FIGURE 1 Volatile period in the energy transition, 2020-2022 2020 2021 2022 Extreme weather events Russia-Ukraine war COVID-19 Key shocks Global energy crisis Inflation Structural changes to global crude oil markets and pricing system Drop in energy Global Supply chain Rebound Major outages Energy security Surge in crude Electricity demand by 4% economy disruptions and in energy affecting 350 vulnerabilities oil prices to costs up by worldwide shrank by 5.2% supply shortages demand and million people and supply $100/barrel in 30% consumption worldwide chain disruptions mid-2022 before 5% worldwide falling back fects Ef Drop in energy Global energy Government Tightening of Average global Prices for spot Increase in commodity investment support for energy markets temperature purchases of number of people prices by 40% plummeted by fossil fuels in pushed coal, oil 1.1 °C above natural gas exceed without access to $400 billion 51 countries and gas prices pre-industrial equivalent of electricity (770 doubled to up (80%) levels $250/barrel of oil million) after $697 billion years of decrease Drop in global Rebound in global Fossil fuel Energy poverty and energy-related energy-related CO subsidies at loss of industrial 2 CO2 emissions emissions by 6% (36.3 all-time high competitiveness by 5.8% billion tonnes) ($1 trillion) Presentation of EU Launch of Just Energy Transition Eight countries reached Climate Target Plan Partnerships (JETPs) and the net-zero emissions First Movers Coalition – US Inflation Reduction Act The world committed – EU Net-Zero Industry Act a record $501.3 billion Record 295GW of new renewable – EU Fit for 55 package to decarbonization power capacity added – Japan Green Transformation Milestones programme – First Movers Coalition Solar power became Announced stimulus of $17.2 Global investment in low-carbon the cheapest source trillion will have a net negative energy technology surged to $1.1 of electricity globally environmental impact in 15 of trillion (biggest share towards ($0.048/kWh) the G20 countries renewables and electrified transport) Lack of incentives to the private Ongoing subsidizing of coal, oil and Temporary sector to invest in clean electricity natural gas and lack of structural behavioural changes reforms and bold actions to phase instead of structural out fossil fuels in power generation Missed reforms to keep and expand energy efficiency and emissions low Only 6% of the G20’s recovery renewable power opportunities funding channelled towards clean energy Source: World Economic Forum Fostering Effective Energy Transition: 2023 Edition 7