Keir Starmer Calls For An “inverse OPEC” To Accelerate Renewable Energy Adoption Worldwide

Key takeaways

• UK opposition Labour Party leader Keir Starmer put out calls to develop an “inverse OPEC” to accelerate renewable energy adoption worldwide
• Starmer proposed a “Clean Power Alliance” that would oppose OPEC’s power in the energy industry
• As scientists sound the alarm on climate change, such worldwide action is needed to meet myriad climate goals

Last week, a member of the UK Labour Party called for nations to develop an “inverse OPEC” to meet the world’s renewable energy needs. The goal: to reduce fossil fuel dependence while driving down global energy prices.

It’s not the first time the idea of an inverse OPEC has made it to the world stage. But as scientists sound alarm bells on climate change and protestors fight to enact change, the power of collective action has more appeal now than ever.

And if you’re ready to partake in a climate-focused collective, Q.ai’s Clean Tech Kit might just fit the bill.

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The proposed “inverse OPEC”

UK Labour Party Leader Keir Starmer’s declaration came during a CNBC-moderated panel at the World Economic Forum in Davos, Switzerland. During the panel, Starmer said he’d been meeting with business and policy leaders to promote a “Clean Power Alliance” between powerful nations.

“This is an inverse OPEC, if you like,” he said. “Instead of trying to ensure prices stay at a certain level, it’s to drive them down to see a common benefit, whether it’s in the UK or across the globe.

The proposed alliance would counter OPEC, or the Organization of the Petroleum Exporting Countries. OPEC is a self-described oil cartel that controls the flow and price of much of the world’s fossil fuel supply. Each of the group’s 13 members are major oil-producing nations that participate to regulate global production and price stability.

Similarly, the role of an inverse OPEC would be to collaborate on renewable energy, sharing information and investments and spurring innovation.

If successful, Starmer said, the coalition could drive down global energy prices while reducing our reliance on fossil fuels. The international body would also seek to further renewable job creation on the path to net-zero carbon emissions.

Of course, there’s a catch: Starmer added that he could only unlock this potential if his party takes political power in 2024. Then, he said, he could work hands-on with the private energy sector to encourage renewable energy innovation and employment.

Shifting tides on UK energy policy

Starmer’s interest in an inverse OPEC isn’t purely for political or economic reasons, either. “The prize here is huge in terms of energy security,” he said, adding that that shouldn’t be a single nation’s goal. “It’s in all of our interests to have energy security…whether it’s now or any time in the future.”

Starmer also pushed the idea of mutual cooperation as a solution to supercharging how quickly individual nations could rise to meet their climate goals.

If he wins, the UK politician also promised to prevent new oil and gas investments in the North Sea if he were to win. Still, he acknowledged that the world will need to rely on fossil fuel supplies for a few years yet as it transitions to clean energy.

Starmer also bashed the UK’s current prime minister, Riski Sunak, for not attending the World Economic Forum. But he wasn’t the only world leader absent: U.S. President Joe Biden, Brazilian President Luiz Inácio Lula da Silva and French President Emmanuel Macron also failed to show.

Inverse OPEC has been suggested before

This isn’t the first time an inverse OPEC proposal has hit the world stage.

Back in 2021, Kamala Harris proposed that major carbon emitters come together for a meeting. The goal: to kick off “the first ever global negotiation of the cooperative managed decline of fossil fuel production.”

The plan outlined how increasingly-affordable renewable energy production would flood the market with cheap, dirty fuel if extraction processes didn’t cease. Ignoring this mismatch, researchers warned, would lead to economic and climate risks that could be addressed by slashing production.

At the time, the idea was laid out as an addendum to the Paris Climate Agreement’s lofty goals.

Rather than seeking major, massive changes overnight, the plan would gather a “minilateral” collection of leaders to lead the charge on increasing renewable energy while reducing fossil fuel production. (In other words, an “inverse OPEC.”)

At the time, the plan’s contributors identified countries like New Zealand, France, Norway and Costa Rica as “natural partners” in light of domestic climate change policies.

But not everyone was on board.

While New Zealand’s climate minister “welcomed the United States taking a leadership role,” countries with large dependencies on their fossil fuel sector expressed more caution. Aside from the economic impacts of turning off the tap, some leaders acknowledged that weaning off fossil fuels would take time.

Unfortunately, the lack of action led to the idea of an inverse OPEC petering out on the world stage. But with UK leader Starmer touting the benefits once again, the movement could see a revival.

A symbol of shifting attitudes on renewable energy

Renewed calls for a global alliance highlight just how prevalent the argument for a renewables-based future has grown. In recent decades, countries have turned to cleaner energies as the impacts of climate change continue to unfold.

And, as Russia’s invasion of Ukraine has proven, relying on foreign fossil fuels can pose substantial economic and national security burdens when relations sour.

Fortunately, investors seeking to invest in the future of renewable energy and energy independence have many choices. Examples of renewable energy investments include:

• Power generation companies that capitalize on technologies like solar panels, windmills and hydroelectric dams
• Battery and storage tech to capture and hold excess energy for later
• Installation and construction companies that build, install and maintain renewable energy tech for businesses and consumers alike

To support their green-energy goals, some investors are also looking for ways to eliminate exposure to fossil fuel investments.

The bottom line

Even if you know that you want to invest in a cleaner future, knowing how and where can be tricky.

But it doesn’t have to be, with Q.ai’s Clean Tech Kit.

Our AI finds and invests in assets that help propel growth in the clean tech space. There’s no need to spend hundreds of hours finding niche companies that could be winners – leave those details to us.

All you have to do is invest and rest easy knowing we’re helping you secure your financial future on the back of clean tech.

It’s that easy – really.

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