Latest news with #FutureofEnergySecuritySummit
Forbes
16-07-2025
- Business
- Forbes
U.S. Threatens IEA Withdrawal Over ‘Politicized' Energy Forecasts
Energy Secretary Chris Wright speaks with reporters at the White House, Wednesday, Feb. 26, 2025, in ... More Washington. (AP Photo/Alex Brandon) In a July 15 interview with Bloomberg, U.S. Energy Secretary Chris Wright said he has told Fatih Birol, head of the International Energy Agency (IEA), his agency must either reform its forecasting methods or face potential U.S. withdrawal from the organization. This development reflects growing tensions between the Trump administration's energy priorities and the IEA's focus on clean energy transitions. Wright's criticism centers on the IEA's reports and projections, which he and other critics of the agency argue are overly optimistic about renewable energy adoption and fail to adequately prioritize energy security. The debate underscores a broader ideological divide between the U.S. administration and many other western governments over global energy policy and could impact international cooperation and domestic energy strategies. The IEA, established in 1974 to enhance energy security following the first Arab oil embargoes, evolved into a key provider of reliable data and forecasts for industrialized nations to use to help guide energy policy. In recent years, its long-term projections have increasingly incorporated ambitious government policies aimed at transitioning away from fossil fuels, predicting a peak in global oil demand by 2029. This shift in methodology has drawn criticism contending that the agency's forecasts are not reflective of current energy realities, particularly the continued global demand for oil and gas. LONDON, ENGLAND - APRIL 24: Executive Director of the International Energy Agency (IEA) Fatih Birol ... More delivers opening remarks during the Future of Energy Security Summit, hosted by the International Energy Agency and UK Government at Lancaster House on April 24, 2025 in London, England. This Summit examines the geopolitical, technological and economic factors affecting energy security at a national and international level. (Photo by Justin Tallis -) Wright Urges IEA To Put Data Over Ambitions Wright laid out the U.S. position in the Bloomberg interview, stating, 'We will do one of two things: we will reform the way the IEA operates, or we will withdraw.' He expressed a preference for the latter, saying, 'My strong preference is to reform it,' in hopes his discussions with Birol and others can influence a return to the more balanced approach which formerly characterized IEA's modeling approach. Wright's concerns center on the IEA's reliance on models like the Stated Policies Scenario (STEPS), which assumes governments will implement their clean energy commitments fully and on time. He argues this approach underestimates fossil fuel demand, as evidenced by the IEA's forecast of global oil demand growth at just 700,000 bpd in 2025, the slowest since 2009 outside the COVID-19 period. Wright's comments are consistent with the Trump administration's broader energy agenda, which prioritizes maximizing domestic oil and gas production to bolster energy security and economic growth, and seem likely to slow the growth of alternatives like wind and solar generation and electric vehicles. He contends that the IEA's green-leaning forecasts risk misleading policymakers by downplaying the vital, ongoing role of fossil fuels, which remain critical to meeting global energy needs. As an example, the IEA's Oil 2025 report projects a plateau in oil demand by 2029, driven by electric vehicle adoption and behavioral shifts, a view that contrasts sharply with OPEC's forecast of sustained demand growth through 2050. Wright argues that such discrepancies undermine the IEA's credibility, particularly when its projections influence investment and policy decisions. The Energy Secretary's push for reform includes a call for the IEA to reinstate forecasting models like the Current Policies Scenario (CPS), which focuses on existing policies and energy security without assuming aggressive climate action. 'The agency has predicted that global oil demand will peak in 2029, before the world's energy consumption peaks in 2030, as a result of energy and climate proposals,' Wright noted, disputing the IEA's optimism about the pace of the energy transition, which many experts say has fallen far behind the pace needed to sustain IEA's optimistic view. He believes the CPS would provide a more realistic baseline, aligning with the U.S. view that fossil fuels will remain indispensable for decades. Wright's IEA Criticism Is Consistent With Trump Energy Policies It would likely be naive to assume that Wright's threat of withdrawal is mere talk. In fact, it is entirely consistent with the overall Trump energy policies, as well as the clear shift in U.S. engagement with international energy institutions over the last 6 months. While a move by the U.S. to cancel its contributions to IEA - currently 18% of its overall budget - might risk isolating the U.S. from the prevailing global direction of climate change-related policies, it seems doubtful either Wright or President Donald Trump would regard that as a major concern. The administration has already moved aggressively to stake out a position which diverges from that consensus, which drove the Biden administration's efforts to force the desired energy transition to alternative forms of energy. There also seems to be little reason to believe pressure from international organizations might derail Wright's objectives related to the IEA. The U.S. has its own authoritative agency which analyzes energy markets, the Energy Information Administration, which is housed at Wright's own Department of Energy. To a large extent, the IEA is, for the United States, an expensive redundancy whose inputs would be little missed should Wright's discussions with Birol fail to produce the desired reforms. The IEA At A Crossroads Wright previously criticized IEA's forecasts in late June, calling the agency's projection of peak oil demand by 2029 'nonsensical,' and saying its methodologies have become 'politicized.' In response, a spokesperson for IEA said, 'The IEA welcomes feedback on our work and attaches great importance to our dialogue with the Department of Energy and other branches of the US Government." Wright's latest remarks place Birol and the IEA at a troubling, complex crossroads with no apparent easy solution. Reforming its forecasting to emphasize energy security with a return to previous modeling methods might satisfy the U.S. but could alienate IEA members who remain committed to the prevailing global energy transition narrative. On the other hand, maintaining its current trajectory could lead to a U.S. exit, a deep cut to IEA's budget undermining the agency's global influence. As Wright stated, 'We're not trying to dictate to the world, but we're not going to be part of an organization that's not grounded in reality.' The central argument in which Birol and IEA find themselves caught in the middle, of course, is what that 'reality' really is. Opinions about that vary wildly, and the outcome of this dispute will say much about how the struggling energy transition will evolve into the future. Stay tuned.
The Star
13-07-2025
- Politics
- The Star
EU, Indonesia strike political agreement to advance free trade deal
FILE PHOTO: European Commission President Ursula von der Leyen delivers a keynote speech during the Future of Energy Security Summit, hosted by the International Energy Agency and UK Government at Lancaster House in London, on April 24, 2025. JUSTIN TALLIS/Pool via REUTERS/File Photo
Yahoo
21-05-2025
- Business
- Yahoo
Global leader issues bold statement about unexpected security threat: 'Can be weaponized against us'
Britain is committed to pursuing national energy security as a clean energy champion, and the country is encouraging other governments to follow suit, Reuters reported. During the Future of Energy Security Summit, which took place in London late last month, Britain urged countries that previously relied on Russian fuels — whose prices soared after the start of Russia's war on Ukraine in 2022 — to take back control of their energy. "Energy security is national security," said British Prime Minister Keir Starmer, per Reuters. "As long as energy can be weaponized against us, our countries and our citizens are vulnerable and exposed," said Ed Miliband, Britain's energy minister, per Reuters. Britain's Labour Party plans to make the country a clean energy superpower and "largely decarbonise the country's electricity sector by 2030," according to Reuters. The Labour Party has ambitious plans to double the country's onshore wind projects, triple solar power projects, and quadruple offshore wind projects by 2030, according to the Labour Party's website. On top of that, the Party plans to invest in carbon capture and storage (CCS), as well as energy storage solutions to efficiently power the nation and reduce harmful gas pollution that contributes to the planet's overheating. One notable carbon capture project, the Liverpool Bay CCS, whose carbon transport and storage system is operated by Italian energy company, Eni, is expected to generate 2,000 construction jobs worth $2.66 billion in supply chain contracts, according to Reuters. Britain's bold strides toward a clean energy economy and energy security represent a larger, global shift away from dirty fuels and toward a more sustainable future for the planet. For example, the Clean Energy Transition Partnership, an international coalition that aims to interrupt funding for oil and gas projects by public funds, has seen a drop in public funding for fossil fuel projects by $15 billion per year since 2021. A global clean energy survey involving 450 senior decision makers in the energy and natural resource industry across Europe, North America, Asia Pacific, and Latin America revealed that 100% of respondents have a clean energy strategy. How do you currently heat your home? Oil Gas Heat pump Something else Click your choice to see results and speak your mind. Clean energy and sustainability are increasingly becoming core to business strategies, allowing companies to increase profits by eliminating environmentally wasteful operation procedures. These sustainability-focused businesses prove that it is possible to be prosperous while environmentally conscious. These sustainability-focused businesses prove to be financially smart companies for individual investors and countries to back, as the long-term momentum of the clean economy is proof that clean energy is not only here to stay but is key to a sustainable future. "Whilst we won't be turning off the taps (on oil and gas) we are going all out for our plan for change to make Britain a clean energy superpower to secure home grown energy and set a path for clean power," said British Prime Minister Starmer, per Reuters. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Straits Times
29-04-2025
- Business
- Straits Times
EU's von der Leyen invites scientists, researchers to make Europe their home
FILE PHOTO: European Commission President Ursula von der Leyen delivers a keynote speech during the Future of Energy Security Summit, hosted by the International Energy Agency and UK Government at Lancaster House in London, on April 24, 2025. JUSTIN TALLIS/Pool via REUTERS BRUSSELS - European Commission President Ursula von der Leyen on Tuesday invited scientists and researchers from the world over to make Europe their home when the Trump administration is threatening to cut federal funding for Harvard and other U.S. universities. They have been in the administration's crosshairs, mainly over how they handled pro-Palestinian rallies against Israel's war in Gaza that roiled campuses last year, but also over issues like DEI programs, climate initiatives and transgender policies. "Controversial debates at (European) universities are welcome. We consider freedom of science and research as fundamental," von der Leyen said in Valencia at the 2025 Congress of the conservative European People's Party, the largest of the European Parliament. "Not only because it is a core value for us but also because this is how excellence and innovation thrive," she said. "This is why Europe is open to the best and brightest. This is why we will make proposals to help them 'Choose Europe'. Because we want scientists and researchers from all over the world to make Europe their home – and to make Europe the home of innovation again." Harvard scientist Donald Ingber said earlier this month he knew of post-doctoral applicants who are now turning down research positions in the U.S. that they had accepted because they are afraid to live in America as foreigners. They are turning to China or Europe to carry out their work. During her speech, von der Leyen sought to contrast the 27-nation European Union with the U.S. by touting it as a role model for fair and rules-based international trade. After weeks of threats, Trump announced on April 2 a series of broad "reciprocal tariffs" on goods imported to the United States from most other countries. They included a 20% tax on EU imports that was later lowered to 10% under what he called a 90-day pause following a rout in U.S. stock markets. The Trump administration's tariff policy - which it says aims to tackle unfair trade practices and re-shore manufacturing - has exacted a major toll on companies, forcing many to cut spending, upending supply chains and making it hard to plan beyond the immediate term. "Global markets are shaken by the unpredictable tariff policy of the U.S. administration. U.S. tariffs on the rest of the world are at their highest in a century," von der Leyen said. "But in every crisis there is also an opportunity (...) Now the world of trade is turning towards us (...) They all want to deal with us. Because we are fair, reliable and we play by the rules. So let us stay the course, cool-headed and united. Because that is who we are. That is the European way of trade." REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Shafaq News
25-04-2025
- Business
- Shafaq News
Iraq plans to build largest solar power station
Shafaq News/ Iraqi government intends to establish the country's largest electricity generation plant using solar energy, Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani Al-Sawad said on Friday. According to a statement issued by the Ministry of Oil, the announcement came during Al-Sawad's meeting with International Energy Agency (IEA) Executive Director Fatih Birol on the sidelines of the Future of Energy Security Summit, which opened Thursday in London. Al-Sawad emphasized the importance of increasing the use of alternative energy sources in Iraq, particularly in electricity generation. The minister said Iraq has multiple clean energy projects underway, including the planned construction of the country's largest solar-powered electricity station. He also cited initiatives to utilize gas in national industries, calling it a strategic step in the government's program to diversify energy sources. On Thursday, the oil minister reiterated that fossil fuels will remain a key source of energy and industrial input in the coming years. Highlighting the Iraqi government's efforts and plans to expand the use of renewable energy, especially in solar power projects aimed at generating 12,000 megawatts, He also pointed to significant investments in associated gas from several projects, including the Integrated South Project in cooperation with TotalEnergies, which will, for the first time, involve the use of seawater for injection in oil fields. The Future of Energy Security Summit is being held in collaboration between the UK government and the IEA, with participation from energy ministers and senior officials from over 60 countries, as well as major global energy companies.
