As part of efforts towards a faster transition to cleaner energy and improving international cooperation, the COP29 presidency and the International Energy Agency (IEA) have identified five key opportunities for moving toward global energy goals. COP29 will focus on scaling up energy storage, boosting energy efficiency, cutting methane emissions, and increasing investment in clean energy for the developing economies as well as ensuring future climate action is guided by the outcomes of the Global Stocktake.
These measures align well with the energy goals for COP28 and are meant to continue moving countries in the direction of renewable energies while pressing on urgent climate concerns. The five opportunities identified for driving progress at COP29 are:
1. Scaling Up Energy Storage and Electricity Grids
Scaling up energy storage and electricity grids is one of the most crucial next steps toward hitting global renewable energy targets, as policymakers aspire to triple renewable energy capacity by 2030. The IEA recently announced that globally, energy storage capacity must rise to 1,500 GW by 2030, with 1,200 GW of that number solely accounted for by battery storage, which was nearly 15 times higher capacity than it stands today.
In addition to energy storage, the world needs to accelerate the construction of new electricity grids. In the short term, by 2030, there will be an addition of 25 million km for supporting renewable energy production and reducing curtailment. For the long term, another 65 million km would be added by 2040. These measures are imperative to ensure that renewables can be fully integrated without increasing costs or dependence on fossil fuels.
2. Double the Rate of Progress in Energy Efficiency by 2030
Of course, ratification of ambitious COP28 targets notwithstanding, overall progress in energy efficiency remains woefully slow around the world. Two years into the 2024 plan, energy intensity is not likely to rise from last year’s rate of about 1 percent. That would be half the rate of the 2010-2019 period. Achieving the 2030 target of doubling energy efficiency improvements will depend on countries putting in place policy changes, particularly across key sectors. For instance, some of this can go into advanced technologies that raise the standard of building, or electrify transportation and industrial sectors.
The IEA also emphasizes much greater investment in energy efficiency and skilled labor as a prerequisite for making such developments possible. Greater energy efficiency is one of the keys that will determine the scale of reductions in greenhouse gas emissions and their associated costs; it can make up one-third of required emissions reductions by 2030.
3. Methane and Fossil Fuel Emission Reduction
Methane emissions remain one of the large sources of greenhouse gases, and curtailing those is one of the immediate priorities for climate action. Methane is a potent greenhouse gas that comes primarily from agriculture, oil, and gas sectors-hence, the focus for reducing those emissions. There are cost-effective solutions in reducing the methane emissions, including those in the Global Methane Pledge and the Oil and Gas Decarbonization Charter.
Reducing fossil fuel emissions is another equally important task, along with methane. Phase out inefficient fossil fuel subsidies and decommission, repurpose, or retire fossil fuel infrastructure responsibly to facilitate the transition to cleaner sources of energy.
4. Investment in clean energy in developing economies
A transition to clean energy is impossible without making such immense investments in developing economies, where access to affordable finance and technology is normally restricted. Concessional funding must be trebled threefold to serve the energy transition needs of these economies-that is, reach USD 115 billion by 2030-from its current USD 37 billion annually to support efforts in transitioning to energy. Low-cost capital must be mobilized further and with a far greater level of private sector mobilization for clean energy investments. Governments, international financial institutions, and the private sector must work together to reduce the cost of capital and pool their efforts to mobilize more private sector financing for investments in clean energy.
International institutions should also accelerate reforms to ensure the timely delivery of financial resources to high-quality, bankable clean energy projects. Developing economies will reduce fossil fuel-based energy systems by ensuring access to clean energy technologies in the pursuit of their climate ambitions, all in the name of a strong pipeline of clean energy projects.
5. Integrating Global Stocktake Outcomes into Nationally Determined Contributions (NDCs)
Such outcomes should thus be considered in the Nationally Determined Contributions for the next round, as national climate action plans. It was at COP28 that the Global Stocktake made the call for significant, long-term, and sustained reductions in global greenhouse gas emissions. The 2025 NDCs should therefore reflect such findings and internalize them into national plans.
The recommended level of emissions reduction for keeping the path open to reach the 1.5°C limit are required by being cut by 43% from 2030, 60% from 2035 and achieving net-zero carbon dioxide emission by 2050. In so doing, countries would need to affirm that their own NDCs are consistent with the goal of 1.5°C and extract drastic cuts in emissions.
Focus on Investment and Action
Overall, COP29 tells countries, businesses, financial institutions, and civil society that together is the way to accelerate transitioning to cleaner energy. Various initiatives have been taken by the COP29 presidency, among which are the COP29 Global Energy Storage and Grids Pledge, COP29 Hydrogen Declaration, and COP29 Green Energy Zones and Corridors Pledge focusing on key challenges but with practical steps toward scaling up clean energy and a just transition for all.
The High-Level Energy Transition Dialogues convened by the COP29 presidency and the IEA were an important step toward pushing these goals forward. As part of an effort with the International Energy Agency, the COP29 presidency launched a series of High-Level Energy Transition Dialogues that continue to facilitate dialogue among global decision-makers on how best to scale up energy transitions and mobilize investment, particularly in emerging economies.
Conclusion: Joint Action at COP29
Building on the momentum gained by earlier COPs, COP29 will finally offer opportunities for registering significant progress on global energy and climate goals-made through scaled-up financing of renewable energy and improvements in energy efficiency but most importantly through fast-tracking investments in clean energy technologies, more so in developing economies. Success will be key to staying on track toward achieving the 1.5°C climate goal through the delivery of the outcomes of the Global Stocktake and the next round of NDCs.
With these five key opportunities, COP29 can unlock a more sustainable and equitable energy future. The COP 29 presidency has called all stakeholders to be actively engaged in energy transitions and to bring meaningful action to further cut the process of global warming.
Source: COP 29 Presidency and IEA