The National Thermal Power Corporation (NTPC) Limited, India’s largest power generating company, has come into the limelight for being the first energy company in the country to announce its Energy Compact Goals. This announcement was made as part of the United Nations’ High-level Dialogue on Energy (HLDE), slated to take place in September 2021, designed to promote the implementation of energy-related goals and targets within the framework of the 2030 Agenda for Sustainable Development.
Energy Compacts: A Platform To Connect Commitments And Actions
Energy Compacts, initiated by UN-Energy, are intended to be a platform that unites and connects ongoing or new commitments with clear, underlying actions. These actions aim to advance progress on one or more of the Sustainable Development Goal 7’s (SDG7) three core targets: access to energy, renewable energy, and energy efficiency. The ultimate objective of SDG7 is to ensure “affordable, reliable, sustainable and modern energy for all” by 2030.
The commitments under Energy Compacts are voluntary. They can come from Member States and non-state actors such as companies, regional/local governments, NGOs, among others. The commitments and actions defined in an Energy Compact can be directly linked to Nationally Determined Contributions, which are considered SDG Acceleration Actions.
Distinguishing Between Energy Compacts And Nationally Determined Contributions
While Energy Compacts encompass a range of voluntary commitments, actions, initiatives, and partnerships specifically focused on the energy system and SDG7, Nationally Determined Contributions (NDCs) address each Member States’ national climate ambitions and targets. NDCs are legally mandated under the Paris Agreement, with a central focus on a country’s emissions profile from the economy as a whole.
The Imperative for Energy Compacts
The motivation for instigating Energy Compacts is clear. The energy sector remains the principal contributor to greenhouse gas emissions (GHG) globally, a pattern linked with industrialization. According to 2018 statistics, 789 million people lack access to electricity, and 2.8 billion people do not have access to clean cooking. The share of total final energy consumption from renewables stood at 17% in 2017, with an energy efficiency improvement rate of 1.7%.
NTPC’s Energy Compact Goals
NTPC has set forth its commitment to install 60 GW of renewable energy capacity by 2032, alongside a goal to achieve a 10% reduction in net energy intensity by the same year. Moreover, NTPC plans to form a minimum of two international alliances/groups by 2025 to facilitate clean energy research and promote sustainability within the energy value chain.
About UN-Energy And The Decade Of Action
UN-Energy was launched by the UN System Chief Executives Board for Coordination (CEB) in 2004 to serve as the United Nations’ mechanism for inter-agency collaboration in energy matters. Its aim is to support countries in achieving SDG7, and the interrelated goals of the Paris Climate Agenda and the broader SDG agenda.
Coming to the Decade of Action, it was proclaimed by the United Nations General Assembly in September 2019. Spanning from 2021 to 2030, it aims to accelerate efforts in delivering the Sustainable Development Goals (SDGs) as part of the comprehensive, inclusive 2030 Agenda.