Powering tomorrow - Navigating the energy transition
Exploring the shift towards sustainable energy sources and a greener future
Decarbonisation of the global economy has assumed great importance due to the escalating climate challenges. It will be very significantly dependent on how we transition from traditional fossil fuel resources to one that principally relies on clean energy. This transition is already started attracting significant investor interest. However, we are only at a start of what will eventually be one of the largest capital reallocation processes the world has ever witnessed. By various estimates this will require around USD 35 tn by 2030. It could well be higher in the subsequent periods given the scale up of green hydrogen and other technologies to decarbonize hard to abate sectors.
We can find capital at this scale if we take a comprehensive view of the issues and ensure that capital gets the right framework for deployment. This would involve creating the right taxonomies, risk management frameworks, blending various forms of capital and ensuring stakeholder alignment. Taking a comprehensive view from ESG standpoint will be essential. ESG has to be the watermark in everything to do for making the energy transition viable and successful.