Viewed as an established authority on the latest energy trends, the annual World Energy Outlook (WEO) informs both investment and policymaking decisions.
The report outlines several energy transition scenarios, varying primarily by speed and scale, which result in different levels of global temperature rise.
Whilst designed to stimulate debate about the future of energy and the potential impact on global climate, the report is often used in reverse. Presenting several scenarios side by side allows various stakeholders to choose the one that best suits their own interests. It also creates confusion for stakeholders that do not have the time to study the report in great detail.
In this note, we review the latest edition of the report and extract its key messages in 2% of its word count.
- In its most recent World Energy Outlook, the IEA describes a rapidly changing energy landscape; the invasion of Ukraine has revealed the fragility of the fossil-fuel based energy system and hastened the energy transition.
- Electrification, which feeds off and into large-scale deployment of renewable technology, will be key to the shift to clean energy.
- With scenarios updated, the IEA sees peaks or plateaux for all fossil fuels, even with business as usual, before 2050.
- The IEA’s 1.5°C scenario now includes a greater degree of temperature overshoot and relies heavily on the rapid deployment of emissions mitigation technologies before 2050.
- A more credible – and cheaper – pathway to 1.5°C may be possible, with more trust in renewable growth and faster wind down of fossil production.