- 4 minutes ago
Energy boss Birol urges governments to accelerate global electrification at COP31
In an exclusive interview, Fatih Birol urged governments to accelerate the electrification of the global economy, as the COP31 gets underway.
READ MORE : http://www.euronews.com/2026/11/10/energy-boss-birol-urges-governments-to-accelerate-global-electrification-at-cop31
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In an exclusive interview, Fatih Birol urged governments to accelerate the electrification of the global economy, as the COP31 gets underway.
READ MORE : http://www.euronews.com/2026/11/10/energy-boss-birol-urges-governments-to-accelerate-global-electrification-at-cop31
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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NewsTranscript
00:10Hello and welcome to On The Record with me, Maria Tadeo.
00:14I'm so happy to see you all in this new interview format brought to you by Euronews.
00:19And this week we go On The Record with Dr. Fatih Birol.
00:23He is the Executive Director of the International Energy Agency.
00:27Are we headed into a new energy crisis?
00:30Will the strain of Hormuz reopen?
00:32And most importantly, what does it mean for you and your bills this winter?
00:37We go On The Record.
00:40Dr. Birol, thank you so much for joining us.
00:43It's been a very volatile year when it comes to the energy market.
00:46The head of the European Commission is saying it has added to a bill 126 billion euros.
00:53This is reflected in household bills, but also the European industry.
00:56How bad is this going to get?
00:58Before going to the bad news, starting with the good news, it's a wonderful studio.
01:02You have congratulations for that.
01:05But coming to the markets and the energy situation today, it is really not looking very promising.
01:13Because when you think about this, I mean, just only four years ago, think about the map of the world,
01:20there were two major arteries bringing energy to the markets in the world.
01:26From Russia, from Western Serbia to Europe with pipelines, and the other one is from the state of Hormuz to
01:34oil and gas and other commodities to Asia and the rest of the world.
01:38And there both of these arteries are now paralyzed.
01:41So we are seeing the implications of that with the higher prices, volatility and insecurity in the markets, and Europe
01:51is at the center of that.
01:53And energy is key to sovereignty.
01:55I have to ask, as you prepare for many different scenarios, if we imagine a world in which hostilities return
02:02to Iran, the Europeans say they will not go back to Russia, what price points do you see?
02:07Because this is significant for the European industry, but also the European households.
02:12What numbers do you have in a stress scenario?
02:15Currently, oil prices are high, high for Europe, but even higher for the developing countries in Africa, in Asia, because
02:25their financial muscles are weaker than that of Europe.
02:29But normally, it could have been much higher because before the war has started, there were huge amounts of oil
02:38surplus.
02:39We have already used that.
02:40Second, on 11th of March this year, I have announced that our member governments brought oil stocks, released a huge
02:51amount of oil, which also comforted the markets.
02:53But both of these two things are coming to an end.
02:58That 400 million bars, more than 80 percent are used.
03:01Now, if the Hormuz remains closed officially, and if there is not enough oil, crude oil, and the products such
03:11as diesel, jet fuel goes through that, we may see this current high prices may well be pushed even higher
03:18in the next months to come, especially when we are entering the winter season.
03:23And this is very important.
03:24And this is very important.
03:25Again, I don't want to speculate, and we want to be very careful about this.
03:27But do you get to a point in which you say oil at 110, 115 is possible, dollars a barrel?
03:36I wouldn't like to give a precise number, but it can come to a level that is not a good
03:42news for the inflation, not good news for the economic growth.
03:46It will definitely push the inflation numbers up in Europe and elsewhere, which in turn is not good news for
03:54the outlook of the economy of Europe and beyond.
03:57And to that point, do you not see any form of relief?
04:01Let's say the president of the U.S. removed sanctions from Russian diesel, hopefully to bring down those prices.
04:07You don't see that's going to have a structural effect.
04:10Of course, if the Hormuz state is open fully and unconditionally, which could convince all the market players, it could
04:18bring relief to the markets, which is good news.
04:21So the Russian diesel, it's not going to really bring relief.
04:23If the Russian diesel comes in line with President Trump, he's announced, it can bring some relief, but it will
04:32not be a solution in itself.
04:34As I understand, you're saying this deal on the Russian diesel is not really going to have a meaningful impact
04:39on prices in the short term.
04:41Was it therefore a mistake, as the Europeans seem to indicate, that this was really not going to bring any
04:46relief and it was a gift to the Russians?
04:49So I cannot speak about the political issues at all.
04:53But what I can tell you, that the amount of diesel which could come from Russia, could come from Russia,
05:00will not be a solution to this problem.
05:03And for our viewers who are watching this, the obvious question is, OK, well, how do we keep the lights
05:07on?
05:08We can keep the lights on.
05:09Do we have heat in this winter?
05:10Yes, we can keep the lights on, but my worry is not necessarily the availability of electricity or energy, but
05:20the price of electricity and energy.
05:23And that means our viewers, consumers, European industry, they have to be prepared that bills will be incrementally higher this
05:30winter.
05:31It's just the reality, difficult decisions.
05:33If the, again, if the war doesn't stop in the Middle East, if the state of France is closed, we
05:40should be prepared, we should be prepared that the prices may get a further push upwards.
05:46But if there is a solution in the Middle East, this will definitely be good news.
05:51And we may see the prices having a downward effect.
05:55And do you see physical shortages?
05:57It depends on, again, what happens in the Middle East.
06:01If the current situation continues, there may be a question of availability.
06:06And in that case, so I mentioned that in March, we released a lot of stocks.
06:12IEA is always there.
06:14We have still a huge amount of stocks in our pocket.
06:17And we are ready to act if and when it is necessary to comfort the markets.
06:22So far, the European governments and the European institutions do not want to make that an obligation.
06:29They have said it as a suggestion, but they have not mandated those measures to decline and reduce the use
06:36of energy.
06:36Should that be now put into practice with clear targets and it becomes mandatory?
06:43We are not yet there.
06:45You don't see a need for it yet.
06:46We are not yet there, but we are well prepared.
06:48I discussed with the European leaders, with the President von der Leyen, with the Bundeskanzlerin Mertz, President Macron and the
06:56others.
06:57And everybody is ready if there is such a situation.
07:02And I don't think that we are at this moment now to push the button for those obligations and to
07:09make it mandatory measures.
07:11So your message was right now it's not the time yet.
07:13I think we should be prepared for the worst, for a rainy season.
07:16And are they prepared?
07:17I think they are all the leaders of Europe are all aware of the challenge we are facing.
07:23And we may be even facing more difficult challenges as we enter the winter.
07:29But I think we are lucky that we have good leaders in Europe, starting with the President von der Leyen,
07:36that they are aware of the challenge in front of us just before we are entering the winter.
07:40You think she's aware of the challenge?
07:42Very much so.
07:43And the issue is, Europe is not determining the prices.
07:47Prices are determined in the international markets.
07:50Europe is a price taker, not a price maker.
07:53And what happened in the Middle East?
07:55Europe is because of that seeing higher prices and it is reflected in our energy bills.
08:01I don't think we have energy security in Europe.
08:04We are at the mercy of external events.
08:06This energy security or changing the energy system cannot happen from one day to another.
08:12It takes ages, to be honest with you, because if we want to build it today, a power plant,
08:18if we decide to build a power plant, we will see it is coming in the four or five years.
08:23But the important thing is to get prepared, to have a clear strategy, and to do what we are going
08:28to do.
08:29And in the meantime, between now and then, to make sure that the European consumers, European people,
08:34they do not get harmed or damage our economy from the high energy prices.
08:40And can Europe do that?
08:41Because the concern is that, in the meantime, key parts of the European industry are going to be wiped out.
08:46I wouldn't say wiped out, but they may be negatively affected from what is happening around the world.
08:54But we should learn from this and we should prepare our own energy strategy,
08:59which, in my view, should be based on electrification of our economies.
09:04We will not be in Europe tomorrow, in Belgium or in France or in Germany or Sweden,
09:10suddenly discover oil under the ground.
09:12If there was there, we would have known that, or gas.
09:15Instead of importing energy, we can build our own energy.
09:20It can be solar, wind, nuclear power, whatever it is.
09:25I think, I believe, Europe's energy future is electrification.
09:30And there's no need in the meantime to be scared of the word nuclear?
09:32No, I think nuclear is, I'll give you one number.
09:37Three and a half years ago, President Macron organized a major meeting in Paris about nuclear.
09:43And at that time, I said, nuclear is set to come back for the world.
09:50And today, as we speak now, 90 gigawatts of nuclear power is under construction.
09:56This is the highest in the world in 40 years, because countries want to build nuclear power plants for energy
10:05security.
10:05They want to generate their own electricity at home, rather than getting from left and right,
10:11which those countries may use for geopolitical purposes.
10:15And not only nuclear, but it's solar, it is wind, it's hydropower and others.
10:20We should build our own energy based on electricity.
10:23And nuclear now, do they all realize that perhaps it was not a good decision to turn it off when
10:28you don't have alternative sources?
10:30I think it was not only a mistake, it was a strategic mistake for Europe.
10:35In the 1990s, for example, one third of the European electricity came from nuclear power.
10:41But then Europeans turned their back on nuclear power, and this 30 percent is sliding down to 15 percent.
10:49When Germany took that decision, I said this was, I was a chief economist at that time, it was a
10:54strategic mistake.
10:56But saying that, of course, there was a lot of bruise here.
10:59Allow me, if I may, to ask you for a different prediction.
11:04In five years, what is the energy mix of Europe?
11:07How is the European economy going to be running?
11:09And I don't just want to mention the economy, but ultimately this is sovereignty.
11:13This is the safety of a continent.
11:15Yeah.
11:16So I think what is happening now, think about this.
11:20Four years ago in Europe, we had this Russia invading Ukraine, invading Ukraine, and the gas crisis.
11:29After four years, we have this Iran crisis.
11:32It's a very short period of time.
11:33Two big crisis because of our reliance on other countries.
11:39In my view, if Europe wants to remain a sovereign part of the world, if Europe wants to have competitive
11:48and clean energy, the future is electrification.
11:52And I hope that when we look at it in the next years, five years or six years, we will
11:58see Europe generates, produces more energy, electricity at home, and deduce its reliance to other countries, whatever this country is.
12:08So it is important to have our own energy in Europe based on, in my view, electrification.
12:14But that includes an overhaul of the infrastructure, includes a massive overhaul of the system.
12:20It costs money, too, and also political will and action.
12:24There's a big political will.
12:25There is a big political will.
12:27I know many, many, many leaders are seeing this.
12:30Why the delays, though?
12:31And the electricity, because other countries as well, pushing the electrification button.
12:37I mean, this is going down.
12:39More modernization, more urbanization, and less reliance on other countries.
12:44And, of course, it will cost money.
12:45But the energy security has a cost as well.
12:49What the governments need to do is, as much as possible, not to transfer this cost to the consumers and
12:58make the consumers a friend of electricity rather than a friend of this or that, other fuels.
13:04And we have heard from a number of members of the European Parliament saying we need a windfall tax.
13:09The energy companies, they are making a lot of money.
13:12They've got to pay now.
13:13Do you support it?
13:14I think you are right what we are saying, seeing that from the war in Iran, the prices went up.
13:24And many oil and gas companies made very handsome revenues.
13:30Record profits at times.
13:32Incredible profits.
13:33But it is what they invest, what they're getting as a return.
13:37Of course, it is up to them and those governments to see whether or not those huge benefits, at least
13:47a certain part of it, should be shared by the population.
13:52But they listen to you.
13:54Would your advice be, look, I'm a man of energy.
13:57I'm also a capitalist.
13:58I have no problem with companies making money.
14:00But ultimately, in this situation, there is a case to be made for a windfall tax.
14:03If I was there, I would do that.
14:06But it's up to them.
14:07They have to decide because it is really a bit of a grotesque picture that from the war, some people
14:17make huge amount of money, some huge amount of money, while the others are suffering.
14:22And the interesting issue is, in Europe, I am seeing the following, and there are some political implications, because this
14:30war is bringing the prices high, international effect.
14:36But in some countries, some extreme political groupings are misusing this, using it as a fertile ground, as if it
14:45is a mistake of the governments there or establishment there.
14:49So one has to be very careful here, what is the real cause of this high energy prices?
14:55It is the war.
14:56It is the high oil and gas prices, rather than the ability of the governments to address this issue.
15:04Do we need to build more refinery capacities here in Europe?
15:07Is that needed?
15:08I think in Europe, 40 years, we didn't build any single refinery.
15:12And some of the refineries that we have are retired, and they left the market.
15:18We should be very careful in terms of the products, especially for diesel, jet fuel, and gasoline.
15:24What we are going to do, are we able to get it from the safe, predictable markets?
15:29Or if not, we have to look at other options.
15:32And that means building here, too, if necessary?
15:35If the market conditions give a green light to that, I wouldn't rule it out.
15:41And to a final point, the COP is now underway.
15:44I know that you have played a significant role behind the scenes, certainly when it comes to electrification.
15:50And I also know that you are going to pitch a number and a target of electrification for the world.
15:57What's your plan?
15:58At the beginning of this year, I met the President Erdogan of Turkey and the Prime Minister Albanese of Australia.
16:05They both asked to be the strategic partner to come up with a target.
16:10And it should have been a target that many countries could agree upon.
16:15And what I see today, that this target is a big majority of the countries are coming together, consensus.
16:22And the target is the following.
16:23Today, the share of electricity in total energy is 23%.
16:29We want countries to commit, to agree, by 2035, 10 years from now, this 23% comes to 35%.
16:39So 35 by 35.
16:42This is the target.
16:42It should be the electrification level of an economy.
16:44Electrification, exactly.
16:45Across the world.
16:46Across the world.
16:47And it will bring countries' competitiveness, energy security, and also, in many cases, reducing the emissions altogether.
16:56And this is good news for everybody, I believe, or most of the countries around the world, and also for
17:02Europe, as we just discussed a few minutes ago.
17:04And just finally, do you believe, do you trust the targets will be met?
17:09Because the tragedy of COP at times is targets and goals, they come and go, but they are not met.
17:14There is no guarantee that they will met.
17:18But what will happen if many world leaders come to Antalya, which I think, when I look at the last
17:24numbers, how many world leaders are coming to Antalya.
17:26There's a return to COP this year.
17:28They are really, I was positively surprised with the number I have seen.
17:34Second, if many countries agree on this target, it will give an unmistakable signal to the markets and the investors
17:44that the future of energy is in electricity.
17:47This is what I wanted to have.
17:48Well, Dr. Burrell, thank you so much for joining us on this important week on Euronews.
17:52Thank you very much.
17:58Euronews.