Why innovative climate technology requires global collaboration to take off

Navigating the journey towards net zero is not a linear path. It is characterized by disruptions and influenced by the ever-shifting landscape of climate change, geopolitical dynamics and supply chain challenges. Yet, amidst this complexity, technology emerges as a saviour and a critical facilitator in resource management. Through innovation, technology holds the promise of expediting the processes of decarbonization and energy transition, propelling us towards a sustainable future.

The international system as a whole is facing a historic task. Tackling the climate crisis necessitates a fundamental reshaping of the existing energy framework, a groundbreaking shift that must consider global dependence on existing energy resources and infrastructure, along with the unique circumstances and obligations of developed and developing nations. Whether it's reducing carbon emissions in key industries or bolstering investments in clean energy technology, effecting such widespread economic and societal transformation globally requires a concerted commitment.

In this context, many countries are looking towards the burgeoning field of low-carbon and clean energy innovation to deliver actionable solutions. As outlined in the IEA’s report on Energy Technology Perspectives, innovation is key to the sustainable development scenario. About 35% of CO2 reductions by 2070 depend on technologies in early stages, requiring more R&D, while another 40% depend on yet-to-be-deployed technologies.

In the United States, the Inflation Reduction Act has sought to encourage wide-scale investment in the low-carbon energy economy, enabling investments in clean technology to grow by 225% up to $303 billion since its enactment. As a result, big strides are being made. According to BNEF, global clean energy financing jumped by 17% to $1.8 trillion in 2023. Meanwhile, investment in the clean energy supply chain reached $135 billion and the electrified transport sector saw an increase in funding of more than 8% year-on-year.

The incredible potential of such technologies is largely due to their ability to fast-track the development and scalability of new energy resources, such as hydrogen. Initiatives like the US Department of Energy’s H2@Scale aim to utilize hydrogen to decarbonize various industries, bolstering energy systems of the future – a project with $64 million in funding across 18 projects, focusing on enhancing hydrogen production, storage, distribution and utilization. Moreover, global collaborations, exemplified by Siemens and Air Liquide's gigawatt factory in Berlin, which makes use of autonomous and robotic technologies, signify a promising trajectory towards widespread adoption and cost-efficiency.

Aside from enabling the expansion and scalability of promising new resources, innovation can also have an invaluable impact on the energy industry by improving the sustainability of existing resources.

Natural gas and liquified natural gas, (LNG), for example, have emerged as critical components of our modern energy mix in the past two decades, offering a cleaner and more efficient alternative to heavy-burning fossil fuels. In fact, according to the IEA, coal-to-gas switching has saved around 500 million tonnes of CO2 since 2010 - an effect equivalent to putting an extra 200 million EVs running on zero-carbon electricity on the road over the same period. Now, in the face of a challenging transition, energy consumers around the world are relying on these fuels to significantly reduce emissions and make progress on net zero goals, all while protecting the security and stability of their energy supply and domestic economy.

Considering their integral role in sustaining both the Global North and the Global South, the application of new technologies to improve the sustainability and efficiency of natural gas and LNG has become a top priority for the private and public sector. There are many significant developments in this space, as a growing number of carbon capture usage and storage (CCUS) activities and collaborations can be observed across the Middle East, Australasia and North America. Innovative initiatives, such as Aramco’s Jubail CCS hub, Impex’s Bonaparte Carbon Capture and Storage venture and the US’ Project Bison, are actively demonstrating the feasibility of using novel carbon capture solutions to mitigate the emissions from oil and gas.

While some countries may be leading the race to develop and scale such cutting-edge solutions, the transition to a low-carbon economy is not solely the responsibility of individual nations. It requires collective action and collaboration on a global scale. Initiatives like Mission Innovation, a global partnership of countries committed to accelerating clean energy innovation, provide a platform for sharing knowledge, resources and best practices to accelerate the development and deployment of clean energy technologies.

Recognizing this reality, key global policymakers and business leaders are seizing every opportunity to contribute to the expansion of low-carbon technologies. One such opportunity is the industry-leading Gastech 2024, unfolding this year in Houston, the energy capital of the United States. This forum offers an unprecedented opportunity for the international community to align on top priorities for the natural gas and LNG sector - including the need for continued innovation and investment - and to form new partnerships to redefine the industry's decarbonization efforts.

The pursuit of innovative clean energy technologies is essential for addressing the climate crisis and achieving sustainability goals. By investing in research, development and deployment of low-carbon solutions, countries can drive economic growth, enhance energy security and mitigate the impacts of climate change. Realizing the full potential of clean energy innovation, however, requires international cooperation and collective action. By working together, nations can accelerate the transition to a sustainable energy future and build a more resilient and equitable world for future generations.