11 May 2022, Geneva, Switzerland – The World Economic Forum today issued a special study on the condition of the global energy transition, stating that both the private and public sectors must take immediate action to achieve a robust transition as the world faces its worst energy crisis since the 1970s. High fuel costs, commodity shortages, insufficient progress toward reaching climate objectives, and slow progress on energy equity and access, according to the study Fostering Effective Energy Transition 2022, exacerbate the need for governments to undertake a comprehensive energy transition.
This special edition research, produced in conjunction with Accenture, builds on ten years of the Energy Transition Index, an annual nation benchmarking analysis. It contains critical suggestions for governments, corporations, consumers, and other stakeholders on how to accelerate the energy transition.
In order to adapt to energy market volatility, it is critical to prioritise a robust energy transition and diversity of the energy mix. More governments must establish enforceable climate pledges, build long-term strategies for domestic and regional energy systems, engage private sector investors for decarbonization projects, and assist consumers and the workforce in making the shift, according to the research.
“Countries are at risk of future events compounding the disruption of their energy supply chain at a time when the window to prevent the worst consequences of climate change is closing fast,” said Roberto Bocca, Head of Energy, Materials and Infrastructure, World Economic Forum. “While there are difficult decisions to be taken to align the imperatives of energy security, sustainability and affordability in the short term, now is the time to double down on action.”
The report also reveals the structural barriers to balancing energy affordability, security and availability with sustainability. This is due to compounded shocks to the energy system from a post-pandemic surge in energy demand, fuel supply bottlenecks, inflationary pressures and reconfigured energy supply chains as a result of the war in Ukraine.
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