Speaking at a special event organized by Sabancı University Istanbul International Center for Energy and Climate (IICEC), International Energy Agency (IEA) President and IICEC Honorary President Dr. Fatih Birol stated that the world industry has entered the production period with clean energy. In his speech, Dr. Drawing attention to the fact that the budget deficit of Russia, whose energy exports decreased and its military and subsidy expenditures increased, reached three times as of February 24, Dr. Fatih Birol emphasized that Europe has successfully managed this important energy crisis.
Emphasizing that China dominates the production of clean energy technologies, Dr. Fatih Birol reminded us of the law enacted by the USA in 2022 to strengthen the clean energy technologies industry. Announcing that a similar law was introduced in the EU on March 16, IEA President Birol underlined that this development is of critical importance for Turkey and that it should be strongly involved as soon as possible.
Sabancı University launched the ‘Sabancı University Earthquake Scholarship Fund’ as part of the ‘Promise the Future’ scholarship program to meet the needs of students affected by the disaster. In this context, the ‘Dr. “Support Meeting for Earthquake Victims Students” with Fatih Birol took place on March 17 at Sabancı Center. The meeting, attended by prominent names from the business world and energy sector, started with the opening speech of Sabancı University Founding Chairman of the Board of Trustees Güler Sabancı, and Sabancı University Corporate Collaborations and Alumni Relations Director Cenk Efe Bayırlı gave information about the fund. Meaningful meeting, Dr. After Fatih Birol’s Keynote speech, “Dr. Continuing with Fatih Birol’s Interactive Conversation with the Audience.
‘Promise the Future’ is a long journey
Güler Sabancı, Sabancı University Founding Chairman of the Board of Trustees, who made the opening speech of the meeting where the leading names of the business world and energy sector took part, emphasized the impact of the earthquake and the importance of support and said, “Words are not enough, words are not enough. We are going through a very difficult and extraordinary time. Unfortunately, we lost one of our students in the earthquake, and we contacted other students in the earthquake area in a short time.” Dr. Stating that such a meeting was organized with the suggestion of Fatih Birol, Güler Sabancı said, “Promise the Future is a long journey like we are together with our students. We would like to thank you who are here with us and our friends who could not be here but shared their support, for this solidarity and for being with us on this long journey.
“We created this fund to make the contributions sustainable”
Sabancı University Corporate Collaborations and Alumni Relations Director Cenk Efe Bayırlı said, “We will provide scholarships to both Sabancı University students who were harmed by the earthquake, and our young people residing in the earthquake area and who will be eligible to study at Sabancı University in the 2023-2024 Academic Year. . For this purpose, we have implemented the ‘Sabancı University Earthquake Scholarship Fund’ to provide education, accommodation, food and cash needs support to our earthquake-affected students.
Starting his speech by emphasizing that one feels helpless when he is abroad in the face of such a disaster, International Energy Agency (IEA) President and IICEC Honorary President Dr. Fatih Birol said, “In the first place, I made a call to the energy sector. My call received positive responses from global oil companies to a local heater manufacturer in Lebanon. Contributions were also made within IICEC. This meaningful meeting was organized as a result of our conversation with Ms. Güler, “What else can we do, how can I help?” I would like to thank my friends who worked day and night for this cause and everyone who provided support.”
Russia’s budget deficit has tripled
How did the energy issue develop in the world with Russia – Ukraine? How were the reactions given? Evaluating the titles in terms of Russia and Europe, which are very important for the Turkish economy, Dr. Fatih Birol continued his speech as follows:
“The Russian economy is heavily dependent on revenues from energy, especially oil and gas sales. Russia was the world’s number one energy exporter until February 24. It is the number one exporter of oil and natural gas, and a huge player in the coal markets. Today, Russia’s oil and gas revenues have dropped by up to 60 percent. In addition to the negative effects of the imposed embargoes, there was an increase in military expenditures and subsidies expenditures. In other words, there are three very important different burdens in the Russian budget. Therefore, Russia’s budget deficit has now tripled.
Europe successfully manages the energy crisis
The European economy has been dependent on cheap energy from Russia for decades. As of February 24, 2022, European countries, America, Australia and other countries have taken various measures and embargoes against Russia, primarily to minimize the energy taken. As such, expectations were discussed such as “There will be no heating in homes this winter in Europe”, “The European economy will collapse” and “Europe will use too much fossil fuel and increase its emissions”. However, when we look at their one-year report cards, the situation in Europe is not that bad at all. There was no power cut. With the effect of the mild winter, the houses were warmed. Europe has not entered a major recession either.
Europe has made a leap in renewable energy by speeding up licensing procedures. Solar and wind energy increased by 41 percent, they recorded an increase of 40 percent in heat pumps and 15 percent in electric vehicles. Contrary to expectations, emissions decreased by 2.5 percent instead of increasing. They have succeeded in a sector such as energy that is not easy, walks very slowly, and develops hard.
The world industry enters the production period with clean energy
The world industry has entered a new era; enters the production period with clean energy. There is tremendous competition between countries on batteries, GES, RES, electric cars. Will the world, which is dependent on a few countries for oil and natural gas, be dependent on major countries for clean energy in the future? This is the most important question. This alarm bell rang from Europe to America. Because when you look at the countries where critical materials such as batteries, solar solar panels, windmills are produced in clean energy, we see that China’s share is enormous. It has a share of over 50 percent and has almost dominated it by itself. For example; 75% of the world’s batteries are produced in China. China is 75 percent, and all other producers in the world are 25 percent. It’s the same in the wind, it’s great in the sun. They are also extremely large in the production of equipment used in hydrogen. Because China started before anyone else.
America wants to create a clean energy technology industry
A very important law passed in the US last summer gives an unprecedented subsidy to clean energy technologies. For example; If you open a battery factory in America, the government will give you tax breaks, exemptions, etc. gives a large subsidy. On the other hand, in clean energy installation, a certain percentage of the production you will make for each technology must have a local share. In summary, America wants to create its own clean energy technology industry. It took a very important decision to compete with China in this regard. This shocked everyone as a development that would change many industry equations and trade flows.
EU’s clean energy industry-targeted law is also critical for Turkey
Another important development took place in Europe. On 16 March, the President of the European Union presented a law; Zero Emissions Industry Law. It’s a similar law to America. It will give incredible incentives to the clean energy industry and, like America, it has stipulated this local share. This is an extremely important and critical development for the Turkish industry and the country’s economy. If this share of locality can be extended to countries that have a free trade agreement with the EU by stretching a little, a leap in the economy and a significant development in the industry can be achieved. Our country needs to take this issue very seriously.
There is a magic word that we use in energy; diversification. For example; In China, solar equipment is produced in two very large factories in a single province. Even one of these factories will experience a fire etc. If it is out of order with a problem like this, the supply chain all over the world will be shaken in this field. For diversification to occur, other countries must do the same. That’s why America and Europe took action, and they are trying to have a share in this field in the world that is moving towards clean energy.
For our country, it is very important for us to think, “How can Turkey play a role in which of the various clean energy technologies along this supply chain?” and to develop appropriate economic policies and “how we will deploy ourselves”. There are earthquakes and elections, but we need to get involved in the debates in Europe as soon as possible and not miss this very important train”.
In the meeting, on behalf of the ‘Promise the Future’ scholarship program, Lara Mercan, Dr. He thanked Fatih Birol by presenting a plaque for his contributions.
