CAMPUS NEWS: 10th Global Energy Summit highlights progress and challenges in green transition
By Mostafa Bushehri
On April 12, Columbia University students experienced a momentous day. With the arrival of hot weather, numerous students gathered on campus to enjoy the sun and admire the blooming blossoms. On this occasion, energy enthusiasts congregated on the southwestern part of campus in Alfred Lerner Hall. They sought to exchange insights and gain knowledge about various energy forms beyond solar power. The 10th Global Energy Summit, hosted by the Center on Global Energy Policy (CGEP) at Columbia University's School of International and Public Affairs (SIPA), united political leaders, academic experts, and prominent business figures. The summit aimed to discuss the challenges and opportunities posed by the ongoing global energy and climate transformation.
Opening the event, Keren Yarhi-Milo, SIPA's Dean, delivered welcoming remarks and introduced Jason Bordoff, CGEP's Founding Director. Bordoff reflected on CGEP's evolution over the last decade, noting, "From a two-person operation on the ninth floor of the SIPA building, CGEP has evolved into 'one of the world's leading energy and climate research institutes with nearly 100 staff and scholars, plus another 80 students working at the center every day.'"
Bordoff acknowledged CGEP's significant progress in addressing global energy system complexities over the past decade, emphasizing that this marked the beginning of their journey. As they entered a new decade, CGEP remained committed to addressing future energy challenges.
The summit's first panel focused on geopolitics. Ian Bremmer, President and Founder of Eurasia Group, characterized Russia as a "rogue state" led by a "war criminal," asserting it as the most dangerous state globally, especially for Western nations. Meghan O'Sullivan from Harvard University's Belfer Center for Science and International Affairs analyzed the impact of Russia's incursion into Ukraine on natural gas, particularly liquefied natural gas.
The panel transitioned to recent controversial statements made by French President Emmanuel Macron about China. Ana Palacio, the former Minister of Foreign Affairs of Spain, stressed the importance of Europe's unified policy stance towards China, stating, "we [the E.U.]," have to come to terms with what we want."
The subsequent panel featured Jennifer Granholm, the United States (U.S.) Secretary of Energy, who emphasized the need to redirect U.S. supply chains away from countries misaligned with American values. She highlighted the urgency of increased domestic production and resilient supply chains. Contrary to conventional wisdom, she cautioned that high fossil-fuel prices could hinder the green energy transition, noting "people still have to be persuaded that the cost of clean [energy] is cheaper." Granholm also discussed the Inflation Reduction Act (IRA), underlining its role in managing and mitigating inflationary pressures. She invited Columbia students to engage with the 62 newly funded U.S. Department of Energy programs, declaring, "We want you!"
During the next panel, environmental leaders assessed recent progress and persistent challenges in addressing the climate crisis. John Curtis, the U.S. representative for Utah’s 3rd congressional district, emphasized the importance of carbon emission reduction targets, aiming for net zero emissions by 2050. He explored the potential role of U.S. fossil fuels in achieving this target. Laurence Tubiana, CEO of the European Climate Foundation, reflected on global climate action advancements since the signing of the Paris Climate Accords seven years earlier. Fred Krupp, CEO and President of the Environmental Defense Fund, lauded the IRA as a potent policy tool against climate change but stressed the need for additional measures.
Afterward, the panel "Balancing Growth, Sustainability, and Access to Power in Africa," featured Rwandan President Paul Kagame discussing energy access, development, and transition in Africa. He highlighted ongoing discussions within the African Union and with international partners to address mineral resource exploitation on the continent. President Kagame underscored the significance of energy access for both Africans and potential investors, offering insights into the nuanced energy landscape in Africa.
The following panel addressed a key challenge of the energy transition: developing countries and emerging economies, responsible for nearly 60% of global emissions and GDP. The panel titled "Building a Sustainable Future in Developing Countries" began with Damilola Ogunbiyi, Special Representative of the UN Secretary-General for Sustainable Energy for All, emphasizing that over 700 million people globally lack electricity access. Ogunbiyi highlighted the growth of renewable energy primarily in developed regions rather than in the developing world.
Uganda's Minister of State for Energy, Hon Okaasai, advocated for a cluster-based approach to address electricity access challenges. Andrew Kamau, managing director of CGEP’s Energy Opportunity Lab, highlighted the emission disparity between the global North and South, noting average Africans contribute 0.4 tons of carbon dioxide emissions annually compared to the average American's 14 tons.
The next panel explored challenges and prospects for expanding renewables in emerging economies like India and China. Speakers emphasized the need for trained personnel, land, transmission infrastructure, and equipment. They also discussed the complexities of achieving carbon neutrality within 30 years. Leila Benali, Morocco's Minister of Energy Transition & Sustainable Development, stressed the need for integrated approaches to address climate concerns in emerging economies, emphasizing the importance of collaborative strategies.
The role of technology in the energy transition took center stage in the innovation-focused panel. Emmanuel Lagarrigue from KKR Infrastructure emphasized policy and regulation's influence on the demand-driven energy transition, highlighting the importance of accelerating the "green premium." Ann Metler of Breakthrough Energy cautioned against expecting the private sector to solely fund the transition, noting the intangible nature of the "first mover advantage." Nobuo Tanaka, former Executive Director of the International Energy Agency (IEA), predicted a "golden age of hydrogen" without specifying a timeline, citing its potential in electrifying heavy industries.
The summit emphasized the significance of financing the energy transition, with Larry Fink, CEO of BlackRock, sharing insights. Fink discussed the impact of global uncertainty and prioritization of national security on energy transition funding. He expressed optimism about technology's role in cost reduction but underscored energy policy's importance.
Data played a crucial role in energy trend analysis, with the IEA at the forefront. Fatih Birol, Executive Director of the IEA, participated in a panel discussion moderated by Bordoff. Birol emphasized challenges in achieving the global 1.5-degree target, highlighting the need to reduce oil, gas, and coal consumption. He also spotlighted the significance of nuclear energy. Oil companies' perspectives were explored, with Patrick Pouyanné, CEO of TotalEnergies, discussing the energy transition's implications. Pouyanné acknowledged continued oil and gas consumption even under net-zero scenarios, emphasizing oil companies' role in the transition and differences between European and U.S. investments.
The energy transition's linkage with electrification emerged as a central theme in the "Big Green Machine" panel. CEOs of Siemens and Ørsted stressed the importance of investing in the electricity grid and renewables, optimizing existing infrastructure, and fostering collaboration across industries.
The summit's closing panel revisited geopolitics, discussing investment, business models, and energy security. Charif Souki, Founder and Executive Chairman of the Board of Tellurian Inc., emphasized the interconnection of investment and business models. Shaikh Nawaf S. Al-Sabah, CEO of Kuwait Petroleum Corporation, expressed concerns about insufficient clean energy investment and its impact on energy security. Scott Sheffield from Pioneer Natural Resources highlighted the importance of leveraging various energy sources, including nuclear, hydrocarbon, wind and solar.
CGEP's 10th Global Energy Summit recognized progress in the green transition while acknowledging ongoing challenges. Geopolitical tensions, funding gaps, technological limitations, and global disparities shape the path ahead. Historical precedent shows that energy transitions occur gradually. Amid these obstacles, maintaining optimism and realism and trusting in continued progress remain crucial.
Mostafa Bushehri (MPA '24) is a graduate student at Columbia University and a Global Energy Fellow at the Center on Global Energy Policy (CGEP). His areas of interest include finance, energy transition and geopolitics.