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Building a “Grand Coalition” to bridge the gap between energy and climate goals

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photo: IEA

Ministers and high-level representatives from COP host countries met at the International Energy Agency on Wednesday to review ways the energy sector can meet climate and other sustainability goals.

The speakers included Kwasi Kwarteng, the Minister for Business, Energy and Clean Growth of the United Kingdom, which holds the Presidency of the upcoming COP26 this year; Michał Kurtyka, Poland’s Minister of Climate and President of COP24; and Joan Groizard Payeras, Director-General of the Energy Agency at the Ministry for the Ecological Transition of Spain, which hosted the COP25.

Held at the IEA headquarters in Paris under the Agency’s “Big Ideas” speaker series, the conference was attended by Ambassadors and senior representatives from about 50 countries, industry executives, and representatives from financial and international organizations.

The conference took place a day after the IEA announced that global carbon emissions had stopped growing last year, defying common expectations that they would increase in 2019. The news provided a positive backdrop for the discussions, which were chaired by Dr Fatih Birol, the IEA’s Executive Director.

As part of its mandate as the leading global energy organization, the IEA is focusing on both energy security and global clean energy transitions, helping governments steer the energy sector towards international climate targets in a secure, sustainable and affordable manner. In his opening remarks, Dr Birol pointed out that the energy sector accounts for most of the global carbon emissions, and has a key role to play in global energy transitions.

“Without solving the challenge of the energy sector, we have no chance of solving our climate challenge,” Dr Birol said in his opening remarks. “We want 2019 to be remembered as the year of peaking global emissions and the 2020s as the decade of the decline in emissions. And the energy sector is ready to be part of the solution.”

As part of its commitment to bridging the gap between the energy sector and the climate goals, the Agency announced it would hold the IEA Clean Energy Transitions Summit on 9 July in Paris. This ministerial-level event will bring together key government ministers, CEOs, investors and other major stakeholders from around the world with the aim of accelerating the pace of change through ambitious and real world solutions.

The immediate aim will be to focus on concrete actions to reverse the growth in carbon emissions this decade, focusing on all the fuels and existing technologies that can help achieve that goal rapidly.

To support these objectives, the IEA will publish two major studies ahead of the summit. The first will be a World Energy Outlook Special Report that will map out how to cut global energy-related carbon emissions by one-third by 2030. The second will be the newest Energy Technology Perspectives report, which will focus on an energy sector pathway for reaching net-zero emissions, looking in detail into all technology opportunities that could help to reduce emissions in hard to abate sectors.

The IEA Clean Energy Transitions Summit will be preceded by the fifth edition of the Agency’s annual energy efficiency ministerial conference, which will also take place in Paris on 8 July, and will be an opportunity to review the findings of the IEA’s Global Commission for Urgent Action on Energy Efficiency.

“The debate around climate change is sometimes too heated and there is too much tension between the energy community and the climate change community,” said Dr Birol. “We think this debate needs to be taken in a cool-headed manner. This calls for a grand coalition that brings together all the stakeholders that have a genuine commitment to reducing emissions – governments, industry, financial institutions, international organizations and civil society. Without this grand coalition, it will be very difficult to address this challenge.”

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Qatari LNG shipments to Europe will drop

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Qatar is sending less of its liquefied natural gas to Europe, where slumping prices have reduced its attractiveness as a destination for the super-chilled fuel, informs Bloomberg.

Less than 18% of Qatar’s LNG output has sailed to Europe so far this year, down from 25% in 2022, according to ship-tracking data compiled by Bloomberg. It marks a change from last year, when gas prices soared and sent European leaders on a worldwide search to replace supplies from Russia.

At the time, Energy Minister and CEO of QatarEnergy Saad Al-Kaabi said the company would keep supplying buyers in Europe, even though its long-term contracts had the option to divert as much as 15% of its cargoes to destinations with better prices.

European gas prices have since tumbled to less than €25 ($27) a megawatt hour, a fraction of last year’s record, and the self-imposed ban on diversions from Europe no longer stands, Kaabi said at a press conference in Doha.

“The data that made us make certain promises or direct certain quantities to specific markets no longer exist,” said Kaabi. “Prices have dropped and quantities are available. There is no problem in the market that existed previously.”

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Congo oil auction: Perenco is interested, local communities want it out 

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The Anglo-French oil company Perenco has filed expressions of interest in two of the Coastal Basin blocks on offer in the giant oil auction the Democratic Republic of Congo (DRC) launched last July. Oil Minister Didier Budimbu visited the zone last Saturday to inaugurate new Perenco installations. A recent Greenpeace Africa field mission to the Coastal Basin, where the company has been present for nearly a quarter of a century, reveals strong opposition by local communities to any further fossil fuel activity, after years of pollution and abuse. 

“No political elite in Kinshasa would accept to live in the oil-drenched ecosystems where Perenco drills, or accept the poverty and intimidation that constitute its legacy,” said Patient Muamba, Greenpeace Africa forest campaigner. “The DRC government must listen to its people and block Perenco from bidding to expand its toxic enterprise in the country.” 

DRC’s only operating oil company, Perenco, is currently being sued in France by Friends of the Earth France and Sherpa in order to repair environmental damage. The firm is also being investigated by France’s National Financial Prosecutor’s office for “corruption of foreign public officials” in Africa. The multinational has a dark record in Gabon, Peru, and Guatemala, and is recently responsible for an oil spill in the UK.

The Congo oil auction has faced a barrage of criticism from Congolese and international scientists and NGOs as a potential cataclysm for human rights, the rule of law, biodiversity and the climate. Although deadlines for submitting expressions of interest have been extended twice, without explanation, it appears to have been shunned by Big Oil so far. Exploration contracts, most of which are to be signed during an election year in DRC, require the immediate payment of juicy signature bonuses.

Last month, just before the announcement of Perenco’s expressions of interest, Greenpeace Africa visited the three blocks of the Coastal Basin, a zone rich in mangroves located in the territories of Muanda and Lukula (Kongo-Central province), to talk with fishermen and fisherwomen, farmers, traditional leaders, young people, and local NGOs.

The pernicious impact of the oil industry is felt across the area and opposition among local communities is palpable. It echoes that of communities visited by Greenpeace Africa during three previous field trips since last July to six designated oil blocks in Equateur, Tshuapa, Haut Lomami, and Tanganyika provinces. 

Only two days before our arrival, a huge fire broke out in Mangroves National Park, in a storage area for fuel imported from Angola. The Park is an internationally-recognized biodiversity hotspot, home to sea turtles, manatees and hippos. The oil explosion reduced approximately 500 m² of mangroves to ashes and caused significant water pollution. While Perenco wasn’t involved in the incident, it demonstrates the risks of expanding the oil industry in this ecosystem. 

The company is infamous among locals. On 19 April Muanda was paralyzed by city-wide protests on various issues, some avenues barricaded with burning tires. Similar protests have been going on for years, often met by violent repression. Recently, residents have been demanding that a USD 10 million payment by Perenco be invested in the electrification of the city.

The villages lie within the Matamba-Makanzi II block, for which the Nigerian firm Century Energy Services and a certain “Kebo Energy” have filed expressions of interest.  Perenco has filed expressions of interest for the Nganzi and Yema II blocks.

In Malela, a resident says no one there is aware of the existence of the oil auction: “We don’t understand why the government has to treat us as if we don’t exist and have no right to know what is planned for our lands.” 

Already, restrictions imposed by the Congolese Institute for Nature Conservation (ICCN) for protecting the area’s biodiversity, are making life difficult for fishermen and fisherwomen. Some fear oil exploration would impose further restrictions.

In Kimbanza and Malemba, residents complained that no one from the Oil Ministry had come to consult them. They knew their area might be at risk – about a decade ago the oil company Surestream had carried out unsuccessful seismic studies in the area. Now they reject any new oil development.

One resident, who worked for Perenco for decades, wonders: “How can the government approve this kind of project without telling us anything?”

Malemba residents are working on a management plan for their community forest concession, awarded in January, which they hope will block any land grabbing by a government-backed Perenco: “No one will come and take our land away from us, we already have legal rights!” says one community member.

Inhabitants of Matamba-Makanzi, which lies within the Yema II block, say they received a visit from individuals presenting themselves as Oil Ministry officials, but the latter told them absolutely nothing about any oil tender. They were only looking for guides to accompany them to the boundary between the Yema II and Matamba-Makanzi II blocks.

Neither villagers nor local civil society groups are aware of any environmental impact assessment done in the past 25 years

Activists in the area listed the complaints that Friends of the Earth France and Sherpa have brought before the French courts. Several scientific studies, investigations from Congolese and international civil society organisations and the Congolese Senate have revealed the installation of wells and flares near homes and fields, oil spills, waste incineration, the dumping of sludge and toxic waste in rivers, and land erosion.

One of the local activists says: “The exploitation of oil impoverishes us and makes us suffer. Young people are being used for useless work. I’d never work for Perenco – even if it were the only employer in Kongo Central!”.

Perenco did not respond to the issues raised by local communities when contacted by Greenpeace Africa.

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Australia has raised its climate targets and now needs to accelerate its clean energy transition

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Australia is taking positive steps to increase its climate and clean energy ambitions. The International Energy Agency has reviewed Australia’s progress and recommends that it continues to strengthen its policies and long-term plans to ensure it meets its targets. 

Today, Australia is a major exporter of both fossil fuels and the critical minerals used in many clean energy technologies. A successful clean energy transition would support the country’s economic diversification and industrial growth while providing long-term resilience against global energy market shocks, according to the new IEA report. 

Since the IEA’s last review in 2018, Australia has passed the Climate Change Act in 2022, which doubles the target for emissions reductions by 2030 and sets the goal of reaching net zero emissions by 2050. The Australian government also signed up to the Global Methane Pledge in 2022, joining 130 governments who are collectively targeting a reduction in methane emissions of at least 30% by 2030. 

In recent months, the Australian government has presented a host of policy strategies to fast-track the country’s energy transition. The IEA review welcomes these strategies, including the Rewiring the Nation Plan, the National Energy Transformation Partnership, and National Energy Performance Strategy.  

“Australia is an important player in global energy markets that is helping to meet today’s needs while advancing the transition to clean energy,” said IEA Executive Director Fatih Birol. “I welcome Australia’s efforts to drive progress on low-emissions hydrogen and supplies of critical minerals – and its leadership on working with partners, including through the IEA, to strengthen the diversity and resilience of clean energy supply chains. Our new report sets out the steps Australia can take to accelerate its own clean energy transition securely and affordably.”

The report finds that Australia can make sufficient progress on emissions reductions by 2030 to align with the goal of net zero by 2050. However, stronger efforts are needed to improve energy efficiency and boost clean energy investment. A whole-of-government approach is needed to end the country’s high reliance on fossil fuels. The IEA review calls for an updated net zero emissions reduction plan for 2050 to guide implementation across all parts of government. A national energy and climate information system is also needed to track progress towards reaching these targets. 

Greater energy efficiency efforts in transport and residential buildings can help bring forward Australia’s peak in emissions and mitigate rising energy bills. The IEA review estimates that a 60% productivity improvement would be needed for a net zero aligned trajectory. The new National Building Code and the Electric Vehicle Strategy are critical steps forward in this regard. 

Australia’s renewables deployment has a positive outlook thanks to the success of rooftop solar, ambitious targets, and increased funding at federal and state levels. Three million Australian households, the equivalent of one in three, have solar PV installations, together accounting for 17 gigawatts of capacity. 

Power sector decarbonisation efforts need to be stepped up considerably, as Australia aims to increase the share of low-carbon power generation by 2030 – with 82% to come from renewable energy, up from 27% today. This will require an accelerated implementation of renewable energy zones, faster permitting of grid related projects, and additional coal retirements.  

The Covid-19 pandemic, supply chain disruptions, and Russia’s invasion of Ukraine created a new set of energy security challenges for all IEA members, including Australia. In 2022, Australia’s domestic gas and electricity markets experienced supply disruptions and rising prices. The Australian government has enacted laws and programmes aimed at boosting fuel security at home. Based on lessons learned from recent energy crises, investment in clean energy infrastructure, grids, energy system flexibility, and fuel availability should be key priorities for Australia’s orderly transition. 

One of Australia’s security challenges is its exposure to frequent and extreme weather events. The energy sector – from production and generation to transport and distribution – will need to be more resilient to better cope with ever more disruptive storms, flooding, wildfires, and heat waves. Australia has yet to complete a comprehensive assessment of climate change impacts on the energy sector outside of electricity. A national-level energy sector plan that lays out future steps for climate resilience is needed. 

Australia also has the potential to play a key role in providing critical minerals and new technologies for clean energy transitions globally. It produces cobalt, rare-earth elements, and lithium, of which it is the single largest producer. In 2022, Australia’s Hydrogen Energy Supply Chain (HESC) project produced and transported liquified hydrogen to Japan, the world’s first such shipment. Australia has a broad range of demonstration projects for low-emission hydrogen and carbon capture and storage development, which are also critical for the decarbonisation of industrial sectors where emissions are hardest to reduce. 

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