Minister: Investment in energy efficiency need to be up 7-fold for green energy transition

Despite record results last year, including the installation of 473 GW of new renewable energy capacity worldwide and $570 billion in investments, these figures need to be more than doubled for the green energy transition, and investments in energy efficiency need to be increased sevenfold, Azerbaijani Energy Minister Parviz Shahbazov said at the "Ministerial Dialogue: Expanding investments to triple renewable energy use and double energy efficiency" event held on the sidelines of COP29, Report informs.

According to the minister, about a year ago at COP28, the majority of world countries joining the collective commitment to renewable energy and energy efficiency by 2030, and reaching a consensus on fair transition, was a crucial turning point in fighting climate change to limit global warming to 1.5°C, as well as in transforming global energy systems.

"COP29 is a new driving force for global efforts aimed at implementing these pledges, advancing progress, and removing barriers to rapid energy transition. By achieving ambitious financial targets, renewed and strengthened Nationally Determined Contributions (NDCs), and collective agreement on energy initiatives, COP29 creates a unique opportunity to reach the targets of tripling renewable energy and doubling energy efficiency. The COP29 platform, hosted by Azerbaijan for the first time in a large region, represents an important stage in our progress toward the goals of tripling renewable energy and doubling energy efficiency," Shahbazov noted.

He added that the partnership with the European Commission, COP28, International Energy Agency (IEA), and International Renewable Energy Agency (IRENA) within the framework of the Global Renewable Energy and Energy Efficiency Pledge is a clear manifestation of continued commitment to international efforts directed towards green energy development, sustainability, and a brighter, more efficient future.

Shahbazov said that according to IEA and IRENA analyses, significant and accessible investments are needed to reach 11,000 GW of renewable energy production capacity and increase global energy efficiency's annual growth rate above 4%.

The minister stated that investments are crucial for modernizing and expanding networks, increasing energy storage capabilities, and strengthening energy efficiency measures: "This necessitates a total investment of $31.5 trillion in energy transition by 2030. Even if all current national ambitions are fully implemented, we will still fall 30% short of our 2030 targets. This is an important warning for us - we must strengthen our global efforts and increase our ambitions to accelerate the energy transition. Therefore, along with finance, the COP29 Presidency's support for Green Energy Zones and Corridors Commitment, Global Energy Storage and Networks Commitment, and Hydrogen Declaration initiatives is critically important."

Shahbazov believes that Azerbaijan's Karabakh-East Zangazur and Nakhchivan green energy zones, the broad application of experience in establishing electrical energy connections between various regions and production-consumption centers, as well as increasing global energy storage potential sixfold to 1,500 GW by 2030, and adding or improving over 80 million kilometers of electrical networks to the energy system by 2040 are solutions that will ensure the success of the Global Renewable Energy and Energy Efficiency Pledge.