recently released Breakthrough Agenda Report of the International Energy Agency (IEA) Sets out the actions needed to meet the recent clean technology commitment by governments representing two-thirds of the global economy.
The Breakthrough Agenda, as the Commitment is known, was set at COP26. It aims to align countries’ actions and coordinate investments to increase deployment and reduce costs in five key sectors, including power, road transport, steel, hydrogen and agriculture.
Clearly, all of this represents significant intelligence, and indeed potential opportunity, for businesses tracking the global green transition.
Clean Tech Catalyst
“We are in the midst of the first truly global energy crisis, with devastating knock-on consequences for the world economy, especially in developing countries,” said IEA Executive Director Fateh Birol.
“Only by accelerating the transition to clean sustainable energy can we achieve sustainable energy security. Through international cooperation, we can make the transition faster, cheaper and easier for all – faster innovation, greater economies of scale.” Large incentives for investment, equal opportunities and benefits that are shared by all sections of the society.
“Without this collaboration, the transition to net zero emissions would be more challenging and could be delayed for decades.”
“The energy and climate crisis has exposed the vulnerabilities and vulnerabilities of a system heavily reliant on 20th century fuel. Anything less than radical and immediate action will ultimately eliminate the possibility of staying on the 1.5°C path,” Francesco La Camera, said the Director General Irina,
“The Breakthrough Agenda and our joint report ahead of COP27 send a strong signal that greater international cooperation can fuel ambition and accelerate progress. It is a strategic option to advance the transition to renewable energy to bring affordable energy, jobs, economic growth and a cleaner environment to people on the ground.”
The IEA has assessed five major goals; Electricity, road transport, steel, hydrogen and agriculture account for about 60 percent of global greenhouse gas (GHG) emissions today – and could deliver the bulk of the emissions reduction needed by 2030.
The report notes the encouraging growth in practical international collaboration in recent years and progress in deploying essential technologies, with electric vehicle sales doubling from the previous year to a new record of 6.6 million in 2021.
In addition, global renewable capacity is projected to increase by eight percent in 2022, surpassing the 300GW mark for the first time and equivalent to powering around 225 million homes. This comes with a forecast of at least USD 55 billion reduction in global electricity generation costs in 2022 based on new renewable capacity added in 2021.
It’s all good, and has already happened. But what can the report do to catalyze new change and a new business scope?
action for the better
The report puts forward 25 recommendations for leaders to discuss. Among them is the need to build new cross-border supergrids to increase trade in low-carbon electricity, reduce emissions, improve energy security and increase system flexibility.
There will be new targets of interest for businesses to establish new international centers of expertise for channel finance and technical assistance to help coal-producing countries transition.
Other more practical measures are coming to an agreement on a common definition and target dates by which all new road vehicles will be Net Zero, with a target of 2035 for cars and vans and 2040 for heavy-duty vehicles.
There is also a focus on mobilizing investment in charging infrastructure, including priority support for developing countries and harmonizing international charging standards to promote investment and accelerate global adoption.
Some other major plans include new standards to promote the recycling of batteries and research into alternative chemistry for batteries to reduce reliance on precious metals such as cobalt and lithium.
New government policies and private sector procurement commitments are coming in to demand and deploy low-carbon and renewable hydrogen, along with standards to enable global trade, with public and private commitments to buy zero-emission steel, and Action level playing field between steel producing countries.
and for trade in agriculture; Investments to agricultural technologies and farming practices could lead to changes that could cut emissions from livestock and fertilizers, expand the availability of alternative proteins, and accelerate the development of climate resilient crops.
This could come with new international standards for monitoring and reporting on the state of natural resources on which agriculture depends, including soil health, soil carbon content and pollinator health.
Corporates have a lot to consider, and create strategies aimed at maximizing opportunities from the truly green transition.
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New research cited by the report suggests some technology costs could drop by as much as 18 percent by 2030. And IRENA estimates cited by the report suggest that the energy transition combined with limiting global temperature rise to 1.5 °C could generate an additional 85 million. jobs by 2030, more than offset the loss of 12 million jobs compared to 2019.
“This report highlights the need to ensure affordable access to clean and green sources of energy for all. It is also a strong reminder on the need to focus on implementation, which should be a priority at the national, regional and local levels, with the necessary impact at the global level as well as the need for appropriate finance mobilization. Dr Mahmoud Mohildin, United Nations Climate Change High Level Champion for Egypt.
United Nations Climate Change High, Nigel Topping said, “with thousands of non-state actors driving the Race to Zero and Race to Resilience countries to advance the transition to affordable zero-emissions solutions in every emitting sector of the economy and We should cooperate more strongly.” – Level Champion for the UK.
“It is as essential to development as it is to avoid dangerous climate change. Clear steps must be taken at COP27 to implement the Decisive Agenda commitment to collective action, which makes clean technologies affordable and available to all who need them around the world.
Such demands are expected to grow rapidly before the COP, with more drivers and business expectations. As always, the world’s top climate conference will have a lot to say about where business goes next year.