Trade barriers can slow down energy transition, says IEA chief

Trade barriers can slow down the energy transition, believes the executive director of the International Energy Agency (IEA), Fatih Birol, in an interview with AFP, while emphasizing that trade needs to be fair.

“Trade barriers may well be a factor in slowing down the global transition to clean energy,” according to Mr. Birol, interviewed on the sidelines of the World Economic Forum in Davos. “But the general philosophy is that fair trade is a good friend of the energy transition.”

Energy transition and trade balances are among the hot topics this week in the Swiss Alps resort.

Chinese Prime Minister Li Qiang at the Davos Economic Forum, January 16, 2024 in Switzerland (AFP/Fabrice COFFRINI)

China denounced Tuesday through its Prime Minister Li Qiang the “barriers to green trade”.

“Certain high-quality and very efficient green and low-carbon technologies or products cannot circulate freely,” he said, calling for “removing barriers” and “working together.” “It is crucial” to “firmly defend the multilateral trading system,” he said.

China is the world leader in the deployment of solar power and wind turbines. It is also the largest producer of electric cars.

– Commercial tensions –

At the same time, the President of the European Commission, Ursula von der Leyen, expressed concern on Tuesday about “trade imbalances”.

the President of the European Commission, Ursula von der Leyen at the World Economic Forum in Davos, January 16, 2024 in Switzerland (AFP/Fabrice COFFRINI)

While Brussels opened an investigation into Chinese subsidies for electric vehicles, it assured that it had had a “frank” discussion with Mr. Li on these “imbalances”.

“China plays an essential role in clean energy,” notes Mr. Birol to AFP. “But of course countries need to look at what the trade implications are… for their economies, whether this production is done fairly or not compared to other production.”

The European Union is also worried about losing markets because of the massive support for the energy transition decided by Washington and which notably includes tax breaks for electric vehicles manufactured in the United States.

For its part, Europe finds itself at a “crossroads” because it is behind China in the manufacturing of clean technologies “and perhaps soon behind the United States”, continues the executive director of the IEA .

“It is time for Europe to develop a roadmap on how we will restore our technological leadership in Europe, taking into account the new market conditions and technological framework,” he said.

– Towards COP29 –

COP28, held in Dubai in December, found a compromise aimed at “transitioning away” from fossil fuels and setting a global objective of tripling renewable energy capacity by 2030.

However, financing for developing countries was “the most important missing element”, deplores Mr. Birol, for whom the richest countries must finance the energy transition in developing countries for this objective to be achieved.

During a meeting on Tuesday in Davos with an Azerbaijani minister, Birol expressed his hope that the issue would be discussed when Baku hosts COP29 in November. The Baku talks must address the problem to have “a chance” of the next UN climate conference being a “success”, he stressed.

Image taken from a video published by the UN Climate Change, on December 9, 2023, of Azerbaijani Minister of Ecology and Natural Resources, Mukhtar Babayev, during a plenary session of COP28, in Dubai (UN CLIMATE CHANGE /AFP/Archives/-)

Azerbaijan disappointed climate activists by appointing Mukhtar Babayev, former head of the state oil company Socar and current minister of Ecology and Natural Resources, as president of COP29.

Last year, the United Arab Emirates, hosts of COP28, chose Sultan Al Jaber, boss of the national company Adnoc, to chair the conference.

IEA executive director calls questions about appointing someone who has dedicated his career to fossil fuels “legitimate”. “However, in my opinion…we should not jump to conclusions and “give them the opportunity to prove that they deserve to be COP presidents and keep their promises,” he said. he thinks.

During his meetings with Azerbaijani officials, Mr. Birol claims to have noted “a lot of good will”. “Whether or not good will translates into good results is a completely different story,” he noted, however.

© 2024 AFP

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