The world needs “short-term” solutions as the infrastructure for renewable energy will take decades to develop, industry experts have said.
“We don’t have the infrastructure that really makes it possible for renewables to grow at the speed and scale that is needed,” Francesco La Camera, director general of the Abu Dhabi-based International Renewable Energy Agency (Irena), said during a panel discussion at the World Government Summit.
“We are talking about physical infrastructure, the legal and policy infrastructure [as well as] the professional skills.”
The war in Ukraine has triggered a global energy crisis, marked by a shortage of fuel supplies and volatile prices.
Countries in Europe and elsewhere are now racing to develop renewable and natural gas projects as they seek to reduce their reliance on Russian fossil fuel exports.
“We're talking about the biggest investment programme ever in the energy industry, which is used to developing projects over decades,” Siemens Energy chief executive Christian Bruch told the panel.
Investment in low-carbon projects is expected to increase by $60 billion this year, 10 per cent higher than 2022, led by developments in the wind sector, as well as a “significant” rise in funding for hydrogen and carbon capture, according to Rystad Energy, a Norway-based energy consultancy.
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Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of the Interior, concludes the World Government Summit with a talk entitled 'The Emirates: A Family of Solid Roots and a Vibrant Future'. WAM -
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, listens to Sheikh Saif. WAM -
Najla Bouden, Prime Minister of Tunisia, Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior, Wavel Ramkalawan, President of Seychelles, Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, Dr Maeen Saeed, Prime Minister of Yemen and Panagiotis Pikrammenos, Deputy Prime Minister of Greece, at the summit. Photo: Presidential Court -
Joko Widodo, President, Government of the Republic of Indonesia speaking at the World Government Summit held at Madinat Jumeirah in Dubai. Pawan Singh / The National -
Huda AlHashimi, Deputy Minister of Cabinet Affairs for Strategic Affairs, United Arab Emirates during the interview at the World Government Summit held at Madinat Jumeirah in Dubai. Pawan Singh / The National -
Left to Right - Nasser Al-Khater, Chief Executive Officer, FIFA World Cup Qatar 2022 and Najeeb AlAli, Executive Director, Expo 2020 Bureau speaking during the session on Hosting Major Events: An Arab Success Story at the World Government Summit held at Madinat Jumeirah in Dubai. Pawan Singh / The National -
Elon Musk and Mohammad Al Gergawi, Minister of Cabinet Affairs, speak on day three of the World Government Summit in Dubai. Mr Al Gergawi is also chairman of the summit. Pawan Singh / The National -
Ian Bremmer, president and founder of Eurasia Group, speaking during a session called 'Beyond 2023: A Global Outlook'. Pawan Singh / The National -
Delegates gather at Madinat Jumeirah for the summit. Pawan Singh / The National -
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, presents the World Data Visualisation Award to Lindsey Poulter. Pawan Singh / The National -
Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, addresses delegates at the summit. Pawan Singh / The National -
National flags displayed at the global event. Pawan Singh / The National -
Turkish President Recep Tayyip Erdogan speaks at the event using a video link. Antonie Robertson / The National -
People gather for the second day of the summit. Antonie Robertson / The National -
Huda Al Hashimi, right, Deputy Minister of Cabinet Affairs for Strategic Affairs, on stage with Waleed Al Ali, left, Secretary General of the Digital School, and Reda Hegazy, Egypt's Minister of Education. Antonie Robertson / The National -
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Cop28 President-designate, speaks during a session titled The Road Map to Cop28: Prioritising Action. Pawan Singh / The National -
Dr Al Jaber, who is also the UAE's special envoy for climate change, addresses delegates in Dubai. Pawan Singh / The National -
Day two of the World Government Summit. Antonie Robertson/The National -
Omar Al Olama, Minister of State for Digital Economy, AI and Remote Work System, and Nick Clegg, president of Global Affairs at Meta, at the summit. Pawan Singh / The National -
Delegates at the World Government Summit held at Madinat Jumeirah in Dubai. Pawan Singh / The National -
Mina Al-Oraibi, Editor-in-Chief of The National newspaper, Kersti Kaljulaid, fifth President of Estonia, and Mona Al Marri, vice president of the UAE Gender Balance Council. Pawan Singh / The National -
Delegates during the session on Women in Government: Powering the Future. Pawan Singh / The National -
President Sheikh Mohamed, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Egyptian President Abdel Fattah El Sisi. Photo: Dubai Media Office -
Sheikh Mohamed greets Mr El Sisi. Photo: Presidential Court -
Mr El Sisi presents the Global Best M-Gov Award to the winners as Mohammed Al Gergawi, Minister of Cabinet Affairs, looks on. Photo: Presidential Court -
Mr El Sisi presents the Global Best M-Gov Award. Photo: Presidential Court -
Mr El Sisi presents the Global Best M-Gov Award. Photo: Presidential Court -
Sky News Arabia's media relations director Faisal bin Huraiz sits alongside Mr El Sisi at the summit. EPA -
Francesco La Camera, Director General of International Renewabale Energy Agency, speaks at the summit. Antonie Robertson / The National -
Omar Sultan Al Olama, Minister of State for Artificial Intelligence at the summit. Antonie Robertson / The National -
Mohamed Al Ramahi, Chief Executive Officer, Masdar. Antonie Robertson / The National -
Marco Dunand, CEO and Co-founder, Mercuria Energy Group. Antonie Robertson/The National -
Christian Bruch, President and CEO, Siemens Energy. Antonie Robertson / The National -
Ahmed Bahrozyan, chief executive of the Public Transport Agency at the RTA. Antonie Robertson / The National -
RTA's flyng taxi and sky port project powered by Joby. Virtual simulation of the flying experience. Antonie Robertson / The National -
will.i.am speaking during the session on Accelerating Tech: The New Frontier for Policy-making at the World Government Summit in Dubai. Pawan Singh / The National -
Doron Avni, Google VP of Government Affairs and Public Policy Emerging Markets speaking during the session on Accelerating Tech: The New Frontier for Policy-making at the World Government Summit in Dubai. Pawan Singh / The National -
Sujay Jaswa, Founder and Managing Partner, WndrCo speaking during the session on Accelerating Tech: The New Frontier for Policy-making at the World Government Summit in Dubai. Pawan Singh / The National -
Mohammed Al Gergawi, Minister of Cabinet Affairs and the chairman of the World Government Summit, delivers the opening speech. Pawan Singh / The National -
Al Gergawi highlighted the rapid change the world has seen in the decade since the event was first held. Pawan Singh / The National -
Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, speaks at the summit. Pawan Singh / The National -
Georgia's Prime Minister Irakli Garibashvili speaks at the World Government Summit in Dubai. Pawan Singh / The National -
Al Gergawi and Schwab held a joint discussion. Pawan Singh / The National -
Delegates standing during the moment of silence for the Turkey – Syria earthquake before the start of World Government Summit in Dubai. Pawan Singh / The National -
Delegates at the World Government Summit held at Madinat Jumeirah in Dubai. Pawan Singh / The National
About $131 trillion will have to be spent by 2050 to achieve a low-carbon energy transition that will limit global temperature rises to manageable levels, Irena said.
Mohamed Al Ramahi, chief executive of Abu Dhabi clean energy company Masdar, said the Ukraine war, which disrupted energy markets and global trade flows, had created new opportunities in the renewables sector.
The current crisis has “accelerated” the rate at which renewable energy permits are being issued in Europe, he said.
“Before the war, this was literally impossible … I see these challenges creating humongous opportunities,” Mr Al Ramahi said.
Last year, EU energy ministers agreed to outline a temporary framework to hasten the granting of permits and the development of renewable energy projects.
Masdar, which has Adnoc, Taqa and Mubadala Investment Company as its stakeholders, aims to grow its renewable energy capacity to at least 100 gigawatts by 2030 while boosting its green hydrogen production to one million tonnes over the next decade.
“Is it sufficient enough? And the simple answer to that is definitely not. We need 10 times our target capacity on an annual basis for the next decade [to meet global net-zero goals]” said Mr Al Ramahi.
However, the global energy transition is a “long and bumpy journey”, he said.
Oil and gas companies, which reported record profits last year on the back of higher energy prices, should be a part of the discussion on climate change, panellists said.
The global oil and gas industry's income jumped to about $4 trillion in 2022, from its recent average of $1.5 trillion, according to the International Energy Agency.
“Without that money, there won't be a transition because where's the money going to come from?” said Marco Dunand, chief executive of commodities trader Mercuria.
He also highlighted the need for more investment in new oil and gas projects after spending in the sector fell to historic lows during the Covid-19 pandemic.
“If you want to be in line with the Paris Agreement, you should be producing worldwide about 70 million barrels per day, but the demand [is expected] to be closer to 100 million bpd,” said Mr Dunand.
“There is no investment because there's so much uncertainty about the transition.”
The Cop28 summit — set to be held in the UAE this year — will offer a chance to take stock of the enforcement of the Paris Agreement.
“There will be differences between countries during the stock-take [and] Cop28 should say how we can close the gap,” said Mr La Camera.
