The President of the European Commission, Ursula von der Leyen, said on Tuesday 24 September at the Global Renewables Summit in New York (USA) that, given the need for massive investment to drive forward the transition to clean energy, it was necessary to align all global financial flows, including private capital, with the objectives of the Paris Agreement.
Travelling as part of the 79th United Nations General Assembly, Ms von der Leyen and several European Commissioners attended a series of side events linked to the energy transition and global climate efforts (see EUROPE 13489/17).
COP28 objectives. At the ‘Global Renewables Summit’, Ms von der Leyen discussed the global targets for tripling renewable energy and doubling progress on energy efficiency by 2030, adopted by 135 countries at COP28 in 2023 (see EUROPE 13306/06).
To achieve these goals, the President set out a number of priority areas for action, including planning and integrating global ambition into national climate policies, improving the business environment by creating the right incentives and conditions, and ensuring “robust, transparent and equitable” access to and supply of critical raw materials.
Finally, Ms von der Leyen emphasised the massive investment needed to make the transition to clean energy, indicating that public finances would continue to play an essential role and that Europe would “continue to do its part”.
However, she said that this public funding would not be enough, and that it was now necessary to “align all global financial flows with the objectives of the Paris Agreement”, including private capital.
The President of the Commission therefore called on representatives of the private sector to commit to this approach.
She also called for new projects to support the global objectives to be launched at COP29 in November.
Global expansion of carbon pricing. Ms von der Leyen then reiterated the decisive role of carbon pricing in decarbonising the industrial sector, at a high-level event co-organised with the Canadian Prime Minister, Justin Trudeau.
Carbon pricing involves putting a price on carbon dioxide emissions, thereby encouraging companies to adopt cleaner technologies.
For almost 20 years, the European Union has had an Emissions Trading System (ETS, launched in 2005) in place, which has reduced emissions from the sectors concerned by 50% while stimulating economic growth.
Ursula von der Leyen pointed out that the revenue generated - over €200 billion since the introduction of the ETS - is being reinvested in the green transition, in particular in research, the development of clean technologies and the European Hydrogen Bank.
The President stressed the importance of extending carbon pricing on a global scale, and extending it to include the preservation of nature.
In this respect, she mentioned the EU’s intention to create “nature credits” (see EUROPE 13482/14), which would reward those who restore ecosystems. (Original version in French by Pauline Denys and Nithya Paquiry)