How are we approaching COP28?
If we look at the glass as half full, 2023 marks a record year for energy transition. Investments in clean energy are up by 40% compared to 2020. The world will have installed 500 GW of renewable capacity in 2023. This trend is driven by the desire of many countries to strengthen their energy independence and thereby reduce dependence on fossil fuels.
And if we look at the glass as half empty?
CO2 emissions are set to reach record levels this year, even though they are expected to fall by 43% by 2030. The policies in place around the world would only limit global warming to +2.5°C by 2100, well above the target set by the Paris Agreement. Additionally, rising interest rates, inflation, and geopolitical conflicts complicate the situation.
It was said that COP27 in 2022 was a technical COP. What about this one?
COP28 is strategic and focuses on four major negotiation issues.
The first concerns the relationship between developing and developed countries. The latter want to focus on mitigating climate change, while emerging countries link this discussion to the commitments made by developed countries in terms of financing climate change mitigation.
The second issue regards negotiations surrounding a global consensus on the need to triple renewable energy and double energy efficiency by 2030.
The third challenge of this COP is to end reliance on fossil fuels.
Finally, the COP organizers aim to operationalize the Loss and Damage Fund, created during COP27 for the benefit of poor countries.
Why is ENGIE participating in COP28?
We are participating because we have a unique voice to be heard, we have a positive vision of the energy transition. We firmly believe that it brings opportunities for citizens, businesses, and the world at large. According to the IPCC, there is still a “window of opportunity” to succeed in the ecological transition. To do so, we need realistic, operational solutions that have proven themselves. The Group has valuable insights to share in the areas of heating and cooling networks, flexibility solutions, including battery storage, and, of course, renewable energy.
Why are we qualified to speak?
Our legitimacy is first and foremost based on our ambition to achieve Net Zero Carbon by 2045, covering all three scopes, including our indirect emissions (those of our customers and suppliers).
This involves strong decisions: phasing out coal in continental Europe by 2025 and globally by 2027, significant investments in renewable energy and energy storage, greening of gas (biomethane and renewable hydrogen), and decentralized energy solutions.
It also involves a strong industrial and operational vision of how to succeed in the energy transition. For tomorrow's energy to be secure, affordable, and decarbonized, it is essential to rely on all sources of energy, especially by combining electrons and molecules.
Finally, our sustainability commitments go beyond our own activities. They cover our entire value chain: we have publicly committed to avoiding 45 million tons of CO2 per year from our customers by 2030, and we are working to ensure that 100% of our top 250 preferred suppliers are certified or aligned with SBTi by 2030.
These are all arguments supporting our presence at COP28; we want to show that we can make a difference.