The International Energy Agency chief Fatih Birol suggested that 2027 could mark a return of climate change to the top of the global agenda, despite ongoing energy disruption. Speaking at the Financial Times Energy Transition Summit, Birol noted that the unprecedented pace of growth in renewable energy, driven by speed and cost advantages rather than just environmental concerns, could refocus attention. Conflict in the Middle East has crimped global oil supplies for nearly eight months, with cumulative impacts unlikely to ease soon.
Birol stated he does not see a credible pathway for 2027 to be a year of normalisation. The UN Climate Change Conference (COP31) in Antalya next month provides another opportunity to bring climate issues back into focus, though it has attracted less attention than previous conferences. Electrification is a flagship initiative for COP31, with the president proposing a target of 35 per cent of global energy demand met by electricity by 2035 from 20 per cent currently.
For Europe, expanding electrification is essential to remaining competitive, though Birol's principal concern is the affordability of electricity prices. The UK government approved the development of the Jackdaw gasfield, a lightning rod for the wider debate around the Labour Party's stance on hydrocarbons and climate change. The Rosebank oilfield's fate remains separate.
Chinese companies are building a global battery supply chain as the west protects itself from Chinese supply. Britain's use of air conditioners during a summer heatwave caught its grid operator off guard.
Source: Financial Times Companies · Summarized by HeadlinesBriefing