- Countries have agreed to reduce global fossil fuel use to combat climate change.
- Over 100 countries advocated phasing out oil, gas and coal.
At COP28, representatives from almost 200 countries agreed on reducing global fossil fuel consumption to combat climate change. The agreement, reached after two weeks of talks in Dubai, acknowledges the necessity of profound and rapid greenhouse gas emissions reductions aligned with 1.5 degrees Celsius pathways.
Over 100 countries pushed to phase out oil, gas, and coal and to triple renewable energy capacity by 2030. However, they faced opposition from OPEC, arguing for emission cuts without specifying fuels. This deal aims to signal unity in transitioning from fossil fuels, which scientists consider crucial to avoid a climate disaster. OPEC, controlling 80 per cent of proven oil reserves and a third of global output, heavily relies on these revenues.
However, detailed plans are lacking to speed up this already maxed-out industry. The target aligns with the Paris climate agreement but demands a rapid increase in solar and wind power. The goal is a global renewable energy capacity of at least 11,000 GW in six years, exceeding current projections by over 20 per cent. Achieving this requires more investment, but some investors hesitate due to higher borrowing costs.
The challenges include supply shortages, labour crunch, and soaring costs for wind and solar projects. Bureaucratic hurdles and local opposition slow permit processes for major energy projects. Developers face delays in grid connection, and building new transmission lines worsens the bottleneck, taking a decade or longer. Despite obstacles, the industry consistently surpasses growth forecasts, fueled by substantial capital and government support for renewables.