{"componentChunkName":"component---src-templates-page-js","path":"/energy-transition/","matchPath":"/energy-transition/*","result":{"pageContext":{"matchPath":"/energy-transition/*","data":{"id":"playlist-15--new--","seo":{"title":"Green transitions","description":"A rewiring of global energy systems is underway","image":"https://impact.economist.com/projects/real-world-strategy/images/share15.jpg"},"link":{"id":"new--playlist15","basePath":"/energy-transition/","path":"/energy-transition/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_15.jpg","full":"/images/playlists/full_pl_15.jpg","alt":""},"label":"Energy Strategy","pretitle":"Energy Strategy","title":"A rewiring of global energy systems is underway"},"menu":[{"id":"playlist8","basePath":"/ceo-video-series/","path":"/ceo-series/","type":"brand_ey_parthenon","watermark":"ceo","img":{"thumb":"/images/playlists/thumb_pl_08.jpg","full":"/images/playlists/full_pl_08.jpg","alt":""},"pretitle":"Strategy in Action:<br/>A CEO Series","title":"Watch Now"},{"id":"playlist11","basePath":"/geostrategy/","path":"/geostrategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_11.jpg","full":"/images/playlists/full_pl_11.jpg","alt":"Winding valley with green and brown hilly terrain. Light shines on China's Zhangye Danxia colourful rainbow mountain range."},"label":"Geostrategy","pretitle":"Geostrategy","title":"How do you adapt to a new geopolitical&nbsp;era?"},{"id":"playlist10","basePath":"/esgstrategy/","path":"/esgstrategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_10.jpg","full":"/images/playlists/full_pl_10.jpg","alt":""},"label":"ESG Strategy","pretitle":"ESG Strategy","title":"How do you embed sustainability into traditional corporate strategy?"}],"content":{"brand":"brand_ey_parthenon","sidenav":[{"label":"Professional perspectives","anchor":"professionalperspectives"},{"label":"Insights","anchor":"insights"},{"label":"Case studies","anchor":"casestudies"}],"bg":{"type":"image","hideLogo":true,"addGradient":true,"desktop":{"src":"/images/static-hero/static-15.jpg"},"mobile":{"src":"/images/static-hero/static-15-m.jpg"}},"card":{"cls":"small-mobile-title","showDots":false,"forceWidth":440,"title":"Green transitions","desc":"A rewiring of global energy systems is underway"},"sections":[{"id":"professionalperspectives","theme":"lines-bg--offset","blocks":[{"type":"CopyBlock","content":{"title":"Size, scope and speed","paragraphs":["Energy and resources companies that make strong strategic choices can accelerate change while capturing the commercial opportunities the energy transition has to offer."]}},{"type":"VideoBlock","content":{"id":"video","src":"https://players.brightcove.net/1153191510001/default_default/index.html?videoId=6361390232112","title":"Playlist 15"}},{"type":"CopyBlock","content":{"paragraphs":["Andy Brogan, EY-Parthenon Global Energy Sector Leader; Anna Belz, Partner, Energy Transition Strategy, Ernst & Young LLP; and Stephanie Chesnick, EY Americas Strategy and Transactions Energy & Resources Leader examine what drives the pace of the energy transition and the role corporations can play as the paradigm shifts and progress reaches critical momentum."]}}]},{"id":"insights","theme":"lines-bg--offset-large","blocks":[{"type":"CopyBlock","content":{"title":"Power dynamics in 2050"}},{"type":"ArrowsPercentStatBlock","content":{"theme":"margin-bottom","chart":{"value":"17%","desc":"Global final energy demand is projected to increase by","source":"Source: EY Energy and Resources Transition Acceleration Report, 2024"}}},{"type":"MapStatBlock","content":{"source":"Source: EY Energy and Resources Transition Acceleration Report, 2024","image":{"desktop":"/images/t2/p-15-1-map.svg","mobile":"/images/t2/p-15-1-map.svg","alt":""},"stats":[{"pre":"The US, Europe and China will be responsible for","value":"57%","desc":"of the total solar and wind generation."}]}},{"type":"CopyBlock","content":{"title":"Mapping the energy transition, from superpowers to developing economies","paragraphs":["<strong>Multiple energy transitions around the world are moving at different paces, signaling a nonlinear path toward a green energy future.</strong>","For a world fixated on instant gratification, the transition to clean energy can feel like a slow and uphill climb. The goal of reaching net-zero emissions by 2050 and holding Earth’s average temperature increase below 1.5°C looms large. Yet the formidable road ahead belies the gains that have already been made. Progress, while not linear, is accelerating. An effective transition will not be accomplished in one giant leap, but through a series of interconnected movements across markets and industries. These will play out at different speeds around the world, ushering in a “decade of disruption”, EY professionals predict.","Regional differences in resources, incentives, technologies and economic considerations underscore the complexity and scope of the changes required. Although policy interventions are necessary to drive a just transition, governments are tackling the task in different ways, wielding proverbial carrots or sticks, says Andy Brogan, EY-Parthenon global energy sector leader. While Brussels brandishes the regulatory baton, Washington dangles tax breaks."]}},{"type":"StatImageBlock","content":{"image":{"src":"/images/t2/p-15-1-img.jpg","alt":""},"stat":{"style":"block-post","pre":"The US Inflation Reduction Act of 2022 provided","main":"US$369bn","post":"in funding for clean energy initiatives"}}},{"type":"CopyBlock","content":{"paragraphs":["Renewables are set to become the dominant power generation source by 2038, with China, Europe and the US producing over 57% of global solar and wind output by 2050. As the world’s energy systems are reshaped, organizations need to closely align portfolio strategy and investment pacing with international policy and market signals. The EY Energy and Resources Transition Acceleration report explores the drivers and challenges associated with this transformation. Here we provide a snapshot of the dynamics at play in key markets:"]}},{"type":"NumberedListBlock","content":{"list":[{"num":"01","title":"Europe’s green tape","paragraphs":["The Old Continent, particularly its northwestern fringes, Sweden and Finland, lead in clean electricity and renewables. The EU’s program of strict regulation and its ambitious decarbonization agenda have positioned Europe at the forefront of the energy transition, with hopes of becoming the world’s first climate-neutral continent by 2050. Innovation hubs are collaborating to develop new energy technologies. However, the continent’s lack of domestic supply chains means imports are required for many critical components and materials, leaving it vulnerable to shocks. Recent headwinds—including high inflation, the Russia-Ukraine war and competition from the US—have dampened investment appetites."]},{"num":"02","title":"Star-spangled incentives","paragraphs":["The US Inflation Reduction Act (IRA) of 2022 provided US$369bn in funding for clean energy initiatives, with US$270bn of that sum earmarked for tax credits to incentivize energy storage, renewables and decarbonization technologies. Since then, more than 300 new clean energy projects have been announced in the US, garnering over US$124bn in investments. Some investors initially planning projects in Europe diverted their funds to America as a result. Having attracted interest from existing investors in the region and new players looking to enter, the IRA has galvanized the expansion of incentive structures globally. Greater clarity and guidance around compliance requirements are still needed for organizations to understand how best to participate and move forward."]},{"num":"03","title":"China powers up","paragraphs":["Global final energy demand is projected to increase by 17% by 2050, as growth engines China and South Asia offset energy demand stability in the US and Europe. But China—one of the biggest greenhouse gas emitters—has also become the world’s largest producer of renewables. Fossil fuels now comprise less than half of the country’s total installed capacity for power generation. This is because China treats energy policy as industrial policy, deliberately building capacity across the entire supply chain from minerals out of the ground to fabrications. The manufacturing giant now dominates global production of components such as solar panels and wind turbine parts, making much of the world reliant on its products. China has balanced transitioning to new energy technologies with continued use of coal power to sustain its large, energy-intensive economy. “They’ve been deliberate that they would move at the speed they could and accepted that it was going to take time,” explains Mr Brogan. “They have balanced old and new technologies quite successfully.”"]},{"num":"04","title":"Greening emerging markets","paragraphs":["To date, no economy has modernized without the use of oil and gas. Developing nations are still aiming to create value from fossil fuels while also tapping renewable resources such as solar and wind. For lower-income players, energy security and supply and cost management are likely to outweigh sustainability as immediate priorities. Policy “sticks” such as carbon border taxes could eventually drive changes, but this will take time. Mobilizing capital on a large scale will be a crucial step to greenify these economies."]}],"cta":{"label":"Read more","link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B31553931.402816422;dc_trk_aid=594727018;dc_trk_cid=210642330;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1"},"postCopy":["The energy transition’s regional tempos will continue to vary as technologies, policies and attitudes evolve. Organizations have an opportunity to build on its momentum through three key stages, according to EY industry intelligence. First, by incentivizing the transition from legacy assets to renewables. Second, by developing a robust minerals and metals supply chain to meet growing demand. Third, by empowering consumers to play a larger role in driving change. Yet there is no one-size-fits-all approach. Tailored, nuanced portfolio strategies predicated on regional insights, policy dynamics, cost structures and market idiosyncrasies allow companies to leverage these accelerators effectively and take the lead in progressing transformation. When faced with complexities, decision-makers should remain mindful of market signals that could indicate international policy shifts (inflation, political transitions or export orientations, for example) and avoid over-extending in markets or technologies that lack sustained policy support.","The energy transition may appear drawn-out, but it is rapidly marching onward. While large-scale operational change can expose organizations to new risks, the dangers of not transforming may be even greater. Leaders are optimizing existing operations, reducing costs to free up capital for energy transition investments and outperforming laggards. Strategic partnerships among management teams and professionals with in-depth industry knowledge can pose a significant advantage. Informed decisions and a vision for the types of returns investors want to see will be vital in this era of constant change."]}}]},{"id":"casestudies","theme":"dark-bg","blocks":[{"type":"CaseStudyBlock","content":{"title":"Rotterdam’s rising tide lifts all boats","paragraphs":["Over 13% of all energy used in Europe passes through Rotterdam. So, how does it plan to maintain its position as a hub for the Netherlands and Northwestern Europe within a clean energy and feedstock future? The Port of Rotterdam today has a portfolio of over 70 projects in development, all involving cooperation in some form."],"video":{"src":"https://players.brightcove.net/1153191510001/default_default/index.html?videoId=6357395617112","title":"Playlist 15 case study"},"cta":{"label":"Learn more","link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B31553931.403092594;dc_trk_aid=594818628;dc_trk_cid=217868566;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1"}}}]}]}},"id":"new--playlist15"}}}