The idea of an energy transition to a low-carbon world has now gone mainstream. The combination of concern about the risks of climate change and focus about new clean technologies has captured the public attention, the interest of the general press, and some of the political dialogue in almost every country. For companies in the energy business, this has brought pressure in the form of shareholder resolutions, and calls for divestment from fossil fuels. This pressure is coming from major investors. Is money moving into low-carbon investments? Will the shift in sentiment constrict ability to invest in oil and gas and lead to higher prices? How should companies respond?
Recent years have seen integrated oil companies and utilities investing heavily in a range of clean technologies, including renewable power, EV charging, power storage, biofuels, and CCUS. The new energy transition brings new opportunities, but also challenges to existing business models and pressure to increase company sustainability. What will be the impact of these investments on company strategy, technology development, and the move to a low-carbon, global energy system?
Hydrogen is gaining attention as a low-carbon energy carrier with applications in industry, power generation, homes, and transportation. While the costs of hydrogen in transportation are high, the transport sector could allow for the fastest development of the use of hydrogen in niche areas (HGV, ports). Policy incentives to encourage this could provide for a significant step to lower emissions.