA was established in 2003 to foster cooperation among three of the largest democratic developing economies. The addition of Indonesia to this initiative strengthens the framework for collaboration on energy transitions. In 2025, Indonesia will join BRICS, providing another venue for these countries to align their energy transition goals, building upon their G20 presidencies.
The energy demand in these countries is projected to rise by 38% to 55% by 2035, complicating the challenge of reducing fossil fuel reliance while ensuring universal energy access. Each country has unique energy profiles that shape their transition strategies. For instance, Brazil has a predominantly renewable power sector, with nearly 90% of its electricity coming from renewable sources. However, it still relies on fossil fuels for transportation and sectors like steel production. In contrast, South Africa’s energy supply is heavily coal-dependent, accounting for over 70% of its total energy mix, which complicates its transition to cleaner alternatives.
India and Indonesia are gradually increasing their renewable energy capacity but face the dual challenge of meeting rising energy demand and decarbonizing their economies. Common obstacles across these nations include political and economic sensitivities, infrastructure deficiencies, and social equity concerns.
A critical gap in climate finance persists, with developing countries needing an estimated $2.4 trillion annually by 2030 to meet climate and development objectives. Fragmented regulatory frameworks and a reliance on foreign supply chains, especially from China, which dominates clean technology manufacturing, pose additional risks to energy security and future competitiveness.
To address these challenges, IBSA and Indonesia can develop coordinated policies tailored to their local contexts, drawing from shared experiences. The report details how these countries are advancing their energy transition goals, highlighting the progress made in integrating renewable energy, phasing out fossil fuels, and making industry-specific adjustments.
All four countries are pursuing ambitious energy transition objectives while grappling with the realities of rising energy demand and the need for cross-ministerial cooperation. For example, Brazil’s Nationally Determined Contributions (NDC) aim for net-zero emissions by 2050, with a 35% reduction in emissions by 2025 compared to 2005 levels. South Africa’s strategy sets a peak emissions target for 2025, aiming for a plateau until 2035, followed by a decline.
India’s energy transition goals include achieving 50% of its energy capacity from non-fossil sources by 2030, with a long-term target of net-zero emissions by 2070. Indonesia aims for net-zero emissions by 2060, targeting a 43.2% reduction by 2030. However, fossil fuel subsidies and ongoing coal power plant constructions complicate these objectives.
The report also examines the climate finance landscape, highlighting the urgent need for increased investment in clean energy. Developing nations require substantial international support to meet their ambitious goals, with estimates showing that India will need $10 trillion by 2070, Brazil $6 trillion by 2050, South Africa $450 billion by 2050, and Indonesia $2.4 trillion by 2060.
As these countries work towards their energy transition ambitions, they must focus on aligning their approaches to climate finance, creating coherent investment environments, and reducing reliance on foreign supply chains. Through collaborative efforts, IBSA and Indonesia can effectively tackle the constraints of energy transitions and ensure long-term competitiveness in the global clean energy landscape.
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