The World Economic Forum (WEF) has concluded for another year. Of the many important topics raised, energy and climate change were high on the agenda. Energy is seen as the linchpin of economic prosperity, but the industry is in a state of flux due to technological and policy changes. The changes are underpinned by the need to combat climate change, air pollution, and to provide energy security for all. The WEF has a series of initiatives in place to enable change among constituents, helping them to address challenges and opportunities. Shaping the Future of Energy is one such initiative that considers how an effective transition to a more sustainable, affordable, secure, and inclusive energy system can be enabled. A priority is to provide a clear vision of what this means in different contexts and geographies. The energy initiative is made up of a number of projects, which include:
Fostering Effective Energy Transition: This project, conducted in collaboration with McKinsey & Company, will include an index to benchmark energy system performance and the transition readiness of different countries. The project will enable fact-based decision-making during a period of rapid change. Targeted events will also support decisions on how best to prepare for the energy transition.
The Oil and Gas Climate Initiative (OGCI): A voluntary, industry-driven initiative, comprised of ten oil and gas companies. The OGCI will invest one billion dollars over the next decade to accelerate the development of emission-reducing technologies. It is intended that this will act to encourage additional funds to be directed at low-emission technologies in the oil and gas sector.
Global Battery Alliance: Battery storage forms an essential element of a low-carbon future. The alliance seeks to address the challenges that come with their increased use, such as the high environmental impact of the extraction of raw materials. The need to establish an effective recycling system for batteries is another important element.
While important progress has been made, the WEF points to the work that still needs to be done. It underlines the requirement for policies to be put in place that will direct funding towards innovation and energy investment worldwide