Last week the International Renewable Energy Agency’s (Irena) new headquarters opened at Masdar City, while this week delegates from member states take part in the ninth meeting of the Irena council. This delegation includes a sizeable number of dignitaries from Germany.
In a way, our participation carries a special meaning. Germany and the UAE are co-owners of Irena in the sense that Germany took the initiative to create the organisation dedicated to the promotion of renewable energy, which is headquartered in the UAE.
Initially we regretted that the seat did not go to Germany. Today, we regard ourselves us as “lucky losers”, because Irena is located in a country that is committed to sustainable development and has embarked on a major transformation of its energy system that includes expansion of renewable energy. Such a commitment from the UAE carries special significance, as the country is not only endowed with abundant fossil energy, but also has one of the largest carbon footprints on the planet in terms of per capita consumption of energy and water. However, given the small size of its population, the global impact of its resource consumption is small. In deciding to do away with the reliance on carbon-intensive energy, this country has exhibited farsightedness and a sense of responsibility that makes it a worthy seat of Irena.
Like the UAE, Germany has embarked on an energy transition called “Energiewende” in the German language. The term stands for a radical overhaul of the way we consume and source energy. Its two main pillars are: increasing energy efficiency and raising the share of renewables in the overall energy supply. We have made considerable headway along this path. In 2014 renewable energies became the most important source of electricity with almost 28 per cent of gross electricity consumption and 12 per cent of overall energy use in Germany. By 2013, emissions of greenhouse gases dropped by 23 per cent compared to 1990. We have managed to decouple economic output from energy consumption: in 2014 primary energy consumption was 9 per cent less than in 2008, which demonstrated that growth and prosperity can go hand in hand with reduced energy consumption. We will not stop here. By 2050, we aim to increase the share of renewables in overall energy consumption to 60 per cent, reduce energy consumption by 50 per cent compared to 2008 and cut greenhouse emissions by at least 80 per cent compared to 1990.
These are ambitious targets that had been inspired by a triad of guiding principles that feed on experience, which is essential. For no matter how desirable a particular plan or policy might be, if it does not pass the reality check of economic viability and political support, it will not last.
Energiewende is Germany’s path to an energy mix that includes the principles of being environmentally friendly while providing for a secure and affordable energy supply. Such a mix is not an end in itself. Instead, its viability depends on its ability to serve the dual end of national prosperity and global development.
Germany is an industrialised country with a globally competitive economy that delivers a high standard of living. Therefore, its energy transition is designed and implemented in a way that preserves and enhances its economic competitiveness. It proceeds in stages and ground-breaking instruments such as the feed-in tariff for decentralised production of electricity from renewable sources of energy – such as solar power – are adjusted if needed. The requirements of energy-intensive industries are also taken into account. At the same time, the expansion of our renewable energy sector has created more than 350,000 jobs. Germany is enjoying a first-mover advantage as global demand for green and energy-efficient technology and products continues to rise.
Like the UAE, Germany is a globalised country. The well-being of our two nations depends on a stable and just international order that offers resource protection as well as development and prosperity to our regional and global neighbours. This cannot be achieved without an affordable supply and a sustainable consumption of energy.
While everyone might agree to this in principle, some will have to take the lead to overcome entrenched interests and to quell fear that changing the status quo is too risky. The most persuasive and effective form of leadership is to practise what is preached and thereby demonstrate that a transition to a climate- and growth-friendly economy is achievable and beneficial. In this regard, the UAE and Germany can lead by example.
Dr Eckhard Lübkemeier is ambassador of Germany to the UAE