European Union and United Kingdom should collaborate to create a globally influential renewable energy partnership

In a significant political shift, the Labour party in the UK has secured a historic majority in the 2024 general election, their victory based on a risk-averse campaign and widespread anger towards the outgoing government. This victory, however, comes with the responsibility of finding the ambition the world needs to avoid falling apart.

Across the globe, political landscapes are changing, and the focus on sustainability is becoming increasingly prominent. In South Africa, a new liberal influence in the governing coalition is expected to steer the country towards more sustainable policies. Mexico has elected a climate scientist as its leader, signalling a commitment to addressing climate change. The failure of Narendra Modi in India to win an outright majority may also push him towards more sustainable policies.

The European Union (EU) is also making strides in sustainability. The success of the European Green Deal's climate and energy targets depends on Ursula von der Leyen's centre-right political family. However, there are suggestions that they may remove parts of the legislation that had just been endorsed under the European Green Deal. This potential backtracking is not encouraging, hinting that the EU Green Deal of 2019 may represent the pinnacle of the EU's ambition.

The onus is on the new UK and EU parliaments to show increased ambition and technical competence, particularly in addressing the climate and sustainability emergency. Clusters of countries can share common solutions to the challenges of infrastructure, technology, and financing when it comes to renewable energy. The IEA has published a report further illustrating the case for sustainability.

The Corporate Sustainability Reporting Directive (CSRD), supply chain transparency, and cross-border carbon pricing have been positive additions to EU law. The energy transition can work for the environment, people, and economics, but affordability and fairness for all cannot be taken for granted. Financing remains a significant barrier to the global energy transition, and policymakers can play a role as brokers, helping with capital, off-take agreements, and partnership confidence.

Upfront costs of the energy transition should not fall on those who cannot afford it. In this regard, Great British Energy, intended to build partnerships in the energy ecosystem and encourage the mass adoption of renewables, could play a crucial role.

A global "coalition of the willing" is proposed, with Europe at its heart, to combat political and environmental threats and align with the Paris Agreement and all 17 UN Sustainable Development Goals (SDGs). Collaboration among EU allies, including the new UK government, is necessary for addressing the climate and sustainability emergency effectively.

However, challenges remain. The far right has seen a rise in support in Britain, the EU, France, and other nations, posing a potential threat to political and environmental stability. Policy deadlock is expected in France and Germany, hindering the energy industry's progress towards environmental, social, and economic goals.

In the UK, the Labour party has proposed an £8 billion investment in Great British Energy, a public investment vehicle for the energy sector. The Liberal Democrats have picked up 72 seats in the election, mostly from the Conservatives. The Green Party has also won four seats in the election.

In the US, 100 percent tariffs on Chinese electric vehicles (EVs) have been imposed, while the EU's tariff is more moderate but still aims to account for imbalances in subsidies. The global renewable capacity has tripled since the Paris Agreement in 2015, largely due to policy support. The cost of solar and wind energy has fallen by approximately 40 percent.

Despite these advancements, the road to a sustainable future is still long. The potential backtracking in Germany and France due to protests has hindered the energy industry's progress towards environmental, social, and economic goals. The rise of the far right in various nations also poses a threat to political and environmental stability.

As we move forward, it is crucial that policymakers continue to support and encourage the energy transition, ensuring that it is affordable and fair for all. Only then can we truly achieve a sustainable future for all.

European Union and United Kingdom should collaborate to create a globally influential renewable energy partnership