2023: The Year of Energy Transition and Clean Power

The year 2023 has been marked by extensive dialogue on energy and the shift towards cleaner power sources. There have been significant developments and focal points in the energy sector this year, ranging from renewable investments to the implications of the energy transition on emerging economies.

Remarkable progress in the energy transition journey of certain countries has been underscored in the Fostering Effective Energy Transition 2023 report by the World Economic Forum. For example, India and Singapore have made substantial advancements in all three dimensions of the Energy Transition Index – equity, security, and sustainability. However, the global energy transition has reached a standstill, prompting concerns about energy equity and the potential neglect of developing countries in the transition.

The necessity for increased investment in clean power generation is imperative. As per the Clean Power, Grids and Electrification Program of the Forum, clean power generation must triple by 2030, with total annual grid investment reaching $680 billion. This objective is formidable, given that progress in investment is currently stagnating.

Moreover, the industrial sector has a significant role to play in achieving net-zero emissions. With industry accounting for 30% of global CO2 emissions, industrial clusters need to expedite their transition to net-zero. The Transitioning Industrial Clusters initiative from the World Economic Forum has been focused on policy support and technological innovations to propel this transition.

The availability of critical minerals for essential emissions-reduction technologies is another concern. As the world progresses towards decarbonization and net-zero emissions, there is a looming risk of critical mineral shortages by 2030. Collaborative efforts and risk management are crucial in ensuring the security of critical minerals for the energy transition.

In addition to clean energy supply, the energy transition also necessitates a transformation in energy demand. Energy intensity must be further reduced to meet the UN’s Sustainable Development Goal targets, as energy underpins various processes and products.

Throughout 2023, the World Economic Forum has been in the vanguard of propelling the energy transition, facilitating the shift to clean energy, evaluating the progress of countries in their energy systems, and expediting the adoption of clean power and electric solutions.

As we progress towards a more sustainable and secure energy future, it is essential to stay abreast of the latest developments and challenges in the energy sector. The year 2023 has been crucial in emphasizing the significance of the energy transition, clean power generation, and ensuring equitable access to clean and affordable energy for all.