6.2
FRONTIER TECHNOLOGY – FINANCING FIT-FOR-FUTURE INFRASTRUCTURE
What will it take to unlock climate ěãÖãØÚÛäçßêèé energy transitions? To successfully pave the way for
A t the 100th World Energy Congress earlier this year, over 4,000 energy transi- tion leaders and investors from 118 countries con- vened to work on redesigning energy for people and planet. In this urgent work, climate finance is essential, and the need for it is growing. The con- gress concluded with a powerful call to action: how we got here will not get us to where we need to be. Recognising this is key to unlocking finance for just energy transitions. Although investment in clean energy has nearly doubled over the past dec- ade, the rate of increase falls far short of the levels required to meet global cli- mate targets. Climate finance needs to increase at least fivefold by 2030 to mit- igate greenhouse gas emissions from energy systems. Taking stock of the situation Private sector investment is growing, but not fast enough. Public finance remains essential, and new solutions including green bonds and blended finance need to be more widely adopted. Meanwhile, regional energy tran- sition narratives, pathways and financing are diverging. The capi- tal allocated to financing transitions is highly unbalanced: 99% flows to the Global North, 1% to the Global South, according to the International Solar Association. Climate adaptation financing – estimated at $4.3 trillion – is needed now, especially in develop- ing economies. An ‘all green, electric dream’ ide- ology and simplistic ‘plug-and-play’ narratives contribute to gridlock and
financing the just transition, we must take a holistic approach and implement a socially trans- formative agenda. The World Energy Congress is commit- ted to facilitating global action towards this end. Angela Wilkinson, secretary general and CEO, World Energy Congress THE COUNCIL PROMOTES A HUMANISING ENERGY ACTION AGENDA AND IS PIVOTAL IN Á¼¾ÄÇÄϼÏÄÉÂÁ¼ÎÏÀÍ FAIRER AND MORE FAR-REACHING ENERGY TRANSITIONS IN ALL REGIONS
blame-gaming. Yes, there is ‘no tran- sition without transmission’ – nor without shipping, storage, climate adaptation and better livelihoods. Not all energy uses can or will be elec- trified by 2050. Recent experiences with green-only energy solutions and hydrogen hierarchies highlight the risks of premature policy prescription, adding unnecessary costs and delays. Swapping old for new power genera- tion assets is not enough. The desire for development cannot be denied – emerging and developing economies will need more energy for sustainable development for decades to come – but neither can the realities of signif- icant energy project delays and cost overruns. System-wide infrastructure action planning is essential to secure invest- ment in maintaining, repurposing and decommissioning existing systems, and building new power systems and value chains. We need to talk about productive energy access and less wasteful behaviour, as well as project management and energy efficiencies. There is no shortage of technology or money, but the necessary combination of financial and energy literacy is rare. Success depends on a more holistic approach and a socially transforma- tive energy transition agenda. South Africa recently learned the hard way that inadequate social participation can derail plans to exit early from coal, despite the World Bank mobi- lising $497 million. The societal scars from the transition from coal to gas in the United Kingdom remain evident and continue to shape the national discourse.
84
Financing a Just Transition
Made with FlippingBook - Online magazine maker