The newly launched Global Energy Transition Forum aims to serve as an international focal point for renewables development and convert targets into concrete projects.
Announcing the Forum’s launch at Davos, European Commission President Ursula von der Leyen said, “The Forum is all about connecting the dots, so we can learn from each other and exchange best practices, and support projects that jump start new clean energy industries and scale up clean energy globally.”
While Europe has made significant strides, with 50% of its electricity now coming from reneawbles, the global picture is uneven. Africa, despite being rich in solar and natural resources, has attracted only 2% of global clean tech investment and 600 million people still lack access to electricity.
President Von der Leyen said the Forum would support “flagship initiatives” and strive to champion “smarter financing and derisking tools” to help projects reach FID.
“We have to sustain the momentum of our historic global energy agreement and turn collective promises into measurable progress,” she said, and highlighted the UK which is “leading this change”.
Fatih Birol, Executive Director of the IEA, said the Forum’s launch was “so timely”. He said its current estimates forecast a 2.7-times increase in renewables. Europe has raised its renewable target to over 42% by 2030 (currently 23%).
He said the biggest issue was the $2trn renewables investment, where 85% is directed to advanced economies and 15% is invested in countries with 60% of the global population. “Africa is the main challenge – in all the energy data, what breaks my heart, the amount of solar electricity we generate in Sub-Saharan Africa is less than electricity from solar we produce in the Netherlands.”
Critical minerals will play a key role in the transition and Birol said producers should not only be mining and exporting but also refining and processing, helping to build economic diversification and reduce emissions.
Lars Rebien Sorensen, Chairman of the Board of Directors, Novo Nordisk Foundation, said it is investing in supercomputers and machine learning to drive energy efficiencies and improve productivity. “We are trying to build a Quantum Computer which will be able to make breakthroughs – such as learn how nitrogen is fixated from the air, and make fertilisers in a much more harmless way,” he said.
Gurdeep Singh, Chairman and Managing Director, NTPC, said it has set a target of 60 GW of renewable energy by 2032, around 15 times its current production. It is now working on producing green hydrogen from solar power and developing its circular economy. “The single point is how can we have low-cost, long-term financing, which can help underdeveloped and developed economies accelerate the transition?”
Morten Wierod, CEO, ABB, said one of his biggest frustrations is using technology which has developed over the years. “Financing needs to be there, but I would really try more to come up with very detailed programmes on how to fix things and use the power of innovation of the industry.”
