Concerns over the volatility of prices has replaced climate change fears as the main driver of energy policy around the world, according to a new report.
Uncertainty over climate change framework remains a key issue, the report by the World Energy Council found, but has less impact than in the last three years of research.
Instead concerns over energy prices, and securing funding for developing infrastructure, have become the key priority for world leaders.
“This analysis shows us that the energy sector is reacting to short-term price signals while long-term signals are still absent,” said WEC chair Mari-Jose Nadeau.
“As the gap between energy access, energy security and energy sustainability widens, the financial investments and technical efforts required to deliver simultaneously secure, affordable and environmentally sustainable energy will increase significantly.”
Meanwhile the report found the impact of carbon capture and storage remains limited on the sector.
“The fact that both climate framework and CCUS are perceived to be issues of less impact is bad news not only in terms of emissions mitigation, but also for the development of robust and resilient energy infrastructure,” warned the council’s secretary general Christoph Frei.
“Our energy systems are in a state of massive expansion and transition, and the signals we see today provide clear evidence of the urgent need for more robust, coherent, long-term frameworks for planning our future investment.”
The study, a bi-yearly look at the views of business and government leaders across 84 countries, noted the growth of hydro projects, with large scale potential drawing interest in Africa, Latin America, Russia and Canada.
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