The COP29-IEA High-Level Energy Transition Dialogues have identified five key opportunities to demonstrate progress in energy transitions and limit the rise in global temperatures.
COP28 in Dubai provided a framework for how the global energy sector can reach Net Zero emissions by 2050.
Countries committed to ambitious targets including to ‘transition away’ from fossil fuels, triple renewable energy capacity by 2030, double energy efficiency improvements, and accelerate the deployment of low-emission technologies such as renewables, nuclear, abatement and removal technologies.
The COP29 Presidency has launched three initiatives to respond to the energy goals agreed at COP28: the COP29 Global Energy Storage and Grids Pledge, COP29 Hydrogen Declaration and COP29 Green Energy Zones and Corridors Pledge.
And the COP29-IEA High-Level Energy Transition Dialogues have identified five key opportunities to demonstrate progress in energy transitions and limit the rise in global temperatures to 1.5 °C above pre-industrial levels.
1. Scale up energy storage and electricity grids as a key enabler to achieving the global goal of tripling renewable energy capacity this decade and ensuring that the full benefits are realised
Reaching this target requires global energy storage capacity to increase to 1,500 GW by 2030, including 1,200 GW in battery storage, representing nearly a 15-fold increase from today.
On top, we need to accelerate permitting processes and build or upgrade over 25 million kilometres of electricity grids by 2030, with an additional 65 million kilometres by 2040, according to the IEA.
Failing to act will lead to higher electricity prices, increased coal and gas generation, and greater renewable energy curtailment, driving up emissions. By endorsing the COP29 Presidency Global Energy Storage and Grids Pledge, we can take a crucial step forward to align with the 1.5°C transition pathway.
2. Ensure countries accelerate policy implementation to achieve the goal of doubling energy efficiency progress by 2030
A year on from the historic agreement at COP28, the world is not yet on track to achieve this energy efficiency goal.
In 2024, the world is set to see only a weak improvement in energy intensity of about 1%, the same rate as in 2023 and half the rate seen in the 2010-2019 period. Speeding up progress requires an integrated policy approach across end-use sectors, and measures to scale up investment in energy efficiency and address shortages of skilled workers.
Doubling global energy efficiency improvements could provide about one-third of all emissions reductions by 2030, crucial for the transition away from fossil fuels, and can lower energy bills of consumers.
3. Maintain a focus on cutting emissions from methane and fossil fuels
Growing clean energy is critical to driving down the demand for fossil fuels but, in a world characterised by uncertainty, clear policies are needed to accelerate clean energy transitions.
Methane emissions are an example of an area in which additional action is needed. Many of the ways to reduce these emissions are well-known and cost-effective and can build on initiatives such as the Global Methane Pledge and the Oil and Gas Decarbonization Charter.
Phasing out inefficient fossil fuel subsidies and ensuring the safe and responsible decommissioning or repurposing of fossil fuel infrastructure when it is no longer needed are also crucial. Dialogue and cooperation among a broad range of stakeholders will be essential.
4. Implement solutions to boost clean energy investment in developing economies to support their transitions
This requires a tripling in annual concessional funding from today’s level to $115bn by 2030, as called for in the G20 Roadmap to Increase Investment in Clean Energy in Developing Countries, and targeted solutions to lower the cost of capital and increase private-capital mobilisation for clean energy investments.
Leveraging institutions capable of creating a robust pipeline of bankable clean energy projects, along with fast-tracking reforms of international financial institutions, will be essential to delivering affordable finance to where it is most needed and to ensure that no one is left behind.
5. The next round of Nationally Determined Contributions should be informed by the Global Stocktake (GST) outcomes
At the GST, Parties recognised the need for deep, rapid and sustained reductions in global greenhouse gas emissions, in line with 1.5C pathways, and called on to contribute to the global efforts listed under paragraph 28, in a nationally determined manner, taking into account the Paris Agreement and their different national circumstances, pathways, and approaches.
It is essential that we implement all the GST outcomes to keep us on track to a 1.5-aligned and climate resilient world. Therefore, our next rounds of NDCs should be informed by the GST outcome, integrated into national development strategies, and foster investment and support.
This call can put NDCs on course to reach the 1.5°C temperature goal, and would allow deep, rapid and sustained reductions in global greenhouse gas emissions of 43 per cent by 2030 and 60 per cent by 2035 relative to the 2019 level and reaching Net Zero carbon dioxide emissions by 2050. Failure to heed this call may risk derailing global efforts to keep 1.5°C within reach.
