Wood Mackenzie, a UK-based consultancy firm in its recent report said that coal, gas and oil will contribute about 85 per cent of primary energy supply by 2040.
The report titled ‘Energy Transition Outlook’ estimated that global energy demand would increase from 13 billion tonnes of oil equivalent (toe) in 2018 to 16 billion toe in 2040.
The UK-based firm predicted challenges ahead for the world community claiming that the world will miss out on achieving the sustainability goals, without stronger and effective actions. “The world is presently on a 3 degree Celsius – not 2 degree Celsius – warming trajectory,” it added.
Prakash Sharma, head – markets and transitions, Asia Pacific, WoodMac explained that the analysis is based on the premise of scalability and it is a big challenge for countries to meet rising energy demand.
David Brown, head – markets and transitions, USA, WoodMac, said, “To reach the 2 degree Celsius goal, zero-carbon energy needs to account for 40 per cent of the total energy mix by 2040, unlike just 15 per cent estimated in the report.”
Brown added that in some markets the policy was becoming more supportive but by and large, energy-dense markets have made little progress and each sector of the global economy has its own set of decarbonisation challenges to deal with.
The report suggested that carbon pricing, investments in carbon capture and storage, and renewables-based hydrogen technologies could be crucial steps towards a ‘2 degree celsius pathway’.