Archives des New Energies - The Bridge Tank

COP 28 – The Bridge Tank’s takeaways from Dubai

Posted on 20 December 202321 December 2023 by the_bridge_tank

Since 2015 and COP21 in Paris, The Bridge Tank’s presence at the Conference of Parties has become an annual opportunity for our think tank to contribute to public debate on climate action and sustainable development. This year’s COP28 in Dubai, UAE, was no exception, as Joel Ruet, Chairman of The Bridge Tank took part in the conference from November 30 to December 4, in coordination with the French Water Partnership and the International Network of Basin Organisations (INBO).

Beyond the official negociations, marked by tensions and frustrations but which resulted in a landmark agreement nonetheless, COPs are an opportunity to regularly engage with change makers from around the world, discover success stories and projects developed by creative practitioners and learn more about the latest innovation milestones on those topics that have been at the heart of The Bridge Tank’s actions over the years, i.e. energy transitions, economic growth models and the role of the industry, agriculture and land adaptation. These themes all witnessed progress at COP28, as fossil fuels were mentioned in the final agreement, as commitments by industrial actors multiplied and as the loss & damages fund was enacted.

Besides, The Bridge Tank had the privilege of being directly involved in the presentation of two of those success stories originating from West Africa, which assessed the contribution to the development of the region:

– provided by the hydroelectric infrastructure and associated programs carried out by the Organisation for the Development of the Senegal River (OMVS). The side event was convened by the OMVS and SOGEM, with the official support of CILSS, which welcomed the event on its pavilion, and The Bridge Tank.

– offered by innovative finance for climate projects, with the official launch of the Climate Study Fund of the West African Development Bank.

For more on our board members’ participation in the COP in Dubai:

Food security : governance, security and climate resilience

Illustrating the growing awareness taking hold on the intersection between issues of governance, security, and climate change, the Munich Security Conference (MSC) was an important contributor of this year’s COP28 in Dubai. One issue particularly stands at the crossroads of these diverse challenges : food security.

On December 2, the MSC therefore organised a closed door side event titled “Dried Up: Strengthening Resilience of Food Systems in Light of Climate Change.” The event explored how climate change contributes to current food insecurity, a crisis already aggravated by Russia’s war in Ukraine, various regional conflicts, the aftermath of the COVID-19 pandemic, economic shocks, and supply chain challenges across the globe.

How can efforts to fight climate change and hunger best be aligned? How can COP28 serve as a platform to bring the two policy communities together to address the ripple-effects of climate change on global food security? These were some of the questions driving the discussion between:

Cindy Hensley McCain, Executive Director, United Nations World Food Programme
Vera Songwe, Chairwoman of the Board, The Liquidity and Sustainability Facility
Ricarda Lang, Co-Chairwoman, Alliance 90/The Greens Parliamentary Group
Nisreen Elsaim, Chair, Sudan Youth Organization on Climate Change, Khartoum
Michael Werz, Senior Advisor, Munich Security Conference (Moderator)

One issue of particular interest to The Bridge Tank is how to finance land restoration along with sustainable and job-creating agriculture, notably in Africa. Our engagement with African Leaders has led us to the idea that a transitory use of natural gas earnings is the way to finance these required investments, in a dual context where sub-saharan Africa has not been a contributor to climate change and needs to fund its sustainable transition on the one hand, while on the other hand, the Global North sees natural gas as a stage of the energy transition.

After these intial investments that would include funding the dissemination of renewable energies in the field, this financing transition could come to an end ; the main message from COP participants from the South being that they increasingly want to rely on sovereign funding for their transformations and not depend on the North when they can. Joël Ruet was able to share these views with the panelists. It is in this very spirit The Bridge Tank is ready to contribute to the task force the Munich Security Council endeavours to launch.

Sustainable trade and free trade as enablers to fight climate change

The previous day, on December 5, Joel Ruet had already been convened to a high level reception on “Sustainable and Inclusive Trade as an Engine of Economic Growth & Prosperity.”

The reception notably brought together:

Hillary Clinton, former Secretary of State of the United States,
Dr Ngozi Okonjo-Iweala, Director general of the World Trade Organization,
Maha AlQattan, Group Chief Sustainability Officer, DP World.

Hillary Clinton quoted late Madeleine Albright, saying “I’m an optimist who worries a lot,” thereby finely translating the spirit of COP28 participants at this time of the negotiations. She recalled the efforts of the Global Clinton Initiative towards environmental sustainability and celebrated the fact that an agreement could be reached on loss & damages.

Nonetheless, the fight against climate change also requires a deep long-term agenda, with free trade as part of it, albeit in a rethought manner, Dr Okonjo-Iweala recalled. Indeed, as further mentionned by Dr Okonjo-Iweala, free trade so far has had pros and cons: the pros definitely being on its capacity to provide widespread distribution of green technologies that have been scaled up at rapidly decreasing cost ; the connectivity and the development of the logistics chain have also ensured their reach inland, way beyond capitals or main harbours, a point DP World’s guest was also keen to emphasize. On the needed improvements of the imprint of free trade, Dr Okonjo-Iweala recalled several positive trends or turnaround points on introducing ESG best standards into the global chain, notably insisting on the leveraging effect of the shipping industry.

Dr Okonjo-Iweala more generally recalled the role of coordination betwen industrial actors, governments and finance, a line of analysis which runs through the history of The Bridge Tank since our inception, based on which we notably contributed to the Energy and Climate task force under the 2023 G20 presidency.

Last but not least, she introduced a welcome progressive outlook at free trade not beeing sought per se, but being accompanied with transparency, equitable norms and social progess in countries and economic systems that want to participate in the WTO system. The attendance, gathering select people from industries and geographies across all continents, could really nod on the fact that a silent revolution is under way.

Accelerating the energy transition : Economic tools and Actors

A key side-event co-organised by the Task Force on Carbon Pricing in Europe chaired by Edmond Alphandéry, former Minister of the Economy of France, and the think tank The Climate Overshoot Commission chaired by Pascal Lamy former DG World Trade Organization, provided a detailed account of state-of-the art thinking in terms of economic tools, technology prospects, and environmental and moral priorities on curbing GHG emissions.

While the IMF representative notably presented results of a landmark study describing the distribution of subsidies to fossil fuels according to production capacities, and Lord Turner presented the updated version of the Energy Transiton Commission approach on the respective role of various technologies, Joel Ruet suggested to work at a connection between the two, not only linking the two parameters but also anchoring them into geographies, in order to set the ground for optionable scenarios and policies.

The Bridge Tank having been a regular participant of the Task Force, we were happy to see the continuous progress over time of its results and achievements.

The side event “Coping with global warming and reducing the risk of a warming climate” gave the floor to :

Edmond Alphandéry, President of the Task Force on Carbon Pricing in Europe, former Minister of the Economy of France;
Dora Benedek, Division Chief, Climate Policy Division, Fiscal Affairs Department, International Monetary Fund;
Lord Adair Turner, Chair of the Energy Transitions Commission;
Julien Perez, Vice President, Strategy & Policy, Oil and Gas Climate Initiative (OGCI);
Pascal Lamy, Chair of the Climate Overshoot Commission, former Director-General of the World Trade Organization;
Hina Rabbani Khar, former Minister of Foreign Affairs of Pakistan, member of the Climate Overshoot Commission.

In GHG mitigation, actors matter. On December 5, Joel Ruet was invited to join a dinner on “Accelerating the Energy Transition: The Need for Collective Action,” organised by the Emirati logistics company DP World and gathering a blend of economic actors in the harbour and shipping industry, NGOs engaged into adaptation, and industrial apex bodies. This was in line with The Bridge Tank’s participation into the working groups of the Business20 of the G20.

The event discussed possible avenues of action to facilitate and accelerate the transition to low-carbon energy sources, a longtime subject of interest for The Bridge Tank.

The “fireside chat” format of the discussions welcomed contributions from Jesper Kristensen, Group Chief Operating Officer, Marine Services DP World, Tiemen Meester, Group COO, Ports & Terminals, DP World, Sue Stevenson, Director of Strategic Partnerships and International Development, Barefoot College International, & Federico Banos-Lindner, Group SVP, Government Relations & Public Affairs, DP World. The chats were facilitated by Lynn Davidson, former Advisor to COP26 President Alok Sharma and included remarks by Rajiv Ranjan Mishra, COP28 Delegation Leader, Confederation of Indian Industry (CII).

Climate change adaptation and resilience

Having recently worked with Haiti’s UNDP country office on Haiti’s National Adaptation Plan, The Bridge Tank took a special interest in a session on “Climate change, insecurity and mobility in fragile states: A new approach to climate adaptation and peacebuilding” held at the Somalia pavilion and hosted by the UN Environment Programme, the Ministry of Environment of Haiti, the Somali Greenpeace Association, and the UN Climate Security Mechanism.

Building on this theme of adaptation, The Bridge Tank also attended a side event on “Locally led iterative learning and transformative adaptation for enhancing community resilience” organised by the International Centre for Climate Change and Development; hosted by the UNCDF Pavilion.

The COP28 was also the opportunity to follow up on our COP27 side event with Niger’s Agrarian Development Bank on their initiatives to promote rural insurance schemes.

The COP28 Innovation Zone

Last but not least, this year’s Innovation Zone welcomed a wealth of initiatives on innovation, sustainable finance, hydrogen, and agriculture. This proved to be a valuable opportunity to sharpen each others’ minds on upcoming trends.

COP28 – A side event on the contributions of hydroelectric dams to the development of West Africa

Posted on 13 December 202319 December 2023 by the_bridge_tank

COP28 in Dubai has ended. As we look back on an eventful two weeks, some positives stand out. The final agreement calls for a “transition away from fossil fuels”, progress has been made on loss & damages, and the issue of adaptation and its financing is gaining in visibility.

These three priorities illustrate the importance of developing integrated development projects that address both mitigation and adaptation issues. An example for that can be found in hydroelectric dams. As they contribute to much more than just electricity production, especially when integrated with irrigated agriculture and sustainable land management programs, they are among those tools that can integrate development policies and which ought to be promoted. COP28 provided an opportunity to present one of these success stories in climate action and sustainable development originating from West Africa.

As part of the official program of the Permanent Interstate Committee for Drought Control in the Sahel (Comité permanent Inter-Etats de Lutte contre la Sécheresse dans le Sahel, CILSS), The Bridge Tank, the Organisation for the Development of the (Organisation pour la Mise en Valeur du fleuve Sénégal, OMVS) and the Société de Gestion de Manantali (SOGEM) co-organized a side event to share the results of an innovative study on the contributions of the Manantali-Felou-Gouina hydroelectric facilities to development in the Sahel and West Africa.

This event was part of an ongoing series of exchanges with the French Water Partnership (FWP) and the International Network of Basin Organizations (INBO).

The side event was organized on the occasion of the “Global Goal on Adaptation” day, on December 4, 2023.

Understanding and leveraging contributions

Conducted by Joël Ruet, the study presented at this event offers an analysis of the various forms of economic contributions made by the OMVS and SOGEM hydropower facilities to the sustainable development of the Sahelian zone and West Africa.

It analyses the knock-on effect on the entire development chain. Energy, water, agriculture, socio-economics, restoration of degraded land and the fight against salinity. Not to mention the greenhouse gas emissions avoided and the historic contribution to the global carbon budget made by this clean energy source.

The study offers an innovative contribution to demonstrating the strong links between mitigation and adaptation. Its value also lies in its contributions to public policy. Indeed, this study is the first systemic study since the evaluation by funding agencies (KfW, EIB, AFD) in January 2009.

More than an essential update, the study draws on the wealth of research on sustainable development. It provides an innovative methodology for dealing with the economics of development in a post-Paris Climate Agreement context. Recommendations inform national and multi-lateral public authorities about the benefits of public policies: energy transition, emergence, climate stability, green finance, etc.

The study also provides a technical contribution listing the benefits defined and assessed by complementary methodologies. Accounting contributions, micro-economics, alternative counterfactual scenarios, macro-economics and elasticity, avoided GHG valuation, and finally the “real option value” of regional and national development strategies unlocked by the Manantali-OMVS sytem’s assets are some of the different technical contributions analyzed within the framework of the study.

Contributors and partners of the event

The panel of the event was composed of :

Mr Aly Seydouba Soumah, Minister of Energy, Hydraulics and Hydrocarbons, Republic of Guinea,
Mr Nabil Ben Khatra, Executive Secretary of the Sahara and Sahel Observatory,
Mr Mohamed Abdel Vetah, OMVS High Commissioner,
Mr Seydou Sané, Chairman of the Board of Directors, SOGEM/OMVS,
Mr Mohamed Mahmoud Sid’Elemine, Managing Director of SOGEM/OMVS,
M. Joël Ruet, CNRS economist at the Institut Interdisciplinaire sur l’Innovation, Senior Associate, Technology for Change Chair, Ecole Polytechnique, Chairman of The Bridge Tank.

Through this event, discussions were facilitated with Mr. Jean-Luc Redaud, Chairman of the FWP “Water & Climate” Working Group, Ms. Kathryn Bartlett, Soil Scientist for AngloAmerican, Mr. Amadou Maiga Mahamadou, Deputy Managing Director of the Agricultural Bank of Niger, Mr. Abdoul Razak Baraze Saida, Director of Credit d’étude et partenariat of the Agriculture Sector and Mr. Abdou Nouridine Sanfo from the Executive Secretariat of the Green Climate Fund for Burkina Faso.

The Manantali Dam

The Bridge Tank: US-China climate talks should not forget the Global South – CGTN Dialogue

Posted on 2 August 20232 August 2023 by the_bridge_tank

Following the restart of China-U.S. climate talks and the three-day visit of U.S. Climate Envoy John Kerry to Beijing mid-July, Joel Ruet joined CGTN’s Xu Qinduo on “Dialogue” to discuss the importance of these talks between the two largest economies & greenhouse gas emitters on the planet and address some of its priority topics. From carbon emissions reduction to the acceleration of climate finance, the Global South must imperatively be involved in global climate action, Joel Ruet stressed. An important discussion to rewatch here.

The discussion was also joined by Chinese environmentalist Ma Jun, Director of the Institute of Public & Environmental Affairs and U.S entrepreneur Brandon Andrews, former Hill staffer.

Stressing the importance of these talks, Ma Jun highlighted the impact of both China and the U.S. in global GHG emissions, which “put together […] is nearly half of the global total.” Echoing this idea, Joel Ruet noted that there were two stringent issues which the two countries needed to address, “the first one is the emissions […], the second one is climate finance, which has to be accelerated,” notably towards the Global South.

1. Cutting emissions

As U.S. Climate Envoy John Kerry stressed the need for China to decarbonize the power sector, cut methane emissions, and reduce deforestation, Ma Jun put China’s evolution and its goals for emissions to peak before 2030 and for carbon neutrality before 2060 into perspective.

“China is going through a massive industrialisation and urbanisation. Unlike Western countries which have naturally peaked their emissions and try to bend the emission reduction curve faster, China has not completed its industrialisation and urbanisation.”

Ma Jun, Director of the Institute of Public & Environmental Affairs

Still, China’s coal consumption has remained relatively stable since 2013, after having nearly tripled between 2000 to 2011. “China’s renewable energy target set for 2030 will be achieved by 2025” and its “EV targets for 2025 have been surpassed last year,” Ma Jun added.

Reacting to this assessment, Joel Ruet pointed out a twofold challenge, i.e. “scaling up those renewable energies that work and […] preparing the energies of the future like green hydrogen, for which we need research and an industry.”

Through the example of hydrogen, Mr Ruet reminded the audience that renewable energies produce electricity, which is only one form of energy, the others being solid (e.g. coal), liquid and gas. According to Joel Ruet “China will be able to gradually exit from coal only if it mobilizes the other sources of energy,” i.e. liquid and gas. On gas, the world therefore needs “a global alliance between China, the US and Europe to develop and invest in those technologies which are not yet mature for the market, mainly on green hydrogen.”

2. Climate finance

While traditional finance very much relies on assets which are either in the country of origin or in the global economy, connected to trade, Mr Ruet stressed that developing green finance will be achieved through “land restoration and carbon sinks through forests in Africa, Borneo Forest, Asia, Latin America and all around the world. The underlying factors of those assets are widespread, making it much more an issue of political economy and of involving the Global South in building this finance. Green finance will have to be much more collaborative than previous financial models.”

“Both China and the US have an edge in climate finance. It will be very important for these two poles of climate finance in the world to cooperate rather than compete.”

Joel Ruet, Chairman, The Bridge Tank

According to Ma Jun, China has indeed a lot to offer in terms of innovative financial models to face climate change.

China’s experience with solar power has seen the country develop “micro financing arrangements which allow rural households to take advantage of their rooftop to get clean energy and make money out of it.”

Combining “poverty relief and rejuvenation the countryside,” this model of micro-financing and rooftop solar panels “could be applied to other parts of the world and synergized to achieve the SDGs,” Ma Jun concluded.

From the curbing carbon emissions to bolstering climate finance, China-US climate talks must involve and support the Global South for international climate action to be both effective and inclusive.

Rewatch the show

A conversation with François de Rugy & the Ambassador of Kazakhstan on energy and France-Kazakhstan relations

Posted on 11 July 202324 July 2023 by the_bridge_tank

On 30 June 2023, Joël Ruet sat down with former Minister of State, Minister for the Ecological Transition and Solidarity, and former President of the French National Assembly, François de Rugy, and the current Ambassador of Kazakhstan to France, Gulsara Arystankulova, to discuss bilateral relations between France and Kazakhstan and the prospects for energy and technology partnerships between the two countries.

This discussion was part of a symposium held at the French Senate on the theme of “Energy sovereignty for Europe and France: what solutions, what partners?” The Bridge Tank’s recent work in Kazakhstan is best exemplified by our contribution to the development of an auction mechanism for renewable energy in 2021 and the highlighting of the challenges faced by foreign investors in the country.

Future ambitions and cooperation

During her address, Ambassador Gulsara Arystankulova emphasised the profound relationship that links France and Kazakhstan, and the close cooperation between the two countries in the energy sector. In November 2022, the President of Kazakhstan, Kassym-Jomart Tokaïev, was notably welcomed to Paris by President Macron. This cooperation has been particularly strengthened since the start of Russia’s invasion of Ukraine, with Kazakhstan offering a key alternative to Russian oil and gas. With its wealth of raw materials and as the oil giant of Central Asia, the country plays a key role in Europe’s energy supply and will be a central player in the continent’s energy future.

For despite its status as an oil giant, Kazakhstan is pursuing an ambitious energy transition strategy aimed at gasifying its energy mix and achieving 50% renewable energy by 2050. To meet the supply and interconnection challenges posed by the country’s size, Kazakhstan is betting on a process of energy decentralisation based on state-subsidised green energy mini-systems.

Kazakhstan’s ambition to be carbon neutral by 2060 is underpinned by considerable assets. With its vast open spaces, abundant sunshine and rare earth resources, the country offers great potential for the development of renewable energies. French groups are already positioning themselves in the country, such as TotalEnergies, which has launched a 1GW onshore wind farm project in the Zhambyl region of southern Kazakhstan, in partnership with the National Wealth Fund Samruk-Kazyna and the National Company KazMunayGas.

Partnerships and issues of sovereignty

According to Joël Ruet, there are many opportunities for not only energy cooperation but technical and technological cooperation between France and Kazakhstan. The world’s leading producer of uranium, Kazakhstan supplies the uranium needed to run France’s nuclear power plants, notably through a close partnership with French nuclear giant Orano.

As the third largest foreign investor in Kazakhstan, France has every interest in positioning itself to generate new partnerships and launch new industries in the country, as well as continuing to develop its know-how and human resources, particularly in the nuclear and hydrogen sectors. Cooperation between France and Kazakhstan cannot therefore be limited to its energy component and to the supply of raw materials. This cooperation must bolster its technical and technological component in order to develop joint research, knowledge and innovation in the sector.

In the context of these partnerships, it is important to consider energy in its various forms, not only through the issue of electrification but also by taking into account energy in its liquid and gaseous forms, which represent a significant proportion of the energy mix.

Placing this observation in the context of French energy sovereignty, François de Rugy emphasised that energy sovereignty is not just a question of electricity, but of oil and gas – resources that, in France’s case, are almost entirely imported. To ensure security of supply, France will therefore need to diversify sources of supply, but also electrify uses by decarbonising transport, heating and industry.

In recent years, however, France has been faced with a new challenge resulting from the declining availability of nuclear power plants due to maintenance and declining production capacity. According to François de Rugy, it is therefore crucial to invest in both renewable energies and the renewal of France’s nuclear power plants, using France’s strengths and expertise in these areas.

The evolution of Kazakhstan’s energy sector undoubtedly offers great potential for cooperation with France and Europe. Although the country currently supplies fossil fuels and raw materials to the Old Continent, it will be an essential partner in the energy transition and in the development of renewable and low-carbon energy sources.

Policy Brief – How China came to dominate the global EV lithium-ion battery value chain: Lessons and opportunities for Africa

Posted on 27 June 202327 June 2023 by the_bridge_tank

This policy brief was written by Xieshu WANG, Senior Expert, Finance, Resources and Mobility, The Bridge Tank, and was first published by the Centre for Business and Development Studies, Copenhagen Business School Policy Brief No. December 2022. For the original publication, click here.

The electrification of vehicles is accelerating and the global automotive industry is under full transformation. China has become an indispensable partner for EV makers as the only country that has succeeded in building a complete and competitive industry value chain of EV lithium-ion batteries. Top-down government-led policymaking has been an important driver; bottom-up firm-level vertical integration strategy and investments have effectively created a closed-loop supply chain. Africa is still at an early stage in this mobility transition. But with its rich deposits of minerals and potential markets, it can become a key player in the global EV value chain, if a favourable ecosystem for the fast uptake of EV and related green businesses could be developed in time.

Key points:

Government-led policymaking, constant adjustments, and temporary infant industry protection policies have been some of the main drivers of the fast-growing EV industry and the lithium-ion battery sector in China.
Many Chinese firms deploy a strategy that can be defined as “specialised vertical integration”, i.e., actively entering related upstream and/or downstream segments within the EV lithium-ion battery supply chain, while continuing to reinforce their existing capacity in the original segment of the value chain, which serves as an expansion base.
With the soaring demand for minerals for batteries and EVs, Africa, with its rich deposits of lithium, copper, cobalt and other minerals, could become a key player in the global EV value chain.
Designing an EV promoting regulatory framework, applying incentive policies, & developing government-led R&D programs are important starting points to attract technologically leading MNEs in the EV value chain, encourage local startups and develop competitive industrial clusters. Fostering regional alliances and collaboration as well as developing industrial investment funds dedicated to firms along the EV value chain are other avenues of action that ought to be explored.

About the author

Xieshu WANG is Senior Expert, Finance, Resources and Mobility at The Bridge Tank and associated researcher at the Centre de recherche en Économie de l’Université Paris Nord (CEPN). She is a member of the Osservatorio sulle Economie Emergenti Torino (OEET) and has been a research fellow at the Interdisciplinary Institute for Innovation of Ecole Polytechnique de Paris and the Department of Economics and Statistics ‘Cognetti de Martiis’ of the University of Turin.

Concordia Europe Summit: European sovereignty, energy security & transatlantic relations

Posted on 21 June 202321 June 2023 by the_bridge_tank

On 15-16 June 2023, prominent decision makers from across Europe and the world gathered in Madrid, Spain for the 2023 Concordia Europe Summit. Two days of high-level closed-door conversations on the theme of Democracy, Security & Geopolitical Risk addressed some of the most pressing issues facing Europe, including cyber and energy security and diplomatic tools. The Bridge Tank was in attendance at the summit, represented by its president Joel Ruet and board member Raphael Schoentgen, who took part in a session on Europe’s renewable energy transition.

European sovereignty: Climate targets, autonomy & energy security

In the opening session of the Summit, Former European Commission (EC) President José Manuel Barroso testified to the intricate link between establishing binding climate targets and achieving energy security in Europe. Despite the challenges these climate targets represent, the EU 2020 Strategy was achieved by enlarging the problem from its environmental component to energy security, thereby winning over the EU’s new members as the EC launched infrastructure investments, he noted. This is an approach which has also been used by the US and India.

Putting the current discussion on the EU’s strategic autonomy in its geopolitical context, Othmar Karas, First Vice-President of the EU Parliament, noted that Russia’s aggression very much clinched the debate on the EU’s strategic autonomy and sovereignty, as well as on its defence strategy. Mr Karas stated that this debate was led “in a spirit of cooperation with NATO.”

Connecting this issue with environmental challenges, this was an opportunity for The Bridge Tank’s president Joel Ruet to engage with the EU Parliament’s First VP on the contribution of the European Green Deal in the EU’s strategic autonomy. Binding policies are indeed only beneficial inasmuch as they are embedded into larger trade-offs. It is therefore important that the EU & US do not lose cooperation for autonomy against illiberal regimes. In particular the short term subsidy war the two blocks are currently engaged in presents a worrying trend, Joel Ruet argued.

In the midst of the new rivalries arising, the next 10 years will be crucial in fine tuning the right PPP inventor/adopter and funding models, Will Roper, Former Assistant Secretary of US Air Force, contended.

During a session on “Pathway to Independence,” Ambassador Paula Dobriansky, former US Under Secretary of State for Global Affairs under President George W Bush, recalled that the US government was also very focused on the ramifications of the war in Ukraine. She acknowledged noticeable moves on nuclear energy and hydrogen in Europe, something also pointed out by other speakers who emphasized the need to work on the supply side of energy security to move towards Europe’s autonomy. This question was also addressed by our board member Raphael Schoentgen during a session on “Europe’s Energy Landscape: Alternatives for the Renewable Transition.”

Transatlantic Diplomacy & Security and the role of Latin America

The question of transatlantic cooperation was a central topic during the Summit. The benefits of a strong and sovereign Europe for the US were highlighted by different panellists, as partnerships benefit from both parties’ strength and confidence.

A session on “Transatlantic Diplomacy & Security: Strengths and Future Opportunities” gathered Former President of Colombia Iván Duque Márquez, Spain’s Minister for Foreign Affairs José Manuel Albares, US Ambassador to Spain Julissa Reynoso, and Radoslava Stefanova from NATO.

According to José Manuel Albares, the transatlantic relationship is very important in the context of Russian aggression. The US is a natural ally of the EU and the transatlantic agenda will be at the heart of Spain’s coming EU presidency, including on the technological agenda, Mr Albares stated. In this process moving towards a Europe of defence and greater integration, the EU also needs to consider having a decision making process based on a qualified majority and not unanimity, he added.

The central role of the transatlantic alliance is also acknowledged on the other side of the Atlantic, Ambassador Reynoso contended, adding that the current President of the United States has been the one to believe in it the most in recent history. Building on this, Radoslava Stefanova reminded the audience that NATO already provides an amount of integration in military systems and procurement based on member countries’ commitments and is therefore working towards convergence.

Iván Duque Márquez addressed the opportunities created by Spain chairing the EU in offering a unifying point between Latin America and the EU. Latin America’s ecosystems are essential in the fight against climate change and the continent is a key player in energy supply, be it oil, gas, and green hydrogen but also in securing the EU’s food security. Additionally, Latin America is facing similar questions to those raised within the EU with regard to how to best approach its relationship with China, particularly in matters of trade.

Iván Duque also raised these issues in a session alongside former President of Mexico Felipe Calderón in which they discussed Latin America’s role in Global Sustainability. Iván Duque particularly highlighted the hypocrisy that makes CO2 worth 50 dollars a ton in Brussels and 5 in the Congo Basin or the Amazon. Felipe Calderon called for a real implementation of the “polluter pays” principle and a reward for absorption at equal price across the planet. “Actually funding capital costs is more important than pledges,” he added.

Concordia Summit: Our board member Raphael Schoentgen discusses Europe’s Energy Transition

Posted on 16 June 202321 June 2023 by the_bridge_tank

As Europe grapples with high energy prices and disruptions in its energy supply following Russia’s invasion of Ukraine, working towards Europe’s energy transition has never been more pressing – but also full of new opportunities. At Concordia’s 2023 Europe Summit in Madrid, Spain, our board member Raphael Schoentgen, Founder & CEO, Hydrogen Advisors, took part in a panel discussion on “Europe’s Energy Landscape: Alternatives for the Renewable Transition.”

Alongside him on the stage to discuss this question were Ana Palacio, Former Minister of Foreign Affairs, Spain, Teresa Parejo, Director of Sustainability, Iberia Airlines, and German Alcayde, Board Member, HVR energy, who moderated the session.

Europe’s changing energy landscape

Drawing on his extensive experience in the energy sector, having previously been CTO & Executive Committee Member of ENGIE and now an expert and entrepreneur in the field of hydrogen, Raphael Schoentgen set the stage for the discussion by recalling that 80% of the energy used today in Europe is either solid, liquid, or gas. The energy transition should therefore not focus solely on electricity. Today, renewable energy sources represent 40% of Europe’s power grid. However, electricity accounts for only 20% of the energy we consume – making renewable energies only 8% of the total power consumption. Europe still imports 85% of its energy (including fuel). It will thus not be self-sufficient from one day to the other, Mr Schoentgen argued.

The largest energy need in Europe is heating, with 40% of the total consumption. This is mainly provided through gas. Then comes transport with 30%, which is mainly provided in liquid form. Mr Schoentgen therefore expressed his belief in the potential of hydrogen, as it provides both a good complement to green power and a substitute to natural gas, which can reinforce the production of biogas.

Encouraging development and adapting to a changing international environment

Raphael Schoentgen however issued a warning about imposing restrictions on the development of hydrogen in Europe, calling for decision makers to be concrete and non-dogmatic. The European Commission’s Delegated Act is for example making the development of hydrogen very complicated, as the focus on zero-CO2 and greenhouse gas emissions is too high.

Putting Europe’s efforts in comparison with international energy trajectories, Ana Palacio shared her analysis of the state of play in the United States. The Inflation Reduction Act of 2022 (IRA), signed into law in August 2022, contains $500 billion in new spending and tax breaks aiming – among other priorities – to boost clean energy. Ana Palacio noted that while the IRA was technology neutral, the European Green Deal did not display this technology neutrality as it rejected nuclear energy. This was confirmed by Raphael Schoentgen who only recently returned from Washington D.C., where he attended the release of the US hydrogen strategy.

Coming back to Europe’s energy imports, Ana Palacio highlighted Spain’s efforts not to make itself dependent on one country (as opposed to Germany’s dependence on Russian gas). Instead, Spain built a flotilla of energy terminals to remain relatively independent.

The Bridge Tank at BOAO Forum for Asia 2023: Advancing EU-China cooperation and energy transitions

Posted on 6 April 20236 April 2023 by the_bridge_tank

From 28 to 31 March 2023, The Bridge Tank, represented by its president Joël Ruet, took part in the BOAO Forum for Asia 2023, in Boao, Hainan, China. The Bridge Tank has taken part in the annual meeting of the “Chinese Davos” as a partner of the event since 2018. This year’s BOAO Forum was placed under the theme “An Uncertain World: Solidarity and Cooperation for Development amid Challenges.”

The Forum saw Joël Ruet take part in two sessions dedicated to the China-EU dialogue, with a closed-door CEO roundtable, and a panel session on global energy supply shocks, both concretely addressing energy transitions. The forum’s plenary session provided contributions from Chinese Premier Li Qiang, former UN Secretary General and now chair of the forum Ban Ki Moon, as well as Lee Hsien Loong, Prime Minister of Singapore, and Pedro Sanchez, Prime Minister of Spain, addressing future relations between China and the EU and the potential for partnerships.

China-EU CEO closed-door Dialogue

The roundtable which Joël Ruet took part in addressed questions and opportunities of cooperation and competition in a context of systemic rivalry. The session allowed for interaction between industry captains from France, Italy, Finland, Hungary, & Germany and their Chinese counterparts. These notably included:

Justin Yifu Lin, Dean of Institute of New Structural Economics, Peking University & former Chief Economist and former Senior Vice President of the World Bank
Li Zixue, Chairman and Executive Director, ZTE Corp
Zhang Yue, Chairman, BROAD Group
Li Yong, Chairman, Chinayong Investment Group
Joël RUET, Chairman, The Bridge Tank & Associate Researcher, Tech for Change Chair Ecole Polytechnique
Jorge Toledo, Ambassador of the European Union to China
Denis Depoux, Global Managing Director, Roland Berger
Norbert Csizmadia, President, John von Neumann University Foundation
Gianni Di Giovanni, Chairman, ENI China B.V. & Executive Vice President, ENI
Fabrizio Ferri, Head of Asia Pacific Region, Fincantieri

Joël Ruet’s participation to this roundtable allowed him to convey the current situation and opportunities in matters of energy transitions, particularly around nuclear power and hydrogen. Reflecting on current trends, Mr Ruet noted that in 2022, the EU’s transition found a winning long term hedging strategy based on geographically hedged gas instead of oil, with a 2030 horizon hedging against all fossil fuels.

On matters of climate finance, Joël Ruet argued that financial mechanisms had to go beyond carbon pricing and beyond mitigation finance. Instead, adaptation must be financed through cobenefits on agriculture, agro-forestry, CO2 fixation in soils and water preservation. This requires a joint effort to build a finance and banking derisking industry both at the level of public and commercial banks. China and the EU have a common interest in not only sharing ideas and models but also in building joint programs with least developed countries, Mr Ruet argued.

In a subsequent interview for China Business News, Joël Ruet stressed the importance of these types of roundtables, as “business decisions are based on this kind of relationship and understanding between people.”

Global Energy Supply Shock Roundtable

On March 30th, Joël Ruet sat down with senior Chinese and international executives and experts for a roundtable discussion on the current energy supply and demand structure. The discussion touched on how Russia’s invasion of Ukraine reshaped Europe’s energy supply landscape and how the global energy structure has evolved since, taking into account sanctions imposed on Russia and production restriction policies adopted by oil producing countries in the Middle East. The session also tackled how to maintain the stability of the international energy market and what the implications of these changes are on energy transitions efforts around the world.

The session moderated by ZHONG Shi, CGTN Anchor, was joined by :

Denis DEPOUX, Global Managing Director, Roland Berger
Gianni Di GIOVANNI, Chairman, ENI China B.V. & Executive Vice President, ENI
MENG Zhenping, Chairman, China Southern Power Grid
Joël RUET, Chairman, The Bridge Tank & Associate Researcher, Tech for Change Chair Ecole Polytechnique
Ernie THRASHER, Director, Xcoal Energy & Resources
ZHONG Baoshen, Chairman, Longi

According to Joël Ruet, the energy crisis is an opportunity to better understand the strengths and weaknesses of current energy structures, what is resilient, and what is most affected by these shocks. “We should turn the crisis into an opportunity,” Mr Ruet stated, adding that “in the energy transition, we must be inclusive and united.” What is stirking in the EU’s response over the last year is that it was not just a short term shock answer but that it paves the way to structural acceleration in energy transition, notably on pure renewables or gas. The fact that various countries have various energy strategies on nuclear as renewable or hydrogen uses or mobility engines hasn’t prevented quantum jumps in taxonomy and serves a positive complement thus hedging in European energy transitions.

Takeaways from the plenary session

BOAO Forum’s plenary session saw leaders from all around the world taking the stage to discuss current affairs. After stressing that “Russian agression has undermined the world order,” Singapore Prime Minister Lee Hsien Loong insisted that beyond building strong relations with China, Asian countries needed to mesh with one another, highlighting ASEAN’s centrality. Praising the RCEP and trans pacific dynamics, PM Lee called for Asia to always remain an open region building partnerships.

Pedro Sanchez, Prime Minister of Spain, stated that in its upcoming capacity assuming the presidency of the EU, Spain wants to contribute to peace and trust rebuilding. The country wants to focus on having a renewed approach to globalization, one mindful of its environmental footprint and stability, moving beyond sole cost preoccupations. The EU is therefore building a new green and digital industry and will defend its values and interests. China and the EU, though competitors, can also remain partners as far as the sovereignty of countries is respected and a level playing field on competition is upheld. According to PM Sanchez, China and the EU must remain partners economically but also and most importantly work together on reaching the objectives set in the Paris agreement, the SDGs, and providing finance for development and debt risks for developing countries.

Joel Ruet also attended Chinese Premier Li Qiang’s address to BOAO forum delegates. In his speech, Premier Li stated that “without peace, Asia won’t have a bright future,” before adding that “the many issues facing humanity must be addressed through consensus.” To do so, Li Qiang emphasized the role of BRICS countries in enforcing a multilateral rule of law, qualifying as “more just and equitable” than the existing UN system.

Li Qiang stated that “in an uncertain world, China’s way to prosperity is an anchor of certainty,” stressing the importance of China’s growth for developing countries in general and for Asia and the global economy. China’s path forward will “continue the effort of deepening the demand while structuring the supply side in a way that is favourable to foreign investment.”

It is however to be recalled that investments reached a low in 2022 due to China’s zero covid policy, which will have an impact on economic results in the coming two years and weakened foreign confidence in the Chinese market. This short term cycle will have to be absorbed, with medium term prospect looking more encouraging and serving as a transition while the demographic window of opportunity is closing.

Watch Joel Ruet’s analysis of Chinese Premier Li Qiang’s speech for CGTN:

G20/Business 20: Second meeting of the B20 India Task Force on Energy, Climate Change & Resource Efficiency

Posted on 15 March 202321 March 2023 by the_bridge_tank

The Bridge Tank’s presence in New Delhi, India, for the CII Partnership Summit 2023 from 13-15 March saw Joel Ruet, President, The Bridge Tank, take part in the second meeting of the B20 India Task Force Energy, Climate Change & Resource Efficiency. As a member of the task force, The Bridge Tank had participated in its first meeting during the Inception Meeting of the Business 20 (B20) Engagement Group of the G20, on January 24th, 2023, in Gandhinagar, India.

The task force’s second meeting, on March 15^th, raised three central topics: (1) accelerating net zero transitions, (2) a greater overall contribution of green energy, including green hydrogen and ammonia, and (3) an improved access to finance for these transitions. In keeping with one of the objectives of India’s G20 presidency, the task force has stressed the importance of including developing countries in these developments.

Notably, the stress was put on the fact that, while global ESR and non-financial standards as well as technology push through state support is needed, there is a capital cost advanatge for some countries which others do not have. Therefore, even more than human resources support or technology transfer assistance, to include developing countries, there is rather a need for a financial level-playing field, some argued, among which The Bridge Tank. While recommandations that Multilateral Developement Banks and private funds address this seriously were made, part of the debate revolved around the idea of focusing public money onto de-risking, and, The Bridge Tank argues, at involving local, national, and regional financial ecosystems into then de-risked project pipelines.

Besides, if one ventures out of the solutions only fitted for G20 countries – as India’s G20 presidency wishes to have G20 adhere to Africa’s issues for instance – then there is an debate opening up on the unequal data capacity across the world, which may add-up to capital cost inequality. This is a line of contribution we will keep feeding into the task force until its third meeting in April and final meeting in June.

Discussions and feedback between the task force’s first and second meeting raised numerous additional issues; these include establishing global standards for hydrogen, assessing the life cycle and scope for recyclables, setting provisions for domestic and international transactions on carbon and facilitating access to finance and technology. Furthermore, it is crucial to include and recognize the role mico, small, and medium entreprises have to play. As noted by some members of the task force, clear results and actions are required, as the cost of inaction on adaption to climate change would be dire, notably for coastal regions.

The meeting was convened by some of India’s leading industry captains:

Mr Sajjan Jindal, Chairman & Managing Director, JSW Group, chair of the task force
Mr Vineet Mittal, Chairman, Avaada Group, vice chair of the task force
Mr T V Narendran, Managing Director, Tata Steel, vice chair of the task force
Mr Chrstian Cahn von Seelen, Executive Committe memebrr Volskwagen, vice chair of the task force
Mr Jean-Pierre Clamadieu, Chairman of the Board, ENGIE, vice chair of the task force (represented by his head of staff)

G20-Business20-CII Partnership Summit 2023: The Bridge Tank discusses resilient green supply chains

Posted on 15 March 202316 March 2023 by the_bridge_tank

On the last day of this year’s CII Partnership Summit 2023 in New Delhi, India, Joel Ruet, President, The Bridge Tank, took part in a session on ‘Building Resource Efficient & Resilient Green Supply Chains.’

The 28^th edition of the summit organised by the Confederation of Indian Industry (CII) from 13-15 March 2023 dedicated to questions of global trade, economy, competitiveness, sustainability and technology was convened with the theme “Partnerships for Responsible, Accelerated, Innovative, Sustainable, and Equitable Businesses.” This comes as the CII is serving as secretariat of the B20 (Business 20) during India’s 2023 G20 presidency. The Bridge Tank, represented by its president Joel Ruet, was invited by the CII to join in the high level discussions in New Delhi.

On March 15^th, Joel Ruet sat down with Dr Martin Keller, Lab Director & Alliance President, National Renewable Energy Laboratory (NREL), and Mr Ashwani Kumar, CEO, Suzlon Group, in a panel discussion moderated by Mr Christian Cahn von Seelen, Member of the Board and Executive Director, Volkswagen Group Sales India on ‘Building Resource Efficient & Resilient Green Supply Chains.’

During the discussions, Dr Joel Ruet noted that supply chains in a “stabilized world” needed optimization. However, in current times of uncertainty and instability, there is a real need to diversify supply chains and bring in options across countries, industries, and technologies.

This idea was echoed by Dr Martin Keller, who emphasized the need for global synergies on diversifying supply chains with regard to raw material availability, manufacturing capabilities, adoption of clean energy, circular economy & green skilling.

Mr Cahn von Seelen and Mr Kumar highlighted the role of green energy in these resilient supply chains. Mr Cahn von Seelen stressed how important it now was for the world to focus on sustainable energy supply chains to replace petrol. The example Europe has set by entirely changing its energy mix in the span of one year, following Russia’s attack on Ukraine, has shown that drastic changes are possible.

Mr Kumar went a step further, adding that we needed to look not only at how much of our energy consumption was green but how green the generated kilowatt-hour actually was. Such a process must start at R&D stage, enabling greater efficiency and providing a key contribution to green supply chains.