Introducing SHOCKED – a global temperature check on energy transition challenges and opportunities
Against the backdrop of an ever-warming planet, heightened geopolitical tensions and energy security concerns globally – all of which threaten to derail the shift to a net zero future – SHOCKED begs the question:
How can we de-risk the energy transition?
More than
9
in 10
energy leaders (94%) believe that the current energy crisis is the most severe their market has ever experienced.
Unlike previous crises, such as the oil shocks of the 1970s and 1990s, the current crisis is truly global and multidimensional, impacting all parts of society. It is underscored by a drive towards net zero that is reliant on the energy sector following a rapid path to decarbonisation.
The SHOCKED
trilemma
The energy sector is currently battling three distinct, but interconnected, shocks: security, society and climate.
The security shock
Extreme market volatility and geopolitical tensions have put energy security high on the global agenda.
3/4
of energy leaders say the security of energy supply is the number one concern for their organisation.
The society shock
Societal pressure on the energy sector to provide reliable, affordable, low-carbon energy has never been greater.
71%
of energy leaders say consumer backlash from increased energy bills is a grave threat to their business.
The climate shock
The climate crisis continues to force the acceleration of energy transition, but progress towards net zero is being impacted in both directions by the complex dynamics at play…
42%
say the current energy crisis has accelerated their organisation’s net zero plans – by an average of five years.
But almost half (47%) report that the crisis has decelerated their net zero plans – by an average of six years.
What sets the current crisis apart is the sheer number of contributing factors. There’s no quick fix. Whereas previous energy crises were mainly about access to energy and reducing its price, this one also has a fundamental focus on decarbonisation.
The situation might seem dire.
But there’s hope
Through a multifaceted approach to build a more resilient energy system and a shared commitment to co-create positive change, we can navigate through this current period of disruption, stay the course to net zero emissions and better prepare ourselves for the next inevitable shock.