WORLD ENERGY OUTLOOK 2018
The world energy sector is experiencing major transformations. Energy markets and the climate crisis are important, but governments will drive energy decisions as most investments are government-driven, Fatih Birol, Executive Director of the International Energy Agency (IEA), said at the official 27 November launch of the World Energy Outlook 2018 report \u2013 regarded as the \u201cgold standard in energy analysis\u201d. \n\n\u201cOur energy destiny rests with governments,\u201d Birol told the Brussels conference hosted by leading think-tank Friends of Europe. Indeed, some $42.3 trillion is needed for energy supply to 2040. Over 70% of the $2 trillion required each year in energy supply investment either comes from \u201cstate-directed entities\u201d or receives \u201ca full or partial revenue guarantee\u201d, he explained. The remaining 30% is driven by the market. \n \nThe IEA World Energy Outlook reveals the latest energy trends and the implications of different pathways on global climate goals, energy security and geopolitics. \u201cWe chose electricity as the focus this year,\u201d Birol said, highlighting that not only is electricity demand set to grow at twice the pace of total energy demand, its share in final consumption will increase towards one third by 2040. \n\nMaro\u0161 \u0160ef\u010dovi\u010d, European Commission Vice-President for the Energy Union, on the eve of presenting the Commission\u2019s landmark \u201cClean Planet for All\u201d decarbonisation strategy for 2050, agreed electrification, supported by better regional cooperation and greater flexibility, was important for the energy transition and to achieve Europe\u2019s climate targets. \n\nThe key was also to progress much faster in transport \u2013 where electricity \u2013 notably in the huge growth in electric cars and buses \u2013 again plays a central role.\n\nBut while electrification has \u201chuge potential\u201d, it could not stop greenhouse gases emissions, that in 2018 reached a new \u201chistoric high\u201d, the IEA chief said.\n\nWith Birol calling for \u201cmuch more effort in terms of lower carbon technologies,\u201d the report concludes there is no single emissions solution: \u201cRenewables, efficiency and a host of innovative technologies, including storage, CCUS and hydrogen, are all required.\u201d\n\nThis message was supported by Francesco Gattei, Executive Vice-President for Scenarios, Strategic Options and Investor Relations at global energy company Eni, and Olivier Grabette, Executive Vice-President at French Transmission System Operator (TSO) RTE. They both emphasized respectively, \u201cthere is no perfect energy source, each has its pros and cons\u201d and \u201cdecentralisation is very important and we do not have to oppose decentralisation and building a strong Energy Union at European level through the development of interconnections, we need all of this." \n\nImke L\xfcbbleke, WWF Europe Climate and Energy Head of Unit concluded by saying \u201cWe are very much looking forward to the net-zero commitment from the European Commission which should provide a strong emphasis and strong guidance to leaders where investments have to go.\u201d