energy transition, the cost of inaction on global citizens, markets, and natural systems cannot be fathomed. Put bluntly, the cost of taking appropriate action to mitigate climate change will be cheaper than the cost not to. This is already highlighted by the loss and damage fund agreed at COP28, which was set up with funding from richer countries to help developing countries cope with the effects of climate change. There is also financial risk to countries that fail to meet legally binding obligations, such as environmental (more frequent extreme weather events), economic (infrastructure damage), social (public health and social inequality), and political (loss of credibility). 2024: A defining year Looking globally, it is easy to argue that the transition seems to be in stall mode, with high oil and gas prices fuelling an exploration surge while many renewable projects are experiencing an increase in cost due to inflationary and supply-chain pressures. However, it is important to remember that the energy transition is not simply about green electricity or fossil fuels. It is
the scaling of renewables and the grid, as well as decarbonised oil and gas working together in a connected and holistic way to balance the energy system. It is vital to look at technology, government policy, the energy transition, and the energy system to get the right balance. There is a global fight for talent and investment, but finding the right balance will elevate many nations to become clean energy superpowers. This will be a defining and historic year for democracy, with around 1.5 billion people going to the polls in more than 50 countries. However, 2024 needs to be a year of hope. This is a problem bigger than one nation or one political party. It requires cross-party collaboration as new governments issue a call to arms to accelerate the energy transition to achieve legally binding net zero commitments. We must move forward faster together.
Hari Vamadevan contact.energysystems@dnv.com VIEW REFERENCES
www.decarbonisationtechnology.com
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