‘Fostering Effective Energy Transition 2022’ Report

Fostering Effective Energy Transition 2022 report was recently released which called for urgent action by both public and private sectors to ensure resilient energy transition.

Who released the report?

It is a special edition report on the global energy transition released by the World Economic Forum (WEF) in collaboration with Accenture.

What are the key insights of the report?

1. The report found that energy transition is not matching with the growing urgency for change. Energy affordability, energy security, and sustainability are becoming more important than ever. Thus, a comprehensive approach with a proper timeline is critical to achieving long-term climate goals.
2. Energy unaffordability is threatening the goal of fair and just transition. The governments should prioritize access to affordable energy for all. Energy equity can be ensured with the help of direct benefits transfer (DBT) and other support measures.
3. There is a lack of energy diversity.  To ensure energy security, there is a need for dual diversification i.e both supply source and supply mix should be diversified. For example, import-dependent countries must try to import energy from many countries and not overly depend on a few countries. Domestic energy can be diversified with low-carbon alternatives which make countries self-reliant and ensure energy security.
4. Regulatory frameworks need to be made robust to attract investments in clean energy and to ensure that commitments turn into legally binding frameworks that endure political cycles. This also ensures that projects are implemented on time.
5. There is a need for change in energy consumption patterns. Supply-side interventions alone are not enough. They need to be augmented with demand-side efficiencies.
6. Decarbonizing industries is critical to the energy transition. Multi-stakeholder collaborations are important to ensure a greater focus on emission reduction targets & goals.

Why transition toward clean energy is important?

To fight climate change and address the issues like environmental pollution, sustainability, energy security, and affordability of energy. The recent fuel shortages and the spike in fuel prices highlight the urgency of the energy transition. By increasing investments in clean energy and reshaping changing energy consumption patterns, we can tackle climate issues.

Month: Current Affairs - May, 2022

Category: Reports & Indexes Current Affairs