Only 26% of executives report mature or advanced progress on phasing-out fossil fuels

Energy infrastructure plays a crucial role in the infrastructure transition, as a staggering 75% of global greenhouse gas emissions stem from the production, use, and transportation of energy.

Our latest Infrastructure Transition Monitor shares insights on the status and progress of the global energy transition. For easy access, we created this interactive website displaying relevant facts from the report.

To achieve #decarbonization, we must revamp the infrastructure that supports energy systems. This monumental task requires deep changes to electrical power generation, distribution, and consumption. Also, industrial processes, buildings, transportation, and the governance structures need to adapt. Yet, most of the executives surveyed in our Infrastructure Transition Monitor 2023 believe their countries are neither mature nor advanced in pursuing major energy goals. 

To foster certainty in the market, it is important to establish clear rules and communicate how they will evolve over time.

For example, with the implementation of the net-zero carbon building code, new requirements for energy demand in buildings can be gradually increased. This approach provides the market with predictability and encourages innovation and investment. 

Unfortunately, there is a lack of alignment among citizens, businesses, and governments. Different groups have distinct priorities that hinder agreement. Citizens may show support for the transition until it directly impacts their immediate surroundings or leads to job losses and higher energy costs. Businesses are primarily concerned with the long-term economic implications, such as the costs of new technologies and adapting to a changing climate. Governments, on the other hand, aim to ensure that the population has access to clean and affordable energy and transportation. 

The role of government in the transition varies across countries, with conflicting views on energy and emissions policies, regulatory frameworks, and incentives and penalties. However, some governments are taking significant steps to support energy decarbonization. Europe's Green Deal, the USA's Inflation Reduction Act, and China's commitment to carbon neutrality by 2060 exemplify these efforts. Ideally, these measures will foster coordination and collaboration needed for a successful infrastructure transition. 

For more insights download the report here.

March 13, 2024. Picture credits: Siemens AG