A faster transition
Taking a longer-term view, however, recent events should accelerate the energy transition even further. It had been speeding up anyway: countries responsible for well over 70% of global carbon emissions have now set net-zero targets and there is a much clearer understanding of both the urgency and the enormous capital requirements compared to 2018.
Electrification of transport, specifically light vehicles, is exceeding expectations, aided by technological progress, consumer preferences and tightening emissions regulations. The steelmaking industry, as another example, has made considerable headway towards decarbonising its core processes. Progress in carbon capture & storage has been more modest, similarly in aviation fuel and shipping.
Now, countries – and in some respects companies and consumers – are more motivated than ever to push forward the energy transition. And while nuclear power is back on the table, it is unlikely to provide any relief this decade, despite the political rhetoric. So renewables and other clean-energy solutions, including energy-efficiency measures, are at the core of reducing reliance on fossil fuels.