Energy Price Volatility and Recession Have for the First Time Replaced Climate Framework as the Top Issue for Energy Leaders- World Energy Council
JOHANNESBURG, February 18, 2014 /PRNewswire/ --
High energy price volatility has for the first time replaced global climate framework as the top critical uncertainty driving the world energy agenda, according to the 2014 World Energy Issues Monitor, released by the World Energy Council (WEC).
Global climate framework uncertainty, while still a key issue, is now perceived by energy leaders to have less impact than in the previous three years of the study. Meanwhile, carbon capture, utilisation and storage (CCUS) is still viewed as a technology with only a limited impact on the energy sector, continuing the clear trend over the past three years.
Speaking at the report launch, Christoph Frei, WEC Secretary General, said:
"The fact that both climate framework and CCUS are perceived to be issues of less impact is bad news not only in terms of emissions mitigation, but also for the development of robust and resilient energy infrastructure. Our energy systems are in a state of massive expansion and transition, and the signals we see today provide clear evidence of the urgent need for more robust, coherent, long-term frameworks for planning our future investment."
The WEC study further finds that energy leaders are increasingly concerned about the sector's ability to access the capital markets for funds towards energy infrastructure, when set against a continued recessionary backdrop.
Meanwhile, renewable energy and energy efficiency continue to be of concern, with growth shifting from Europe and North America to the Middle East where demand is rapidly rising. Large hydropower is back on the agenda with significant unrealised potential in central Africa, Latin America, Russia, and Canada.
The 2014 World Energy Issues Monitor is a six-month study capturing the views of over 800 energy leaders including ministers, chief executives and the heads of the WEC's national members committees covering 84 countries. The report looks at the global energy agenda and analyses the trends and outlook in six world regions plus 24 countries.
The study highlights strong regional variations. In addition to energy prices, the top regional critical uncertainties are:
- Africa: climate framework, commodity prices
- Asia: renewable energy
- Europe: global recession
- Latin America & Caribbean: commodity prices, capital markets
- Middle East & North Africa: energy efficiency, renewable energy
- North America: nuclear energy, capital markets
Download the report: http://www.worldenergy.org/publications
SOURCE World Energy Council