- Energy Transition Facing Challenges:
Governments are prioritizing affordable energy and economic growth
over sustainability. Energy transition will be multidimensional
unfolding differently in different parts of the world, at different
rates, with different mixes of fuels and technologies. Achieving
net-zero emissions by 2050 is now deemed unlikely.
- Technological and Market Shifts Underway: New
observation technologies reveal higher methane emissions than
previously reported, and there is growing interest in nuclear
energy for decarbonization. Integrating AI could transform energy
supply chains and help address climate change.
- Political, Economic and Strategic
Implications: Western economies face challenges in
reducing dependence on China for
clean technology supply chains, requiring significant investments
in local manufacturing. Despite the financial risks of climate
change, only 35% of major companies have climate adaptation
plans.
NEW
YORK, March 6, 2025 /PRNewswire/ -- S&P
Global (NYSE: SPGI), today announced "Look Forward: Energy at the
Crossroads," the latest edition of its Look Forward research
series, reports that take a deep dive into the most important
topics that are transforming the global economy.
"Look Forward: Energy at the Crossroads" assesses the state
of the energy transition and the pragmatic path forward as global
energy leaders prepare to convene in Houston, Texas for CERAWeek by S&P
Global.
The research draws together insights from across S&P Global
to explore the direction of global energy markets and climate
change, the progress being made by the oil and gas industry to
measure and mitigate methane emissions, the reasons for a global
resurgence in nuclear power, how to assess climate risks, and the
potential impact of AI on optimization and innovation across energy
value chains.
Key findings include:
- Governments are reevaluating their energy strategies and
climate policies, focusing on affordable energy over
sustainability. The transition will be multidimensional, rather
than linear.
- Slower energy demand growth is anticipated, with electricity
becoming central to future energy systems. Achieving net-zero
emissions by 2050 is now deemed unlikely.
- Western economies face challenges in reducing dependence on
China for clean technology,
requiring significant investment and planning to develop local
manufacturing.
- New observation technologies are providing more accurate,
actionable data on methane emissions, revealing higher emissions
levels than previously reported.
- There is a growing interest in nuclear energy as a solution for
decarbonization, driven by the need for firm power and the
increasing demand for electricity from AI-related technologies.
- Indexes can help market participants navigate the energy
transition, with companies in the S&P 500 having decarbonized
by 62% over the past 20 years.
- Despite the potential financial implications of climate change,
estimated to reach $25 trillion by
2050, only 35% of major companies have established climate
adaptation plans.
- Integrating AI into operational efficiency, decision-making and
innovation could transform how energy is produced and
distributed.
Atul Arya, Chief Energy
Strategist at S&P Global Commodity Insights, says: "Today's
energy transition is fundamentally distinct from its predecessors,
as it is meant to be transformative rather than an energy addition.
Its scale and associated challenges mean it will not proceed as
many expect; it will be multidimensional, proceeding at different
rates with different technologies in regions with different
priorities. This reflects the complexities of the energy system
that is the foundation of today's global economy and the ubiquity
of fossil fuels as the building blocks of modern society. The
importance of balancing economic growth, energy security, energy
access and sustainability underscores the need to rethink the
transition and redefine a pragmatic path forward."
Read the full report here.
Media Contacts:
Orla O'Brien
Global Head of Public Relations, S&P Global
Tel: +1 (857)407-8559
orla.obrien@spglobal.com
Kathleen Tanzy
Director of Strategic Industry Communications, S&P Global
Commodity Insights
Tel: +1 (917) 331-4607
kathleen.tanzy@spglobal.com
About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We
enable governments, businesses and individuals with the right data,
expertise and connected technology so that they can make decisions
with conviction. From helping our customers assess new investments
to guiding them through sustainability and energy transition across
supply chains, we unlock new opportunities, solve challenges and
accelerate progress for the world.
We are widely sought after by many of the world's leading
organizations to provide credit ratings, benchmarks, analytics and
workflow solutions in the global capital, commodity and automotive
markets. With every one of our offerings, we help the world's
leading organizations plan for tomorrow, today.
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SOURCE S&P Global
