Lessons from Berlin's Energy Conference

The acceleration of the energy transition must occur at any cost and by any means necessary. This was a sentiment echoed by attendees of the 10th Berlin Energy Transition Dialogue (BETD).

Though tripling energy production was discussed at Dubai’s COP28, ministers and delegates from over 75 countries convened in Berlin to actualise the targets set, advance renewable financing and create new collaborations.

To reduce global carbon emissions by at least 43 per cent by 2030 compared to 2019 levels, in line with IPCC findings, there is a need for rapid scalability of renewable energy and efficiency improvements to meet impending deadlines.

Although there has been a significant increase in new capacity across all renewable energy sources - with China being at the forefront as wind power additions increased by 66 per cent year-on-year - the event highlighted some challenges. Among these, the lack of coordinated action and international consensus on investment directions, paired with skills shortage in the sector and slow coal phase-out, underscored the world's lack of preparedness for the required expansion of renewable energies for a stronger push.

This conclusion was presented in a special report by the International Renewable Energy Agency (IRENA) at the BETD, titled "Tracking COP28 Outcomes: Tripling Renewable Capacity by 2030."

In the record-breaking year of 2023, a total of 473 gigawatts of renewable energy systems were installed globally.

However, what IRENA says is necessary, supported by stakeholders at the conference, is an installation capacity of 1,000 GW annually until 2030. Among the countries truly dedicated to leading the way, Germany stands out as one of the leaders in organising the energy transition. Nevertheless, neither Germany nor Europe alone can commit to this target; rather, it says they must establish import partnerships with different countries worldwide.

A Hydrogen Hype

"One of the world’s largest green ammonia plants is under construction in Namibia; this will give further impetus to our cooperation on hydrogen, the fuel of the future," said Federal Foreign Minister Annalena Baerbock in one of her opening speeches.

Europe has identified hydrogen as the vital element in reaching a net-zero economy. REPower EU aims for 10 million tons (Mt) of domestic green hydrogen production by 2030 and an additional 10Mt imported internationally from various global partners.

According to the International Energy Agency (IEA), this would mean that around 20 per cent of hydrogen could be internationally traded by 2030 in a net zero scenario.

The drive for a hydrogen economy is prominent on the conference stage, with numerous companies gathering in corridors advocating for it. But where does the hype originate?

Big Hydrogen spends over €75.75 million annually lobbying EU institutions. Despite the hype, some people are unaware of what it is in its different components, such as "green hydrogen."

"A definition of what is green hydrogen? There must be a commonly agreed-upon standard," said Tom Alweendo, Namibian politician, at the conference.

Major European oil and gas companies support hydrogen to maintain their status quo, extracting it from fossil gas and repurposing existing natural gas and pipeline infrastructure.

The repurposing of pipeline infrastructures into hydrogen is deemed unfeasible in Germany. Criticism and doubts have been raised regarding Germany's planned hydrogen "core" network for allowing the import of hydrogen from other parts of the world, making the country's industry climate-neutral, as it may be more extensive and potentially more expensive than necessary.

Adding to this discourse, REPowerEU and Gulf Strategic Investment Partnerships have been actively assessing the potential and challenges of hydrogen (H2) production and transport in Europe-MENA. While the impetus for the hydrogen economy aligns with the abundance of solar and wind resources in the MENA region, and the aspirations of MENA countries to diversify and advance their economies or uphold their geopolitical influence the potential costs for local communities are not yet clear.

Fossil Fuels in the energy transition

"We need fossil energies, but the good news in Germany is we have more renewable energies," said Simone Peter, German Alliance 90/The Greens politician, at the conference. While Europe is striving at any cost to transition away from fossil fuels, ties remain tight.

Those making the most investments in hydrogen and natural gas-considered a clean source despite being a fossil fuel - remain fossil fuel companies, shaping the market and hindering its independence in the green energy transition.

Germany and Europe can rely on repurposing existing natural gas pipelines on paper, but most projects are export-oriented to safeguard the EU energy system.

One example is the Italian fossil fuel company ENI’s new deal with Algeria’s Sonatrach for an additional 9 billion cubic metres of gas from 2023/24 to replace imports from Russia.

But how will a fair and equal transition to renewable energy be achieved if fossil fuel companies dominate the energy market?

While Francesco La Camera, General Administrator of the International Renewable Energy Agency (IRENA), talked about IRENA's outstanding transition plans based on renewable energies at the conference, he did not mention the fact that IRENA collaborates with one of the biggest fossil fuel companies in Italy, ENI.

Eni and the International Renewable Energy Agency (IRENA) have a partnership agreement to cooperate in promoting renewable energy and accelerating the energy transition, particularly in countries that export fossil fuels.

"There is a big gap between what they say and what they do," confirmed Fatih Birol, Executive Director of the International Energy Agency, when speaking about the unreliable agreements fossil fuels companies can make to maintain their presence in the renewable energies sector at the conference.

There was much talk of transparency being an enabler of transformation. Nicola Beer, Vice President of the European Investment Bank (EIB), justified financing fossil projects for oil and gas giants like ENI, Total Energies, or ENGIE. 

The EIB's financing decisions came under scrutiny too, particularly concerning providing loans to banks that significantly finance fossil fuel activities globally.

The Global South Reality and Global North Expectation

South- and Eastern Europe and Northern Africa are poised to become key players in producing and exporting gaseous hydrogen transported via the European Hydrogen Pipeline Backbone. Similarly, South America, the Gulf Region, and Australia are emerging as crucial players in domestic demand and exports, particularly in countries with limited renewable energy potential.

The question arises: is this international cooperation or an unbalanced exploitation of interests and resources?

"We are convinced we can produce a lot of green hydrogen by ourselves," said Simone Peter, talking about Germany to FairPlanet. "We are looking for new business models. Let's cooperate with countries that can deliver hydrogen in fair conditions. We cannot move to hydrogen where energy or water is lacking."

However, the targeted countries, such as Chile, which is suffering from several droughts due to water privatisation and climate crisis, and Namibia, where domestic electricity supply has failed to keep pace with rising demand, seem to fall short of these declarations.

The problem of the lack of understanding or awareness of local issues is explained by Auma Obama, a Kenyan-British community activist and sociologist. "Most of the dialogue occurred with members from the high-ranking society of the global north discussing global south communities as mere subjects. Everyone talks about it, but nobody truly understands what this entails."

Such uninformed spending can result in geopolitical issues, such as supporting dictatorial regimes or imposing detrimental policies. Despite committing €1 trillion to sustainability and aiming for zero emissions by 2050, the EU not only continues to finance fossil fuel companies but also strengthens ties with totalitarian regimes, such as Azerbaijan, for projects like the Trans Adriatic Pipeline.

Another example of this trend is exemplified by the Piano Mattei initiative, through which the government aims to transform Italy into the European hub of energy. This initiative includes cooperation projects in Africa aimed at fostering development and well-being while also curbing irregular migration flows.

Decolonising the Dialogue

"I worry because I feel the conversation is being heard at a level where the African continent cannot participate. This is concerning because decisions will be made, treaties, and contracts formulated without considering the African continent," said Obama in her opening statement.

"It's very important to have a dialogue, to communicate with each other," she continued. "The West should rethink how they are developed to share solutions about energy."

Obama expressed the need for decentralised, community-driven solutions, including distributed renewable energy, to enhance participation in rural areas: "We must not simply mimic the West while pretending that we are revolutionising the dialogue. We have to be honest with each other."

Fatih Birol called for "a fair partnership that benefits the entire population."

However, the question remains of how much cooperation and mutual assistance occurs outside of institutional settings.

The Global South is accommodating the Global North in something that should be revealed as part of the solution. "We want to change the world but we don't want to change ourselves," said Obama, highlighting the need for more inclusion in building a system that is not elitist but allows everybody to participate and effect global change. Bridging gaps in climate policy ambition and fostering essential structural changes necessitate unparalleled global collaboration.

Image by Photothek / Berlin Energy Transition Dialogue.