IEA Launches Global Commission on Energy Transitions

The International Energy Agency (IEA) has established a new Global Commission on People-Centered Clean Energy Transitions to examine how to design and implement policies that lead to a more equitable energy system. 

Teresa Ribera, Spain’s Deputy Prime Minister and Minister for the Ecological Transition and Demographic Challenge, and Alexandre Silveira de Oliveira, Brazil’s Minister of Mines and Energy, will co-chair the commission. The commission will gather energy, climate, and labor leaders from around the world, along with high-level representatives from international organizations, as well as Indigenous, youth, and civil society groups. Commission members will identify strategies to ensure energy transition policies are fair and affordable. They will also establish mechanisms to monitor and measure the effectiveness and social impacts of these policies.

The new commission was first announced at the Global Summit on People-Centered Clean Energy Transitions held in April. The IEA will play a fundamental role as the commission’s main coordinator and administrative body. It will also undertake research and analysis tasks as requested by the Commission’s members. Deputy Prime Minister Ribera emphasized that ensuring a just energy transition is a shared responsibility for global leaders. She said that a successful transition not only needs to ensure access to affordable energy but also to reduce inequalities and generate redistributive economic opportunities. Furthermore, she highlighted the Global Commission’s job to coordinate the work toward this shared goal.

Similarly, Minister Silveira underscored that the energy transition goes beyond technological replacement. “Global energy leaders must commit to making this transition just and inclusive, envisioning it as a new model of economic and social development to ensure that no one is left behind,” he stated.

The first Global Commission on People-Centered Clean Energy Transitions was established in 2021. When it initially convened, the group issued a series of recommendations that were useful for global leaders who took part in the COP26 Climate Change Conference in Glasgow. This list included 12 recommendations covering issues on decent job conditions, social development, equity and inclusion, and public participation.

“Clean energy transitions will only succeed if their advantages are shared with all parts of society – including communities that have historically been at the margins of the energy economy. We look forward to the Global Commission’s findings and guidance on this critical issue, which will strengthen policy discussions on this topic at national and international levels,” said Fatih Birol, Executive Director, IEA.

Mexico’s Energy Transition

So far, Mexico has fallen behind on the energy transition and the execution of its GHG emissions reduction targets. To achieve a successful energy transition and catch up with advanced economies, Mexico needs to modernize its energy sector, reduce reliance on fossil fuels, and ensure sustainability, highlighted Leonardo Beltran, Board Member, Sustainable Energy for All, during last year’s Mexico Business Summit.

IEA data from 2022 shows that Mexico’s energy matrix is largely sustained by fossil fuels, such as oil and natural gas. However, analysts point out the low profitability of this model due to the decline in oil production and the country’s high dependency on natural gas imports. Specialists from the Center for Economic and Budgetary Research (CIEP) highlight that PEMEX’s production fell by 35.4% from 2014 to 2023, while hydrocarbon reserves decreased by 46.4% in the same period.

In this regard, a recent IEA report revealed that Mexico will be the country with the greatest loss of crude oil production capacity in the world by 2030. According to the study, this decline in production is attributed to the lack of investment in exploration and development of new reserves, a problem that has affected PEMEX’s operations and its ability to meet established goals. The report projects that Mexico’s production of crude oil, condensates, and natural gas will reach approximately 1.5MMb/d by 2030, well below the 1.833MMb/d recorded until May 2024. This figure is lower than the target of 2MMb/d set by the federal government for this six-year term.

According to the Mexican Solar Energy Association (ASOLMEX), Mexico has the potential to have 30GW of installed solar capacity by 2030, of which 60% corresponds to large-scale capacity with projects like Puerto Peñasco, and 40% to distributed solar generation capacity. Regarding Mexico’s international commitments, Climate Initiative Mexico points out that to meet the Paris Agreement goals of reducing GHG emissions by 35% by 2030, solar and wind energy capacity must be increased from the current 12GW to at least 44GW.

In this context, CIEP underscored that the country’s change of government represents an opportunity to accelerate the energy transition and integrate PEMEX and CFE into global trends. Claudia Sheinbaum, President-elect, underscored that her government will seek to accelerate the country’s energy transition and ensure clear rules for investments within the sector. “Our goal is to advance the energy transition at a faster pace. It is feasible within a scheme where CFE’s participation is 54% and the remaining 46% is from private entities, with very clear rules for both parties,” she said during a press conference in May.