Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE Consensus marked a "game-changing" moment for the global energy transition, outlining a clear direction towards shifting away from fossil fuels in an equitable and inclusive manner to achieve net zero by 2050, said Mary Burce Warlick, Deputy Executive Director of the International Energy Agency (IEA).
Her remarks were made during the Pathway to 1.5C conference which took place on Tuesday during the opening day of the World Future Energy Summit 2024, hosted by Masdar at the Abu Dhabi National Exhibition Centre (ADNEC).
The global event brings together industry leaders and innovators with the aim of advancing sustainability goals and the transition towards clean energy.
"There's no doubt that the UAE Consensus truly is game-changing for the global energy transition. It sets out very clearly, and really for the first time, the direction of travel for the global energy sector to transition away from the fossil fuels and energy systems in a just, orderly, and equitable and inclusive manner, accelerating action this critical decade so as to achieve net zero by 2050," Warlick said.
In her presentation, Warlick tracked progress on the climate and energy outcomes of COP28, highlighting the collaborative efforts between the IEA and the UAE COP28 presidency. She commended the alignment of COP28 outcomes with the IEA's longstanding recommendations, particularly focusing on five key pillars: tripling renewable capacity, doubling energy efficiency, reducing fossil fuel demand, cutting methane emissions, and increasing financing for clean energy investment in emerging markets.
Renewable Energy Marks Record Growth
Warlick pointed to "encouraging trends" in global renewable power growth, with nearly 540 gigawatts of new capacity installed worldwide in 2023 alone, almost 60% more than the year before.
She said: "The tripling of the global renewable capacity target agreed at COP28 is clearly an ambitious goal, but an important one. It means global renewable capacity needs to rise from nearly 3,700 gigawatts at the end of 2022 to over 11,000 gigawatts by 2030. The good news is that renewable power is growing at an unprecedented pace."
However, she emphasised the need for intensified efforts to overcome certain barriers such as grid integration, permitting, financing challenges, and policy uncertainties, particularly in developing economies.
Doubling Energy Efficiency
Warlick also underscored the importance of doubling energy efficiency progress, noting the significant political consensus demonstrated in June of last year at the IEA's 8th Annual Global Conference on Energy Efficiency, which was co-hosted with France, when 46 governments endorsed the Versailles Agreement, a ministerial committee calling for stronger policy action towards the goal of doubling energy efficiency progress in this decade.
She outlined key areas for governments to focus on, including transitioning to more efficient fuels, improving technical efficiency, and promoting behavioural changes to reduce energy demand.
Addressing methane emissions, Warlick highlighted the emergence of new policies and regulations aimed at accelerating action on methane reduction, highlighting notable initiatives from United States, Canada, the European Union, and China. However, she stressed the need for detailed plans and regulations to fully achieve emission reduction targets.
"The IEA estimates that if all methane pledges made by countries and companies today were implemented and achieved in full and on time, methane emissions from fossil fuels would decline by around 50% by 2030. However, in most cases, these pledges are not yet backed up by detailed plans, policies, and regulations. And the detailed methane policies and regulations that currently exist would cut emissions from fossil fuel operations by about 20% from 2023 levels by 2030," said Warlick.
Clean Energy Investment
Warlick emphasised the importance of expanding capital flows to emerging markets and developing economies to further clean energy investments. She highlighted the IEA's commitment to supporting these efforts through initiatives aimed at mobilising financing and addressing barriers to investment.
She cited analysis from the IEA's Cost of Capital Observatory, which revealed that financing costs for clean energy projects in emerging markets and developing economies can be as much as two to three times higher than is the case in advanced economies.
Warlick concluded by reaffirming the IEA's commitment to supporting the implementation of COP28 outcomes, including tracking progress on key commitments, assisting countries in formulating energy policies, and enhancing international climate cooperation through high-level dialogues and partnerships.
