Many major oil companies are accelerating spending on and diversifying into renewable and low carbon energy in response to growing concerns over climate change. While some market observers expect that transition to slow, pressure is mounting on power generators to retire existing assets that depend on coal supplies and build out other forms of power generation. In response to this shift, utilities have begun a rapid energy transition away from coal. The International Energy Agency forecasts the world’s total renewable-based power capacity to increase 50% between 20. As costs continue to fall and wind and solar become mainstream, the renewable energy sector will only keep growing and solidify as a strong investment opportunity. and Europe, wind power has become cheaper than traditional high-carbon energy resources. The costs of both solar and wind have fallen so drastically that in some regions of the U.S., as well as in the U.K. Spurred by structural, permanent changes to energy supply, demand, and prices, the energy transition also aims to reduce energy-related greenhouse gas emissions through various forms of decarbonization.Īfter years of depending on regulation for growth in the sector, renewable energy sources have become a powerful and cost-effective source of electricity. Switching from nonrenewable energy sources like oil, natural gas, and coal to renewable energy is made possible by technological advancements and a societal push toward sustainability. For data driven insights, news and analysis covering the decarbonization of energy markets, follow our weekly news round-up.Īs more investors and companies seek greater clarity and confidence in accounting for long-term climate risks and opportunities, businesses are adapting to the "energy transition" - a transformation of the global energy sector from fossil-based systems of energy production and consumption to renewable energy sources.
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