While COP26 is about to start and the representatives of almost 200 countries prepare to gather in Glasgow for what has been described as “the world’s best last chance to get runaway climate change under control”, the energy industry is in the middle of a profound metamorphosis that could radically reshape global power production and transform our relationship with the planet’s natural resources.
Driven by a strong increase in demand, as economies around the globe recover from the pandemic, the energy market is set for its fastest growth in more than 10 years, with renewables production at the forefront of this rising trend.
Global investments in the energy sector are set to rise to $1.9tn in 2021, a 10% increase on 2020, which will bring the total capital poured into the industry close to pre-pandemic levels, according to the latest report published by the International Energy Agency (IEA).
These investments could fundamentally change energy production away from its reliance on fossil fuels, such as coal, oil and natural gas that, according to the IEA, have historically provided more than 80% of supply and growth, towards more renewable sources, such as hydro, wind, solar and nuclear in most expected scenarios by 2050, according to energy provider BP.
The energy sector, therefore, is going through…
