The global energy challenge: still fuel for progress?

Abstract

This paper summarises the key challenges for the global energy sector to fulfil its essential role in the world with a forward perspective from 2014 to 2040. The paper draws on scenarios and other analyses developed by leading institutions and firms. The global availability of extractive energy resources is not likely constrain global progress on human development in the chosen time perspective, but the supplies of oil and gas can come under strain and produce price shocks from time to time resulting from events affecting the supply system. A more severe challenge arises from the impacts of energy-related emissions on the global climate. Actions are possible on the arenas of technology development, enterprise and political governance, which will significantly reduce such risks while fulfilling the energy sector’s contribution to improve human conditions. Six such issues of technology development are highlighted, and two issues of political governance: appropriate pricing of energy and emissions, and development of energy efficient cities.