Oceans cover 71% of the planet&rsquo;s surface and are a life support system making up 97% of the world&rsquo;s water and 95% of all space made available for life. Oceans are a key climate regulator, sequestering a third of all carbon emitted by human activity a year, controlling the weather and mediating temperature. With this alone, their importance to our existence is paramount.&nbsp;In this episode of the Next Five, C&eacute;line Cousteau, Karine Measson, and Miguel Stilwell d'Andrade explore the oceans as a blue economy, a climate regulator, and a power generator all while reflecting on the importance of ocean preservation.

The ocean underpins our planet’s life-supporting systems. It produces about half the oxygen on Earth, mostly from plankton, it is one of our greatest carbon sinks, and it provides food to billions. Without it, there would be no humanity. Yet humans are wreaking havoc on the ocean and the marine life within. For decades, the ocean has struggled to endure the increasing impact of human development, suffering the ravages of overfishing, pollution from plastic and other chemical substances, and the impacts from excessive greenhouse gases (GHGs) and global warming.The number of overfished stocks has tripled during the last 50 years, and more than one third of all the world’s assessed fisheries are now <a href='https://www.fao.org/3/cc0461en/online/sofia/2022/status-of-fishery-resources.html' target='_blank'>pushed beyond their biological limits</a>. Meanwhile, at least 14mn tonnes of plastic ends up in the ocean every year, with plastic accounting for <a href='https://www.iucn.org/resources/issues-brief/marine-plastic-pollution' target='_blank'>80 per cent of all marine debris</a> found from surface waters to deep-sea sediments. But our oceans could become the next ally in the battle against global warming, providing us with clean, renewable energy while becoming a showcase for sustainability via regenerative ocean tourism and regenerative ocean farming.<h2>The power of ocean-based energy</h2>As a source of energy, global installed offshore wind capacity is expected to reach <a href='https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/how-to-succeed-in-the-expanding-global-offshore-wind-market' target='_blank'>630GW by 2050</a>. It also matches the capacity factors of efficient gas-fired power plants, coal-fired power plants in some regions, and it is about double those of solar photovoltaic power. Yet, for all its potential, current capacity is still relatively low.Ocean Winds, a 50-50 joint venture between EDPR, the renewables arm of global energy company EDP, and French utility company Engie, has set out to close the gap. More than a dozen miles off Scotland’s north-east coast, a steel platform rises high above the ocean, its surface covered in storage containers and machinery. But this is not an oil rig; it is a service area for 100 towering Ocean Winds turbines that are now <a href='https://www.oceanwinds.com/projects/moray-east/' target='_blank'>supplying</a> 1.43mn Scottish homes and businesses with clean energy.

“We are facing the world’s biggest global challenge: climate change,” says Bautista Rodriguez, Ocean Winds’ CEO. “And our objective at Ocean Winds is to keep developing one of its key solutions: offshore wind energy – reliable and secure renewable energy.”With at least 15 projects in seven countries now under way, the company has a gross capacity of around 17GW – the equivalent of 11 nuclear power stations – which will provide renewable energy while saving millions of tonnes of CO2 emissions every year. “Both our portfolio and our international team keep growing, leading us to keep unlocking the potential of offshore wind energy all over the world,” Rodriguez says.But Ocean Winds is also opening up greater possibilities of clean energy generation. Off the coast of Viana do Castelo in Portugal, WindFloat Atlantic is continental Europe’s first floating offshore wind farm, <a href='https://www.windfloat-atlantic.com/the-wind-farm/#project' target='_blank'>generating 222GWh of clean energy</a> between its inauguration in 2020 and August 2023.Floating offshore wind farms can tap into the ocean’s strongest and most consistent winds, which are located over waters more than 60m deep. And because the turbines and platforms can be assembled in port and towed to their final location, they are cost efficient and have less impact on marine life than fixed turbines during construction.As the world wakes up to the ocean’s potential to provide renewable energy, businesses should turn their expertise and know-how to help heal the seas as part of an energy transition based on environmental equity.

<h2>Future-fit ocean farming</h2>Regenerative ocean farming has the potential to restore the world’s fish stocks while using seaweed and other marine plants as a source of nutrition and of carbon sequestration. “The ocean is an invaluable resource and home to some of the world’s most incredible species,” says <a href='http://www.treadright.org/the-oceans-power-to-help/' target='_blank'>Celine Cousteau</a>, a documentary filmmaker and a leading champion for the environment. “It is also a great source of hope for our future.” Coastal ecosystems such as mangroves and seagrasses are highly efficient when it comes to storing carbon, and can <a href='https://ethicalunicorn.com/2020/10/14/how-regenerative-seaweed-sequesters-carbon-keeps-oceans-clean-tackles-climate-change/' target='_blank'>absorb up to 20 times</a> more CO2 per acre than forests on land. Kelp is <a href='https://earth.org/kelp-forests-carbon-sequestration/' target='_blank'>particularly efficient</a> at capturing carbon, and <a href='https://www.bbc.com/future/article/20210406-how-kelp-can-help-solve-climate-change' target='_blank'>efforts</a> are underway to grow the plant on a greater scale.

In just one example of how regenerative ocean farming can address both environmental and social issues, <a href='https://www.greenwave.org/' target='_blank'>GreenWave</a>, a not-for-profit organisation in Connecticut, produces both shellfish and seaweed while benefiting the surrounding marine environment. Since launching its first regional training program in 2017, GreenWave has trained and supported more than 900 emerging ocean farmers and hatchery technicians. Farmers can access technical support services such as farmer-only workshops and direct engagement with experts via an online community. The goal is to ensure that under-resourced communities directly affected by climate change can benefit as the industry grows.

“After the cod stocks crashed in my home of Newfoundland, I was face-to-face with the reality that there would be no jobs on a dead planet,” says Bren Smith, GreenWave’s co-founder. “So I went on a journey of ecological redemption.”At the same time, GreenWave’s Kelp Climate Fund is a subsidy for ocean farmers to support climate impacts, including carbon, nitrogen and reef restoration. In return, farmers provide key monitoring data on planting, growth rates and harvesting of kelp.Through leadership and collaboration, companies can help turn around decades of destruction of the marine environment, focusing attention on the ocean’s potential to provide us with clean energy while restoring its health through regenerative farming.

More than two centuries of dependence on fossil fuels to drive the global economy has left humanity facing an existential challenge: transition to a clean economy underpinned by a radical change of mindset &ndash; or push the planet beyond the point of recovery. The speed at which we pull back from the brink will have a profound effect on our ability to adapt to an already warming climate.&nbsp;J&uacute;lia Seixas, Pro-Rector for Sustainability at Nova University Lisbon, says that current plans envisage a rise in global temperatures of 2.7C in the coming decades &ndash; enough to leave as much as 30 per cent of the population living outside the human climate niche, or the climatic zones where humans flourish. &ldquo;Even if I had a magic wand to stop greenhouse-gas emissions tomorrow, we would still have to live with the impact of global warming,&rdquo; she told participants of We Choose Earth, an event organised by global energy company EDP in Madrid recently.

Cecilia MoSze Tham, Co-founder and CEO of Futurity Systems, which conceptualises, tests and builds solutions designed for tomorrow&rsquo;s world, says that an important part of that ambition should revolve around circular and regenerative economic and business models. One example is the oil and gas industry, which Tham argues should adapt tools and know-how to tap into geothermal resources. &ldquo;Sustaining is not enough,&rdquo; she said. &ldquo;We need to think holistically and longer term.&rdquo;&nbsp;The event gathered remarkable thinkers, doers and artists including Amal Clooney, Adam Grant, C&eacute;line Cousteau and Peter Frankopan, and brought together a broad range of views and ideas about going further and faster in the energy transition.&nbsp;Miguel Stilwell d&rsquo;Andrade, EDP&rsquo;s CEO, believes that accelerating the energy transition requires a fundamental shift in human mindset. &ldquo;It is a bumpy ride but it is imperative,&rdquo; he said.&ldquo;If we all embrace and incorporate that belief into our day-to-day lives, and if we are action-oriented towards that goal, then we will increase the odds of ensuring a better future for all.&rdquo;

Amal Clooney, Barrister and Co-founder of the Clooney Foundation for Justice, stressed the need for a just energy transition to minimise the impact of global warming &ndash; particularly on the most vulnerable. Global warming has already forced millions to leave their homes, producing a new generation of climate refugees. In response, governments, companies and people must promote transparency and accountability in the transition, ensuring respect for human rights. &ldquo;We have to know what the problems are and then have consequences attached to bad behaviour,&rdquo; she said.

One emerging theme was that reaching ambitious goals would require a shake-up of today&rsquo;s business models. &ldquo;We&rsquo;ve been living in a false paradigm of mathematics that doesn&rsquo;t make sense any more,&rdquo; said Lubomila Jordanova, CEO &amp; Founder of Plan A, which uses data and science to help accelerate corporate transformation and ESG reporting. &ldquo;We have adjusted the definition of success to GDP and GDP growth, but we need to look at the totality of the existence of the business, including the waste that is created in their offices, the residue of the materials&hellip; The status quo is no longer relevant.&rdquo;&nbsp;Kristian Ruby, Secretary-General of Eurelectric, the sector&rsquo;s representative body in Europe, argued that it was also essential to give investors sufficient clarity and assurance to continue funding the innovation needed to achieve sustainability. &ldquo;People are waiting to see where this regulatory equation will land,&rdquo; he told participants. &ldquo;What we are trying to tell politicians is, &lsquo;Please do not destroy the market, do not destroy the rules that people know so that we can get going, inject the capital into the market and get projects started.&rsquo;&rdquo;&nbsp;Electricity from renewable sources will doubtless form the cornerstone of the energy transition, and electric technology has already proved more efficient than traditional combustion engines. But does nuclear energy have a role to play in the transition?

According to Enrique Dans, Professor of Innovation at IE Business School in Madrid, that question stems from the myth that there is a shortage of materials required for solar panels and other hardware essential to the renewables space. &ldquo;Lithium used to be scarce, but we were not able to find it because we were not looking hard enough. Now that we are looking, we find it everywhere,&rdquo; said Dans.&nbsp;

So why isn&rsquo;t progress greater than it is? Dans and other participants said that one of the missing elements is greater drive by individuals in society. &ldquo;Most of this transition is being led by politicians, and politicians are moving slowly because we, as a society, are not asking them to move more quickly,&rdquo; he said. &ldquo;We need to start thinking of ourselves more as actors of change.&rdquo;

Energy is everything. But the way we generate that energy will determine how successfully we transition to a sustainable economy. Fossil fuels contribute three quarters of all greenhouse gases (GHGs) and nearly 90 per cent of all carbon emissions &ndash; and despite countries and companies&rsquo; commitments, GHGs continue to rise.&nbsp;The transition to clean energy will help combat climate change by eliminating fossil-fuel dependence. But with clean energy such as wind and solar already cost-competitive with fossil fuels, the transition could also transform global systems in ways that have environmental, economic and social benefits &ndash; the three key pillars of sustainable development. Renewable energy can redefine the way humans interact with nature and with each other.&nbsp;Miguel Stilwell d&rsquo;Andrade, CEO of EDP, a global energy company that produces green energy in almost 30 markets, explains that in complex socio-ecological systems, harnessing the full potential of clean energy requires collaboration and adaptation. &ldquo;Long-term partnerships are therefore instrumental to accelerate renewables, promoting decarbonisation at a global scale&rdquo; he says.

As part of its We Choose Earth Tour, which begins in Madrid this month, EDP is using its position as leader in the energy transition to foster a global movement aimed at training and inspiring institutions to play a greater role in the shift to clean energy.The choice of Spain as the starting point is no coincidence: the country generated 42.2 per cent of its energy from renewables in 2022, ending the year with record wind and solar energy production. The share of renewables, including non‑renewable waste, grew from 24 per cent in 2009 to 38 per cent in 2019. Moreover, Madrid is the headquarters of EDP Renewables (EDPR), EDP&rsquo;s renewables arm.

Spain proves how quickly countries can act. But, across the world, companies can help governments transition, redefining today&rsquo;s global systems through collaboration and aligning environmental strategies and goals. For example, in April EDPR partnered with Google to roll out more than 80 distributed solar projects across six US states as part of a commitment to provide sustainably sourced electricity to the world&rsquo;s largest economy.&nbsp;&ldquo;Solar-distributed generation projects will be key not only to ramp up the transition to cleaner energy sources, but also to bring aboard more people and companies to this transition,&rdquo; says Stilwell d&rsquo;Andrade. This partnership is the largest corporate sponsorship for distributed generation signed to date between two companies in the US, and it aims to provide about 650MWp of solar energy to the grid. The portfolio of projects will be partially funded by Google&rsquo;s acquisition of Impact Renewable Energy Certificates (ImpactRECs) &ndash; a tradable, non-tangible commodity created through the deal.&nbsp;The partnership also involves at least 10 per cent of the portfolio&rsquo;s annual revenues being redirected for up to 15 years in the form of direct residential credits, benefiting 25,000 households struggling with a high energy burden. At least 35 per cent of the solar projects will be built in low- and moderate-income communities, spelling job creation and clean energy for the local grid.&ldquo;Through the new partnership with EDP, we aim to introduce models that help reduce energy burden and direct distribution of the financial benefits that result from clean energy projects to under-resourced communities.&rdquo; says Sana Ouji, Energy Lead at Google.Elsewhere, EDPR is collaborating with authorities and residents of Pulau Ubin, a tropical island in Singapore with no access to the grid, to help provide consistent clean energy &ndash; first by addressing the high temperatures affecting solar-panel efficiency; and second, by overcoming the intermittent nature of solar.

The Solar Green Roof project is using greenery in conjunction with solar panels near the island&rsquo;s main village to reduce temperatures and boost efficiency by up to 4 per cent. Meanwhile, a cutting-edge energy storage system, deployed at Pulau Ubin&rsquo;s microgrid and operated by EDPR APAC, will store excess energy throughout the day and discharge it at night or during cloudy or rainy weather. Thanks to these innovations, the microgrid can potentially meet 90 per cent of the energy needs of local residents and businesses with solar power.&nbsp;As a global utility company, EDP is uniquely placed to foster this sort of collaboration, not only as leaders in pushing clean energy but also as drivers of partnerships that can address climate change while transforming global systems along environmental, economic and social lines. &ldquo;Energy providers are at the heart of this transition and have the responsibility to promote and act towards a climate positive planet,&rdquo; says Stilwell D&rsquo;Andrade. &ldquo;We are reimagining the energy sector and driving an innovation-driven acceleration to meet the urgent need for cleaner, more reliable, and more affordable energy for all, leaving no one behind.&rdquo;

Centuries of exploitation of both nature and people have pushed the planet&rsquo;s life-supporting systems to near breaking point. But the twin climate and biodiversity crises will not impact us all equally, with those who have contributed the least to global warming bearing the brunt of climate change and nature degradation.The top 10 per cent of emitters are responsible for close to 50 per cent of all greenhouse-gas (GHG) emissions, while the bottom 50 per cent contribute just 12 per cent.&nbsp;The impact on those suffering the effects of global warming and climate change is also highly skewed. For example, small-island developing states (SIDS) contribute less than 1 per cent of GHGs yet will be hit the hardest by the rising sea-levels and extreme weather caused by global warming.&nbsp;At the same time, poor women and children are up to14 times more likely to be killed by climate-fuelled disasters compared with men; in low-income families, women are heavily reliant on agriculture, which is deeply affected by climate change; women and children also comprise the overwhelming majority of displaced peoples, a group disproportionately affected by global warming.&nbsp;&ldquo;Currently, more than 750mn people lack access to energy, which makes it essential that this energy transition should be conducted in a fair and inclusive manner&rdquo; says Vera Pinto Pereira, Executive Board Member and Foundation President at EDP, a global energy company that produces green energy in almost 30 countries.

To address these injustices, those at the forefront of the energy transition have a responsibility to ensure that their policies and actions are implemented fairly, closing the gap that environmental injustice has opened up between north and south, rich and poor, as well as across genders. Otherwise, the transition towards net zero runs the risk of exacerbating, rather than healing, these divides.&nbsp;Global energy company EDP has taken up that challenge, positioning the issue as one of the dominant themes in this month&rsquo;s We Choose Earth Tour, an event designed to foster a global movement aimed at training, inspiring and energising institutions to play a greater role in the shift to clean energy.

EDP has announced investments of &euro;25bn between now and 2026, with the vast majority (&euro;21bn) focused on renewables, and is investing directly into communities in all the countries where it operates, across four continents, to help secure a just energy transition.&nbsp;With the main focus on initiatives to combat energy poverty, promote access to energy and energy efficiency, and implement solutions for access to solar energy or electric mobility, the group has committed to spending more than &euro;200mn by 2026 on a diverse range of programmes to support communities that bear the brunt of the energy burden.&nbsp;&ldquo;One of our primary focuses is to promote greater efficiency and energy inclusion, especially in the most vulnerable communities,&rdquo; explains Pinto Pereira.

In Mozambique, one of the world&rsquo;s poorest countries, 58 per cent of the population is under 19. Although almost all girls attend primary school, only 10 per cent complete secondary. Some 40 per cent have their first child before 18, and Mozambican girls have a 70 per cent probability of becoming single parents and household providers before they reach 35. It is a cycle of poverty that affects generation after generation.&nbsp;Girl Move, a completely sustainable academy powered by solar energy and clean energy solutions, helps young women in Mozambique to access education and build careers through a mentorship programme. Part of EDP&rsquo;s A2E (Access to Energy) assistance programme, Girl Move is helping to change outcomes by investing in the multiplying effect of girls' education and in leadership training.&nbsp;In Nigeria, Koolboks, another project supported by the A2E CSR Fund, is changing lives through a sustainable model to finance off-grid solar refrigerators for female fish-traders, who can lose around 30 per cent of their product due to a lack of affordable, reliable refrigeration. Faced with an unpredictable grid, traders use diesel generators, which are harmful for the environment and expensive. This project aims to provide 150 affordable solar-powered Koolhome refrigerators in eight markets across Lagos.&nbsp;Through programmes such as these, companies involved in the energy transition can lead the way on environmental and ecological justice, ensuring that the path towards net zero becomes an opportunity to narrow the social divide rather than widen it.

Europe risks missing its climate targets without greater regulatory certainty to encourage investment, according to experts. &ldquo;Regulatory stability and clarity are a must to achieve the ambitious renewable growth targets set at EU [level],&rdquo; says Rui Teixeira, Group Chief Finance Officer at the global energy company EDP. &ldquo;These are capital-intensive and very long-term projects, [with] above 30 years useful life, so the investment decision relies on having a stable regulatory framework.&rdquo;Following energy price hikes prompted by Russia’s invasion of Ukraine, several European countries have considered imposing electricity generation windfall taxes that could serve as a disincentive for investment. A draft plan in Germany last November was said to put billions of euros of backing at risk.<a href='https://www.rechargenews.com/wind/billions-in-investments-at-risk-germany-told-energy-price-caps-may-hurt-green%20-targets/2-1-1360240' target='_blank'>1</a> In Britain, RenewableUK, an industry body, warned a windfall tax announced as part of the government’s Autumn Statement &ldquo;could severely deter investment in much-needed new renewable energy projects.&rdquo;<a href='https://www.renewableuk.com/news/623374/Windfall-tax-risks-severely-damaging-investment-in-vital-renewable-energy-projects-.htm' target='_blank'>2</a>The EU, meanwhile, has agreed a €180 per MWh cap on the revenues due to inframarginal power generators such as wind and solar plants. &ldquo;Although implementation of the revenue cap on inframarginal power generators isn’t until February [2023], already we see a patchwork of moves across Europe,&rdquo; says Dries Acke, Policy Director at SolarPower Europe, which represents Europe’s solar sector. &ldquo;It has created uncertain conditions for investors.&rdquo;

The warnings come amid lacklustre results in European government power auctions. In Spain, an auction for 3.3GW of renewable energy capacity saw just 50MW being handed out after the government capped offers at a price that developers were not willing to accept.<a href='https://renewablesnow.com/news/only-50-mw-awarded-in-spains-33-gw-renewables-auction-805767/' target='_blank'>3</a> Germany’s latest solar-power auction also failed to live up to expectations, with only 609MW of 890MW being awarded.<a href='https://www.cleanenergywire.org/news/solar-power-auctions-germany-again-fail-meet-governments-ambitious-capacity-targets' target='_blank'>4</a>Acke said developers were eschewing government schemes and taking their chances on merchant markets. &ldquo;We don’t necessarily see auction results like those seen in Spain and Germany as a signal of lowered performance for the sector,&rdquo; he says. &ldquo;Developers are simply selecting projects which sell their power on the free market on a merchant basis. This can sometimes be a more attractive option than auctions.&rdquo;<h2>Lack of confidence</h2>However, lack of confidence in government programmes is of concern given the need to rapidly ramp up investment in energy transition infrastructure. &ldquo;Europe has been under-investing in the electricity grid over the past few years,&rdquo; says Pierre Tardieu, Chief Policy Officer at the industry association WindEurope. &ldquo;Europe is investing more or less €40bn per year and it needs to be closer to somewhere between €66bn and €80bn.&rdquo;Teixeira says the main problem for the energy transition is not the availability of cash. &ldquo;We have seen a significant amount of capital, mostly in the form of debt but also some equity in the early part of 2022, flowing into the energy transition,&rdquo; he says.

EDP alone issued €2.2bn in green bonds last year, Texeira adds. &ldquo;EDP was a pioneer in this area with its first issuance in 2018. Since then, we have so far completed 13 green issuances, raising €9.8bn euros in total. The issue is not finding financing but the cost of it, which has increased significantly.&rdquo;Borrowing costs can be affected by regulatory uncertainty as lenders price in the risk of changes to the profitability of projects. &ldquo;In moments when urgent intervention may be needed, particular care is required,&rdquo; Teixeira warns. &ldquo;We understand temporary measures to cap power prices and to protect consumers, but unrealised profits by generators cannot be clawed back, as clearly stated by the EU Council Emergency Regulation on High Prices. Yet this is happening in countries such as Romania or Poland.&rdquo;<h2>Taxing unrealised profits</h2>Regulators in such markets &ldquo;are disregarding the fact that prudent investors may have already sold their energy at low prices through hedges done well before 2021,&rdquo; Teixeira says. &ldquo;Since those hedges are not being properly accounted, producers are being taxed for unrealised profits and recording losses for every MWh they produce. This not only leaves affected companies with less cash available to invest, but also discourages investors from accelerating renewables installations.&rdquo;Acke at SolarPower Europe says an upcoming EU market design review &ldquo;will be an opportunity to reinforce a stable regulatory framework that accelerates investments in renewables and flexibility.&rdquo; In addition, he says, &ldquo;it’s imperative that the [inframarginal power generation] cap ends as planned in February 2024.&rdquo;&ldquo;There is a commitment from policymakers and the industry to deliver 2030 targets and bring its value to consumers [through] lower energy costs, security of supply and a greener Europe,&rdquo; concludes Teixeira. &ldquo;The energy sector, including EDP, is striving to be part of the solution, while ensuring that the climate emergency is being properly addressed through the deployment of renewable technologies. Companies, governments and civil society need to work hand in hand in promoting a stable environment in which we must not lose track of long-term decarbonisation targets.&rdquo;

Corporations are being urged to &ldquo;walk the talk&rdquo; on decarbonisation following this year&rsquo;s Climate Change Conference at Sharm El Sheikh, Egypt. Current rates of progress on climate are nowhere near sufficient to meet the goals outlined by the Intergovernmental Panel on Climate Change (IPCC). &ldquo;If we want to limit the temperature increase to 1.5C on a global scale, we will collectively need to be adding more than 500GW of renewables per year between now and 2030,&rdquo; says Miguel Setas, Executive Board Member at EDP, a global energy company and a leader in renewables and sustainability.

Despite being well above long-term trends, the increase in global renewables capacity in 2021 was under 257GW, barely half the amount recommended by Setas. Meanwhile, European grid operators are clamouring for &euro;400bn to upgrade electricity networks for low-carbon operations. In April, the FT reported that the latest report from the IPCC &ldquo;was as sobering as any produced by that body to date&rdquo;.Since the 2015 Paris Agreement, a growing number of institutional investors have publicly thrown their weight behind climate action &ndash; but &ldquo;there is limited evidence that this attention has directly affected emission reductions&rdquo;, the IPCC report warned. In September, London-based think tank InfluenceMap said European pension funds do not appear to be engaging proactively with emerging efforts by EU and UK policymakers to create sustainable and climate finance-related policy. At the same time, industry associations representing the pensions sector are cautious toward or opposing developing policy, says InfluenceMap.<h2>Doing more damage than ever</h2>David Wallace-Wells, bestselling author of The Uninhabitable Earth: Life After Warming, says that while recent years have seen action on climate moving quickly, it is not quick enough.

&ldquo;What that means is we are doing more damage to the future climate of the planet this year than we have done any previous year in human history. We&rsquo;re expected to reach a new peak next year, and probably the year after that, as well. It&rsquo;s perverse to look at that trend and say we&rsquo;re moving in the right direction.&rdquo;Faced with worsening weather events and increasingly dire warnings from climate scientists, EDP is doubling down on climate-related investments, says Setas. The company&rsquo;s 2021&ndash;2025 business plan foresees an investment of around &euro;24bn in the energy transition, &euro;19bn of which is allocated to renewable energy projects. &ldquo;We&rsquo;ve been delivering that plan, doubling the annual rate at which we install new renewable capacity to 4GW. At this point, half of our total additions target of 20GW is already secured, which is a very significant milestone,&rdquo; Setas adds.EDP's global sustainability strategy is focused on leading the energy transition, empowering communities, protecting the planet, mobilising partners, and boosting a strong environmental, social and corporate governance culture, Setas explains. The strategy is being supported with actions such as providing access to energy in emerging economies, transitioning to 100 per cent electric vehicle company fleets, investing in reforestation and encouraging suppliers to commit to sustainability goals.&nbsp;EDP’s commitments have just been recognized by the 15th consecutive year by S&P Dow Jones Sustainability Index as the number one company in the world amongst integrated electric utilities.<h2>Focusing on a just transition</h2>EDP&rsquo;s investments in renewables and focus on empowering communities have put it at the forefront of moves to ensure a just transition for people entering a low-carbon world. In Portugal, for example, EDP embarked on professional reskilling, job creation and other social support measures after closing the country&rsquo;s biggest coal-fired power plant, in a project that has been selected by the World Economic Forum as a case study of community involvement.In developing economies, too, EDP is sharing the benefits of clean energy with local communities. The company has contributed more than $200,000 to community projects benefiting villagers close to a 168MW solar project in the Vietnamese province of Ninh Thuan, for example. The contribution has helped create two roads totalling 1.5km, connecting the village to the outside world. &ldquo;Before we built this road it was very hard for the local people to transport agriculture,&rdquo; says Nhi Hoang, MarComms and Sustainability Manager at the EDP subsidiary EDPR Sunseap in Vietnam.The construction and maintenance of solar farms also creates local jobs, Nhi says. &ldquo;As we develop more solar or wind farms, we hope to empower the local community with either skills or some other form of benefit,&rdquo; she adds. Getting community buy-in will be key for scaling up renewables deployment to the level needed for the energy transition. &ldquo;These investments will require a special attention to the local communities,&rdquo; concludes Setas. &ldquo;We need solutions of stability, safety and security for the populations where we are developing these.&rdquo;

The Paris Agreement goal of limiting global temperature to 1.5C above pre-industrial levels is unreachable without an immediate scale-up of energy transition technologies, experts say. &ldquo;The good news is that we have seen progress &ndash; but it is linear progress,&rdquo; says Roberto Bocca, Member of the Executive Committee and Head of Energy, Materials and Infrastructure at the World Economic Forum. &ldquo;The progress we need to address the challenge is exponential.&rdquo; Changing the energy system quickly enough to avoid the worst impacts of climate change will require an investment &ldquo;in the trillions per year for multiple years&rdquo;, he says. &ldquo;The task is huge.&rdquo;

Last year saw 294GW of renewable energy capacity installed worldwide. Although this was a record, with EDP alone installing 2.6GW of wind and solar, it was only about 6 per cent above the almost 277GW of capacity that came online in 2020, marking a slowdown in installation rates at a time when the buildout of renewable energy should be accelerating.&nbsp;<h2>Little impact on fossil fuels</h2>Furthermore, primary energy use worldwide also increased by almost 6 per cent in 2021, so the additional renewable capacity barely had any effect on fossil fuel consumption. The International Energy Agency expects renewable capacity to grow by a further 8 per cent in 2022, topping 300GW for the first time. But the IEA also says global capacity additions of wind and solar PV need to almost double current forecasts for the next five years if the world is to achieve net zero emissions by 2050, in line with the requirements of the Paris Agreement.Meeting this objective will require not only much greater investment in renewables but also an increased focus on areas such as energy efficiency and demand, Bocca says. &ldquo;We know there is the possibility of adding efficiencies in the order of 30 or 40 per cent,&rdquo; he says. &ldquo;Either we go for that, or we will pay more. We cannot think it will be secure, renewable and cheap. There are real trade-offs.&rdquo;&nbsp;Much of the investment and work in moving towards net zero needs to be done this decade, because any further delays will make it practically impossible to reach the target in time. This timeframe is also important because of innovation, which may be critical in achieving climate goals but will need time to reach fruition.&nbsp;Current attempts to create almost limitless clean energy through nuclear fusion, for example, could fail because the Environment is not expected to be ready for commercialisation before the end of this decade, and could take several more decades to scale. But, says Stilwell:

<h2>Scaling up innovative technologies</h2>This includes relatively new but rapidly growing technologies such as hybrid plants, floating solar, floating offshore wind and hydrogen made from renewable energy. EDP is already pioneering these technologies with projects such as the first floating wind project in continental Europe, floating solar plants in Portugal and Singapore, 1.3GW of hybrid schemes combining sun, wind and water, and plans to invest in 1.5GW of renewable hydrogen by 2030.EDP is fortunate in that its home market of Portugal is committed to the energy transition, with around three fifths of electricity generation coming from renewable sources. &ldquo;Some people were a bit sceptical or cynical about the fact that Portugal was investing so much in renewables,&rdquo; Stilwell says. &ldquo;Today, it looks like an extremely smart decision, because the Portuguese domestic consumer has seen a reduction in prices. There is a surplus being generated in the system, which is being given back to the consumer.&rdquo;The Portuguese experience has allowed EDP to become a global leader in renewable energy, with a presence in 29 countries worldwide, and shows the value of relying more on locally sourced renewables at a time when the conflict in Ukraine is driving up the price of energy across Europe. European policymakers are hoping to speed up renewable energy adoption on the continent with REPowerEU, a package of measures designed to make Europe independent from Russian fossil fuels before 2030.The package includes proposals to streamline the permitting of renewable energy projects and speed up the development of hydrogen plants. Lawmakers and network operators can still do more, Stilwell says. &ldquo;There&rsquo;s a gap between the long-term objective and what needs to be done over the next couple of years,&rdquo; he says.

At the same time, the European Commission is pumping up the debate around market design and putting in place an emergency response to the energy crisis, which includes price caps on renewables. &ldquo;It is clear that we need collective efforts and massive investments to mitigate the rising energy prices and ensure stability of supply,&rdquo; adds Stilwell. &lsquo;We need supportive, stable and predictable regulation, together with simpler and faster permitting, licensing and network interconnection to continue to incentivise investment in clean technologies.&rdquo;