CETP Newsletter - May 2021

Last update on May 28, 2021.

CETP Newsletter - May 2021

IEA Clean Energy Transitions Programme
The IEA's Clean Energy Transitions Programme (CETP) leverages the IEA’s unique energy expertise across all fuels and technologies to accelerate global clean energy transitions, particularly in major emerging economies. CETP activities include collaborative analytical work, technical cooperation, training and capacity building and strategic dialogues. Our newsletter brings you up to date on our most recent events and analysis.

The world’s first comprehensive energy roadmap to net zero by 2050
The world has a viable pathway to building a global energy sector with net-zero greenhouse gas emissions in 2050, but it is narrow and requires immediate action across all countries to begin an unprecedented transformation of how energy is produced, transported and used worldwide, according to the landmark special report the IEA released on May 18.

Net Zero by 2050: A Roadmap for the Global Energy Sector is the world’s first comprehensive study to lay out a cost-effective transition to a net zero energy system while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth. Building on the IEA’s unrivalled energy modelling tools and expertise, the Roadmap sets out more than 400 milestones to guide us on this global journey.

For more information, see the recording of a livestreamed launch event with the IEA Executive Director Dr Fatih Birol and the special report's lead authors – Chief Energy Modeller Laura Cozzi and Head of Energy Technology Policy Timur Gül.

Find our more by browsing through our report and read the press release. Also, explore our Net Zero by 2050 Data Browser.

IEA-COP26 Net Zero Summit
Global gathering on 31 March strengthens international efforts to accelerate clean energy transitions worldwide in the run-up to COP26 in November and beyond
The IEA-COP26 Net Zero Summit, co-hosted by IEA Executive Director Fatih Birol and COP26 President Alok Sharma on 31 March, brought together high-level representatives of countries representing over 80% of global GDP, population and emissions. As the first major global climate event of a year, the meeting served to spur efforts to reduce global greenhouse gas emissions ahead of November’s COP26 summit in Glasgow. Key participants included Zhang Jianhua, China’s Minister of Energy; Frans Timmermans, Executive Vice-President of the European Commission; Raj Kumar Singh, India’s Minister of Power, New and Renewable Energy; and John Kerry, US Presidential Special Envoy for Climate; Amani Abou-Zeid, African Union Commissioner for Infrastructure and Energy; and Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation.

Many IEA member governments supported the Seven Key Principles presented by the IEA at the Summit to guide the implementation of net zero commitments. The principles cover essential areas such as the need for sustainable recoveries from the Covid-19 crisis, the critical importance of realistic emissions reduction roadmaps for the current decade, and the development of stronger mechanisms for international coordination to accelerate innovation and deployment in major emitting sectors of the global economy. The principles also address issues such as technology collaboration, best-practice sharing, investment tracking, ensuring people-centred transitions, and integrating energy security and affordability into net zero plans.
Read the press release and access the recording from the Summit.

CETP Annual Report 2020
In its three years of existence, the CETP has helped expand the IEA’s support to non-members such as Brazil, the People’s Republic of China, India, Indonesia, Mexico and South Africa – major economies that collectively account for close to 45% of CO2 emissions from fuel combustion and which represent over two-thirds of emissions from developing economies. The programme has also continuously expanded its regional-level work in Africa, Latin America and Southeast Asia by developing partnerships with major institutions and playing an important convening role.

The CETP Annual Report 2020, released in March 2021, highlights the programme’s objectives, activities and major outcomes for each priority country, region and globally. The report also presents areas for further work and activities planned for 2021.
Read the full CETP Annual Report 2020 and see the regional highlights.

Global Energy Review 2021
Global carbon dioxide emissions are set for their second-biggest increase in history

Energy-related CO2 emissions are on course to surge by 1.5 billion tonnes in 2021, the second largest increase in history, according to the IEA’s Global Energy Review 2021. This year's expected rise in coal use dwarfs that of renewables by almost 60%, even as electricity generation from renewables is set to leap by more than 8%.

At the same time, electricity generation from renewables is set to leap by over 8% in 2021, accounting for more than half of the increase in overall electricity supply worldwide. The biggest contribution to that growth comes from solar and wind, which are on track for their largest annual rise in history. Electricity generation from wind is projected to grow by 275 terawatt-hours, or around 17%, from last year. Electricity generation from solar PV is expected to increase by 145 terawatt-hours, up almost 18% from last year. Their combined output is on track to reach more than 2 800 terawatt-hours in 2021.
Explore the full report and read the press release.

India Energy Outlook 2021
India’s future prosperity will hinge on affordable, clean and reliable energy.
India Energy Outlook 2021 explores the opportunities and challenges ahead for India as it seeks to ensure reliable, affordable and sustainable energy to a growing population. The report examines pathways out of the crisis that emerged from the Covid-19 pandemic, as well as longer-term trends, exploring how India’s energy sector might evolve to 2040 under a range of scenarios.
Read the full report.

Electricity Security 2021
The energy transition involves increased electrification of sectors such as transport and heating, putting electricity at the forefront of the entire energy system and potentially drastically altering the balance of supply and demand for electricity. As such, electricity security will play an enhanced role in overall energy security, especially in the context of more decentralised power generation. Distributed energy systems are both more variable in nature, due to increased reliance on dispersed weather-dependent renewable energy sources, and involve greater communication throughout the system.

These transformations will fundamentally alter the electricity mix and the way the sector is governed, planned and operated. From a security perspective, considerations include increased attention to weather impacts and managing co ordination among various stakeholders within the system. The transition requires changes in technical specifications, operational practices and market design. In many emerging economies, electricity security can often be perceived as a barrier to increasing the share of renewables.

The IEA’s Electricity Security 2021 report, released on April 12, offers practical guidance to energy policy makers and other stakeholders on how to achieve a clean and secure transition in the electricity sector. The report has been produced as part of the Clean Energy Transitions in Emerging Economies programme, thanks to funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 952363, and constitutes an important analytical and policy tool to support a practical dialogue with priority countries on the topic of increasing renewables and achieving sustainability goals.
Explore the full report and additional content.

Clean Energy Investing: Global Comparison of Investment Returns
Published in March 2021, this joint report by the IEA and the Imperial College Business School sheds light on the long-term prospects for clean energy and investigates the historical financial performance of energy companies around the world in search of broad structural trends. The authors extend the coverage of publicly-traded renewable power and fossil fuel companies to the following: 1) global markets, 2) advanced economies, 3) emerging market and developing economies, and 4) China. They calculate the total return and annualized volatility of these portfolios over 5 and 10-year periods.
Read the full report

Patents and the Energy Transition
On April 27, the IEA in co-operation with the European Patent Office, released Patents and the energy transition: Global trends in clean energy technology innovation.
Aimed at decision-makers in both the private and public sectors, this report is a unique source of intelligence on the innovation trends across the energy system, in particular low-carbon energy (LCE) technologies. It draws on the latest information available in patent documents and the combined expertise of IEA analysts and EPO examiners. It is based on an updated international classification of low-carbon innovation that provides a widely used standard for consistent and robust analysis of patents for technologies contributing to climate change mitigation.
Discover the full content of the study and additional material

Further reading on energy transitions

Highlights of Past Events

Coming up

31 May - 6 June       Clean Energy Ministerial and Mission Innovation meetings

2 June                      World Energy Investment

9 June                       Financing Clean Energy Transitions in Emerging Market and Developing Economies

June                          Electricity Market Report - January-June 2021

25 June                     Clean Energy Transitions in Sahel Countries Regional Dialogue

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