The High-level Dialogue on Energy (HLDE) generated close to 140 commitments by countries, non-state entities, the private sector, and other stakeholders to achieve clean, affordable energy for all by 2030 and net-zero emissions by 2050. This Policy Brief looks at the role the “energy compacts” can play in the global effort towards energy and climate goals.
The HLDE, convened by the UN Secretary-General on 24 September 2021, was the first global gathering on energy under the auspices of the UN General Assembly (UNGA) since the UN Conference on New and Renewable Sources of Energy in 1981. Its goal was to accelerate and scale up action to achieve universal energy access and net-zero emissions. The Dialogue’s two main outcomes are a global roadmap to achieve SDG 7 and a set of energy compacts, which serve as the “vehicle to translate the global roadmap and key recommended actions into concrete plans with clear milestones and targets.”
Energy compacts are voluntary commitments from Member States and stakeholders, including companies, regional and local governments, non-governmental organizations (NGOs), and other relevant actors, outlining specific actions they will take to advance progress towards SDG 7 and net-zero emissions. According to UN Energy, they are “designed to be fully in line with” SDG Acceleration Actions and nationally determined contributions (NDCs) under the Paris Agreement on climate change.
Energy compacts unpacked: who commits what?
The first compacts were announced during the Ministerial Thematic Forums held in preparation for the HLDE in June. By 21 September, UN Energy had registered 34 compacts by UN Member States, 51 by the private sector, 13 by multilateral bodies or international organizations, 13 by NGOs, ten by subnational governments, and 17 by other stakeholders, including civil society organizations (CSOs) and youth. Many of these compacts were announced or reiterated during the High-level Dialogue.
The commitments seek to deliver benefits across several SDGs: new and improved electricity connections (SDG indicator 7.1.1); new and improved clean cooking access (SDG indicator 7.1.2); new installed renewable capacity (SDG target 7.2); energy savings (SDG target 7.3); green jobs (SDG 8); and clean transport systems through clean buses, vehicles or trains and clean charging and refueling infrastructure (SDG target 11.2).
The financial commitments made in the Compacts total around USD 700 billion. As of 21 September, countries committed around USD 7.25 billion in finance and investment, with the largest contributions of around USD 2.5 billion each announced by India and Italy. The private sector committed over USD 491.5 billion. The most significant pledges come from Copenhagen Infrastructure Partners (USD 152 billion) and the Italian electricity and gas multinational Enel (USD 104 billion). The French oil and gas giant TotalEnergies committed USD 60 billion, the Danish multinational power company Ørsted – USD 55 billion, and the Spanish multinational electric utility company Iberdrola pledged USD 32 billion.
A further USD 201 billion is mobilized through catalytic partnerships, with the Alliance for Rural Electrification responsible for USD 200 billion, and the Rockefeller Foundation contributing USD 1 billion.
Anticipated impacts
New and improved electricity connections: In aggregate, energy compact commitments on new and improved electricity connections are expected to deliver impacts for more than 2.3 billion people. Commitments by Bolivia, Ethiopia, the Ethiopian Rural Energy and Development and Promotion Center (EREDPC), Kenya, Nauru, Nigeria, Poland, the UK, and Zambia are projected to reach nearly 165 million people, whereas pledges by the private sector are expected to affect 286.5 million people. Commitments made through catalytic partnerships are projected to improve lives of over 1.8 billion people.
New and improved clean cooking access: Pledges on new and improved clean cooking access are projected to reach 216 million people. Partnerships play a critical role in clean cooking access delivery by impacting an estimated 189.34 million people. Malawi, Nigeria, and the UK account for the rest of the projected improvements, with only a small fraction covered by the private sector.
New installed renewable capacity: Energy compacts are expected to deliver some 5,000 gigawatts (GW) in new installed renewable capacity, with the lion’s share coming from catalytic partnerships: approximately 3,536 GW. Commitments by Bolivia, Colombia, the United Arab Emirates (UAE) Department of Energy, Ethiopia, Germany, India, India’s Ministry of Railways, Italy, Lebanon, Poland, Portugal, the Public Sector Solar Roof Program – Panama, and the UK are projected to deliver 677.25 GW. The private sector’s contribution is estimated at just under 855 GW.
Energy savings: Commitments through catalytic partnerships are expected to result in over one million gigawatt-hours (GWh) in energy savings. It is anticipated that the UAE Department of Energy, Ethiopia, Solar thermal – Panama, and private sector contributions will deliver a further 7,356 GWh.
Green jobs: The energy compacts by Honduras, India, Malawi, Nigeria, and Poland are projected to produce 2,795,000 green jobs. More than 2.2 million green jobs are expected from partnerships and private sector commitments, bringing the total to 5,005,450.
Clean transport systems: Commitments on clean transport systems are projected to deliver a total of 1,897,716 clean buses, vehicles or trains. Ethiopia, Honduras, and Poland account for the majority of green transport pledges: 1,753,868, with the rest coming from the private sector and through partnerships. Italy is the only country to have announced commitments on adding clean charging and refueling infrastructure (40 stations). The private sector is responsible for most of the commitments in this area – 2,860,532 stations out of the total of 2,871,907 – with the rest committed through partnerships.
The wealth and breadth of commitments
Commitments by Member States vary significantly in terms of focus, ambition, and coverage, depending on national priorities, levels of development, and current and future policy directions. For example, Honduras announced 13 energy compacts spanning energy access, renewables, biomass and clean cooking technologies, electric mobility, and women’s empowerment in the energy sector, among other areas. Germany submitted two compacts: one with a focus on renewables, and the other – on green hydrogen.
Japan’s energy compact commits the country to: develop capacity building and investment in network utilities in developing nations by 2030; increase percentages of renewables in the electricity generation mix by 2030 and achieve carbon neutrality by 2050; and promote energy efficiency in developing nations.
In its energy compact, the US undertakes to:
- produce more than 80% of its electricity from clean energy sources by 2030;
- support emerging economies in achieving ambitious climate action, such as by supporting India in accelerating its renewable energy deployment to meet its goal of 450 GW of renewable energy by 2030;
- improve access to electricity in sub-Saharan Africa by adding 35 million new electrical connections for households and businesses by 2030; and
- phase out new carbon-intensive investments by government by 2030, leading to net-zero emissions in its portfolio by 2040.
Similarly, energy compacts by the private sector, partnerships, and other stakeholders represent a wide range of ambitions and capabilities. For instance, Enel commits to accelerate coal phase-out from 2030 to 2027, triple renewable energy generation to 145 GW by 2030, increase battery energy storage, reduce greenhouse gas (GHG) emissions in line with the 1.5°C scenario, achieve more than 4 million electric vehicle charging points and 10,000 electric buses by 2030, and reach 5.6 million new electricity connections by 2030, among other actions.
ICLEI – Local Governments for Sustainability announced its ‘100% Renewables Cities and Regions Energy Compact,’ where signatories commit to: 100% renewable energy use at the latest by 2050; achieving 30% renewable energy use at the latest by 2030; achieving 100% renewable energy use in local government operations at the latest by 2030; achieving SDG 7 at the latest by 2030; and implementing at least one climate mitigation action annually from 2022 onwards.
Basque Country in Spain, Shimokawa Town and Toyama City in Japan, and Montgomery County in Maryland, US, are also among the subnational entities that announced energy compacts of their own. Other stakeholders to have undertaken SDG 7 commitments include the Alliance for Rural Electrification (ARE), the Rockefeller Foundation, Renewable Energy University League of Japan, and SDG 7 Youth Constituency.
The 138 energy compacts announced thus far represent the different levels of ambition countries and stakeholders are able to muster as they think “realistically about what they themselves can and will do.”