How AI, geopolitical fragmentation and climate change are reshaping the global energy system

Inform your discussions and decisions this week.?As the world hits the 1.5C warming threshold for the first time, the fact that 80% of global energy comes from fossil fuels is a stark reminder of the need for change. Developing clean, secure and affordable energy systems quickly is essential.

In January, President Trump declared a national energy emergency in the US, highlighting his priorities around energy security and affordability. In a special event programmed by Economist Impact and sponsored by 苏黎世保险 , The Economist's editor-in-chief, Zanny Minton Beddoes , moderated a discussion featuring Jason Bordoff , director, Center on Global Energy Policy , Columbia University, Meghan O’Sullivan, director, Belfer Centre for Science and International Affairs, Harvard University and Daniel Yergin , vice-chairman, S&P Global . Watch “Power shifts: what next for energy geopolitics?” to explore the impacts of the AI revolution, the Trump presidency and what the new focus on energy security and affordability means for efforts to combat climate change.

That new focus is linked to President Trump’s prioritisation of middle-class concerns around energy, which include its cost for households and businesses and security of energy-sector jobs. Overall, moving to clean energy is expected over time to have a net-positive impact on job creation. Yet it will also entail big shifts between sectors and occupations and disruption in existing employment, particularly in resource-intensive sectors. The International Energy Agency estimates that 30 million jobs could be created around clean energy, in new products and services that drive energy efficiency, and in low-emission technologies, all by 2030. Some 14 million jobs would be lost in that period, however. The new opportunities will come predominantly in skilled professions, such as installation and manufacturing. Those skills are already in short supply in many countries. A lot will depend therefore on whether national education and training systems, in tandem with labour markets, can supply the economy with the right types of worker, in the right locations to work on the energy transition.

In 2024, Economist Impact launched Green skills: driving the transition to a more sustainable future. Our report analysed what the green transition will mean for labour markets. According to our survey, 55% of business leaders are implementing or planning to implement green skills programmes for their workforces. That could leave a big proportion without training in green skills.

As part of the programme, we have continued gathering perspectives from experts in the energy industry. Read the view of Dr Angela Wilkinson , secretary general and CEO of the 世界能源理事会 , that upskilling and reskilling programmes for workers, and involvement of local communities, are essential for addressing what she calls the energy trilemma - the need for security, affordability and sustainability.

Also in this issue, consider the implications of widespread AI adoption on energy grids. Explore whether there are alternatives to electric power that could help decarbonise the shipping industry. Plus, is Latin America uniquely placed to establish itself as a key player in critical minerals for the clean energy transition?

Dr Angela Wilkinson, secretary general and CEO of the World Energy Council, shares her insights into the global energy transition, which, of course, is the sum of multiple national energy transitions. She explains the challenges inherent in balancing affordability and sustainability, and the evolving role of skills and collaboration in shaping the future of energy.

In our existing electricity system, centralised power generation is flexible enough to cope with supply and demand. But as the world decarbonises, the grid’s complexity and need for flexibility must all increase substantially by 2030 in order to meet net-zero commitments. How will the energy industry build a more adaptable and resilient grid?

Join the Energy Transition Summit in London on March 10th to learn the latest trends in how sectors and businesses are approaching the imperative to shift away from fossil fuels, towards sustainable energy sources.