The world collectively achieved at COP 28 in Dubai what has been considered extremely ambitious in the past - an agreement to gradually phase out fossil fuels in a just, orderly and equitable manner.
How should we implement this agreement? How fast can the phase-out be, realistically? All of these questions are being asked at a time when the issue of energy security has gained prominence, energy demand will continue to grow till 2050 and energy prices are expected to be higher for longer. Investments on new exploration and production are attractive. Investors and producer nations are reaping big financial gains and making new investments to replace Russian energy supplies to Europe.
: Reports by institutions like RMI and Energy Transitions Commission indicate that peaking of fossil fuel demand for Industry and Buildings has already occurred; it is likely to happen in the next few years for power, heat and transport. But overall reliance is still heavy and even if all current global policies on clean energy are adopted in full, it will edge towards 73% by 2030, down from 80% in 2022.
More than forty nations are currently developing new oil and gas production sites. Each of them is trying to benefit from producing and selling their resources the longest. We need to build a stronger co-ordination mechanism to agree on a common approach for a collectively managed transition that is as cleanest, cheapest and fairest.
To conclude, fossil fuel phase out is a necessity. It will need a comprehensive shift and well considered planning and co-ordination, both within countries and among them. We have made a start at COP28, and must make rapid progress to make it a reality.Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.