If every energy transition is different, which course will accelerate yours?Change creates huge opportunities for energy and resources companies that act now and chart their own courseTake action at ey.com/energy Contents2If every energy transition is different, which course will accelerate yours?Why we need to address risks to progressHANDBRAKESCONTACTSPREFACEHow energy and resources companies can create value OPPORTUNITIESWhy the energy transition has reached critical momentumDRIVERSIMPLICATIONSHow our energy system will changePREFACEWe wanted to open this report with a powerful anecdote to illustrate the huge size, scope and speed of the energy transition.The truth is, we couldn’t choose just one from the many examples of innovation unfolding across the world. A pipeline to pump green hydrogen more than 5,000 kilometers from West Africa to Morocco and eventually Europe. The world’s biggest copper mine switching to 100% renewable energy three years ahead of schedule. Investment banks pouring billions into battery recycling. Even a Californian collaboration between a fuel cell company and a carmaker that will turn biogas and sludge into clean electricity, hydrogen and water.Across industries and governments, and in our own homes, both big and small changes are together driving a global energy revolution. Electric vehicles (EVs) fill more driveways. Boards are focused on performance against sustainability metrics. Nanogrids are bringing power to villages for the first time. Our energy system has transformed before, but not like this, and not this fast. Previous transitions have been driven by new technologies and achieved through market forces. These play a part in this change too, as well as a changing consumer, but our primary aim this time is far more ambitious. We’re trying to rewire the global economy to meet an urgent environmental imperative. The bad news is that we’re simply not moving fast enough. The target to limit global warming to 1.5 degrees Celsius is unlikely to be met. The good news is that progress is accelerating. The new EY Energy and Resources Transition Acceleration model, combined with deep industry knowledge and experience, confirms that the energy transition has reached critical momentum and is accelerating. Our model also highlights that this journey to the new energy future will not be linear, or singular. In fact, we believe that talking of one energy transition denies the complexity of the change ahead. Multiple transitions will unfold at varying paces and in many ways.We believe that talking of one energy transition denies the complexity of the change ahead. Multiple transitions will unfold at varying paces and in many ways.Our energy system has transformed before, but not like this, and not this fast … We’re trying to rewire the global economy to meet an urgent environmental imperative.3If every energy...
