Welcome to the second issue of our newsletter, Energy Transition Thinking, in which we assemble recent information, research and publications from our member think tanks, with the aim of amplifying and increasing the impact of their work advancing global energy transitions. Each issue also centres on a theme, with this edition focusing on data.

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As we enter 2025, we welcome five new members from different geographies around the world, who bring their rich knowledge and experience to the network. They are: ECCO (Italy), Fundación Torcuato Di Tella (Argentina), POLEN Transiciones Justas (Colombia), Power Shift Africa (Kenya) and Vasudha Foundation (India). 

The INETTT secretariat also continues to expand and deepen its work, setting up five new working groups, a key aspect of our efforts as a network. Driven by our members’ priority research interests, each working group will implement activities and common projects to facilitate the exchange of knowledge and skills to advance the energy transition. The working groups focus on power, industry, just transitions, data, investment and financing, and institutional affairs.

The news emerged in early January that 2024 had surpassed the previous temperature record, becoming the first calendar year with an average temperature of more than 1.5 °C, signalling the importance of continued efforts to address climate change and advance energy transitions worldwide.

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In this issue…

… you’ll find a think piece from our South Korean member NEXT group on the role of data in guiding energy transitions, reflections from our member Transforma on COP29, and information on our latest data training.

You can also find details of other recent research by our members alongside upcoming events, which we hope will inspire collaboration and inform your work on energy transitions.

What else is new?

In November 2024, the INETTT secretariat and Agora Energiewende’s Energy Data and Modelling team hosted their second data training, focusing on developing skills in Python for Power System Analysis (PyPSA) and its application in hydrogen production models. Members from Brazil (E+), Colombia (Transforma), Indonesia (IESR),

Philippines (ICSC), Poland (Forum Energii) and South Korea (GESI, NEXT) attended the training in Istanbul, Türkiye. The workshop included a two-day “hackathon”, in which participants used their newly acquired skills to build a model relevant to their country context. More data trainings are planned for this year.

Transforma has participated in UNFCCC COPs and various other climate diplomacy networks since the creation of the think tank in 2017, with ex-negotiators from Colombia, Mexico and Costa Rica making up part of our staff and founding group.  We were left disappointed, however, with the outcome of the negotiations at COP29 in Baku on the New Collective Quantified Goal on Climate Finance (NCQG).

Over the past three years, Transforma was directly involved in research, meetings and narrative-shaping for the NCQG. This preparatory work gave us the expectation that an ambitious goal in the trillions of dollars could be agreed to address the needs and priorities of developing countries to implement the Paris Agreement and the Global Stocktake. Although we never expected the NCQG to be comprised only of public money and understand the value of necessary investment throughout the developing world in real-economy sectors, we were still looking forward to a balanced yet ambitious agreement combining both public and private financing.

since the insufficient 100 billion goal adopted in 2009 at COP15 in Copenhagen, including the Paris Agreement and the set of sectoral transformational calls laid out in the Global Stocktake (transitioning away from fossil fuels, tripling renewable energy and doubling energy efficiency, halting and reversing deforestation and making economies resilient to climate impacts). By doing this, the NCQG fails to integrate existing frameworks and transformational goals into the current approach. The agreement also neglects the important question of how international financial support will be delivered to the most vulnerable to enable their energy and economic transitions.

The structure of the goal and overall emphasis on finance from multilateral development banks is concerning, putting private capital in charge of present and future climate action initiatives, leading to greater debt and, most significantly, has developed countries passing on their own financial responsibilities to others (e.g., developing countries, banks or any given actor).

Finally, the decision to triple the current goal only represents an adjustment for inflation and by 2035 will likely no longer even reach that. The call to scale up climate finance to USD 1.3 trillion is a chimera.

Looking into the future, our work and commitment to the Global South and Latin American climate and energy transitions will not be changed by the outcome of COP29. If anything, we will reinforce our efforts to ensure our region benefits from these transitions. COP30 in Brazil represents a historic opportunity for Latin America, as no COP has been held in the region since 2014.

At Transforma, our vision for the summit focuses on positioning Latin America as a leader in innovative climate solutions. Our region can leverage its unparalleled biodiversity and renewable energy potential as well as facilitate strategic dialogue and reflect the Global South’s true investment needs. As a think tank, our role will be crucial, and we invite readers through INETTT to join forces in pursuing a more ambitious outcome at Latin America’s COP. COP30 must mark a turning point in climate ambition, with Latin America leading the way towards a decarbonised, just and prosperous future for all. 

SHURA’s analysis shows that decarbonising Türkiye’s power sector could boost GDP by up to 2.1 percent and employment by up to 6.2 percent. The report aims to guide policymaking and support informed and balanced discussions on the socioeconomic aspects of the transition to ensure a fair and equitable shift to a sustainable energy future.

The Institute for Climate and Sustainable Cities (ICSC) has conducted a study of power procurement strategies employed by distribution utilities (DUs) in the Philippines over the past decade, using data analytics. With over 150 DUs operating in a liberalised market, the ICSC research emphasises the importance of analysing these strategies, as they affect electricity affordability, reliability and the management of risks attributed to generation sources.

The report provides recommendations for decision-makers, based on the findings. These include: DUs prioritising diverse renewable generation sources to ensure stable and affordable rates for consumers; and avoiding contracting baseload power to meet peak demand as this can lead to excess capacity during off-peak hours, forcing DUs to sell unused electricity at a loss and placing additional financial strain on consumers.

The 55 percent renewables share in Germany’s electricity consumption shows: climate policies work – if implemented consistently. Record generation of renewable electricity and an increase in exports displaced 19 TWh of coal from the electricity mix. Now, greater momentum is needed in the demand sectors industry, buildings and transport. Strategically sound and socially balanced policy can ensure stability and resilience. Lower grid fees and reduced electricity taxes would make electricity prices even more attractive. Tax incentives, contracts for difference and green lead markets can stimulate innovation.

Regulatory Assistance Project (RAP) published its study on the role of electrification in decarbonising the industry sector in the European Union. Industry accounts for approximately 20 percent of the EU’s greenhouse gas emissions, and electrification is viewed as a key strategy for decarbonising the sector. In 2020, only 3 percent of process heat was electrified, yet there is the potential for further expansion. According to the study, 60 percent could be electrified today with commercially available technology, rising to 90 percent with the technologies expected to be available by 2035.

The report discusses several barriers to electrification. These include economic considerations (investment and operating costs, risks and expected returns); infrastructure (need for connections to the electricity grid that provide adequate capacity); knowledge of the available technologies and their suitability and benefits; and technological barriers, in particular related to high-temperature processes (which have traditionally relied almost exclusively on fossil fuels).

Pakistan has committed to climate-resilient and low-carbon development. Achieving this will require swift decarbonisation of its industrial sector. This policy brief explores pathways for a greener and more competitive industrial sector in the country, drawing on relevant data.

While Pakistan’s industrial sector currently relies heavily on coal, oil and fossil gas, there is considerable potential for the adoption of renewable energy, such as solar power and biofuels, as well as strategic approaches to enhancing energy efficiency. Also key to driving the transition will be financial incentives for modernisation, promoting decentralised renewable energy systems, improved vocational training, and ensuring regulatory compliance.