Ahead of the G20 Finance Ministers and Central Bank Governors Meeting, which was held in Washington on 12-13 October 2022, the next letter was despatched to all G20 Heads of State and chosen world leaders.
We, representing the main corporations within the world wind energy trade, recognise the efforts of the G20, below the Presidency of Indonesia in 2022, to handle the present energy safety and local weather change crises impacting communities across the world.
Tightened energy provide, spiking commodity costs, geopolitical battle, rising inflation and dire occasions linked to local weather change, equivalent to drought, wildfires and flooding, have solely underscored the necessity for sturdy collective worldwide motion to safe world financial progress, stability and prosperity.
The G20 is the multilateral group representing many of the world’s inhabitants, greater than 80% of world GDP, 75% of worldwide commerce and greater than 80% of world energy-related CO2 emissions. As such, the G20 has the facility, management and world duty to form a pathway out of the energy safety and local weather crises.
On the event of the G20 Finance Ministers and Central Bank Governors Meeting in Washington this week, we want to ship this message: To resolve these crises, keep away from comparable ones sooner or later and shield folks and the planet, we’d like to cooperate and urgently shift to a cleaner and safer energy system based mostly on renewable energy.
The Intergovernmental Panel on Climate Change has made it clear that it’s “now or never” if we’re severe about limiting world warming to 1.5°C. The essential actions are drastic, requiring world greenhouse gasoline emissions to peak earlier than 2025 and halve by 2030. The excellent news is that we’ve the instruments, know-how and know-how to undertake a considerable discount in fossil gas use and a fast scale-up of renewable energy supporting environmental and nature safety ideas.
What’s higher, these actions may also reinforce the worldwide energy system to scale back publicity to value volatility and import dependency linked to fossil fuels.
And a rising physique of proof exhibits that the shift to renewable energy will lead to monumental internet financial savings for the worldwide economic system, supporting a simply and equitable energy transition and habitable future for all.
As members of the Global Wind Energy Coalition for COP27 and representatives of the wind and renewable energy trade, we take joint duty for making a safer and cleaner energy future.
Wind energy is likely one of the most cost-competitive, mature, limitless and shortly deployable energy applied sciences we’ve in the present day. It’s domestically sourced, so is sweet for energy safety. And from Europe to Asia, renewable energy affords more and more steady energy to hold the lights on and assist financial progress and decarbonisation.
In the final twenty years, the worldwide wind trade has amassed a bedrock of expertise throughout developed and creating economies. We have constructed GW-scale pipelines within the Americas, nurtured thriving inexperienced industrial hubs all through Europe, and developed strong provide chains from Latin America to Africa to South East Asia. We maintain a monitor file of security and innovation within the energy sector, creating highly effective and environment friendly wind generators and cultivating a worldwide workforce of 1.4 million folks.
Innovation and scale have pushed down the prices of wind energy, to the purpose that world common prices for brand spanking new onshore wind tasks are round 40% lower than for brand spanking new coal or gas-fired energy tasks.
The G20 already homes the highest wind energy nations, together with China, the US, Germany, India, Spain, the UK, France and Brazil. There is 56,000 GW of offshore wind technical potential throughout G20 nations, and only a fraction of members, together with Argentina, Australia, Brazil, Canada, China, Japan, Indonesia, Mexico and South Africa and the US, host at the least 296,000 GW of onshore wind potential.
Most of this world wind useful resource stays untapped.
Meanwhile, on the present tempo of progress, we’re solely on-track to attain lower than two-thirds of the worldwide wind capability required by 2030 for a internet zero and Paris-compliant pathway (see Annex).
We ask G20 leaders to work with trade to shift gears on the clear energy transition. Wind and renewable energy are the best way out of our collective energy safety and local weather crises. Accelerating their deployment would require decisive and pressing coverage commitments in 9 motion areas:
- Scale up ambition and increased volumes for wind energy as a part of a sustainable energy combine, and mirror this in up to date Nationally Determined Contributions (NDCs) by the top of 2022, complete nationwide local weather and internet zero methods and short- and long-term energy plans. This can present the long-term visibility wanted to assist large-scale investments.
- Urgently streamline allowing schemes for grid-scale renewable energy tasks to speed up wind energy deployment and construct a internet zero-compatible mission pipeline.
- Commit to motion plans to quickly construct out electrical energy grids for integration of renewable energy and cross-sector decarbonisation.
- Evolve energy markets to ship significant funding alerts consistent with energy safety and internet zero objectives. This consists of making certain regulatory stability for investments, and entry to long-term contracts or PPAs for renewable energy.
- Avoid long-term lock-in of fossil fuel-based technology within the present energy safety disaster.
- Develop cohesive and inclusive insurance policies to enact a simply and equitable energy transition, which might contribute in the direction of industrialisation of creating economies and diversification of provide chains to enhance energy safety.
- Ensure nationwide and regional finance adhere to strong local weather benchmarks and guardrails for a internet zero, 1.5°C-compliant pathway.
- Progress the implementation of the worldwide rulebook on strong carbon pricing, significantly Articles 6.2 and 6.4 of the Paris Agreement.
- Foster multilateral renewable energy partnerships and commerce agreements in assist of the energy transition among the many G20, to enhance collaboration on shared challenges.
Policy responses to the present crises to date, from REPowerEU in Europe to the Inflation Reduction Act within the US, have demonstrated that G20 governments can act resolutely to handle systemic threats to the economic system and society.
Through comparable efforts, progress within the above 9 motion areas may be achieved inside the subsequent few years to pace up renewable energy deployment.
We, the undersigned representatives of the worldwide wind and renewables trade, are prepared to work with G20 policymakers, main worldwide energy establishments, multilateral improvement banks and leaders of wider world establishments just like the UNFCCC and COP27 to foster a extra resilient and decarbonised world energy system based mostly on renewable energy.
Signatories
1. Alistair Phillips-Davies, CEO, SSE
2. Ben Backwell, CEO, Global Wind Energy Council
3. Chris Antonopoulos, CEO, Lekela Power
4. Dan McGrail, Chief Executive, RenewableUK
5. Ditlev Engel, CEO, Energy Systems, DNV
6. Elbia Gannoum, CEO, ABEEólica – Associação Brasileira de Energia Eólica
7. George Aluru, Chairperson, Electricity Sector Association of Kenya
8. Giles Dickson, CEO, WindEurope
9. Henrik Andersen, Group President & CEO, Vestas Wind Systems A/S
10. Ignacio S. Galán, Chairman and CEO, Iberdrola
11. Jochen Eickholt, CEO, Siemens Gamesa Renewable Energy
12. Jon Salazar, CEO, Gazelle Wind Power
13. Jonathan Cole, CEO, Corio Generation
14. Li Junfeng, President, Chinese Renewable Energy Industries Association
15. Mads Nipper, CEO, Ørsted
16. Mary Quaney, Group CEO, Mainstream Renewable Power
17. Michael Hannibal, Partner, Copenhagen Infrastructure Partners 1
8. Miguel Stilwell d’Andrade, CEO, EDP and EDPR
19. Niveshen Govender, CEO, South African Wind Energy Association
20. Qin Haiyan, Secretary General, Chinese Wind Energy Association
CC
COP27 President Designate
UN Secretary General
UNFCCC Executive Secretary
SE4All CEO
IRENA Director General
IEA Executive Director
The CEOs/Presidents of the Asian Development Bank, African Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, World Bank Group, Inter-American Development Bank and Islamic Development Bank, in addition to Climate Investment Funds and Global Energy Alliance for People and Planet
Members of the Energy Transition Council
WEF Executive Chairman