The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, but real progress is being made in certain areas – particularly expansion of access to electricity in least developed countries, and industrial energy efficiency, according to a new report from five international agencies.
Renewable energy is making impressive gains in the electricity sector, although these are not being matched in transportation and heating – which together account for 80% of global energy consumption.
While global trends are disappointing, recent national experiences around the world offer encouraging signs. There is mounting evidence that with the right approaches and policies, countries can make substantial in clean energy and energy access, and improve the lives of millions of people.
Tracking SDG7: The Energy Progress Report, launched at the Sustainable Energy for All Forum today, is the most comprehensive look available at the world’s progress towards the global energy targets on access to electricity, clean cooking, renewable energy and energy efficiency.
The following are some of the main findings of the report. Findings are based official national-level data and measure global progress up to 2015 for renewable energy and energy efficiency, and 2016 for access to electricity and clean cooking.
Access to Electricity
- One billion people – or 13% of the world’s population – still live without electricity. Sub-Saharan Africa, and Central and South Asia continue to be the areas of the world with the largest access deficits. Almost 87% of the world’s people without electricity live in rural areas.
- The number of people gaining access to power has been accelerating since 2010, but needs to ramp up further to achieve universal access to electricity by 2030. If current trends continue, an estimated 674 million people will still live without electricity in 2030.
- Some of the strongest gains were made in Bangladesh, Ethiopia, Kenya and Tanzania, which all increased their electricity access rate by 3% or more annually between 2010 and 2016. Over the same period, India provided electricity to 30 million people annually, more than any other country. Sub-Saharan Africa’s electrification deficit has begun to fall in absolute terms for the first time.
- Tens of millions of people now have access to electricity through solar home systems or connected to mini-grids. However, these remain concentrated in about a dozen pioneering countries where penetration of solar electricity can reach as much as 5-15% of the population.
- Three billion people – or more than 40% of the world’s population – do not have access to clean cooking fuels and technologies. Household air pollution from burning biomass for cooking and heating is responsible for some 4 million deaths a year, with women and children at the greatest risk.
- Parts of Asia have seen access to clean cooking outpace growth in population. These positive outcomes were driven largely by widespread dissemination of LPG or piped natural gas. In India, Pakistan, Indonesia and Vietnam, the population with access to clean cooking technologies grew by more than 1% of their population annually.
- In Sub-Saharan Africa, however, population growth in recent years has outstripped the number of people gaining access to clean cooking technologies by a ratio of four to one.
- Clean cooking continues to lag the furthest behind of all the four energy targets, due to low consumer awareness, financing gaps, slow technological progress, and lack of infrastructure for fuel production and distribution. If the current trajectory continues, 2.3 billion people will continue to use traditional cooking methods in 2030.
- There is mounting evidence of the uncoupling of growth and energy use. Global gross domestic product (GDP) grew nearly twice as fast as primary energy supply in 2010-15. Economic growth outpaced growth in energy use in all regions, except for Western Asia, where GDP is heavily tied to energy-intensive industries, and in all income groups. However, progress continues to be slow in low income countries, where energy intensity is higher than the global average.
- Globally, energy intensity – the ratio of energy used per unit of GDP – fell at an accelerating pace of 2.8% in 2015, the fastest decline since 2010. This improved the average annual decline in energy intensity to 2.2 % for the period 2010-2015. However, performance still falls short of the 2.6% yearly decline needed to meet the SDG7 target of doubling the global rate of improvement in energy efficiency by 2030.
- Improvement in industrial energy intensity, at 2.7% per annum since 2010, was particularly encouraging, as this is the largest energy consuming sector overall. Progress in the transport sector was more modest, especially for freight transportation, and is a particular challenge for high-income countries. In low and middle-income countries, the energy intensity of the residential sector has been increasing since 2010.
- Six of the 20 countries that represent 80 percent of the world’s total primary energy supply, including Japan and the US, reduced their annual primary energy supply in 2010-15 while continuing to grow GDP – indicating a peak in energy use. Among the large energy-intensive developing economies, China and Indonesia stood out with annual improvement exceeding 3 percent.
- As of 2015, the world obtained 17.5% of its total final energy consumption from renewable sources, of which 9.6% represents modern forms of renewable energy such as geothermal, hydropower, solar and wind. The remainder is traditional uses of biomass (such as fuelwood and charcoal).
- Based on current policies, the renewable share is expected to reach just 21% by 2030, with modern renewables growing to 15%, falling short of the substantial increase demanded by the SDG7 target.
- Rapidly falling costs have allowed solar and wind to compete with conventional power generation sources in multiple regions, driving the growth in the share of renewables in electricity to 22.8% in 2015. But electricity accounted for only 20% of total final energy consumption that year, highlighting the need to accelerate progress in transport and heating.
- The share of renewable energy in transport is rising quite rapidly, but from a very low base, amounting to only 2.8% in 2015. The use of renewable energy for heating purposes has barely increased in recent years and stood at 24.8% in 2015, of which one third was from modern uses.
- Since 2010, China’s progress in renewable energy alone accounted for nearly 30% of absolute growth in renewable energy consumption globally in 2015. Brazil was the only country among the top 20 largest energy consumers to substantially exceed the global average renewable share in all end uses: electricity, transport and heating. The UK’s share of renewable energy in total final energy consumption grew by 1% annually on average since 2010 – more than five times the global average.
Tracking SDG7: The Energy Progress Report is a joint effort of the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO).
“It is clear that the energy sector must be at the heart of any effort to lead the world on a more sustainable pathway,” said Dr Fatih Birol, the Executive Director of the International Energy Agency (IEA). “There is an urgent need for action on all technologies, especially on renewables and energy efficiency, which are key for delivering on three critical goals – energy access, climate mitigation and lower air pollution. The IEA is committed to leading this agenda and working with counties around the world to support clean energy transitions.”
“Falling costs, technological improvements and enabling frameworks are fueling an unprecedented growth of renewable energy, which is expanding energy access, improving health outcomes, and helping to tackle climate change, while also creating jobs and powering sustainable economic growth,” said IRENA Director-General Adnan Z. Amin. “At the same time, this tracking report is an important signal that we must be more ambitious in harnessing the power of renewable energy to meet sustainable development and climate goals, and take more deliberate action to achieve a sustainable energy future.”
“This detailed report describing the progress so far on SDG7 is a testament to the collaboration of the five international agencies on providing quality and comprehensive data and delivering a common message regarding the progress towards ensuring access to affordable, reliable, sustainable and modern energy for all,” said Stefan Schweinfest, Director of the Statistics Division of UN DESA. “Still, there is a need for improving statistical systems that collect energy information in those countries where the most pressing energy issues remain to be addressed. Better data are needed to inform policy accurately, particularly developing countries, least developed countries, landlocked developing countries, and small island developing States. For this, investments in energy statistical systems are essential.”
“The experience of countries that have substantially increased the number of people with electricity in a short space of time holds out real hope that we can reach the billion people who still live without power,” said Riccardo Puliti, Senior Director for Energy and Extractives at the World Bank. “We know that with the right policies, a commitment to both on-grid and off-grid solutions, well-tailored financing structures, and mobilization of the private sector, huge gains can be made in only a few years. This in turn is having real, positive impacts on the development prospects and quality of life for millions of people.”
“It is unacceptable that in 2018, 3 billion people still breathe deadly smoke every day from cooking with polluting fuels and stoves. Every year, household air pollution kills around 4 million people from diseases including pneumonia, heart disease, stroke, lung disease and cancer,” said Dr Maria Neira, Director, Department of Public Health, Environmental and Social Determinants of Health, at the World Health Organization (WHO). “By expanding access to clean affordable household energy, the global community has the power to lift a terrible health burden from millions of marginalized people – in particular women and young children who face the greatest health risks from household air pollution.”
“As we take stock of progress towards the global goal on sustainable energy, this latest data clearly shows more action and political leadership is needed if we are to live up to our promise to leave no one behind,” said Rachel Kyte, Special Representative of the UN Secretary-General and CEO of Sustainable Energy for All. “To meet 2030 targets, we must make every unit of energy work harder. We need to increase investment in the technologies and business models that make electricity access affordable for everyone, place even bigger bets on the remarkable capacity of renewable energy and build big markets for clean fuels and cooking access. World leaders put the promise of leaving no one behind at the heart of the Sustainable Development Goals, and now is the time for that promise to become reality.”
It is the fourth edition of this report, formerly known as the Global Tracking Framework (GTF). The report can be downloaded at http://trackingSDG7.esmap.org/ Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).
Gas doom hanging over Ukraine
The long history of gas transit across independent Ukraine began with Kiev’s initial failure to pay anything for Russian natural gas, both intended for transit to Europe and for domestic consumption, on the pretext of fraternal relations between the former Soviet republics. Later it cost the Ukrainians a meager $25 for 1,000 cubic meters of Russian gas, and that ridiculously small sum remained unchanged for quite some time. The sizeable amount of Russian gas provided at a discount price, plus domestically available oil resources, were distributed by the country’s greedy elite the following way: domestically produced gas was used on utilities, proceeds from the transit of Russian gas went to the state budget (minus the money that lined bureaucratic pockets), and Russian gas – to the industry (plus the corruption component).
Then came the Ukrainian revolutions and Kiev’s desire to join “Euro-Atlantic structures” and the desire to “get off the Russian gas needle and prevent the Kremlin from using energy as a weapon.” Ukraine has tried and is still trying to believe in all this by playing up to the collective West and hoping that the West will compensate Kiev for the losses caused by its revolutionary endeavors and anti-Russian antics. As a result, we see gas prices going through the roof, an energy crisis in Europe, and the completion of the Nord Stream 2 gas pipeline.
Those in power in Kiev hoped for the very last moment that the West valued their country more than it did the energy security of European countries. Much to their surprise (and only theirs), this is not so. It looks like the Europeans are interested in Russian gas supplies and are not so eager to keep Ukraine as the main transit country. Moreover, having “democratized Ukraine” to the state of an openly anti-Russian country, the West turned it into a country, whose leadership the Kremlin does not really want to talk to simply because it does not see any point in doing this. This is the reason why third countries care (or rather pretend to care) about Ukraine. Thus, in July of this year, there came out the “Joint Statement of the United States and Germany on Support for Ukraine, European Energy Security and Our Climate Goals.” According to it, Germany pledged to do everything in its power to make sure that the agreement between Moscow and Kiev on the transit of Russian gas across Ukrainian territory was extended for up to ten years. The statement came when it was already obvious that the construction of Nord Stream 2 would be completed, Germany resisted US pressure on this issue, Moscow paid no attention and Washington, exhausted by the battles of the presidential elections and the search for new strategies in the Old World, was trying to pit America’s European friends against Russia.
It has never been a secret that the West needs reliable transit, and this is something that Ukraine also insists on. However, Kiev has officially labelled Russia as an “aggressor country,” which means that this very “aggressor” must ensure this transit and bring billions of dollars in revenues to the Ukrainian budget. This looks like a kind of “Euro-schizophrenia” where Ukraine is an anti-Russian country and simultaneously serves as a reliable transit country for Russian gas. Things do not work this way, however, and it looks like Europeans are beginning to realize this. Therefore, most of the European consumers support Nord Stream 2 even though they do not show this in public. Suffice it to mention the recent conclusion of a years-long contract for gas supplies to Hungary.
Vladimir Putin’s statement, made amid soaring gas prices and growing threats to European industry, came as an energy lifeline for all Europeans.
“Russian President Vladimir Putin supported the initiative of Deputy Prime Minister Alexander Novak to increase gas supply on the market amid rising energy prices in Europe… Novak said that Russia can stabilize the situation with prices by providing additional volumes of gas on the exchange, adding that this country’s main priority is to accommodate domestic demand,” Lenta.ru reported.
Commenting on the possibility of increasing gas supplies via Ukraine, President Putin recalled that Ukraine’s gas transport system had not been repaired “for decades” and that “something could burst” there any time if gas pressure goes up.
“At the same time, it is more profitable and safer for Gazprom to operate new pipeline systems,” he added. Putin thus confirmed what is already clear to all that Ukraine is an unreliable and, in fact, an extra link, and that Europe can get gas bypassing technically and politically unreliable Ukrainian pipes. He also pointed out that Gazprom would suffer losses from an increase in gas transit via Ukrainian territory, while new gas pipelines offer cheaper transit options. He added that Gazprom is saving about $3 billion a year by using new pipelines and that Russia was ready to increase gas supplies and make them cheaper for European consumers.
Gas shortages have already forced the Ukrainian government to freeze gas prices for household consumers, but prices for gas for industrial enterprises are rising along with those on European exchanges, where on October 6, they reached a very impressive $ 2,000 per thousand cubic meters and went down only after Putin’s statement came out.
Meanwhile, the head of Ukraine’s Federation of Glass Industry Employers, Dmitry Oleinik, said that this [rise in gas prices – D.B.] would lead to an inevitable rise in prices. However, producers will not be able to jack up prices indefinitely, because at some point buyers simply will not be able to cover production costs.
“The Ukrainian consumer will not even be able to cover the cost of production. Plants and factories will slowly shut down and people will lose their jobs – this is already very serious. Budget revenues will “plummet,” and expenses will skyrocket… The issue of bankruptcies is just a matter of time,” Oleinik warned.
If Ukraine continues to follow the chosen course, it will face de-industrialization. By the way, this will suit the West, but certainly not the Ukrainian industrial oligarchs, who have long been eyeing agriculture, including the prospect of turning themselves into land barons. However, the farming sector will not be happy about the high prices on gas that bakeries, sugar factories and greenhouses run on. There will be nowhere to run.
Apart from purely practical realities, the conclusions I can draw from the current energy situation in the world and Vladimir Putin’s statements regarding the Ukrainian transit, are as follows:
- Gas supplies through Ukraine and to Ukraine are not solely an economic issue, given Kiev’s endless anti-Russian escapades;
- This problem affects the energy security of Europe;
- Since there are several angles to this problem, it must be solved in a comprehensive manner;
- At the same time, this cannot be done exclusively in the interests of the West and Ukraine to the detriment of the interests of Russia.
As you can see, it is once again up to Kiev and its shadow patrons to decide. And winter is just around the corner…
From our partner International Affairs
Russian Energy Week: Is the world ready to give up hydrocarbons?
In an official message to mark the opening of the Russian Energy Week international forum on 13-15 October in Moscow, Russian President Vladimir Putin stressed that there are numerous issues on the agenda related to current trends in the global energy market, including improvements to industry infrastructure and the introduction of modern digital technologies into its operation.
“The efficiency of energy production and consumption is the most important factor in the growth of national economies and has a significant impact on people’s quality of life. Many countries have already adopted policies to accelerate the development of clean energy technologies,” he wrote in the message to guest and participants.
“The forum business programme is therefore set to look in detail at the possibility of developing green energy based on renewable sources and the transition to new, more environmentally friendly fuels. I am confident that the events of the Russian Energy Week will allow you to learn more about the achievements of the country’s fuel and energy sector, and that your initiatives will be put into practice,” Putin said.
Leaders of foreign states have also sent greetings to the participants and guests. For instance, President of the Republic of Angola João Manuel Gonçalves Lourenço, Prime Minister of Vietnam Pham Minh Chinh, Crown Prince of Abu Dhabi Armed Forces Mohamed bin Zayed bin Sultan Al Nahyan, and Vice Premier of the State Council of China Han Zheng.
In their greetings, it generally noted the importance of the topics to be discussed at the forum as well as the need to build an international dialogue and consolidate efforts to achieve the sustainable development goals, including as regards climate change.
The programme covers a wide range of issues of transformation and development in the global energy market. In the context of energy transition, the issues of energy development are inextricably linked with the introduction of new technologies, and the transformation aimed at reducing greenhouse gas emissions into the atmosphere. Climate protection is a task that cannot be solved by one country; it is a global goal, which can be achieved through building dialogue and cooperation between countries.
The participants in the discussion will answer the question: Is the world ready to give up hydrocarbons? In addition, during the panel session, the participants will discuss whether oil, gas and coal are really losing ground in the global energy sector; whether the infrastructure will have time to readjust for new energy sources; how long will there be enough hydrocarbons from the field projects that are being implemented; and whether an energy transition using fossil fuels is possible.
The international climate agenda is forcing many countries to reform their carbon-based energy systems. For Russia, which holds a leading position in the global hydrocarbon markets, the transition to development with low greenhouse gas emissions presents a serious challenge, but at the same time it opens up new opportunities for economic growth based on renewable energy, hydrogen technologies, advanced processing of raw materials and implementing green projects.
The Climate Agenda included sessions dedicated to the operation of the Russian fuel and energy sector in the context of energy transition, the impact of the European green pivot on the cooperation between Russia and Europe, as well as the session titled ‘The Future of Coal in a World Shaped by the Climate Agenda: The End, or a New Beginning?’
Sessions of the ‘New Scenarios for the Economy and the Market’ track are dedicated to the global challenges and opportunities of the electric power industry; the impact of ESG on the Russian fuel and energy sector; the potential for the renewable energy sources; and other issues of the future of energy.
The Russian Energy Agency under the Ministry of Energy brings together experts from key international analytical organizations to discuss the future of world energy during the session titled International Energy Organization Dialogue: Predicting the Development of Energy and Global Markets.
The Human Resource Potential of the Fuel and Energy Sector, participating experts will discuss the prospects for developing the professional qualification system, and a session titled Bringing the Woman’s Dimension to the Fuel and Energy Sector. Optimizing regulation in the energy sector and organizing the certification and exchange of carbon credits in Russia are the basis of the Regulatory Advances in Energy.
Anton Kobyakov, Advisor to the Russian President and Executive Secretary of the Russian Energy Week 2021 Organizing Committee, said “the level of various formats of international participation testifies to the importance of the agenda and Russia’s significant role in the global energy sector. We are a reliable strategic partner that advocates for building international cooperation based on the principles of transparency and openness. With the period of major changes in the industry, it is particularly important to engage in a dialogue and work together to achieve both national and global goals.”
The forum, organized by the Roscongress Foundation, the Russian Ministry of Energy, and the Moscow Government, brought together many local and foreign energy and energy-related enterprises. The speakers attending included Exxon Mobil Corporation Chairman of the Board of Directors and CEO Darren Woods, Daimler AG and Mercedes-Benz AG Chairman of the Board Ola Kallenius, BP CEO Bernard Looney, and TotalEnergies Chairman and CEO Patrick Pouyanné.
World Energy Outlook 2021 shows a new energy economy is emerging
A new energy economy is emerging around the world as solar, wind, electric vehicles and other low-carbon technologies flourish. But as the pivotal moment of COP26 approaches, the IEA’s new World Energy Outlook makes it clear that this clean energy progress is still far too slow to put global emissions into sustained decline towards net zero, highlighting the need for an unmistakeable signal of ambition and action from governments in Glasgow.
At a time when policy makers are contending with the impacts of both climate change and volatile energy markets, the World Energy Outlook 2021 (WEO-2021) is designed as a handbook for the COP26 Climate Change Conference in Glasgow, which offers a critical opportunity to accelerate climate action and the clean energy transition. The new analysis – which the IEA is making available for free online – delivers stark warnings about the direction in which today’s policy settings are taking the world. But it also provides clear-headed analysis of how to move in a well-managed way towards a pathway that would have a good chance of limiting global warming to 1.5 °C and avoiding the worst effects of climate change.
The WEO-2021, the IEA’s annual flagship publication, shows that even as deployments of solar and wind go from strength to strength, the world’s consumption of coal is growing strongly this year, pushing carbon dioxide (CO2) emissions towards their second largest annual increase in history.
“The world’s hugely encouraging clean energy momentum is running up against the stubborn incumbency of fossil fuels in our energy systems,” said Fatih Birol, the IEA Executive Director. “Governments need to resolve this at COP26 by giving a clear and unmistakeable signal that they are committed to rapidly scaling up the clean and resilient technologies of the future. The social and economic benefits of accelerating clean energy transitions are huge, and the costs of inaction are immense.”
The WEO-2021 spells out clearly what is at stake: what the pledges to reduce emissions made by governments so far mean for the energy sector and the climate. And it sets out what needs to be done to move beyond these announced pledges towards a trajectory that would reach net zero emissions globally by mid-century – the Net Zero Emissions by 2050 Scenario from the landmark IEA report published in May, which is consistent with limiting global warming to 1.5 °C.
As well as the Net Zero Emissions by 2050 Scenario, the WEO-2021 explores two other scenarios to gain insights into how the global energy sector may develop over the next three decades – and what the implications would be. The Stated Policies Scenario represents a path based on the energy and climate measures governments have actually put in place to date, as well as specific policy initiatives that are under development. In this scenario, almost all of the net growth in energy demand through 2050 is met by low emissions sources, but that leaves annual emissions still around today’s levels. As a result, global average temperatures are still rising when they hit 2.6 °C above pre-industrial levels in 2100.
The Announced Pledges Scenario maps out a path in which the net zero emissions pledges announced by governments so far are implemented in time and in full. In this scenario, demand for fossil fuels peaks by 2025, and global CO2 emissions fall by 40% by 2050. All sectors see a decline, with the electricity sector delivering by far the largest. The global average temperature rise in 2100 is held to around 2.1 °C.
For the first time in a WEO, oil demand goes into eventual decline in all the scenarios examined, although the timing and speed of the drop vary widely. If all today’s announced climate pledges are met, the world would still be consuming 75 million oil barrels per day by 2050 – down from around 100 million today – but that plummets to 25 million in the Net Zero Emissions by 2050 Scenario. Natural gas demand increases in all scenarios over the next five years, but there are sharp divergences after this.
After decades of growth, the prospects for coal power go downhill in the Announced Pledges Scenario – a decline that could be accelerated further by China’s recent announcement of an end to its support for building coal plants abroad. That move may result in the cancellation of planned projects that would save some 20 billion tonnes in cumulative CO2 emissions through 2050 – an amount similar to the total emissions savings from the European Union reaching net zero by 2050.
The differences between the outcomes in the Announced Pledges Scenario and the Net Zero Emissions by 2050 Scenario are stark, highlighting the need for more ambitious commitments if the world is to reach net zero by mid-century.
“Today’s climate pledges would result in only 20% of the emissions reductions by 2030 that are necessary to put the world on a path towards net zero by 2050,” Dr Birol said. “Reaching that path requires investment in clean energy projects and infrastructure to more than triple over the next decade. Some 70% of that additional spending needs to happen in emerging and developing economies, where financing is scarce and capital remains up to seven times more expensive than in advanced economies.”
Insufficient investment is contributing to uncertainty over the future. Spending on oil and natural gas has been depressed by price collapses in 2014-15 and again in 2020. As a result, it is geared towards a world of stagnant or even falling demand. At the same time, spending on clean energy transitions is far below what would be required to meet future needs in a sustainable way.
“There is a looming risk of more turbulence for global energy markets,” Dr Birol said. “We are not investing enough to meet future energy needs, and the uncertainties are setting the stage for a volatile period ahead. The way to address this mismatch is clear – a major boost in clean energy investment, across all technologies and all markets. But this needs to happen quickly.”
The report stresses that the extra investment to reach net zero by 2050 is less burdensome than it might appear. More than 40% of the required emissions reductions would come from measures that pay for themselves, such as improving efficiency, limiting gas leakage, or installing wind or solar in places where they are now the most competitive electricity generation technologies.
These investments also create huge economic opportunities. Successfully pursuing net zero would create a market for wind turbines, solar panels, lithium-ion batteries, electrolysers and fuel cells of well over USD 1 trillion a year by 2050, comparable in size to the current oil market. Even in a much more electrified energy system, major opportunities remain for fuel suppliers to produce and deliver low-carbon gases. Just in the Announced Pledges Scenario, an additional 13 million workers would be employed in clean energy and related sectors by 2030, while that number doubles in the Net Zero Emissions by 2050 Scenario.
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