World Energy Outlook Report 2022 - Short Analysis
- TheSoulGuide
- Nov 12, 2022
- 2 min read
Recently, world energy outlook released its report, and it is considered as the most recognized study on the energy demands, risks and future outlooks in the prevailing scenario of the time. This report is studied and referred by governments and has a say in decision making of many countries as well as research institutions. The report is published since 1998 by IEA that is International Energy Agency.
Key highlights
World is in crisis especially the Russia Ukraine has created impact that has vast implications.
Russia Ukraine war followed by the sanctions and energy curbs to the European nations has impacted the markets that was recovering from COVID.
The prices of natural gas have risen extraordinarily impacting the energy markets.
The impact after the Paris agreement has come down but it's a long way to go as we are far from achieving the targets that are required to keep the temperature below 1.5 degrees.
Analysis
Data based analysis of the report warns about the crunch of energy in coming times especially due to the ongoing war between Russia and Ukraine.
dw.com quoted the statement of the Executive Director of the IEA, "Energy markets and policies have changed as a result of Russia's invasion of Ukraine, not just for the time being, but for decades to come".
As dependency on clean energy is increasing, the provision seems do not match to the demand.
The necessities are:
"Clean energy investments need to rise to $4 trillion per year by 2030, instead of the current forecast of $2 trillion".
According to an energy economist at the German Institute for Economic Research, "governments had to provide the "right frameworks" alongside investment to speed up the transition to renewable energy. This would eliminate "barriers which still exist".
On the other hand, the consequences predicted by the IEA are:
Climate change and its effects on humans.
Often inevitable accidents like flood, drought will be seen in many parts of the world.
The world has not been investing enough in energy in recent years, a fact that left the energy system much more vulnerable to the sort of shocks seen in 2022.
Even the forecast is that global temperature will rise by 2.5 degrees Celsius. The aftermath will not be limited to the environment but will severely affect the lives of mankind and other species in the form of different illnesses. Economy will be at peril. No balance between achieving environmental goals and financial development.
Possible solutions
Diversify the portfolio of energy and dependency on single energy source as well as energy provider can bring trouble.
Change the nature of the energy system itself, and to do so while maintaining the affordable, secure provision of energy services.
stay tuned for more.
Get membership to feature your article. Check here.
With inputs from iea.org
Check full analysis here: https://www.iea.org/reports/world-energy-outlook-2022
Comments