Transformation of the global energy system forms the backbone of climate action. Without significant movement towards decarbonisation, the chances of keeping global temperature rise below two degrees celsius are low if not impossible. For Energy Day at the UN climate change talks in Paris, IRENA brought together scientists, policy-makers, business leaders and civil society to explore the future of renewable energy.
Arthouros Zervos, Chair of REN21, confirms the upscale in renewable energy deployment around the world and most importantly in developing countries. This is not surprising given the rapid drop in the cost of solar and wind power. According to the latest study by Lazard, a leading financial advisory firm, the cost of solar and wind power have dropped by 82% and 61% in 6 years:
Fossil Fuel Subsidies
One obstacle remains the massive fossil fuel subsidies of some $500 billion (IEA). These figures increase to $5.3 trillion or 6.5% of global GDP if externalities like pollution are included (IMF WP/15/105). In some countries, energy prices are kept artificially low by policies that can cost up to 40% of total government spending. This is why Kuwaitis get to pay $0.22 per liter of gasoline (Feb. 29 2016) and that electricity costs as little as 1 cent per kilowatt-hour in Saudi Arabia.
Private sector and civil society leadership
For Peter Agnefjäll, CEO of IKEA, it has become clear that we must grow within the limits of the planet. This positive impact on planet and people is behind IKEA’s decision to invest in renewables with the objective of becoming totally energy independent globally by 2020.
Civil society can help propel this transformation with initiatives for entire sectors of the economy. For Jules Kortenhorst from the Rocky Mountain Institute and the Carbon War Room, is working on scaling up to reduce costs and accelerate the uptake of renewables like sustainable jet fuels for the aviation industry, improving the efficiency of maritime shipping and also in buildings, thanks to IT solutions and big data.
Tapping onto geothermal
Iceland provides a powerful business case for geothermal energy to heat and cool buildings in cities. For President of Iceland, Ólafur Ragnar Grímsson, such solutions have proven profitable without subsidies and provide a cost-effective path towards lower emissions. In 2010, 24 countries generated electricity thanks to geothermal power while some 70 use it for heating.
COP21 a turning point
Adnan Z Amin, Director-General of IRENA, recognises that ParisClimat2015 represents a decisive moment for renewables. From now on, the connection between clean energy, the de-carbonization agenda and the safe climate imperative are inseparable.
Cooperation between civil society, the private sector and policy makers is key to accelerate this transition.
Other resources: UNECE Sustainable Energy