The global energy system and pattern have been significantly impacted by humanitarian crises, particularly those brought on by the conflict in Russia and Ukraine. Trading connections have unluckily tightened up considerably as a result of the disturbance to the supply chain and demand patterns.

In recent years, the cost of products and energy has increased at an unprecedented rate, especially for the most fundamental consumers, industries, and economies. Typically, developing countries find this tendency undesirable because of their constrained economic resources and ongoing debt. Additionally, it runs the risk of weakening efforts to address the urgent problem of globally decreasing greenhouse gas emissions as soon as possible to prevent catastrophic climate change. The fight against climate change must be undermined by Russian animosity once more.

Our World Energy Investment 2022 report, which will be released next month, will reflect the swift changes the global energy system has seen since the research's publication last year and will highlight a number of new results, with a focus on the volatility of the most recent few months. These topics are at the top of the important discussions going on right now around the world in parliamentary hearings, shareholder meetings, government agencies, and conferences like the World Economic Forum Annual Meeting in Davos later this month.

Another irrefutable fact is that the world was far from accomplishing its aim of reducing carbon emissions and maintaining a good check on greenhouse gasses even before the conflict in Ukraine. Since CO2 emissions were at an all-time high and the fuel market was under pressure, it was challenging to meet the climate goals. Another unsettling conclusion was that, despite the need to reduce emissions to zero by the middle of the century, investments in new technology had remained disappointingly low. The world must conquer this enormous but scary obstacle if it is to have any chance of limiting global warming to 1.5 °C.

The COP26 Climate Change Conference in Glasgow in November resulted in positive action, and nations are boosting their investments in renewable energy as part of their plans for economic recovery.

What does the current global energy crisis mean for energy investment?