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CLIMATE ROUNDTABLE - TOWARDS A GREENER FUTURE
As we are heading into a new energy era it is becoming
increasingly apparent that business has a big role to play and
much to gain by pushing for a green shift in the economy.
Last autumn, the New Climate Economy project released its
report. The conclusions were clear: The world must continue to
strive for economic growth, while also reducing the impact of
climate change. In order to achieve this, growth must be
powered by renewable energy.
According to the International Energy Agency (IEA) the global
energy demand is expected to rise by 37 per cent in the next
25 years, driven by the needs of a growing population and
emerging markets. To achieve sustainable growth on a global
basis, a large part of this demand must be supplied by
renewable energy. This is a great business opportunity, but it
is also critical, in order to have a chance at staying close to
the two-degree trajectory.
Internationally we are already seeing the fast expansion of
renewable energy, with the rapid installation of solar photovoltaic
capacity as a global frontrunner. The expansion is driven by
increased regulatory support and reduced technology costs,
with emerging markets like China and India in the lead. India’s
solar power ambitions for the next seven years have risen
sharply, from 22 GW to 100GW, following the newly elected
government’s ambitious targets.
We are also seeing consumer habits changing. Japan now has
more electric vehicle (EV) charging points than gas stations.
In the U.S., German carmakers BMW and Volkswagen have
agreed to join the EV charging network, to help finance the
rollout of fast chargers along the busiest corridors of the U.S.
coasts. This would not have happened unless these companies
considered it profitable.
Adequate storage has for a long time been a limitation for
smart use of intermittent sources of renewable energy.
However, more intelligent systems are being developed rapidly.
The innovation in the storage business dramatically improves
the economics of renewables and of the appliances dependent
on them. Tesla founder Elon Musk recently announced that his
next big venture would be into home batteries, enabling people
to store the electricity they produce in their homes and thus be
less dependent upon the electricity grid.
Empowering the green shift
By Christian Rynning-Tønnesen
President and CEO,
Statkraft