Newsletter of the International Energy Agency
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Spectacular growth of EVs shows a new energy economy is taking root
The global energy crisis sparked by Russia’s invasion of Ukraine is causing hardship around the world, highlighting the flaws in today’s energy system and the advantages of hastening the shift to cleaner and more secure technologies. 
 
In a recent opinion article for CNN, our Executive Director Fatih Birol shows how the current crisis can be a turning point for clean energy, highlighting the way in which policy actions in major economies – such as the Inflation Reduction Act in the United States and the Fit for 55 package in the European Union – are turbocharging the growth prospects for key low-emissions technologies like electric cars and accelerating the emergence of the new global energy economy. 
 
Taking the latest developments into account, more than one out of every two cars sold in 2030 in the United States, the European Union and China could be electric, according to our latest analysis.
 
There are other encouraging signs: initial estimates point to 2022 seeing a new all-time high for global additions of renewable electricity capacity. The pipelines for both carbon capture and hydrogen projects continue to expand, and heat pump sales are setting new records. 
 
At the same time, greater efforts are needed to move the world onto a pathway towards net zero emissions. Our latest annual update that tracks clean energy progress globally finds that only 2 out of the 55 components of the energy system it examined – electric cars and lighting – were on track for net zero by mid-century. Another 30 areas were assessed as needing more efforts, and 23 were rated as not on track. 
 
Read Dr Birol's opinion article for CNN, explore our Tracking Clean Energy Progress online resource and take a look at the summary of its main findings. For new analysis on how greater international collaboration can make more key clean technologies cost-competitive quickly, read the Breakthrough Agenda Report that we produced with some of our partners. And to go deeper, browse through our global database of clean energy demonstration projects
Executive Director meets with Japanese Prime Minister Fumio Kishida in Tokyo
Our Executive Director met last week with Prime Minister Fumio Kishida of Japan in Tokyo to discuss how the global energy crisis is likely to unfold over the coming winter, the role of nuclear power in Japan's energy system, and the country's upcoming G7 Presidency.
 
While in Tokyo, Dr Birol spoke at several high-level events during the Ministry of Economy Trade and Industry's Green Transformation (GX) Week, including making the opening address at the Hydrogen Energy Ministerial Meeting where he highlighted the findings of our new Global Hydrogen Review (see below for more).  
 
Our Executive Director also delivered the keynote speech at the Asia Green Growth Partnership Ministerial Meeting, which brought together a diverse set of ministers and senior officials from across Asia and the Middle East.   
 
Dr Birol held several bilateral meetings while in Tokyo, including with Japanese Foreign Affairs Minister Yoshimasa Hayashi and with New Zealand Energy Minister Megan Woods. He also attended the state funeral of former Prime Minister Shinzo Abe alongside other dignitaries. 
 
To keep up with our very latest news and analysis, follow the IEA on social media (LinkedIn, Twitter) as well as our Executive Director Fatih Birol (LinkedIn, Twitter)
Low-emissions hydrogen is gaining momentum amid the current energy crisis
Hydrogen has the potential to play an important role in the clean energy transition, notably in sectors such as long-distance transport and heavy industry. Our latest annual Global Hydrogen Review identifies promising signs that the use of low-emissions hydrogen is set to grow sharply in the coming years, with interest in it increasing amid the current global energy crisis.
 
If all projects currently in the pipeline come to fruition, the production of low-emissions hydrogen globally could reach somewhere in the range of 16 million to 24 million tonnes per year by 2030 – up from just 1 million tonnes in 2021 – with more than half of it coming from electrolysers running on renewable energy, the report finds. And promising pilot projects are proliferating for new applications of hydrogen in areas such as shipping and steel.
 
However, these promising uses for hydrogen remain relatively small within the wider hydrogen landscape and there's a need for greater policy support to help them grow. The large majority of the hydrogen in use today is produced from fossil fuels without any technologies to capture the resulting CO2 emissions. The report stresses that governments need to support development projects, but also take steps to reassure investors that there will be future demand for hydrogen. 
 
Read the press release, which summarises the key findings, and explore the full report
The need to avoid new international dividing lines on energy and climate
Our Executive Director made a series of high-level speeches at major energy and climate events in the United States recently, highlighting the encouraging momentum behind clean energy technologies but also expressing concern about potential “geopolitical fractures” on energy and climate issues. 
 
Speaking to an audience of prominent international figures in New York on 21 September, Dr Birol warned of the risks of “new dividing lines between advanced economies and many emerging and developing economies.” He pointed to the upcoming COP27 Climate Change Conference in Egypt as a vital opportunity for working to narrow the gap in understanding that is emerging over the causes of the current global energy crisis. At the event organised by the Global Energy Alliance for People and Planet, he urged leading economies, whose financial resources are crucial for enabling energy transitions in less affluent countries, to work to build bridges, to not take a too prescriptive approach to the tasks at hand, and to back up their words with real financial support. 
 
The following day, Dr Birol gave the opening address at the Global Clean Energy Action Forum in the city of Pittsburgh, where he underscored the recent positive developments in clean energy policies and technology progress around the world. He described the US Inflation Reduction Act as “the single most important energy and climate action by any country since the Paris Agreement in 2015”. 
 
The Clean Energy Forum in Pittsburgh brought together around 4,000 participants over two days of high-level roundtables, side-events and exhibits, with our delegation co-organising or speaking at about 30 different sessions. While in New York and Pittsburgh, Dr Birol held bilateral meetings with a wide range of decision makers, including Prime Minister Jonas Gahr Støre of Norway, UAE Special Envoy for Climate Change Sultan Al Jaber, Ukrainian Energy Minister German Galushchenko, US Special Climate Envoy John Kerry, Chilean Energy Minister
Diego Pardow, UK Climate Minister Graham Stuart, and International Atomic Energy Agency Director General Rafael Grossi
New Cost of Capital Observatory will help shed light on energy financing challenges in developing world
At the Clean Energy Forum in Pittsburgh, we and our partners launched a new tool to track financing costs for energy projects around the world with the aim of identifying and addressing risks that have impeded vital investment flows to emerging and developing economies. We developed this new Cost of Capital Observatory with the World Economic Forum, ETH Zurich and Imperial College London. It will be hosted on our website and regularly updated with new data, analysis and features. We will also host an interactive Cost of Capital Dashboard to dig into data for selected countries. 
 
Despite having two-thirds of the global population, emerging and developing economies, excluding China, account for less than one-fifth of global investment in clean energy. One of the key barriers is a high cost of capital, reflecting some real and perceived risks about investment in these economies. Bringing down the cost of capital is a critical lever to attract funds, especially private capital, and policy makers use this information to ensure that investments are remunerated in a fair manner, especially when it comes to sectors or projects that need any kind of government support. 

However, there is a lack of transparency about the cost of capital, making it harder for investors to price risk and for policy makers to act. The new Observatory has been established to fill this gap. 
 
Read more in our announcement about the Observatory and explore the Cost of Capital Dashboard.
How Central and Eastern European countries can accelerate the phase-out of Russian gas
Many countries in Central and Eastern Europe are working to address the unique challenges caused by their high reliance on Russian natural gas following Russia's invasion of Ukraine. Significant progress has been made, but accelerated efforts need to continue if governments want to wean their economies off Russian supplies, according to a recent commentary by our analysts.

In 2021, Russian gas accounted for almost half the gas consumed in Central and Eastern European countries compared with just over one-fifth for the rest of Europe. Some countries, such as Moldova and Serbia, are almost 100% dependent on Russia for their gas supplies. 
 
Any accelerated phase-out of Russian gas in the region requires quickly scaling up clean energy investments, including in energy efficiency and renewables, as well as diversifying gas supplies through building liquified natural gas (LNG) import capacity and better integrating regional gas markets, the commentary says. 
 
Read the commentary by analysts Sylvia Beyer and Gergely Molnar.
ENERGY SNAPSHOT
By 2030, more than one out of every two cars sold in the United States, the European Union and China could be electric, according to our new analysis. Worldwide, EVs’ share of the car market could rise to close to 40% by 2030 from less than 10% last year. Read more in our Executive Director's recent opinion article for CNN and explore historical and projected data on electric vehicles sales, stock, charging infrastructure and oil displacement in our Global EV Data Explorer
In other news:
The accelerated rollout of clean energy technologies needed to reach climate goals depends on building up a skilled workforce – and studying different labour training programmes around the world can provide valuable insights for countries and communities undertaking their own clean energy transitions. Learn more about this in our new report on Skills development and inclusivity for clean energy transitions that we launched at the Clean Energy Forum in Pittsburgh, and read a press release summarising its key findings. 
 
Our Executive Director met with Belgian Minister of Foreign Affairs Hadja Lahbib at our headquarters in Paris last week to discuss the current global energy crisis and the challenges it poses for Europe, as well as Belgium's support for IEA work on energy security and clean energy transitions. 
 
With the intense focus on energy security, affordability and climate goals, programmes to reduce consumers’ energy demand through behaviour changes are an increasingly important tool for policy makers. Such initiatives represent some of the lowest-cost and quickly realisable energy savings available to governments. Our Energy Efficiency Division hosted a special workshop last week for officials on best practice in behaviour and awareness campaigns for energy demand reduction and crisis response. You can watch a video of the discussions at the workshop here. 
WHAT WE'RE READING
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November: Coal in the Global Net Zero Transition
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