The Carbon Trust calls on national governments, international institutions, financiers, and industry stakeholders to add their endorsement to the Global Grids Pledge announced at COP29 in Azerbaijan. This initiative, part of the Green Grids Initiative (GGI), aims to accelerate the development and modernisation of grid infrastructure to support the global transition to renewable energy. The pledge has secured over 100 signatories since its launch, with 58 national governments and 48 non-state actors signing, including the Carbon Trust.
Investment in grid infrastructure is a critical enabler for the global energy transition. By 2030, an additional 25 million kilometres of grid infrastructure needs to be built and modernised, with a total of 80 million kilometres by 2040. Doubling global investment into grids to over $600 billion per year by 2030 is necessary to meet climate targets and ensure a sustainable energy future. These investments are required for new transmission and distribution infrastructure, smart meters, communication and automation technologies, and regional grid development to enhance flexibility, reliability, and affordability.
Modern, smart, and expanded grids are essential for integrating renewable energy sources and ensuring their efficient distribution. The rapid growth in electricity demand, driven by electric vehicles, heat pumps, data centres, and other technologies, requires robust grid infrastructure. Without investment, grids can become bottlenecks, delaying renewable energy projects and increasing reliance on fossil fuels.
Upgraded grids improve system flexibility, reliability, and affordability, which are vital for accommodating the variable nature of renewable energy sources while maintaining energy security. Improved reliability reduces the frequency and duration of power outages, crucial for daily life and critical infrastructure.
During COP29, the Global Grids Pledge was announced, calling for a significant increase in investment in grid infrastructure. Key points include:
- Committing to a global grid deployment goal of adding or refurbishing 25 million kilometres of grids and the deployment of 1,500 GW of energy storage by 2030.
- Highlighting the need for investments in energy storage to support the build-out of renewables and grid infrastructure, improving system efficiency and flexibility.
- Encouraging national governments and other stakeholders to endorse the pledge and take action to accelerate ambition on grids and storage.
The Carbon Trust is committed to supporting the Global Grids Pledge by:
- Engaging with national governments, international institutions, financiers, and industry stakeholders to promote the importance of grid investment.
- Offering expertise and resources to help develop and implement grid modernisation projects.
- Working with commercial banks, pension funds, development banks, and export credit agencies to secure the necessary funding for grid investments.