Reflections on key events addressing the energy transition in 2023

As 2023 has come to a close, I’ve been reflecting on how the world’s energy industry has changed recently.

Last year's COP and ADIPEC are a good indicator on how much things have evolved. While COP became much more inclusive of oil and gas participation, ADIPEC now focused on sustainability and the decarbonization of the fossil fuel sector, representing a wide range of stakeholders from the oil and gas industries. 

We are in this together.

This reflects the realization that we are in this together. Working together as a global people, rather than in national or continental isolation, is the only way we can get back on track to 1.5°. While COP 28 showcased how the world’s governments and NGOs are able to come together alongside the private sector to make earth-changing commitments, at ADIPEC there was great knowledge-sharing between CEOs on sustainability, net zero and carbon emission reductions.

"Double down and triple up"

Meanwhile, back in September in New York, Climate Week saw over 300 players from the private sector who collectively represented over $12 trillion of market value signing the declaration of the Global Renewables Alliance (GRA) calling to “double down” on energy efficiency whilst we “triple up” worldwide renewables installations to reach 11,000 GW by 2030.

This is the "critical decade"

Similar ground-breaking statements were made at COP 28 in the global stock take. For the first time, including the “transition away from fossil fuels in the energy system”, the first time this language has been used. And the consensus that this is the "critical decade, as to achieve net zero by 2050 in keeping with the science." Achieving net Zero is not a target that can be negotiated.

The energy transition is about “building stuff”

There were two CEO statements which made a mark on me at COP 28. The first was by Rebecca Kujawa , President and CEO of NextEra Energy Resources, who in a panel discussion said that the energy transition is about “building stuff”. For example, greening their portfolio of 25 GW of conventional generation requires more than 100 GW of new build renewable assets, 70% of which would be solar PV with the rest made up of wind and storage. “Building stuff” also means the massive expansion of grid networks. In case of NextEra, this means accelerating investments by a factor of between 4 to 10 times.

We need CEO engagement

Additionally, Hilde Merete Aasheim , the President and CEO of Norsk Hydro, said that change has to start at the top of the company – it will not come from the ‘shop floor’ or from the procurement department. She gave the example of the collaboration between Norsk Hydro and Volvo. Norsk will supply green aluminum to Volvo, and in return buy electric vehicles from Volvo. Creating new partnerships between buyers and sellers creates essential new markets for green products. This is why we need CEO engagement from the top down to drive meaningful change.

Critics may argue that progress made at COP 28 won’t make a real difference to the world, but for me personally, to see this huge shift in the mindset of world leaders and major stakeholders in just a couple of years is what will deliver meaningful change.

Legacy of COP 28

COP 28 may be over for 2023, but the presidency of the United Arab Emirates and Dr. Sultan Al Jaber will continue until COP 29. One of the things I would like to see is for us to build upon the Global Renewables Report, making this into an annual stock-take and the lasting legacy of COP 28. At the same time, we need to prepare for the next COP in Azerbaijan.

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