Energy crisis will not derail transition – DNV

Falling cost of renewables and rising carbon prices will outweigh short-term turbulence, risk management firm says in new forecast

Current volatility in global energy markets will have a minimal impact on the pace of the energy transition to 2050 as rising long-term carbon prices and plunging renewables costs outweigh short-term factors such as inflation and supply-chain disruptions, according to risk management company DNV. “The turbulence in the energy market does not dramatically alter the decarbonisation pathway towards mid-century,” says Remi Eriksen, CEO of DNV. “The strongest engine of the global energy transition is the rapidly reducing costs of solar and wind energy, which will outweigh the present short-term shocks to the energy system.” However, the world is heading for 2.2°C warming by the end of the century