US, IEA Urge Asian Countries to Diversify Energy Supply Chains

International Energy Agency (IEA) Executive Director Fatih Birol and US Energy Secretary Jennifer Granholm said the current energy crisis caused by sanctions against Russia should prompt Indo-Pacific countries to focus more on transitioning from fossil fuels.

However, the region needs to move away from relying on China for solar technology and countries like the Democratic Republic of Congo and Russia for critical minerals needed for electric vehicles and batteries.

“We as countries want to make sure that we are not under the thumb of petro-dictators, under the thumb of those who do not share our values, under the thumb of those who want to control strategic aspects of the supply chain,” Granholm said in the statement. Sydney Energy Forum.

The Forum is jointly organized by the Australian Government and the IEA.

China accounts for 80% of the global solar technology supply chain and that share will rise to 95% by 2025, Broll said.

“Depending on one product, one technology — the whole world relying on one country is something we all have to think about from an energy security perspective,” Broll said at the forum.

On the energy supply side, anyone planning big new investments in fossil fuels won’t kick in for a few years, he said, adding that investors need to consider climate risk and business risks as the world transitions to cleaner energy.