On September 24, Ursula Von der Leyen, the re-elected President of the European Commission, delivered the opening speech at the World Renewable Energy Summit in New York.

At the event, organized as part of the 79th session of the United Nations General Assembly, Von der Leyen emphasized the need to “redouble efforts” to achieve the newly proposed global goals, which include tripling renewable energy and doubling energy savings by 2030.

To achieve this, she outlined four key areas of action: First, she highlighted the importance of planning. “Governments must integrate our global ambitions into their national climate policies, showing how they will contribute to global goals during this decade,” she stated.

In Europe, progress is already being made: in the first half of 2023, 50% of electricity in the European Union came from renewable sources. However, she acknowledged that the work is far from finished.

The second key point was the need to improve the business environment. According to Von der Leyen, “we must create incentives and favorable conditions for clean energy technology to thrive.” This includes implementing a solid regulatory framework, cutting-edge infrastructure, and more efficient authorization processes.

She also highlighted the importance of generating demand for sustainable products and technologies, as well as developing the necessary skills to meet this demand. “My new Commission 2024-2029 is committed to these priorities, and we will work with our international partners to make them a reality,” she assured.

Third, Von der Leyen focused on access to essential raw materials. The growing demand for critical minerals for the energy transition is inevitable, and it will be crucial to ensure that their extraction benefits all involved parties.

In this regard, she expressed her support for the UN Secretary-General’s Group on Critical Minerals for the Energy Transition, pledging to ensure robust, transparent, and fair supply chains.

Finally, the European Commission President addressed the issue of investments, stressing that the transition to clean energy requires massive amounts of capital, especially in regions with high costs and limited access to affordable financing.

“Public finances will play a crucial role, and Europe will continue to contribute with its Global Gateway investment strategy, which mobilized 28 billion euros in public financing in 2022 to support emerging countries,” she stated.

However, Von der Leyen emphasized that private capital will also need to be mobilized, aligning financial flows with the goals of the Paris Agreement.

The OPEC Position

While the European Union and other nations are advancing toward the energy transition, the Organization of the Petroleum Exporting Countries (OPEC) has responded strongly, labeling the idea of a world without fossil fuels in the short and medium term as a “fantasy.”

According to OPEC Secretary-General Haitham Al Ghais, the organization’s annual report, World Oil Market Outlook 2024 (WOO 2024), reaffirms that, far from decreasing, oil consumption will continue to rise. According to their projections, global crude oil demand will reach 120 million barrels per day by 2050, a 15% increase compared to current levels.

Al Ghais insisted that there are no signs that demand will peak in the coming decades. “The fantasy of phasing out oil and gas has nothing to do with reality,” he emphasized, highlighting that fossil fuels will still account for more than 50% of the global energy mix until 2050.

Furthermore, OPEC predicts that internal combustion engine vehicles will continue to dominate global roads, representing more than 70% of the global vehicle fleet by 2050, despite the expansion of electric vehicles (EVs).

The OPEC report also highlights the difficulties faced by electric vehicles in gaining ground. Obstacles such as the lack of adequate charging infrastructure, high battery manufacturing costs, and limited vehicle range have slowed their global adoption.

It argues that although regions such as China, Europe, and North America are progressing thanks to economic incentives, in developing countries, where the vehicle fleet is expected to grow significantly, internal combustion vehicles will continue to be predominant.

However, according to the latest report from Transport&Environment, electric vehicles are projected to capture a 24% market share, driven by increased sales as automakers strive to meet the targets set by the European Union.

The report also indicates that between 2022 and 2024, the growth of zero-emission vehicles was slower than expected, largely because manufacturers focused on maximizing profits from internal combustion models and large premium cars. This raised the prices of electric vehicles, reducing their adoption.

However, a source from Transport&Environment (T&E) revealed to Strategic Energy that “although manufacturers opted to maximize their short-term profits with high-margin EVs, EU CO₂ emissions regulations will force them to change their strategy and offer more affordable alternatives to meet the 2025 targets.”