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Supply chain specialist comments on the latest World Energy Outlook report and the European Union’s ambitions for a global infrastructure plan
- The latest World Energy Outlook from the International Energy Agency (IEA) says that global demand for fossil fuels will peak by 2030; there will be ten times more electric cars world-wide; and we are still likely to miss the target of limiting rising global temperatures at 1.5 degrees.
- The IEA recommends large-scale financing mechanisms to “triple clean energy investments in emerging and developing economies.”
- Meanwhile, the EU’s Global Gateway Forum meets to advance its global infrastructure plan.
- The global infrastructure plan entails a €300 billion investment in sustainable and reliable connections including creating secure supply chains supporting emerging and developing economies.
- Oliver Chapman, CEO of supply chain specialists OCI—the No. 1 fastest growing company in the United Kingdom and No. 3 fastest-growing in Europe1—comments.
LONDON (October 25, 2023) — “In some ways the warnings and recommended actions from the latest IEA report and the EU’s Global Gateway Forum are complementary.
“Investment in a sustainable supply chain is critical if we want to combat climate change and restricting the rise in average global temperatures to 1.5 degrees, above pre-industrial revolution levels.
“The latest World Energy Outlook correctly predicts a significant rise in the use of renewable energies; indeed, setting the climate change imperative aside, the economic benefits of expanding the renewable energy infrastructure are compelling. Supply chain can benefit from increased renewables not only because of the lower costs that will eventually result, but as a way to increase energy security, creating a more robust supply chain.
“For emerging and developing markets, the shift towards green infrastructure is especially important. And as multinationals increasingly look towards auditing their supply chains and examining them for sustainable infrastructure, many emerging and developing markets will need to invest in green technologies in order to remain part of global trade.
“But there are challenging hurdles facing emerging and developing nations. The cost of capital to support a green transition is often prohibitively high; green technologies often provide strong, long-term economic benefits, but without readily available capital the impact on cash flow can be overwhelming.
“The EU’s global infrastructure plan may help alleviate the challenges facing emerging and developing markets, but the EU itself faces challenges in ensuring the required investment is actioned.
“Providing capital to emerging and developing markets is essential toward the creation of sustainable supply chains - and mitigating the threats of climate change. But much more needs to be done.”
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