Viewpoint: The Energy Transformation Is Not Happening Fast Enough
By Georg Kell
Energy powers our modern lives. It is also the major cause of global warming. Over 70 per cent of the gases that trap the heat in our atmosphere are caused by the burning of fossil fuels – coal, oil and gas – to produce energy. The cost of renewable sources of energy is declining rapidly, and renewable energy has started to replace fossil fuels, especially in the production of electricity. However, this transformation is not happening fast enough. DNV GL, an independent third-party provider of assurance and risk management services to the energy sector headquartered in Norway, just published their “Energy Transition Outlook 2019”, an analysis of the demand-and-supply aspects of the energy transformation. Looking into the future, the report concludes that global average temperatures are likely to increase by 2.5° Celsius by the end of the century, compared to pre-industrial levels, despite the considerable progress that has been achieved, such as efficiency gains due to digitalization and electrification, regulatory changes such as carbon pricing, and anticipated further cost reductions for renewables.
Photo courtesy of Steve Taylor.