{"id":116852,"date":"2024-10-11T09:47:45","date_gmt":"2024-10-11T08:47:45","guid":{"rendered":"https:\/\/www.intelligentcio.com\/eu\/?p=116852"},"modified":"2024-10-28T09:43:30","modified_gmt":"2024-10-28T09:43:30","slug":"capgeminis-wemo-report-paris-agreement-goals-are-nolonger-achievable-but-net-zero-still-in-sight","status":"publish","type":"post","link":"https:\/\/www.intelligentcio.com\/eu\/2024\/10\/11\/capgeminis-wemo-report-paris-agreement-goals-are-nolonger-achievable-but-net-zero-still-in-sight\/","title":{"rendered":"Capgemini\u2019s WEMO report: Paris Agreement goals are no longer achievable but net zero still in sight"},"content":{"rendered":"\n<p><em>Despite impressive strides in 2023 and positive projections for 2024, the pace of renewable development isn\u2019t fast enough. Addressing the complexity of energy transition challenges\u00a0will require\u00a0new market mechanisms encouraging further innovation,\u00a0choosing appropriate measures and accelerating public and private investment in low-carbon technologies and the power grid<\/em><\/p>\n\n\n\n<p>Capgemini&nbsp;has published the 26<sup>th<\/sup>&nbsp;edition of its annual&nbsp;<em>World Energy Markets Observatory&nbsp;(WEMO)<\/em>, created in partnership with&nbsp;Hogan Lovells,&nbsp;Vaasa ETT&nbsp;and&nbsp;Enerdata.<\/p>\n\n\n\n<p>The report takes stock of the current state of the energy transition. Despite progress being made, greenhouse gas (GHG) emissions are continuing to increase, reaching a new record high of 37.4 billion tonnes (Gt) in 2023, confirming that the path to the reach Paris Agreement\u2019s objectives is not on track.<\/p>\n\n\n\n<p>The report provides insights on what the key focus areas would need to be, moving forward, to address the complex energy transition challenges, including a change in the measurement of clean energy progress, as well as accelerated investment in the power grid and clean technologies.<\/p>\n\n\n\n<p>James Forrest, Global Energy Transition &amp; Utilities Industry Leader at Capgemini, said:&nbsp;\u201cDespite a historical spike in renewable penetration, the pace of development isn\u2019t fast enough to close the gap. There is still much to do in the next decade to get closer to net zero by 2050 and achieve a successful energy transition: whether in the field of low carbon technologies, R&amp;D efforts, nuclear or grid flexibility and storage.<\/p>\n\n\n\n<p>\u201cIn addition, beyond the necessary adoption of new market mechanisms, a shift away from measuring energy based on primary consumption is needed. This measurement was relevant during past energy crises, but it is now time to adopt a more holistic approach. Moving to a final energy demand measurement would better assess clean energy progress and ensure more accurate projections,\u201d added Forrest.<\/p>\n\n\n\n<p>Key observations from the 2024 report include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is a need to hasten the deployment of renewable energy globally, and to accelerate in developing countries,\u00a0to deliver the 2030 and 2050 decarbonisation goals. The total amount of final energy provided by renewable energy is likely to be limited to about 40% of global needs. In 2023, total renewable energy capacity increased by 14% year-on-year with a larger capacity expansion of solar (32%) than wind (13%). But, whilst 2024 is promising to hit another record, as this was the case for the 22<sup>nd<\/sup>\u00a0previous years, this growth is far below what is needed to achieve net zero carbon in 2050. Moreover, while the renewable penetration rate increases, they are impacting grid stability and association with stationary batteries will become compulsory. According to the report, storable renewable energy development, such as biomass or geothermal energy, should be accelerated<\/li>\n\n\n\n<li>Hydrogen is now a strategic lever in the decarbonisation\u00a0path. The number of projects reaching final investment decisions has quadrupled over the last two years. However, a refocus of applications has been observed due to the increasing costs of low-carbon hydrogen production, competition between uses and regulations.\u00a0Only certain uses in \u2018Hard to Abate\u2019 industries, such as heavy industry and maritime mobility, have strong potential<\/li>\n\n\n\n<li>Global nuclear capacity needs to triple to ensure stable, low-carbon power.\u00a0COP28 has recognised the critical role of nuclear energy for reducing the effects of climate change. While there is some promising progress in nuclear renaissance, including Small Modular Reactors (SMRs), the development of new nuclear power plants is still difficult. In 2023, 440 nuclear reactors (390GW) provided 9% of the world\u2019s electricity \u2013 25% of the world\u2019s low-carbon electricity. SMRs are in the planning or early construction stages with many years before they are deployed at scale as their industrialization can prove to be complex. According to the report, more focus needs to be placed on extending the life of existing nuclear plants<\/li>\n\n\n\n<li>The power grid plays a fundamental role to accelerate clean energy transitions. Grid investment is starting to pick up and is expected to reach US$400 billion in 2024, with Europe, the US, China and parts of Latin America leading the way. According to the report, better forecasting for electricity consumption and finer optimisation scenarios, thanks to technologies such as AI, will help to improve grid balancing<\/li>\n\n\n\n<li>Whilst\u00a0AI has the potential to significantly accelerate decarbonisation, a lack of skills and a focus on short-term proof of concepts is hampering adoption to date. However, AI coupled with GenAI in agentic LLM (Large Language Model) workflows has a clear role to play as a catalyst to improve grid efficiency, e-fuel discovery; new battery or wind turbine design; synthetic biology; and augmented insights from many data sources for better-informed decision making<\/li>\n\n\n\n<li>Protectionist approaches to increasing energy sovereignty may have undesirable implications. On-going geopolitical uncertainties are affecting energy markets and systems. To ensure the security of supply, the use of embargoes, tariffs and subsidies in almost all jurisdictions is distorting energy markets and threatening efficient allocation of capital. According to the report, embargoes are proving ineffective, and decreasing the transparency and traceability of energy supplies, which is essential to tracking decarbonisation efforts. Denying access to the cheapest sources of energy equipment and energy supplies drives up prices for consumers and reduces funding available for the energy transition<\/li>\n\n\n\n<li>According to the report,\u00a0\u2018Primary Energy Demand\u2019 is an outdated concept for energy transition. There is a need to move from primary to final energy consumption measurement (in kWh) to ensure accurate projections and clean energy progress. Measuring energy based on primary consumption ignores that: for the same end-energy services, new electric services are generally more efficient; a lot of fossil fuels are wasted in the generation of electricity; energy is also wasted on finding and processing fossil fuels<\/li>\n<\/ul>\n\n\n\n<p><em>The <\/em><em>World Energy Markets Observatory (WEMO)<\/em><em>&nbsp;is Capgemini\u2019s annual thought leadership and research report created in partnership with&nbsp;Hogan Lovells, Vaasa ETT and Enerdata, that tracks the transformation of global energy markets, including Europe, North America, Australia, South East Asia, India and China. Now in its 26<sup>th<\/sup>&nbsp;edition, the report has been prepared by a global team of over 100 experts and includes 15 articles, all backed with rigorous analysis.&nbsp;The report begins with a global outlook, and covers the topics pivotal to the energy transition including geopolitical impacts, demand-side energy transition, batteries, renewables, SMRs, hydrogen, industrial heat, GenAI and the Inflation Reduction Act (IRA).<\/em><em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite impressive strides in 2023 and positive projections for 2024, the pace of renewable development isn\u2019t fast enough. Addressing the complexity of energy transition challenges\u00a0will require\u00a0new market mechanisms encouraging further innovation,\u00a0choosing appropriate measures and accelerating public and private investment in low-carbon technologies and the power grid Capgemini&nbsp;has published the 26th&nbsp;edition of its annual&nbsp;World Energy Markets [&hellip;]<\/p>\n","protected":false},"author":50,"featured_media":116853,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33,36,6617,93],"tags":[3847,35,21299,14905,17503,11339,21300],"class_list":["post-116852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-green","category-research","category-top-stories","tag-capgemini","tag-energy","tag-low-carbon","tag-net-zero","tag-paris-agreement","tag-power","tag-world-energy-markets-observatory"],"acf":[],"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/116852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/comments?post=116852"}],"version-history":[{"count":2,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/116852\/revisions"}],"predecessor-version":[{"id":117166,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/116852\/revisions\/117166"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/media\/116853"}],"wp:attachment":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/media?parent=116852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/categories?post=116852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/tags?post=116852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}