Energy transition is not a rival to energy security but a complementary path, noted Fatih Birol, Executive Director of the International Energy Agency (IEA), during his address at the World Economic Forum’s Annual Meeting in Davos on Tuesday. He emphasised that both objectives can coexist “if done properly.”
Birol highlighted diversification as the cornerstone of energy security and transition, asserting that a successful transition strengthens energy systems, makes energy more secure and resilient, keeps prices affordable, and reduces dependency on other nations.
“A successful energy transition is the one which makes the energy system much more secure and resilient, makes the energy prices affordable, and reduces the reliance on other countries,” Birol said.
He also stressed that energy transition is not solely about reducing emissions but also about fostering prosperity and ensuring secure energy access globally.
Challenges in Clean Energy and Policy Shifts
The global clean energy landscape faces growing challenges as policymakers prioritize affordable and reliable energy over reducing carbon footprints. Birol cited the shift from global cooperation to heightened competition, particularly between the US and China, as a key factor.
Adding to the complexity, US President Donald Trump’s withdrawal from the Paris Climate Agreement and renewed focus on fossil fuel production signal a shift away from energy transition goals.
“Diversification Is the Magic Word”
Despite these challenges, Birol remains optimistic about the future. He pointed to advancements in clean technology, including falling battery costs and a resurgence in nuclear power.
“Nuclear power, as IEA predicted three years ago, is making a strong comeback,” Birol said, adding that global investments in electricity now surpass those in oil, gas, and coal combined.
He advocated for broader diversification—technological, geographical, and in supply chains—as essential to achieving energy security and transition. “For me, the magic word for energy security is diversification,” Birol reiterated.
Germany and Japan: Lessons in Transition
Birol critiqued Germany’s decision to phase out nuclear power, describing it as a “historical mistake.” He argued that reliable nuclear plants and their cost-effectiveness could have facilitated a smoother energy transition. Such decisions, he warned, hinder progress and underscore the need to avoid dogmatic approaches.
To strike a balance between energy transition and security, Birol emphasized the need for establishing global processing facilities and diversifying energy sources to ensure stability and prosperity.