Keep the momentum for the clean energy transition revolution: 2024 a decisive year!

Linkedin encourages Top Voices to share ideas on key areas that might emerge as hot topics in 2024. As far as concerns the #energy sector the variables are really several and not all within the sector itself.

The first one – probably quite big one – is “elections”… 2024 is going to be characterised by a myriad of elections around the world. It is quite evident that the US Presidential ones and the Europeans are set to act as a catalyst of international debate.

The second one is still within the geopolitics domain. How and if the current crisis will evolve in Middle East and the destiny of the conflict triggered by the Russia invasion of Ukraine are set to have a massive impact – in one direction or the other – on international #energy markets.

Within the energy sector itself, the big question (and personal hope) is about the pace of clean energy deployment. 2023 is set to be the hottest year on the record in terms of global warming, but also an unprecedented year in terms of acceleration in clean energy technologies. Renewables, Heat Pumps, Electric vehicles have achieved record-growth. Hydrogen, CCUS and energy efficiency getting more and more attentions and projects. Also nuclear #power is coming back strongly around the world, including in several countries? that had abandoned or not considered this option.

?Is this a boom and bust trend or a more sustainable one? All indicators suggests that the so-called new clean energy economy has finally get full steam and embarked a non-reversible direction. However, not everyone is still on board, starting from (part of) financial markets. The performance of clean energy index has been quite disappointing throughout 2023 due to an international financial context not favourable but also for enhanced scrutiny on the financial performance of some clean technology players.

?

If one year performance is far from being fully indicative alone, the perception of many remains that traditional energies are still a more profitable #business – something that is only partially true, as a recent IEA report showed (here - https://www.iea.org/news/oil-and-gas-industry-faces-moment-of-truth-and-opportunity-to-adapt-as-clean-energy-transitions-advance ) , and this without taking into account risks and external factors. Yet, there is the need to resume the downward trend for costs of clean tech. After more than a decade of cost reductions year after year, green tech have seen a period of rising costs driven by inflation and supply chain bottlenecks. Displacing traditional energies (that despite all efforts are still about 80% of global energy mix) requires a continuation of cost reductions and enhanced competitiveness.?

?

Last but not least, 2024 is set to be a quite crucial year for what has been defined by the IEA Chief well before others as the "era of clean energy manufacturing".

By mid of the next year, the Inflation Reduction Act in the US will celebrate its 2nd anniversary and other initiatives around the world, including those from Europe, #India, Japan and more will start to get consolidated and in deployment phase. This will mean the real test for the new economy, passing from announcements of investments and hopes of job creation to real life and real world impact.

?It is evident that a significant push (or brake) on those trend might come from the outcome of #COP28 discussion, something ongoing at the time of writing…..

?But, whatever will be the result, it is equally evident that the decarbonisation of global economy is something not questionable anymore.?

?2024 will be (another) year with energy at the centre of international scene

?

Katarina Luka? Solange Uwimana LinkedIn News Europe

#BigIdeas2024 #LITrendingTopics #sustainability #data #future #innovation