The EY report *”2023-09-ey-energy-and-resources-transition-acceleration.pdf”* outlines the unprecedented scale and urgency of the global energy transition, driven by environmental imperatives, technological advancements, and consumer shifts. It highlights innovations like green hydrogen pipelines, renewable-powered mines, and EV adoption, but warns that progress is too slow to meet the 1.5°C warming target, with greenhouse gas emissions projected to rise 10% by 2030 instead of falling 45%. The EY Energy and Resources Transition Acceleration model emphasizes that multiple transitions are unfolding at varying paces, shaped by regional policies, resources, and market dynamics.
Key drivers include cost-competitive renewables, with 80% of 2022’s new capacity (187 GW) cheaper than fossil fuels, and strong consumer interest (48% considering EVs). However, “handbrakes” like supply chain constraints, inconsistent regulations, short-termism in capital raising, and lower returns on renewables (6% vs. 12%+ for oil and gas) pose risks. Solutions involve diversifying supply chains, harmonizing policies, and aligning investments with long-term sustainability to overcome inertia and maintain momentum.
The report offers sector-specific strategies: mining and metals companies should focus on ESG and innovation to secure capital; oil and gas firms must decarbonize and explore green molecules like hydrogen; and power and utilities should build flexible grids and customer-centric models. A 300% increase in annual investments by 2050 is needed to balance new energy systems with retiring legacy assets. Collaboration across governments, industries, and consumers is essential to accelerate the transition and create value, with further details at *ey.com/energy*.