Without energy efficiencies, transitioning to renewable energy is 'inevitable', says environmentalist.

• Bertrand Piccard, an explorer and environmentalist, estimates that approximately 75% of the world's energy is wasted.
• Without being efficient and reducing consumption, replacing fossil fuel energy with renewables is hopeless, he told CNBC.
• Piccard emphasized the significance of evaluating the advantages of the current surplus of solar panels originating from China.

Bertrand Piccard, an explorer and environmentalist, has emphasized the importance of improving energy efficiency in order to effectively transition to renewable energy sources.

Piccard stated that approximately three-quarters of the world's energy is wasted due to inappropriate behavior and inefficient systems or infrastructures, according to an "IOT: Powering the Digital Economy" panel moderated by CNBC's Silvia Amaro. He confirmed this estimate in a separate email to CNBC.

Piccard, the founder and chairman of the environmental non-profit organization Solar Impulse Foundation, stated that "we inhabit a world of excess."

If we attempt to substitute fossil fuel energy with renewables without increasing efficiency and decreasing consumption, it is futile, according to him.

Piccard pointed out that certain countries view wind and solar power as the sole renewable energy options.

In Europe, biogas, which is generated through the decomposition of organic materials like food, has been excluded from the taxonomy, and geothermal energy, which harnesses heat from the earth, is often overlooked.

In 2021, bioenergy remained the primary source of renewable energy in the EU, accounting for approximately 60%, with biogas contributing just 10% to this share. Geothermal energy accounted for only 2.7% of renewable energy consumption, while wind power was 13.2% and solar energy was 7.2%.

He stated that instead of reducing consumption, we prioritize increasing production, which often leads to overlooking various types of renewable energy sources during the production process.

Piccard warned that the green energy targets may not be met due to these issues, and there is a chance to produce cheaper energy locally.

He stated that every country seeks energy independence and increased competitiveness, yet often overlooks the importance of energy efficiency and renewable sources as the key to achieving these goals.

'Paradox' of China's solar panel oversupply

Piccard discussed the ongoing concerns about the potential oversupply of solar panels from China to the European market.

"The Chinese have killed the European solar industry, but they have saved the world by demonstrating that solar energy is much cheaper than anything else," he stated.

In Europe and the U.S., there are increasing worries that an excess of subsidized clean energy products, such as solar panels, from China is hindering local industries from competing.

The European Commission recently initiated probes into two Chinese solar panel manufacturers due to suspicions of receiving "potentially market-skewing" subsidies.

Janet Yellen, the U.S. Treasury Secretary, stated last week that she wouldn't dismiss the possibility of imposing tariffs on China's green energy exports.

Piccard emphasized the importance of considering the potential benefits of Chinese solar panels in Europe. He pointed out that these panels could generate cheaper electricity in the region, which could then be used to produce hydrogen locally.

Instead of fighting against the obstacle, he suggested using the situation to see how there could be outcomes on the side of the problem that could be beneficial for us.

Solar Impulse 2, which became the first solar-powered electric airplane to circumnavigate the globe in 2016, was initiated by Piccard over 20 years ago when solar energy was 40 times more expensive than it is today.

He thanked China for the decrease in the price of solar energy, which has given a wonderful push to renewable energies, stating that without China, we would not be at this point.