WEF 2022: 'Net-zero by 2050' commitment clearly visible in Davos

The energy security crisis since Russia's invasion of Ukraine must not lead to a deeper dependence on fossil fuels, International Energy chief Fatih Birol said on Monday at WEF

As Davos turned green literally, WEF's commitment to "net-zero" by 2050 became visible with the use of colourful hybrid shuttles to transfer the leaders of society between conference venues. The UN has urged the world to reduce carbon emissions to as close to zero as possible so what remains are either absorbed naturally or balanced by carbon removals to mitigate the climate crisis and keel global warming to 1.5 degrees Celsius above pre industrial levels.

Global cooperation and partnerships between governments, industry and scientists for a united response to the worst pandemic in living memory has given people hope for change to meet the net-zero goal by 2050.

Political and business leaders need to be clear with the public that “there will be pain in the process” of getting to net zero and a nature-positive world, said Kjerstin Braathen, CEO of Norways’s DNB Bank, citing energy shortages and inflationary pressures. “We need to start talking about that because if we don’t there’s no business, there’s no economy, there’s no welfare.”

During a panel on what governments and business can do to accelerate progress, Patrick Odier, chairman of the board of directors at Bank Lombard Odier in Switzerland, said that the environment needs be “at the center of capital allocation and credit activities.” He said “the stars are aligned” to accelerate the process because the financial sector has identified gaps in the market, while companies recognize the value of nature as an asset and government are addressing social impacts.

The energy security crisis since Russia's invasion of Ukraine must not lead to a deeper dependence on fossil fuels, International Energy (IEA) chief Fatih Birol said on Monday.

The right investments, especially in renewable energy and nuclear power, mean the world need not choose between energy shortages and accelerated climate change due to fossil fuel emissions, Birol said at the World Economic Forum (WEF).

"We need fossil fuels in the short term, but let's not lock in our future by using the current situation as an excuse to justify some of the investments being done, time-wise it doesn't work and morally in my view it doesn't work as well," Birol told delegates in Davos, Switzerland.

The Paris-based IEA, a top energy watchdog, warned investors last year not to fund new oil, gas and coal supply projects if the world wants to reach net zero emissions by mid-century.

With inputs from agencies