Energy transition represents an opportunity for countries in the Global South

Developing nations hold most of the mineral reserves essential for clean energy and already have experience and a pioneering spirit in creating new markets, such as bioenergy and electric cars, according to participants in a panel discussion promoted by FAPESP at COP30.

By Elton Alisson, from Belém  |  Agência FAPESP – The need to accelerate the energy transition – one of the main themes of COP30 – represents a unique opportunity for countries in the Global South. They can attract investment and talent, as well as develop their industries, since they have most of the essential mineral reserves for clean technologies. They also have experience and a pioneering spirit in creating new markets, such as Brazil’s bioenergy and China’s electric vehicles. However, to implement this plan, it will be necessary to increase scientific and technological cooperation between these countries and seek new sources of financing for developing technologies and innovations, among other things.

These points were discussed by experts from South Africa, Brazil, China, and India during a roundtable on the challenges and opportunities of South-South cooperation in decarbonizing the global economy by 2050. The discussion was organized by FAPESP and took place on November 15 at the Brazil Pavilion during the 30th United Nations Climate Change Conference (COP30).

“Developing countries best understand each other’s challenges. Since we face many common challenges related to climate, the environment, and economic development, it’s crucial that we support each other by sharing the best available knowledge, technologies, and solutions,” said Pu Wang, a professor at the Institute of Science and Development at the Chinese Academy of Sciences (CAS).

“Countries such as Brazil, India, and South Africa, for example, have vast territories, which is excellent for developing wind and solar energy and also for attracting investments in renewable energy and qualified professionals in the field,” said the expert, who is director of research at the CAS Institute of Sustainable Development Strategies.

In Wang’s opinion, China’s success in developing the electric car industry illustrates how countries in the Global South can benefit from opportunities in energy transitions.

“Twenty years ago, most American countries believed that climate change was an obstacle to economic development. But what happened in China showed us that this can be a great opportunity. Today, the country is a major exporter of automobiles. This was totally unbelievable ten years ago and is due to the development of electric vehicles,” said Wang.

“I believe that other countries in the Global South can, through communication and exchange with China, achieve similar feats in the development of their industries,” he said.

Research funding

Wang pointed out that research funding has played a crucial role in the development of renewable energy in China and will be key to driving the creation of new technologies in this area by other countries in the Global South.

To take advantage of this opportunity, developing countries can start with easy steps, such as manufacturing solar panels and batteries or assembling products. If they continue to invest in scientific and technological research, their capacity will increase in both the initial phase and the development of more advanced technologies, Wang advised.

“This represents a very positive cycle for modernizing our industries, improving our infrastructure, and ultimately dominating the economy and achieving the energy transition. I believe this is a once-in-a-century opportunity for these countries.”

Dipak Dasgupta, a member of the Energy and Resources Institute (TERI) in India and the Scientific Council of COP30, pointed out that one area in which countries in the Global South can collaborate is in the search for solutions to improve and modernize their high-voltage power grids. These grids are crucial for renewable energy because they enable the efficient transport of electricity from generation areas, such as solar and wind farms, to consumption centers with minimal energy losses.

“The capacity of high-voltage transmission grids to handle renewable energy is a problem common to all of us [countries in the Global South]. In India, we face this very intensely. When you reach about 26% renewable capacity, the problem of high-voltage transmission arises. This is very complex, but we’ve already solved it,” said Dasgupta.

“Therefore, there’s absolutely no reason why our engineers in India shouldn’t talk to power grid operators in Brazil or China, for example. There’s a lot of knowledge that can be shared.”

The Indian expert was the chief economic advisor to the Indian Ministry of Finance. There, he established a climate finance unit and led financial negotiations at several COPs. He believes this is one of the main obstacles to developing new renewable energy technologies in the Global South.

“We need a special instrument to start financing. Otherwise, we won’t move on to the next level,” he said.

Additionally, he believes that financial institutions must be organized to strategically invest in projects that develop renewable energy technologies in developing countries.

Just transition

Harald Winkler, a professor at the University of Cape Town’s Faculty of Economics in South Africa, said that ensuring a just energy transition is crucial to plans to accelerate the renewable energy industry in countries in the Global South.

“Framing the energy transition as just is absolutely crucial. The goals can’t be just to have net zero emissions so as not to exceed 1.5 °C global warming. It’s necessary to encourage the participation of communities to lead the process of determining their future,” he said.

Thiago Barral, former national secretary of Energy Transition and Planning at the Brazilian Ministry of Mines and Energy, pointed out that another challenge for developing countries to take advantage of the opportunities presented by the urgency of the energy transition is to develop national and regional net-zero emissions scenarios.

“Once developing countries enable the capacity to build scenarios and understand how their specific conditions and circumstances can be addressed in the context of a global transformation, I believe this will give us the basis for strengthening South-South cooperation.”

The event was moderated by Gilberto Jannuzzi, a professor at the State University of Campinas (UNICAMP) and advisor to the Scientific Directorate for FAPESP’s Energy Transition Program.

“The goal was to bring in the perspective of key players who could be potential partners in accelerating and promoting innovation in relation to decarbonization and the energy transition,” he said.