From the Executive Summary:
Russia’s invasion of Ukraine has sparked a global energy crisis.
- The world is in the midst of its first global energy crisis – a shock of unprecedented breadth and complexity.
- Prices for spot purchases of natural gas have reached levels never seen before, regularly exceeding the equivalent of USD 250 for a barrel of oil.
- The crisis has stoked inflationary pressures and created a looming risk of recession, as well as a huge USD 2 trillion windfall for fossil fuel producers above their 2021 net income.
- Faced with energy shortfalls and high prices, governments have so far committed well over USD 500 billion, mainly in advanced economies, to shield consumers from the immediate impacts.
Is the crisis a boost, or a setback, for energy transitions?
- With energy markets remaining extremely vulnerable, today’s energy shock is a reminder of the fragility and unsustainability of our current energy system.
- Times of crisis put the spotlight on governments, and on how they react.
Policy responses are fast-tracking the emergence of a clean energy economy.
- New policies in major energy markets help propel annual clean energy investment to more than USD 2 trillion by 2030 in the Stated Policies Scenario, a rise of more than 50% from today.