Energy transition, security top global priorities: IEA official

Speaking to Mint, he said despite the withdrawal of the US from the Paris Agreement, clean energy momentum will continue across countries, given the commercial viability and business opportunities in this space.

“We’re still waiting to see exactly what the policies will be (of the US). It’s too early to say what the change will be on the ground. We see so many governments, businesses, and individuals focusing hard on these topics. I mean, we work on energy transition; we work in energy security. These issues will remain the top priority for everybody. But again, each government will make its own decisions in terms of the mixture,” Brian said.

Along with energy transition, which has gained momentum due to rapid climate change, energy security is back on policymakers’ priority list amid the continuing geopolitical tensions.  

“Every country makes its own policy decision. Clean energy has a lot of momentum now in terms of people realizing the business opportunities. The opportunities for us as consumers to end up with more affordable energy in our homes.”

In January, US President Donald Trump pulled the US out of the Paris Agreement on climate change, just as he did in 2016 during his first stint as president, citing Chinese carbon emissions. Countries need to set their action plans for the next round of nationally determined contributions (NDCs) to enable the world to restrict global temperatures to 1.5°C above the pre-industrial average.

The Paris Agreement, an international treaty on climate change signed in 2016, covers climate change mitigation, adaptation, and finance. It has been signed by 196 countries. 

According to environmental experts, the developed world may struggle to plug the gap left by the US withdrawal.

Founded in 1974 to ensure the security of oil supplies, the IEA, in addition to its central role in energy security, actively works on energy transition. According to its website, apart from energy security, it also has a wider mandate to focus on a range of energy issues, including climate change and decarbonization, energy access and efficiency, investment and innovation, and ensuring reliable, affordable, and sustainable energy systems.

In a report released in November 2024, the organization noted that despite concerns about setbacks in the global deployment of clean energy technologies, there is continued growth in this space. The report, however, acknowledged progress is uneven across different regions and technologies, highlighting the need for more supportive policies to enable countries to navigate the transition.

India’s energy transition

“I think the policy commitment here is really strong. A lot of really good policy action in the context of effectively the fastest, largest growing economy in the world, which will put pressure on energy and emissions. But it’s about finding ways to enhance people’s lives and allow that economic growth to flourish in sustainable ways, which is not just about carbon emissions but also what kind of investment you need to build the electricity systems in the future…how do you make sure that that you can tackle issues such as air pollution or traffic congestion.”

India has set ambitious climate goals ranging from 500 gigawatts installed non-fossil power generation capacity by 2030 to net zero carbon emissions by 2070.

The IEA official also noted that although financing and investments in clean energy are important components of achieving the climate targets, the deployment of funds has been witnessed in “very limited parts of the world”, which needs to be resolved.

“Investment for clean energy is a huge thing globally, and while we’re seeing some growth, we’re seeing it in very limited parts of the world. And that’s a key issue for the global community. If you think about where are the opportunities for investment and returns and enhancing the sustainability, versus where is the investment currently flowing…I think that really is a key issue.”

Despite climate financing being on the top of the agenda of global climate forums and meets and commitments being met by developed countries to support the transition and sustainability measures in developing countries, the flow of funds has not actually occurred as expected.

At the 29th Conference of the Parties (COP29) climate conference in Azerbaijan’s capital, Baku, in November 2024, India called for grant-based long-term climate finance in the New Collective Quantified Goal (NCQG). 

India, on behalf of like-minded developing countries (LMDCs), said developed countries need to commit to providing and mobilizing at least $1.3 trillion every year in NCQG until 2030 and that climate finance cannot be transformed into an investment goal when it is a unidirectional provision and mobilization goal from developed to developing countries.