Fostering Effective Energy Transition 2022

Fostering Effective Energy Transition 2022

News: World Economic Forum has released a report named Fostering Effective Energy Transition 2022, which urges urgent action from both private and public sectors to ensure a resilient energy transition.

Key Findings:
• The energy transition is not in tandem with growing climate urgency. Recent disruptions from a postpandemic surge in energy demand, fuel supply bottlenecks, inflationary pressures and disruption in energy supply chains owing to the war in Ukraine have made the transition more difficult.
• High energy prices, risks of energy supply shortages, and soaring demand for fossil fuels are simultaneously challenging energy affordability, energy security and access, and sustainability.
• The lack of access to an affordable energy supply has emerged as a key threat to a just transition.
• Industrial activity generates more than 30% of anthropogenic emissions, yet many industries face considerable challenges to decarbonize.

Recommendations:
• More countries need to make binding climate commitments, create long-term visions for domestic and regional energy systems, attract private sector investors for de-carbonisation projects and help consumers and the workforce adjust.
• There is need for holistic approach that delivers concurrently on the three transition imperatives – energy affordability, availability, and sustainability – at an accelerated pace.
• Regulatory frameworks need to be strengthened to drive the necessary actions and investments. Anchoring climate commitments into legally binding frameworks would not only ensure that those commitments endure political cycles, but also provide enforcement mechanisms to keep the long-term implementation efforts on track.
• Supply-side interventions will need to be augmented with demand-side efficiencies. Current energy market volatility and security constraints provide an opportunity to supercharge the transition by boosting demand for clean energy and fostering more efficient energy consumption from both industrial and end consumers.
• Clean demand signals could be the necessary turning point to scale the projects and investments required for the development of low-emission industries.

World Economic Forum
About:
• The WEF is a Swiss non-profit foundation established in 1971, based in Geneva Switzerland.
• It is committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

Major reports published:
• Energy Transition Index
• Global Competitiveness Report
• Global IT Report
• Global Gender Gap Report
• Global Risk Report
• Global Travel and Tourism Report