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With climate change coming in at the top of the list of threats to the future of humanity in WEF’s recently published Global Risk Report, energy proved to be one of the main subjects of debate at Davos 2023.
The World Economic Forum hosted their annual meeting in Davos, Switzerland this past week. It provided a space for government, industry, and civil society leaders to debate global crises and the top issues for the upcoming year. Moreover, it supported the development of solutions. Topics included resilience, globalization, economics, and sustainability, with the overarching theme of the 2023 meeting being “cooperation in a fragmented world”.
Climate change came in at the top of the list of threats to the future of humanity in WEF’s recently published Global Risk Report. Subsequently, energy proved to be one of the main subjects of debate. There were three main pillars of conversation.
Green transition fueled by energy security
As the world deals with a historic energy crisis, energy security was on the delegates’ minds more than ever before. It is now evident that the world is failing to achieve energy security as well as climate security. Energy security has recently surpassed environmental concerns as the primary driver of the energy transition. Indeed in the ensuing decades, the world’s energy sector is expected to change from one that relies primarily on fossil fuels to one that is increasingly dominated by clean energy alternatives.
Decarbonization plans in the EU
Real emissions reductions must underpin the transition to net zero; it cannot simply rely on carbon offsets or similar programs. Ursula Von der Leyen, President of the European Commission, emphasized that the energy transition requires the creation and application of numerous new clean technologies. For instance, she stated that, “The aim will be to focus investment on strategic projects along the entire supply chain. We will especially look at how to simplify and fast-track permitting for new cleantech production sites”.
Energy investment and politics
Together, Europe and the US are investing nearly €1 trillion. This money will advance the clean energy economy through the European Green Deal and the U.S.’s Inflation Reduction Act. Yet notably, the IRA has caused controversy in the EU, as it “discriminates” against EU businesses in favor of the US economy. Despite this, according to Von der Leyen, this competitiveness is essential. It is crucial for advancing innovations in clean technology and achieving net-zero by 2050. Hence, in order to “jointly benefit from this massive investment” and “avoid disruptions in transatlantic trade and investment,” Von der Leyen stated that the EU and the US were working together to “ensure that our respective incentive programmes are fair and mutually reinforced.
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