The GGKP's Seventh Annual Conference took place on 21-22 October 2019 in conjunction with the Global Green Growth Institute’s Global Green Growth Week 2019 (GGGW2019) on the theme of “Achieving Global Energy Transformation” in Seoul, Republic of Korea.
Francesco La Camera, Director-General, International Renewable Energy Agency (IRENA), gave the keynote address: Accelerating the Energy Transformation: The Inspiration of Country Leadership, Drive, and Innovation.
Fully transforming the energy system is key to achieving sustainable development and meeting climate goals. According to the Intergovernmental Panel on Climate Change report, there are slightly less than 11 years to cut carbon dioxide emissions and limit the rise of global temperatures, or our world faces irreversible consequences.
Holding the line on rising global temperatures by the end of next decade will take an unparalleled show of collective human endeavour, with no guarantee of success. But it is possible. Solar, wind and other renewable energy sources, together with improved energy efficiency, form the most effective and ready response to rising emissions. They are practical, affordable and climate-safe. No other technology offers as plausible a path to emission reduction within a decade.
In what has become a race against time, the universal availability and immediately deployable nature of renewable energy makes it our most potent climate response. Construction times are fast. Germany once installed 3 gigawatts (GW) of solar power in one month – enough to power more than 900,000 German homes. China’s 52 GW of solar power in 2017 was the equivalent of an average sized nuclear facility every week. And its current onshore wind ambitions could match that pace. These are examples of the decisive action required.
Speed is not the only advantage of renewable energy. In tackling climate change with renewables, we can lead the world into a new age of sustainable development. The post-carbon era promises to bring opportunity even to the poorest countries, lighting up economies left behind by resource inequality. A climate-safe energy path would grow the global economy by 2.5% and would create more new, sustainable energy jobs than those lost in the phase-out of fossil fuels. The developing world has a tremendous amount to gain.
Through partnerships, risk-mitigation measures and appropriate financing mechanisms, developing countries can move to the forefront of this new energy era. Our view is that by 2050, sub-Saharan Africa would have the highest shares of renewable energy in primary energy supply with levels far above 80%. However, Africa’s energy leapfrog will only take place if the flow of capital to relevant projects can be scaled up significantly, and the necessary human capacity can be built – all areas in which the Green Growth Knowledge Partnership[PU1] supports efforts.
The energy transformation already has tremendous momentum. Renewables have accounted for more than half of global capacity additions in the power sector since 2011, outpacing non-renewable growth year after year. Across the world, from Latin America to Africa, the way we produce, consume and distribute energy is changing dramatically.
To reach the transformational speed required, global energy investment must overwhelmingly pivot to renewables. Annual investments in renewables must rise from today’s $330 billion to more than $750 billion per year to hold rising temperatures. In other words, an investment gap of more than $400 billion needs to be closed – and quickly. Redirecting $19 trillion of fossil fuel investments earmarked until 2050 into more socially and economically beneficial low-carbon technologies, including renewables, is imperative. We have to turn our back on coal entirely.
Shaping the renewable sector’s investment paradigm are consistent cost reductions. So much so, that a climate-safe energy transition would now cost around 40% less than previous estimates. In most countries, including the United Arab Emirates where IRENA is based, generating power from renewables is now cheaper than the least cost traditional energy alternative. A further $10 trillion of energy subsidies heavily weighted towards the fossil fuel industry could be avoided by 2050 with rapid uptake of renewables combined with energy efficiency and electrification. In fact, every dollar spent on the energy transition would offer returns of up to three to seven times in improved human health, lower climate-related expenditure and reduced subsidies.
The opportunities presented by the shift to sustainable energy should prompt global leaders, investors and policymakers to rethink strategies. IRENA is doing just that. We have built a knowledge framework around renewable energy that has become an indispensable source of global data. But the time has come for action on the ground. That’s why we are adjusting our structure, focus and goals to move closer to implementation and to position ourselves as a partner on the ground to our members.
The message is clear. It’s possible to hold the line on global emissions. It’s possible to avert irreversible climate change and mitigate the impacts of a warming planet in the time we have left. And it’s possible to build an entirely new energy system that is equitable, accessible and clean. Renewables are to lead the change.
By Francesco La Camera, Director-General, International Renewable Energy Agency (IRENA)