LEADERSHIP BEGINS IN CHINA
There is a new reality in clean energy. The world’s major emerging economies — including China, India and several others — are moving to the centrestage of the clean energy transition. By betting heavily on energy efficiency, on wind, solar and other renewables, as well as other less carbonintensive technologies, these countries are increasingly leading the way. for a top-level meeting in China is not a coincidence.
We are witnessing a global consensus that the key to energy transition will reside with decisions made in emerging economies.
There are many reasons to stand for clean energy today.
These can range from reducing greenhouse gas emissions but also battling the scourge of air pollution, improving energy security by reducing the dependency on fossil fuels, diversifying supply, creating high-tech jobs or fostering innovation.
As such, approaches to clean energy will vary from country to country.
According to the International Energy Agency (IEA), all of the projected growth in energy demand in the next 25 years will take place in emerging and developing countries.
This means that implementing the right kind of policies and technologies will be critical to ensure stable supplies as well as meeting desirable environmental outcomes.
The good happening.
India was the first country to set comprehensive quality and performance standards for light emitting diodes (LEDs), and it expects to save as much as 277 terawatt-hours of electricity between 2015 and 2030, avoiding 254 million metric tonnes of CO2 emissions or the equivalent of 90 coal-fired power plants.
Another upshot is that by committing to these new clean technologies, countries like China are helping drive down costs for the benefit of the world.
China is now the undisputed global leader of renewable energy expansion worldwide, and the IEA forecasts that by 2021, more than one-third of global cumulative solar PV and onshore wind capacity will be located in China.
Recently announced renewable projects have broken new records, with power purchase agreements for several onshore wind and large solar PV farms now below $50/MWh.
As clean energy
Our governments will seek to increase electric mobility, with a target to reach 30 per cent of the new vehicle fleet by 2030.
The recent announcements of the Indian government will go a long way towards this end.
Another challenge for CEM governments will be to increase EV charging providers by a factor of 10 in the next five years.
Other priority areas include improving efficiency in buildings, which account for nearly a third of all energy consumption and 20 per cent of greenhouse gas emissions.
In the power sector, the CEM is seeking to move away from the coal-orrenewables paradigm.
Coal was the fuel of the last 100 years, and renewables will likely be the dominant fuel of the next century for many countries.
At the same time, we must recognise that so-called dispatchable power plants — including thermal generation — are key for many countries to ensure energy security during the transition to a cleaner energy system.
And so, the Beijing launch new work to challenge.
To succeed, this energy transition will require the full backing of industry.
This is why the CEM includes top-level executives from companies involved in all aspects of the energy field who offer a unique on-the-ground perspective and ultimately determine where investments end up going.
They are often the first to recognise what drives clean energy uptake.
This is a unique time for the CEM, which is entering a new phase of cooperation and growth in our short history. The world of energy is changing. Facts on the ground unequivocally point to the key role of emerging economies in clean energy.
Come the meeting in Beijing on June 6-8, we are likely to see this reflected in the leadership of the CEM.