At the opening-day panel discussion “Transforming Energy Demand”, Fatih Birol, executive director of the International Energy Agency, said that multiplying current investment in energy efficiency—using less energy to reach the same result—is key.
“It’s a very lucrative business, but governments need to give the incentives,” he said, not only for climate but also “for our pockets, for our energy security, and to remain competitive. Companies who do not put enough emphasis on energy efficiency will be less competitive.”
A WEF white paper cites a possible $2trn in savings each year, as well as a boost to growth, if measures to reduce energy intensity are taken by 2030.
Introducing a discussion on “Climate and Nature: Seed Capital Needed”, John Kerry, the US special presidential envoy for climate, said that weather-related “disruptions to business, disruptions to life… all bear a cost,” including lost productivity and interruptions to the movement of goods and services.
“The single biggest change that would have an impact around the world right now is money,” said Mr Kerry, citing the potential for public-private partnerships to support the transition away from fossil fuels and the inability of governments to do so alone. He believes that up to $5trn of investment every year from now until 2050 is required to make a difference.
Philanthropy “can also be an accelerant,” he added, noting that climate philanthropy has flattened to represent less than 2% of all philanthropic giving, and “breaking that mould is another challenge.”