Offshore wind capacity is expected to grow by 18.4 GW in 2023, a record, with China accounting for over half of this total. By 2030, the annual total will reach 45.7 GW, mainly due to the mature markets of China, the UK, Germany and the Netherlands, but emerging markets such as the US, Taiwan, France, South Korea, Poland and Japan will also make significant contributions. From 2031 to 2035, the report says that installations will average 45.6 GW per year, peaking at 48.2 GW in 2035.

After reaching an all-time high globally in 2022, CO2 emissions from power generation will stay steady through 2025. While the EU’s natural gas-fired power generation is forecast to fall, growth in the Middle East will partly offset this. Declines in coal-fired generation in Europe and the Americas will likely be matched by a rise in Asia-Pacific. More than 70% of the increase in global electricity demand through 2025 is to come from China, India and Southeast Asia. However, considerable uncertainties remain over China as it emerges from Covid restrictions.

Evidence has emerged linking supply chains for renewable energy products to modern slavery and human rights abuses, says a new report by the Clean Energy Council of Australia and law firm Norton Rose Fulbright. Abuses most often occur in the later tiers of the supply chain and are hard to document. The main points of exposure include the manufacture of components and the extraction of raw materials. In some instances, such as producing polysilicon, a key component in solar panels, the primary market that uses the product linked to modern slavery is renewable energy. In other cases, renewable energy is just one of many end users.

The consumption of hydrogen by G7 countries could grow seven-fold by 2050, says the International Renewable Energy Agency (IRENA). G7 countries could be front-runners in low-carbon and green hydrogen deployment because of access to capital, presence of heavy industry, availability of renewables, existing local green hydrogen industry and technical know-how. Continuously low renewable power costs have made green hydrogen an attractive option for hard-to-abate sectors like chemical production, steelmaking, long-haul aviation and shipping, says IRENA.

Cutting fossil fuel subsidies will free up more cash for the energy transition. Over $1 trillion of external finance needs to be mobilised by 2030 to support the decarbonisation efforts of emerging markets and developing countries, except China. Total annual investment needs for these countries is estimated to be $1 trillion in 2025 and $2.4 trillion by 2030. Reducing fossil-fuel subsidies would free up fiscal space and improve incentives for private investment created by instruments such as carbon tax mechanisms.

A complete realisation of Asia-Pacific nations’ climate pledges would benefit their economic growth, employment and trade balance. Reskilling programmes are required to mitigate the impact of sizable job losses in the fossil fuel industry and ensure a just transition, while sectors that are part of the low-carbon transition supply chain would see significant growth in employment, including in construction and electricity supply. Still, the region’s commitments are not aligned with international targets. A cumulative 21% reduction in emissions is expected by 2030, compared with 2010, lagging the 45% cut required to remain on track for the 1.5˚C warming goal.

The UN’s latest emissions gap report finds that the international community is falling short of the Paris goals, with “no credible pathway” to 1.5°C. Since COP26 in 2021, progress has been “woefully inadequate”. Only an urgent system-wide transformation can avoid climate disaster. National governments should remove fossil fuel subsidies in a socially acceptable manner, remove barriers to the expansion of renewables, stop the development of fossil fuel infrastructure, plan for a just fossil fuel phase-out and adapt market rules of the electricity system for a high share of renewables.

Current policies will help propel global clean energy investment to more than $2 trillion a year by 2030, a 50% increase from 2022 levels, says the IEA’s World Energy Outlook 2022. Global emissions will peak in 2025. At the same time, international energy markets undergo a “profound reorientation” in the 2020s as countries adjust to the rupture of Russia-Europe flows. There is little evidence to support claims that policies and net zero commitments contributed to the rise in energy prices.

The supply of electricity from clean energy sources must double within the next eight years to limit global temperature increase, says a new report by the World Meteorological Organisation (WMO), part of the United Nations. The report also says that investments in renewable energy need to triple by 2050 to put the world on a net zero trajectory by 2050. Developing countries are underrepresented when it comes to accessing clean energy finance. ​ There is a huge opportunity for Africa to help close the gap in the need for renewable energy. Achieving Africa’s energy and climate goals means more than doubling energy investment this decade. Only 2% of clean energy investment in the last two decades was made in Africa.

Canada could be a clean electricity powerhouse as soon as 2035—without building more large hydroelectricity dams or relying on expensive, sometimes unproven and dangerous technologies such as nuclear or fossil gas with carbon capture and storage. The modelling by NGO David Suzuki Foundation found that Canada can affordably and quickly shift from fossil fuels to reliable 100% emissions-free electricity—from predominantly wind, solar, existing hydro, energy efficiency, batteries and other energy storage technologies, as well as grid improvements, including interconnection between provinces.

The banking sector has started its transition towards net zero, but it still has a long way to go to align with a 1.5°C pathway. Analysis of 27 banks suggests the banking sector needs to “substantially accelerate” its decarbonisation efforts to align with the Paris Agreement. The banks performed best on climate governance, and worst on climate policy engagement and on including climate-related financial matters into their financial accounts. The report argues financial institutions should improve the quality of disclosure of financed emissions and of their exposure to high-risk sectors.

The cost of solar has been halved, while wind costs have also fallen by almost one-third, according to McKinsey. This is due to rapid technological developments and supply chain optimisation. As a result, 61% of new renewable capacity installation is currently priced lower than fossil fuel alternatives. Renewables will become the new baseload generation and will account for 50% of the power mix by 2030 and 85% by 2050 as build-out rates for solar and wind grow by a factor of five and eight respectively. Global fossil fuel demand will peak between 2023 and 2025, it says. 

Climate change, left unchecked, could cost the global economy $178 trillion by 2070, says Deloitte. But if a net-zero emission economy is achieved by 2050, the world could instead see a $43 trillion economic boost by 2070. Deloitte surveyed 23 countries and found that nearly half of them had experienced a climate-related event in the previous six months. Meanwhile, 89% of C-Level executives surveyed agreed there is a “global climate emergency” while 79% see the world is at a tipping point. 

One of the most efficient ways to transport hydrogen appears to be blending it with natural gas in existing pipelines. But there are lots of reasons why this is an unsuitable solution. Due to a different molecular weight, an 80% natural gas-20% hydrogen blend would only achieve at most a 7% reduction in carbon dioxide emissions, according to IRENA. Because hydrogen is more expensive, such a blend would also cost gas consumers more. Additionally, it is expensive to separate hydrogen from fossil gas for other uses; gas consumption fluctuates seasonally whereas hydrogen demand does not; while blending technology remains immature. 

Developed countries are set to miss the $100 billion goal for climate finance again in 2022, with the US, Australia and Canada singled out for failing to contribute their fair share. Only France, Japan, Sweden and Norway are on track to contribute their fair share by 2025. However, France and Japan were also found to be providing a poor quality of finance as their provision includes a high number of loans and only a small amount for climate change adaptation. 

The US will not achieve a net-zero transportation sector by 2050. By mid-century, existing state-level EV policies would only lower on-road transportation greenhouse gas (GHG) emissions by 27% compared with 2020, the ICF Climate Centre warns. Ambitious nationwide EV adoption would reduce on-road transportation GHG emissions but would need an electric grid powered primarily by clean energy to achieve net-zero emissions. Rapid EV adoption could impact electric grid reliability, although managed charging could help mitigate the peak impact by shifting charging to off-peak hours or aligning with periods of excess renewable generation.

Europe can cut Russian gas imports by 66% by delivering the EU’s Fit for 55 package and speeding up the deployment of renewable electricity generation, energy efficiency and electrification. To achieve this lawmakers must increase clean energy ambitions, provide clarity on financial resources, prioritise energy efficiency and remove any incentives that extend gas consumption.

The EU must pull out all the stops in renewables deployment and manufacturing in Europe for it to regain energy sovereignty following Russia’s invasion of Ukraine. To support this, it must mandate solar rooftops, solar on the built environment and maximise PV self-consumption. Greater power system flexibility should be provided and set a smart balance between direct electrification and green hydrogen production.

Texas could replace almost all of its coal output with wind and solar already in the interconnection queue. Installing 72 of the 108 wind projects in the queue and 42 of the 262 solar projects would replace most of the coal generation on the state’s ERCOT grid. This high level of displacement is the result of the complementary timing of solar and wind generation. A dependable power supply from these assets still depends on sufficient transmission, other resources operating reliably and flexibly, and all resources being weatherised.

Green hydrogen could reshape global trade and disrupt energy politics. New hydrogen exporters and users will emerge, new inter-dependencies will be created, and a regionalisation of energy relations will occur as conventional oil and gas use declines. IRENA estimates hydrogen will be as much as 12% of global energy use by 2050 and that more than 30% of hydrogen could be traded across borders by mid-century, a higher share than natural gas today. Countries that have not traditionally traded energy are establishing bilateral energy relations around hydrogen.

Rooftop solar could have supplied enough electricity to meet the shortfall on all but two of the 13 days during the sustained power cuts that affected Texas in February 2021. Even on the two days when the supply-demand divide was greatest, rooftop solar could still have made up some 40% to 60% of that gap, says the report by Environment America Research & Policy Center, Environment Texas Research & Policy Center and Frontier Group. Nearly 250 people died and millions were left without power for days after freezing temperatures caused the state’s electricity network to grind to a halt. The report’s authors call for Texas to maximise its rooftop solar potential to strengthen the state’s energy reliability.

A survey by BCG of 250 institutional investors in oil and gas (O&G) showed that these key stakeholders believe that companies need to plan for the transition to cleaner energy. Some 60% of investors said they feel pressure from clients to divest from fossil fuels. Only 39% of respondents currently factor climate risk into their valuations of O&G companies, but another 40% say they will also do so. Investors believe that companies need to take several steps to meet the growing energy transition pressure: set and meet emissions-reduction targets (80%); invest in clean energy (82%); collaborate beyond the O&G sector to set cross-industry standards regarding emissions targets (73%).

Climate change is making the recurrence and intensity of extreme weather events or natural catastrophes greater. The insurance industry’s losses over the last 50 years show an exponential increase for weather-related events versus other non-climate perils. Global insurance losses from wildfires rose 500% during 2010-2019. The humanitarian funding gap has grown from less than $1 billion 20 years ago, to $4 billion ten years ago, to over $20 billion today. As much as $1.5 trillion of total pension fund capital could be deployed in the (re)insurance space to help close the protection gap.

Installation of solar power capacity could reach 2.2 terawatts by 2050 with the right policies to support the technology. This would translate to 167 million households and 23 million businesses installing the technology. The greatest potential is seen in Australia, where up to 80% of rooftops could host solar panels. To achieve this, lawmakers need to focus on incentives, solar panels mandates on new builds, support for energy storage development and reducing other barriers including a lack of capital.

Federal investment into climate mitigation measures in rural areas of the United States could provide significant returns. The World Resources Institute found every $1 million invested would generate 17.5 jobs and $1.5 million in returns. Nearly 45% of all rural jobs created by these federal investments would be created in economically disadvantaged counties. Investment in measures to advance renewable energy projects, build infrastructure, make homes more energy-efficient, clean up fossil fuel production sites and to suppress wildfires would make these communities more resilient to climate change and improve the economies. 

Power sector emissions in the US fell 10% between 2019 and 2020 because of improved energy efficiency and the displacement of coal by natural gas and renewable energy. In 2020, power plant CO2 emissions were 20% lower than 1990 levels and 40% lower than their 2007 peak, according to the NRDC. In 2020, power consumption did however decrease in part due to the pandemic-caused economic slow-down. The share of power produced by non-hydro renewables jumped 20% in 2020 from 2019 levels while the share from coal declined by 17%.

A zero-emission power system will be less vulnerable to international fossil fuel price shocks, says the Regulatory Assistance Project (RAP). Fossil gas prices continue to drive up energy prices in Europe at an alarming rate. European leaders are scrambling to mitigate the damages for consumers. In order to protect low-income households from the jacked-up prices, RAP recommends rapid rollout of energy efficiency solutions, lump-sum payments to targeted consumers or exemptions from levies. A focus on energy efficiency, renewables growth and equity in the energy transition will help stop the crisis from happening again.

Carbon dioxide emission prices in the 2020s will not be high enough to deliver stable demand for renewable hydrogen, concludes German think tank Agora Energiewende and Guidehouse. Even with a tripling of prices in the EU emissions trading system (ETS) to €200/tonne, additional support will be necessary for a “considerable period of time”. To ramp up the market for green hydrogen, the report recommends: carbon contracts for difference in industry; an aviation quota; auctions for combined heat and power plants; measures to encourage markets for decarbonised materials; and hydrogen supply contracts.

The pipeline of 13,000 renewable energy projects across 50 countries could create up to 10 million direct and indirect green jobs, says EY-Parthenon. Renewables can be particularly effective in creating jobs outside of urban economic centres, especially when a deliberate effort is put into strengthening local supply chains. The pipeline represents $2 trillion in investment opportunities for one terawatt (TW) of generation capacity and could avoid 2.5 gigatonnes of CO2-equivalent emissions. Over 90% of the required investment for an accelerated renewables deployment can be provided by the private sector.

The Clean Energy Futures project finds that President Joe Biden’s clean energy plan would benefit the economy by $637 billion while costing $342 billion over 30 years. It would generate estimated present value health benefits of $1.13 trillion because of cleaner air, especially in minority communities, bringing the estimated present value net benefits to $1.43 trillion by 2050. The researchers were from Harvard and Syracuse Universities, the think tank Resources for the Futures and the Georgia Institute of Technology. Biden is calling for 80% clean energy by 2030 including a clean energy standard (CES) for utilities.

Power purchase agreements (PPAs) are set to be deployed in greater numbers by corporations as they attempt to decarbonise their supply chains, says Schneider Electric. Corporate interest in collaborative
PPAs is growing as more companies set about reducing Scope 3 emissions. Tackling supply chain decarbonisation through a PPA programme remains complex, however. There is not a one-size-fits-all approach. Additionally, as more companies make progress on decarbonising supply chains, more innovative programmes are being developed to deal with Scope 3 emissions.

Over $167 billion of private sector investment has been raised as part of a programme to raise $1 trillion by 2030 launched by the American Council on Renewable Energy (ACORE). One-sixth of the target has been secured despite a 12% decline in renewable energy investment in 2020 primarily due to lower financing levels in the onshore wind sector. Over $90 billion needs to be raised each year to reach the target by the end of the decade; however, the report also finds confidence among renewable energy investors and developers to be at an all-time high.

Development of ten key technologies will be vital as the global economy transitions to low-carbon. The ten technologies highlighted by DNV GL are: floating offshore wind, pipelines for low-carbon gases, novel shipping technologies, solar PV, meshed HVDC grids, EVs and grid integration, waste to fuel and feedstock, batteries, green hydrogen, and carbon capture and storage (CCS). The selection is “not exhaustive”, but they are of “particular interest for the pace and direction of the energy transition”. 

G7 governments are investing more in fossil fuels than in clean energy, says Tearfund, the International Institute for Sustainable Development and the Overseas Development Institute. From January 2020 to March 2021, G7 members pumped $190 billion into fossil fuels compared with $147 billion for clean energy. The report recommends that G7 members dedicate a minimum of 40% of total covid-19 recovery spending to policies and measures supporting clean energy investments and priorities aligned with the Paris Agreement; and help enable a green recovery in low- and middle-income countries.

Renewable energy capacity increased by the highest total for more than 20 years in 2020, up nearly 280 gigawatts (GW). Such high growth is set to become the new normal, according to the IEA. Solar PV will lead the charge with annual new capacity set to reach 162 GW by 2022, up nearly 50% from 2019. New additions in China are expected to slow but will be offset by significant growth in Europe, the US and India, with policy support, corporate PPA deals, and tax incentives benefitting the sector in Europe and America.

Dynamic line ratings, advanced power flow control and topology optimisation could enable Kansas and Oklahoma to integrate 5.2 gigawatts (GW) of wind and solar generation capacity currently in interconnection queues by 2025, according to The Brattle Group for the WATT Coalition. The total is more than double the development possible without the technologies or building new large-scale transmission lines. Nationally, these grid-enhancing technologies could deliver carbon emissions cuts equal to taking 20 million cars off the road and $5 billion in yearly energy cost savings, with upfront investment paid back in just six months.

Around 90% of the US power system can be decarbonised reliably and affordably using today’s technologies but market design needs to be updated, says the Renewable Energy Buyers Association (REBA) Institute and Grid Strategies. REBA advocates larger regional transmission organisations, transmission planning and cost allocation that recognises the future electricity portfolio and resilience value of transmission. It also calls for resource adequacy assessments and “stress testing” of infrastructure; reliability and generation performance standards; well-functioning energy procurement structures; and development of long-duration storage sources.

Reliance on weather-dependent energy sources such as wind and solar pose challenges for the pursuit of California’s net-zero emissions targets, particularly for the electrification of transport and heating. While battery storage can help balance the grid, current technology cannot cost-effectively store enough energy for the winter months. Despite being more expensive than wind or solar power, geothermal and nuclear, or even carbon capture and storage for gas-fired plants, could provide critical reliability to help the Golden State avoid blackouts. Expanding the capacity of these so-called “clean firm power” sources to the same level as California’s existing natural gas fleet could help decarbonisation efforts without raising consumer costs.

Fugitive emissions from coal- and gas-based hydrogen production with the deployment of carbon capture and storage (CCS) could jeopardise decarbonisation goals. Carbon prices of $22-46/tCO2e would be required to make hydrogen from fossil fuels with CCS competitive with hydrogen produced from fossil fuels without CCS, while the cost of producing zero-carbon hydrogen from electrolysis could fall in the foreseeable future and be cost-competitive with fossil fuel options. This increases the risk of stranded assets if governments pursue a fossil-based hydrogen supply chain.

Global coal demand will increase in 2021 after a decline in 2020 because of the covid-19 pandemic. By 2025, global demand will flatten out at around 7.4 billion tonnes. Trends are expected to vary by region by 2025. In Europe and North America, coal demand will continue contracting after a projected temporary uptick in 2021. In China, the world’s largest consumer, demand will flatten over the next five years. And in India and some other countries in South and Southeast Asia, use is expected to increase through 2025.

The United States can decarbonise its energy sector and achieve net-zero emissions by 2050 at a cost of just $1 per day per capita. This would cover the cost of rebuilding America’s energy infrastructure to run solely on renewables, energy efficiency improvements, electrification of transport and heating, and “a small amount” of carbon capture, according to research published by the Department of Energy’s Lawrence Berkeley National Laboratory, the University of San Francisco, and the consulting firm Evolved Energy Research. Factoring in cost benefits of action—such as reduced exposure to volatile oil prices, improved public health, and avoiding extreme weather events—would lower that daily cost further.

A report by the United Nations Environment Programme (UNEP) says countries will produce 120% more fossil fuel emissions by 2030 than is consistent with limiting global warming to 1.5°C, or the goals of the Paris Agreement. The covid-19 pandemic and associated response measures have introduced new uncertainties to this overspend. Global fossil fuel production is declining sharply because of the health crisis and its ensuing recession. However, government stimulus and recovery measures could prompt either a return to pre-covid production trajectories, locking in severe climate impacts, or could set the stage for a managed wind-down of fossil fuels.

India is in a unique position to develop a new model for an inclusive low-carbon economy, but it will require new policies, new technologies and a surge in clean energy investment. Current policies—and assuming covid-19 is brought under control this year—will see the country’s CO2 emissions increase 50% by 2040, driven mainly by industry and trucks. Most of the country’s energy future depends on buildings and factories which are not yet built, as well as vehicles and appliances yet to be bought, which provides an opening for ambitious policies and investment to avoid locking in carbon-intensive development, including in electrification, energy efficiency and fuel-switching.

Peak use of oil and gas are set to happen earlier than initially expected, according to the latest report from McKinsey & Company, an American management consulting firm. Oil-demand growth is projected to peak in 2029, driven by the decline in road transport and the impact of the covid-19 pandemic. The chemicals and aviation sectors will retain some oil demand, as well as by emerging economies. Gas demand continues to grow until the late 2030s when it shifts from a baseload provider to flexibility provider. Despite the rapid drop-off global greenhouse gas emissions decline by only around 25% by 2050, implying a 3.5°C pathway.

The higher price of electricity in the UK is harming the country’s steel industry by making it less competitive against European counterparts. According to research by UK Steel, the average price of electricity in the UK in 2020/21 was roughly €53/MWh, compared to €28/Mwh in Germany. This means UK steel producers must spend an additional €61 million a year on electricity, which could instead be invested in improving the industry—including its green credentials. UK Steel call on increasing the level of renewable levy exemptions, an exemption from Capacity Market costs and linking of the incoming UK ETS to the EU ETS.

The worldwide covid-19 pandemic had a dramatic impact on the number of power purchase agreements signed in 2020, according to a new report by Swiss software company Pexapark. Following restrictions to movement implemented during the Spring and early Summer of 2020, PPA activity in Europe almost ground to a halt with just 14 deals totalling 644 MW agreed—down from the 2.8 GW signed in January and February. Still, Europe’s PPA market recovered from the slump to post record numbers in 2020. More than 8.9GW of renewables PPAs were reported in Europe, of which 54% (or 4.8GW) were with corporate off-takers.

Renewables markets have shown resilience during the covid-19 crisis, says the IEA. In sharp contrast to all other fuels, renewables used for generating electricity will grow by almost 7% across 2020. Global energy demand is set to decline 5% but long-term contracts, priority grid access and installation of new plants have underpinned strong growth in renewables. From January to October 2020, auctioned renewable capacity was 15% higher than a year earlier, a new record. Additionally, shares of publicly listed renewable equipment manufacturers and project developers outperformed most major stock market indices and the overall energy sector. 

The number of ‘Green’ banks is multiplying and they have invested over $24 billion in low-carbon technologies ranging from rooftop solar to vehicle electrification and energy efficiency, according to the Rocky Mountain Institute, the Green Finance Institute, and the Natural Resources Defence Council. They are often the first to invest in new technologies and geographies and have thus attracted more than $2 of private investment, on average, for every $1 of their capital invested in a project. The report analysed green banks in 36 countries. An additional 25 countries are exploring setting up a green bank.

Korea’s Green New Deal and net-zero by 2050 goal can accelerate the energy transition and position the East Asian nation at the forefront of digitalisation, artificial intelligence, and low-carbon industry complexes. However, efforts on renewable energy need to be stepped up if the country is to meet its 2030 and 2040 targets (of a 20% share and 30-35%), warns the IEA in a new policy review. The electricity market needs to be opened for competition and be independently regulated, while efforts to address transport emissions—via fuel economy standards—push the country to the lead globally.

Uptake of clean energy technology in heavy industry to-date has been slow. This is partly the result of a low carbon price meaning investing in new low-carbon technology does not yet make business sense for these companies, according to German green think tank Agora Energiwende. However, 30-53% of industrial assets will require major re-investments during the next 5-10 years. Policymakers must act now to provide a framework that provides clear incentives for investment along the entire value chain. Proposals include Carbon Contracts-for-Difference, recycling quality targets, and finance for clean-energy and CO₂ infrastructure for industry.

As many as 25 million jobs will be created in the US by an aggressive climate plan, and making homes all-electric will create more than 7.7 million of those new jobs. The report predicts that the average US household could save $1,000-$2,500 a year by going all-electric. To achieve this, the US must prioritise reductions in three areas: soft costs through regulatory reform, hard costs through massive industrial scale and steady technological progress, and finance costs through government–backed loans.

Gaps between state targets, permitting timelines, and the grid operators’ interconnection queue could damage growth of US offshore wind development, says the Business Network for Offshore Wind, an advocacy group. States have committed to a total of 30 GW of offshore wind generation capacity by 2035. The report makes six recommendations to improve the approvals process: Integrated transmission planning should weigh all benefits; transmission planning should incorporate public policy requirements; planning must be proactive; it should consider a longer time period for benefits make an impact; all benefits must be quantified; and inter-regional planning must be more synchronised.

Trade body WindEurope touts the additional benefits the wind industry brings to local and national economies as Europe navigates its way out of the pandemic-induced financial crisis. In its latest report, WindEurope found that the industry generates €2.5bn of value added to the EU economy for each new gigawatt of onshore wind installed and €2.1bn for each new gigawatt of offshore wind. Wind farms also pay an average of €2.3/MWh in local taxes as well as providing jobs and additional community benefit to those living near projects.

A new analysis from the US-based Rocky Mountain Institute (RMI) finds that the building of all-electric single family homes is cheaper than multi-fuel houses. RMI looked at new housing across seven major US cities. Across most locations, multi-fuel homes have higher upfront costs than all-electric buildings that use heat pumps for heating and cooling. As well as the economic impact, it will also benefit the climate. All-electric homes in Seattle could see a 93% saving on carbon emissions over the lifetime of the equipment. New York homes could see an 81% saving, while new buildings in four other cities could save over 50% of emissions.

Solar PV is now consistently cheaper than new coal- or gas-fired power plants in most countries, and now offers some of the “lowest cost electricity ever seen”, according to the IEA’s new World Energy Outlook 2020. “Solar becomes the new king of electricity,” it says. If today’s policies and goals remain the same, renewables will meet 80% of global electricity demand growth over the next decade. Emissions from the power sector could drop by more than 40% by 2030, with annual additions of solar PV almost tripling from today’s levels. However, the report shows that strong growth of renewables needs to be paired with robust investment in electricity grids.

The oil industry’s plans to clean up their act well fall short of aligning with the 2015 Paris Agreement to keep global warming under 1.5°C, according to Oil Change International. “An arsonist pledging to light a few less fires is still an arsonist,” says Kelly Trout at the NGO. Nearly all of the eight oil and gas majors examined are set to increase their contribution to the climate crisis by 2030. The NGO calls on governments to step in to manage the decline in oil and gas production.

Action by state and local leaders plus the falling costs of clean technologies have combined to push the energy transition to a tipping point in the US, finds a new report from The America’s Pledge Initiative, co-chaired by Michael Bloomberg. Demand for clean energy has continued despite the covid-19-induced economic crisis, and a further 13GW of coal power is slated for retirement in 2021. Federal support for initiatives to modernise the grid, increase uptake of electric vehicles, and addressing the fossil fuel industry legacy would accelerate the transition as well as boost the economy.

The UK’s punitive measures on polluting vehicles will not prompt the universal adoption of electric and other alternatively fuelled vehicles, according to the Automobile Association. Suitable alternatives to polluting vehicles must be made more available—or fleets will simply pay a fine and carry on as normal. Perceptions of the new vehicles need to change, and the reality of batteries, range, payload and charging infrastructure have to develop significantly. A far wider choice of suitable vehicles also has to be made available.

Federal stimulus investment is critical for cities to effectively recover from the covid-19 pandemic and economic downturn, says Rocky Mountain Institute. It outlines five strategies. Firstly, strengthen, automate and streamline permitting to build efficient, affordable housing, and rehabilitate abandoned properties. Secondly, improve energy security, tripling the number of jobs compared with fossil fuels and revitalising communities. Third, support public transit and transport modes for safer mobility, less pollution and increased access. Fourth, enhance resilience for communities and infrastructure, improving preparedness for climate change while creating jobs. Finally, create more green urban spaces, mitigating CO₂ and other pollutants.

Consultancy Ember and NGO Climate Action Network examine the National Energy and Climate Plans (NECPs) of 18 EU member states that are still using coal for electricity generation. It finds that 11 of the NECP plans do not phase out coal by 2030 inline with the Paris Agreement. Total installed coal capacity across seven countries (Bulgaria, Croatia, Czechia, Germany, Poland, Romania and Slovenia) falls by just 42% in the next decade. Around 52GW of coal capacity is expected to be operational after 2030, roughly 90% of which is in Czechia, Germany and Poland.

The latest, revamped version of the IEA’s Energy Technology Perspectives report analyses over 800 technology options to support the shift to a zero-carbon economy. As well as increased electrification, the IEA also predicts a significant rise in hydrogen, carbon capture and storage, and synthetic fuel technologies in order to reach net zero emissions by mid-century. By 2050, electricity, hydrogen, synthetic fuels and bioenergy will make up a similar level of energy demand that is supplied by fossil fuels today. Achieving net-zero depends on how the emissions from long-lasting carbon-emitting assets is managed.

Investors remain optimistic about long-term renewable energy growth in the United States, despite near-term headwinds from the Covid-19 pandemic. A new report by the American Council on Renewable Energy (ACORE) finds that a private investment goal of $1 trillion by 2030 in renewables and enabling grid technology is still feasible. Following a record level of investment in 2019 driven by the phasing down of the federal tax credits, expanded state renewable energy standards, improved cost competitiveness and increased demand, one-eighth of the total $1T goal has been met. Covid-19 has led to the loss of almost 100,000 jobs in the renewables sector, strained renewable energy project financing and caused project delays, reducing renewable energy capacity expected online in 2020 by 21%.

The Centre for Sustainable Road Freight publishes its plan to install overhead catenary system on 7,500 kilometres of the UK’s major roads for heavy transport. Drawing on experience from Sweden and Germany, the three-phase plan would cost €21 billion and cover approximately 65% of all the roads used by heavy goods vehicles in the UK. The plan would additionally extend the electricity grid infrastructure, supporting the installation of charging points for smaller electric vehicles at motorway services and other locations across the UK, the authors argue.

The annual update from the UK’s transmission system operator National Grid, shows pathways to a net-zero energy system but called on immediate action to achieve the 2050 target. Its recommendations include an additional 40 GW of generation capacity by 2030. It also called on the UK power sector to become carbon negative – using bioenergy with carbon capture and storage – in order to offset other areas like heating which will be unable to fully decarbonise by the deadline. Each scenario sees the role of hydrogen increase with round 80 TWh required by 2050 to decarbonise shipping and HGV sectors.

Carbon capture and storage technology is still in the early stage of commercialisation and requires large amounts of support for new projects to be built, according to the Institute of Energy Economics and Financial Analysis (IEEFA). Any government support for CCS could be better spent on renewable energy or energy storage. A return on investment into a CCS project also requires a price on carbon. Oil majors such as Shell, Equinor and Total, are simply investing in CCS in order to show they are acting on climate change, the analysts argue.

Greenhouse gas emissions in the US fell 18% between March 15 and June 15 as a result of the Covid-19 crisis, the Rhodium Group estimates. The US could see a 6-12% reduction in 2020, compared to what was forecast before the pandemic, while emissions could be 2-12% lower by 2030 depending on the length of the pandemic and the rate of recovery. Transport emissions in the US fell 28% in the same period compared to 2019 due to the rapid fall of air travel. Coal power has been hardest hit in the US, and the Covid-19 epidemic accelerated its decline.

The European Commission (EC) strategy wants to break down the silos of the energy system — where different energy types are produced for specific end-users — to optimise the links between them. The EC wants to encourage greater electrification of end-users as the cost of renewable energy generation continues to decrease, so electricity can cover 30% of demand by 2030 up from 23% today, with the eventual target of supplying 50% by 2050. The EC also highlights the role of hydrogen where direct heating or electrification is not possible.

Investment of some about $1 trillion annually over the next three years, equal to about 0.7% of today’s global GDP, would boost jobs in areas such as in retrofitting buildings, improving energy efficiency, and in the electricity sector, particularly in grids and renewables. Measures detailed in the IEA analysis on sustainable recovery, conducted with the IMF, could accelerate the deployment of low-carbon electricity sources like new wind and solar, and expand and modernise electricity grids.

One gigawatt of offshore wind capacity in Denmark creates 14,600 man-years of employment, a new report by Danish Shipping, Dansk Energi and Wind Denmark finds. A project, like the proposed Thor site, secures 4900 man-years in direct work, with a further 9600 man-years created indirectly. Denmark’s dominant position in the sector also means for every 1 GW of capacity installed in Europe, 1400 man-hours are created for Danish seafarers offering a huge potential for firms as Europe targets 450 GW of capacity by 2050.

The number of electric cars on the road globally should near ten million this year, as sales continue despite the Covid-19 pandemic, says a new report by International Energy Agency. Electric vehicle sales this year are expected to match the 2.1 million sold in 2019, a record 2.6% of the total global car sales. Total worldwide sales of all passenger cars are expected to decline this year by 15%. The IEA warns that a second wave of the pandemic and a slower-than-expected economic recovery could affect the sales of EV and vehicles with internal combustion engines.

Replacing the costliest 500 GW of coal with solar and wind would cut annual system costs by up to $23 billion a year and yield a stimulus worth $940 billion, IRENA says. Replacing coal with renewables would also slash annual CO2 emissions by around 1.8 gigatonnes, or 5% of the 2019 global total. Costs of utility-scale solar PV fell to $0.068/kWh in 2019. Onshore and offshore wind reached $0.053/kWh and $0.115/kWh, respectively.

Phased transmission ‘backbones’ for offshore wind capacity off the northeast US coast could save $1.1 billion in onshore grid upgrades that would otherwise be needed with the current fragmented approach. Environmental impacts would also be significantly reduced because such a planned high-capacity offshore transmission system serving multiple wind farms would reduce marine cabling and optimise onshore landing points. The current approach may appear to have low initial costs but would likely increase substantially after the “low hanging fruit” is picked.

The United States could achieve 90% zero-carbon electricity by 2035 while maintaining reliability and lowering customer electricity bills, says the University of California, Berkeley. Rapid buildout of additional renewable energy would help lead to a 27% reduction in carbon emissions and $1.7 trillion of investment and would increase energy sector jobs by up to 530,000 a year through 2035. Under this scenario, all existing coal plants would be retired by 2035 with no additional fossil fuel capacity built.

Huge quantities of captured carbon can be saved if buildings are not demolished, explains a booklet newly translated into English by the Norwegian Green Building Council. More than 22,000 buildings are demolished each year in Norway. Buildings can be seen as materials banks, says the report. Refurbishment is the first step towards closing the flow of materials and adapting to a circular economy. The EU – of which Norway is not a member – stipulates that starting in 2020, 70% of all construction waste must be recycled.

The number of new renewable installations is set for its first annual decline this year, as the Covid-19 pandemic slows projects globally. Net additions are poised to drop 13% year-on-year – but still see an overall increase in renewable energy installed capacity of 6%. The bulk of new additions this year are solar and wind (86%). Projects delayed in 2020 are forecast to come online next year, which will see the rate of new installations return to 2019 levels. However, the IEA predicts longer-term issues around the availability of financing for new projects out to 2025.

The World Economic Forum’s annual energy transition index (ETI) finds that 94 of the 115 countries monitored have improved their ETI score during the past six years. They represent more than 70% of the global population and 70% of global CO2 emissions from fuel combustion. The likes of Argentina, Bulgaria, China, the Czech Republic, the Dominican Republic, India, Ireland, Italy, Slovakia, Sri Lanka and Ukraine, have made steady progress since 2014. Emerging demand centres like India and China show strong improvement, while Brazil, Canada, Iran and the United States are either stagnant or declining.

Demand for renewable energy is the only energy source seen growing this year, boosted by low operating costs and preferential grid access, says the International Energy Agency’s Global Energy Review 2020. Global lockdowns to stop the Covid-19 spread is estimated to drag down overall electricity demand by 5% in 2020, with an 8% fall in global CO2 emissions — or 2.6 gigatonnes — which would be the largest fall ever, says the agency. Emissions risk skyrocketing post-pandemic, however, if investment decisions do not prioritise clean energy.

Onshore wind and solar PV have overtaken other fuel sources as the cheapest for new installations in countries representing 85% of global energy generation, with a levelised cost of electricity (LCOE) of $44/MWh and $50/MWh respectively. Analysts at BloombergNEF estimate that recently financed solar PV projects in Australia, China, Chile and the UAE could see an LCOE of $23-29/MWh, threatening existing fossil fuel fleets in those nations. Improved technology is enhancing the competitiveness of wind and solar, and the move by developers to increase the size of projects and portfolios has enabled cost efficiencies.

While the Covid-19 pandemic and resultant global lockdowns have led to increasing calls for economic recovery plans to put the energy transition at their core, it remains to be seen how policy makers will respond. This is one of the 13 unknowns in the World Economic Forum’s Global Future Council’s Energy A-Z of the energy transition: Knowns and Unknowns, and the topic of a future report. Technological advances and the falling cost of renewables are, however, driving the transition regardless, accelerating the peak and decline of fossil fuels.

Up to $150 billion in subsidies is needed by 2030 to scale-up hydrogen, which in turn would lead to a one-third reduction in emissions from fossil fuels by 2050, finds BloombergNEF analysts. They predict the cost of renewable hydrogen will fall to $0.8-1.6/kg, which would allow it to compete with natural gas in China, India and Germany, and also enable it to be used in industrial processes at a carbon price of $50/t CO2. Challenges such as storage capacity and distribution infrastructure remain, however.

China can achieve a 2°C compatible coal power phaseout by 2050-2055 with little economic impact and a more ambitious 1.5ºC phaseout by 2040-2045 with a carefully designed retirement plan and financial compensation, says a study by the University of Maryland, North China Electric Power University in Beijing and the National Development and Reform Commission of China. The roadmap for retirement is based on immediately halting new construction, the near-term retirement of older, small coal plants that use subcritical combustion technologies and the gradual retirement of remaining plants.

Just over 40% of global GDP and 9% of global GHG emissions are subject to emissions trading, finds the International Carbon Action Partnership’s annual ETS Status Report. Such systems are delivering on decarbonisation, with notable falls in emissions from power generators in the UK, Germany and the north-east of the US, and a decoupling of emissions and GDP growth in California. Achieving the clean transition, however, will require complementary policies, such as building codes, performance standards and technology mandates.

US retailers want to electrify their fleets, but upfront costs for electric trucks and buses remain a major barrier, finds a report co-authored by the Centre for Climate and Energy Solutions. Models suggest it can cost less to own an average electric lorry compared with a diesel or natural gas equivalent if there are adequate financial incentives and a comprehensive charging infrastructure. Energy and fleet management teams within retailers must also collaborate to keep costs down and companies need skilled technicians to maintain vehicles.

Hermes Investment Management has published its latest climate report, the first to be aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The company lays out its approach to identifying and managing climate risks and seizing opportunities as a business, from involvement at the policy level in developing climate-related initiatives to ensuring all employees factor the climate emergency into their work. The report highlights how the company is implementing TCFD recommendations and where improvement is needed. Its clear approach and metrics offers a model for others to follow.

Wind energy overtook hydro in the US in 2019 to become the top source of renewables-generated electricity, says the US government’s Energy Information Administration. Wind generation was about 300 million MWh, exceeding generation from dams by 26 million MWh. Wind generation has increased steadily in the past decade, in part because of the wind Production Tax Credit (PTC), which drove capacity installations and is now expiring. Wind costs have also dropped dramatically. Annual hydro generation varied between 250 million MWh and 320 million MWh in the past decade, but since 2017 has dropped significantly.

Electrification of the transport, buildings and industrial sectors in Europe could slash greenhouse-gas emissions by 60% between 2020 and 2050, says a report from BloombergNEF (BNEF) and power companies Statkraft and Eaton. But the authors are clear concrete action is needed from policy makers to make change happen. This could include  incentives or requirements to cut emissions from building heat, supporting demonstration projects for electrification and ironing out barriers to the production of green hydrogen.  Engaging energy consumers and civil society is also important, they state.

New investments by oil companies over the next five years could see their value plummet as much as 50% if policy makers undertake a sudden, and inevitable, shift to increase action to counter climate change, warns a report by Carbon Tracker Initiative. This abrupt “handbrake turn” — assessed in the report to occur in 2025 — will lead to a subsequent fall in oil prices and negative impact on the valuation of oil firms. The report finds US firms, led by ExxonMobil, are most exposed, and suggests investors insist on higher rates of return to reflect this risk.

Increased renewables, fuel switching and an uptick in nuclear power saw static emissions growth from energy last year, even as the global economy grew by 2.9%, says data from the International Energy Agency. Emissions from coal dropped 1.3% year-on-year, with the IEA saying the data suggests the energy transition is underway. Advanced economies saw their emissions decline by over 370 million tonnes (or 3.2%), with the power sector responsible for 85% of the drop. Mild weather drove down emissions by 150 million tonnes.

Ambitious climate action by China would also save lives and millions in healthcare costs by significantly increasing outdoor air quality, says a report by the International Institute for Sustainable Development. But to achieve these wins, the country needs to slash fossil fuel subsidies and invest more heavily in renewables. Subsidies to fossil fuel consumption in China amount to around $40 billion a year, while renewable energy subsidies are only a quarter of that at $10.5 billion a year, says the IISD.

Median prices for installed photovoltaics projects in the US have fallen by 70% or more since 2010, says the latest annual report on utility-scale solar by the governmental Lawrence Berkeley National Laboratory. Levelised PPA prices for utility-scale PV power purchase agreements have also fallen dramatically, by $10/MWh annually in most years since 2013. The cumulative net AC capacity factor of individual projects — how much energy is produced compared with the facility’s maximum possible output — ranged widely from 12.1% to 34.8%.

Renewable energy is closer to pulling ahead of fossil fuels in the US. Data from the US Energy Information Administration (EIA) shows wind and solar will represent almost 32 GW, or 76%, of new capacity additions this year. The EIA expects 42 GW of new capacity to start commercial operation in 2020. Wind power accounts for the largest share of new capacity at 44%, followed by solar and natural gas at 32% and 22% respectively. Wind’s previous record in the US was 13.2 GW in 2012.

Research by S&P Global Market Intelligence shows investors are wrong to be wary of sustainable investing that takes into consideration environmental, social and governance (ESG) factors. The analysis concludes: “Carbon-sensitive portfolios have similar returns and significantly better climate characteristics than portfolios constructed without carbon emission considerations.” It cites studies showing companies with lower carbon emissions are more profitable than those producing more emissions. Highly profitable firms are usually well managed and have the resources to adopt proactive environmental strategies to decrease regulatory liabilities, mitigate business risks and manage important stakeholders, it states.

Electric vehicles are increasing in Europe, but charging points need to come on line to keep up with and encourage this growth. Scenarios estimate there will be 33 to 44 million EVs in the EU by 2030. NGO T&E has designed a methodology, a Public Charging Supply metric, to help policy makers set public charging infrastructure targets. The organisation suggests 1.3 million public charge points will be required EU-wide in five years and close to three million by 2030, requiring investment of €1.8 billion in 2025, 3% of the EU’s annual investment in road transport infrastructure.

A report by the Centre for Climate and Energy Solutions (C2ES) finds a market-based solution is needed to support the US’s clean energy standards (CES) if mid-century climate goals are to be reached. Many states in the US have CES requiring a certain proportion of retail electricity be renewable. But only a few have the most effective approach – a market-based model that prioritises performance and outcome rather than particular technologies. A federal CES could also be adopted that covers the industrial and transportation sectors as well as utilities.

A coalition of US states, cities and businesses – representing 68% of the country’s GDP – are laying the foundation for a thorough national climate strategy which, combined with aggressive future federal climate action, could lead to a 49% cut in emissions, against 2005 levels, by 2030. Accelerating America’s Pledge, released at the UN climate talks in Madrid, reports that existing policies will already achieve a 25% cut by 2030. A well-planned, rapid change could bring benefits across the economy, including via lower power bills for consumers due to falling costs of clean technologies.

This white paper by Siemens looks at technological developments at the grid edge — the interface between the grid, the final consumer and the technologies that connect to it — including artificial intelligence and data-driven systems. These technologies are creating new forms of connectedness and opening up new opportunities for generating and using energy. The paper examines these developments and their impact on the transition to a net-zero energy system: encouraging the move from a centralized energy system to one that is more decentralized, more local and more efficient.

Carbon pricing must lead US efforts to achieve carbon neutrality by 2050, says the Centre for Climate and Energy Solutions. The agenda should also include: half of new light-duty vehicle sales becoming zero emission vehicles by 2035; new national standards for regulating methane emissions in the oil and gas sector; phasing out of subsidies for higher-carbon energy sources and adoption of tax credits for zero-carbon power generation; and setting state and local goals and building standards to decarbonise buildings through energy efficiency, electrification and other forms of fuel switching.

With a 10% penetration of electric vehicles, the car capital of the world could shift its entire residential peak load to night-time hours. In Los Angeles, even such a low penetration of EVs would create enough virtual power plants to discharge during peak evening hours. The annual cost savings would be $560 per EV customer even after accounting for the cost of overnight recharging. Deloitte forecasts a tipping point in 2022 where the cost of ownership of an EV will equal the cost of an internal combustion engine vehicle.

There is a clear need for more transparency and standardisation around climate action policies and measures in place in all Asian development finance institutions, says a report by think tank E3G. It singles out the China Development Bank and Korea Development Bank in particular for making “very little information publicly available” on many of the ten metrics covered in its report aimed at measuring progress on actions to achieve the Paris Agreement, including mitigation and adaptation, climate risk and greenhouse gas accounting.