New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Energy transition is key to solving energy and climate crises
6/4/2022
News
The International Renewable Energy Agency’s (IRENA) recent World Energy Transitions Outlook report outlines actions needed until 2030 to limit global warming to 1.5°C and asks governments to accelerate the energy transition to improve energy security, resilience and energy prices.
Both short-term interventions to address the current energy crisis and a sustained focus on the mid- and long-term goals of the energy transition are needed, says the report. It points to volatile fossil fuel prices, energy security concerns and the growing threat of climate change creating an urgent need for a cleaner energy system.
The report uses available technologies to set out priority areas and actions that must be realised by 2030 to achieve net zero emissions by 2050. It also looks at all energy uses to date to show that the pace and scale of the implementation of renewables is inadequate.
IRENA finds investment needs of $5.7tn annually until 2030, including the requirement to redirect $0.7tn each year away from fossil fuels to avoid stranded assets. However, investing in the transition has socio-economic and welfare advantages; it could create 85mn jobs worldwide in renewables and other transitional technology between now and 2030. This would compensate the 12mn job losses in the fossil fuel sector, according to the report.
A massive scale-up in renewables is needed across all sectors, to increase from 14% of total energy today to about 40% in 2030. Renewable power would have to triple every year by 2030 whilst coal power would need to be replaced, fossil fuel assets abandoned and infrastructure upgraded, says IRENA.
In addition, increasing electrification and efficiency are also highlighted as central drivers of the energy transition, enabled with renewables, hydrogen and sustainable biomass. The report anticipates that end-use decarbonisation will play a pivotal role, with solutions available through electrification, green hydrogen and the direct use of renewable energy sources. Likewise, it sees electric vehicle (EV) sales as an area for significant growth until the global EV fleet is 20 times bigger than today.
Calling on governments to facilitate this transition, IRENA lays out structural policies covering all technological avenues and just transition objectives necessary for deployment to be achieved by 2030. Leadership is needed from the world’s largest energy consumers and greenhouse gas emitters. They must also support the global supply of 65% renewable energy generation by 2030.
Francesco La Camera, Director-General of IRENA, commented on the launch of the report: ‘The energy transition is far from being on track and anything short of radical action in the coming years will diminish, even eliminate chances to meet our climate goals’.
He continued: ‘80% of the global population lives in countries that are net importers of fossil fuels. By contrast, renewables are available in all countries, offering a way out of import dependency and allowing countries to decouple economies from the costs of fossil fuels while driving economic growth and new jobs.’
