World Energy Transitions Outlook 2022

Context

The International Renewable Energy Agency (IRENA) has released a report titled “World Energy Transitions Outlook 2022”.

Key-highlights of the findings

• Energy source: IRENA estimated 14% of global energy comes from clean energy sources today (it includes other renewables such as biomass power).
• Global annual additions of renewable power will triple by 2030 as recommended by the Intergovernmental Panel on Climate Change. 

 Challenges for the world

• High fossil fuel prices, energy security concerns and the urgency of climate change underscore the pressing need to move faster to a clean energy system. 
  • However, energy transition is far from being on track and anything short of radical action in the coming years will diminish even eliminate chances to meet our climate goals.
• The current pace and scale of the renewables-based transition is inadequate.

 Set priority

• The Outlook sets out priority areas and actions based on available technologies that must be realized by 2030 to achieve net zero emissions by mid-century.
• Target for renewables: The intergovernmental organization set a new target for renewables of 40% of the world’s energy mix by 2030.
• Investment need: The Outlook sees investment needs of $5.7 trillion per year until 2030 including the imperative to redirect $0.7 trillion annually away from fossil fuels to avoid stranded assets.

Suggested measures

• Focus on mid- and long-term goals: According to IRENA short-term interventions addressing the current energy crisis must be accompanied by a steadfast focus on mid- and long-term goals of the energy transition. 
• Key-driver for transition: The Outlook sees electrification and efficiency as key drivers of the energy transition, enabled by renewables, hydrogen, and sustainable biomass.
• End-use decarbonisation: End-use decarbonisation will take centre-stage with many solutions available through electrification, green hydrogen, and the direct use of renewables.
• Electromobility: Notably electromobility is seen as a driver of energy transition progress, growing the sales of electric vehicles (EV) to a global EV fleet 20 times bigger than today.
• Increasing ambition in the National Determined Contributions and national energy plans under the Glasgow Climate Pact must provide certainty and guide investment strategies in line with 1.5°C.
• Examplary leadership: Particularly the world’s largest energy consumers and carbon emitters from the G20 and G7 must show leadership and need to support the global supply of 65 per cent renewables in power generation by 2030. 

Benefits of the transition to Clean Energy

• Long-term energy security, price stability and national resilience: Some 80% of the global population lives in countries that are net energy importers. Hence, the shift to clean energy would make these countries less dependent on energy imports through diversified supply options and help decouple economies from wide swings in the prices of fossil fuels. 
• Job generation: Investing in the clean energy transition will bring socio-economic and welfare benefits, adding 85 million jobs worldwide in renewables and other transition-related technologies between today and 2030. These job gains will largely surpass the losses of 12 million jobs in fossil fuel industries.