Jacqueline Echevarria, Platss S&PGlobal

HOUSTON
EnergiesNet.com 21 03 2024

The creation of a global governance that includes rules for financing and is inclusive with developing economies will help achieve a just and equitable energy transition, Brazil energy and mines minister Alexandre Silveira said.

“The energy transition is only going to go faster if we have a global commitment,” he said today at the CERAWeek by S&P Global Conference in Houston, Texas.

The greatest challenge to achieve the commitments agreed to at the UN’s Cop 28 climate summit last year and being able to limit average temperature rise by 1.5°C by 2030 is finance, he pointed out. “If we had met the $100bn/yr commitment (a target that developed countries agreed to deliver to developing countries over 2020-25) we would have done major strides and the 2030 target would have been more achievable,” Silveira said. A new finance goal must be decided at the UN Cop 29 climate conference in Baku, Azerbaijan, in November.

The agreed goal of tripling renewables capacity by 2030 proves to be difficult for developing economies. Developing countries received only 14pc of global energy transition investments last year, according to a report by renewables energy agency Irena. The agency estimates annual investments in renewable power generation will rise to almost $1.6 trillion on average between 2024-30. Reaching the renewables target will cost developing countries around $2.2-2.5 trillion, according to Silveira, adding that Brazil invested around $12bn last year in strengthening its transmission sector only.

“We need support for low-carbon technologies and this can be done only through global governance,” he said. Brazil’s president Luiz Inacio Lula da Silva “will be a leader in this debate,” he added.

The decarbonization of the transport sector and the urgency in progressing with the implementation of Article 6 are other key conversations that Brazil wants to promote during its presidency of the G20 this year and ahead of Cop 30 in Belem next year.

Progress on the future Paris Agreement Carbon Market under Article 6.4 of the Paris deal has stalled and an agreement on outstanding elements relating to international carbon trading remains pending.

spglobal.com 03 19 2024