Desk Report,
The era of renewable energy is knocking at the door.
Human civilization is moving forward with the help of energy. From mastering the use of fire to using steam power, achieving milestones like nuclear fission—all are the contributions of energy.
The era of renewable energy is knocking at the door.
Today, we stand at the crossroads of a new era. A vast potential of renewable energy is looming before us.
Almost all of the new electricity added last year came from renewable sources. Investment in the renewable energy sector has increased to two trillion dollars, which is 800 billion dollars more than fossil fuels.
Solar and wind power are now the world’s most affordable sources of electricity, new jobs are being created in the renewable sector, accelerating economic growth and development. However, fossil fuels are still heavily subsidized.
Countries that cling to fossil fuels are not protecting their economies; rather, they are harming them. Because they are losing their ability to compete and are missing out on the greatest economic opportunity of the 21st century. Increasing their reliance on renewable energy means ensuring energy sovereignty and security. Fossil fuels are subject to uncertain market prices, supply disruptions, and geopolitical instability, as we saw during Russia’s invasion of Ukraine; but sunlight is not subject to price increases, wind is not restricted, and almost every country has enough renewable resources to make it self-sufficient in energy.
Above all, renewable energy accelerates the pace of development. Renewable energy will provide fast, affordable, and sustainable electricity to millions of people who are deprived of electricity. Off-grid and small-scale solar panels in particular can play a key role in this.
Overall, the potential for renewable energy is overwhelming; But the transition is not yet fast enough or affordable enough for everyone. Developing countries are lagging behind.
By 2030, the combined electricity consumption of all data centers in the world will be equal to the current electricity consumption of all of Japan. Companies should commit to using renewable sources to power these data centers. Fossil fuels still dominate the energy sector, and carbon emissions are still rising. But we have no choice but to reduce them if we want to avoid the worst consequences of the climate crisis. We need to take action in six areas to get out of this crisis.
First, countries must fully commit to a renewable energy future. In the coming months, each country will commit to submitting new national climate plans, known as Nationally Determined Contributions (NDCs).
The NDCs will set targets for the next decade. These plans must be consistent with the goal of limiting global temperature increases to 1.5 degrees Celsius. Where all types of carbon emissions and all sectors must be kept in check and a clear roadmap for moving towards renewable energy must be presented.
The G-20 countries, which are responsible for about 80 percent of global carbon emissions, must shoulder the main responsibility for this.
Second, we must build our energy system for the 21st century. Renewable energy cannot develop its full potential without modern grids and storage; but only 60 cents of every dollar invested in renewable sources is spent on grids and storage. This ratio must be increased to 1:1.
Third, countries must set a goal of meeting the world’s growing energy demand from renewable sources. Big technology companies must also come forward to play their part.
By 2030, the combined electricity consumption of all data centers in the world will be equal to the current electricity consumption of all of Japan. Companies should commit to using renewable sources to power these data centers.
Fourth, we need to ensure fairness in the energy transition. This means ensuring that fossil fuel-dependent populations are helped to prepare for a renewable future; and urgently reforming mineral supply chains.
These are currently plagued by dispossession and environmental degradation, and developing countries are trapped at the bottom of the value chain. This must end.
Fifth, we need to use trade as a tool to support the energy transition. The renewable energy supply chain is highly centralized, and global trade is no longer centralized. Countries committed to the new energy era should work to diversify supply, reduce tariffs on renewables, and modernize investment treaties to enable them to drive this transition.
Sixth, and finally, we should take steps to increase investment flows to developing countries. Africa received just 2 percent of investment in renewable energy last year, despite having 60 percent of the world’s best solar energy sources. We need to take some international action—to ensure that debt repayments do not strain developing countries’ budgets and that multilateral development banks can significantly increase their lending capacity and secure much more private financing.
