• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 7 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 1 hour Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 2 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 12 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 day Hong Kong protesters appeal to Trump for support.
  • 1 day Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 14 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 15 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
Alt Text

European Carmakers Face Perfect Storm

Much stricter emission caps, high…

Alt Text

Oil Prices Must Drop Sharply To Compete With EVs

The long-term breakeven oil price needs to…

Alt Text

Big Oil To Seal Record Number Of Green Energy Deals In 2019

The world’s biggest oil companies…

Gaurav Agnihotri

Gaurav Agnihotri

Gaurav Agnihotri, a Mechanical engineer and an MBA -Marketing from ICFAI (Institute of Chartered Financial Accountants), Mumbai, is a result oriented and a business focused…

More Info

Premium Content

More Than 50 Global Companies Commit To 100 Percent Renewable Energy

As negotiators from almost 200 nations reached a historic agreement at the COP21 summit in Paris, the world showed that it stood united in its fight against climate change and rising greenhouse emissions.

Under the new agreement, the member nations need to prevent the rise of global temperatures by no more than 2 degree Celsius by the year 2100 and try their best in limiting the temperature rise below 1.5 degree Celsius. Although the emission targets of the individual nations, under the new agreement, are not legally binding, the Paris agreement will be a shot in the arm for the renewables.

Moreover, the historic developments in Paris have put green alliances such as RE100 on the center stage. RE100 is an alliance formed by 53 companies (to date) with a target of using 100 percent of renewable electricity in their day-to-day operations. Being led by the Climate Group and CDP, the RE100 alliance includes corporate giants such as Google, Nike, Microsoft and Coca Cola who have pledged to utilize only renewable power for running their operations.

How does this impact the renewable market?

According to the recent estimates made by the Climate Group and CDP, if all the 53 odd companies of RE100 start using 100 percent renewable electricity, that could lead to an increase of 90.1TWh of renewable electricity generation. This figure, which is almost equal to 1 percent of the total electricity usage by the industrial sector around the world, is indeed impressive. The estimate even shows that if the 1,000 most influential companies start using 100 percent renewable electricity, the renewable electricity market would have an additional demand of 1,700TWh. Related: LNG Glut Worse Than Oil

“The RE100 campaign is sending a clear message to Paris that the technological solutions to tackle climate change already exist, and that business supports the switch to renewable power. An ambitious and robust climate agreement will help accelerate the shift to the 100% renewable electricity future that everyone is calling for,” said the RE100 Campaign Director of The Climate Group before the Paris agreement.

Image Source: Related: The Oil Company Where All Employees Still Get Six-Figure Bonuses

As we now have an ambitious and robust climate agreement in hand, RE100 group could indeed have a deep impact on the renewable power market in days to come.

What is the most viable option for these companies?

“This (Paris) agreement will allow them (RE100 member companies) to go further and faster in their own ambitious plans and policies, and ensure that the transition to the new, smart economy is a swift one. This is only the beginning of the journey and opportunity. Imagine what can now be achieved by these leaders with a global deal that supports and encourages them to go even further,” said CEO of The Climate Group Mark Kenber.

It needs to be clarified that RE100 is currently focusing only on the ‘renewable electricity market’ with its member companies having an option of generating renewable electricity through either off site electricity generation or on-site electricity generation. Since RE100 members are at present only concentrating on generating 100 percent renewable electricity, the most viable option for them would be to first achieve this target and then aim for covering their other operations related to logistics, transportation and manufacturing through renewables. Related: $30 Oil Will Accelerate Much Needed Rebound

Once this happens and if RE100 keeps on adding more and more global companies, then one can expect a considerable impact on the non-renewable energy demand in next five years.

Conclusion

“The consequences of this (Paris) agreement go far beyond the actions of governments. They will be felt in banks, stock exchanges, board rooms and research centres as the world absorbs the fact that we are embarking on an unprecedented project to decarbonise the global economy,” said CEO of Unilever Paul Polman whose company is a RE100 member and has a target of generating 100 percent of its total energy from renewables by the year 2030. Although members of RE100 are currently targeting 100 percent renewable electricity, the group will eventually need to expand its goals and ultimately generate ‘100 percent energy’ through renewables, not just electricity. After all, any efforts towards decarbonising the global economy cannot exclude the transportation sector.

By Gaurav Agnihotri of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Lee James on December 19 2015 said:
    Government is tied up in knots. Maybe look to business to take care of business? Maybe clean energy business thinks we actually have a future; it's not just grab the profit, dump the pollution, and run?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play