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By Sharon Kimathi, Energy and ESG Editor, Reuters Digital

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Phasing out fossil fuels has been on the top of the climate agenda at the World Economic Forum in Davos, Switzerland this week, with policymakers calling for faster action.

The United Nations Secretary-General Antonio Guterres said the phase-out of fossil fuels was essential and inevitable to avoid a global climate catastrophe.

“Let me be very clear again: the phase-out of fossil fuels is essential and inevitable. No amount of spin or scare tactics will change that. Let’s hope it doesn’t come too late,” he said at the WEF.

Additionally, International Monetary Fund Managing Director Kristalina Georgieva said that countries need to shift some $7 trillion in direct and indirect annual subsidies for fossil fuels to help finance the fight against climate change. She was speaking during a climate panel that also featured World Bank President Ajay Banga.

Banga told the forum that the world “cannot afford another set of decades of emissions-heavy growth,” and leaders must increase the urgency to find ways to finance clean energy sources and clear the way for private capital to invest.

But the environmental think tank Ember found that worldwide electricity generation from coal hit record highs in 2023, while thermal coal exports surpassed 1 billion metric tons for the first time as coal’s use in power systems continues to grow despite widespread efforts to cut back on fossil fuels.

The discussions around phasing out fossils come as the European Union is drafting its first 2040 climate target, to bridge the gap between its existing goals to cut net emissions 55% by 2030 and reach net zero emissions by 2050.

1. EU Commission to back 90% emissions cut for 2040 climate target

The European Commission is set to recommend the EU reduce its net greenhouse gas emissions 90% by 2040, from 1990 levels, to ensure the bloc can reach net zero emissions a decade later, sources familiar with the matter told Reuters. Click here for the full Reuters feature.

People attend the Global Climate Strike of the movement Fridays for Future under the slogan “#EndFossilFuels” in Berlin, Germany. REUTERS/Annegret Hilse

2. Climate science advisers tell EU to phase out fossil fuels
The European Union will need to revamp its policies to deliver a fossil fuel phase-out if the bloc is to achieve its ambitious climate targets, official advisers said. The 27-country EU was among the loudest voices demanding a global deal to phase out fossil fuels at last year’s COP28 climate summit, which ended with a weaker agreement to transition away from coal, oil and gas.

3. Scientists reveal how Greenland Ice Sheet has shrunk over past four decades
The Greenland Ice Sheet lost 5,091 sq km (1930 sq miles) of area between 1985 and 2022, according to a study in the journal Nature. This is the first full ice-sheet wide estimate of area loss on that scale. Click here for the full Reuters article.

4. Three Norwegian oil and gas field permits invalidated on environmental grounds
Three permits given by the Norwegian government to develop new offshore oil and gas fields were found to be invalid because their environmental impact was not sufficiently assessed, in a ruling that could set a precedent for new fields.

5. London underprepared for deadly climate change risks, report warns

London is underprepared for the heatwaves, flooding and rising sea levels it is forecast to experience in coming years, a report commissioned by Mayor Sadiq Khan said. The report, which was ordered after soaring temperatures, wildfires and floods all hit the capital in recent years, said a “step change” in planning and investment was needed.

A company in Benin is transforming everyday bio waste into a powerful energy source. Click here or on the image for more. 

European Union countries built 17 gigawatts of new wind power farms in 2023, the most for any year so far, but still not enough to reach the bloc’s renewable energy goal, industry data showed.

The milestone showed how Europe’s energy transition is gathering speed, yet more is needed. At least 37GW of new wind power should be added per year to deliver the EU’s 2030 renewable energy target, by Brussels’ own estimates.

500 million euros

Two of Europe’s leading energy transition investors plan to raise 500 million euros ($544.55 million) for a battery raw materials fund, aiming to plug “significant gaps” in the region’s supply chain, executives told Reuters.

InnoEnergy, backed by the European Union, and Demeter Investment Managers said the EBA Strategic Battery Materials Fund would focus its efforts on critical minerals including lithium, nickel, cobalt, manganese and graphite.

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