The world energy system is currently transforming to reduce fossil fuel dependence, boost efficiency, and open the way to renewable energies. As stated by Wood Mackenzie’s senior research director, Rory McCarthy, there are five relevant trends to follow in European energy markets in 2021.
- Laying the foundations to implement the EU Green Pact
- A record year for renewable energy auctions
- The comeback of energy demand
- The supply balance is starting to narrow
- Energy markets become more integrated
However, all these trends that promote the path towards energy transition require us to do our part in addressing that process. It is a job for everyone and by everyone.
So, I start by emphasizing the critical role of energy companies. The industry has the dual challenge of investing in research and innovation to develop new, more sustainable, and environmentally responsible forms of energy while also meeting consumers’ needs.
On several occasions, I have reflected on what I believe the energy mix for the world should be in the short and medium-term. In this sense, reality shows that we need to evolve towards a renewable energy model, but it is also true that non-renewable energies such as oil continue to occupy a large part of the supply request. At this point, the role and commitment of companies like Nakasawa Resources are trying to cover those needs from an ethical and responsible vision, optimizing processes to bring them closer to a “greener” way of operating.
Furthermore, institutions need to assume a full commitment to encourage measures and policies that promote this transition, as well as to allow market participants to focus on taking the initial but substantial steps towards the net-zero objectives. For example, we can mention the European Council, which has endorsed a regionally binding 55% emissions reduction target for 2030. This is an important step that emphasizes the priorities of the Green Pact by committing to the immediate path to net zero emissions by 2050.
It is also relevant to highlight the importance of the business community to commit to acquiring or setting targets to achieve 100% renewable energy within their production chains. Companies play a catalytic role in the unfolding of renewable energies by adopting them within their models as strategic priorities, thus showing leadership and commitment.
For example, in Spain, we have the Siemens-Gamesa case, which has committed to increasing the share of renewable energies in the energy mix to 32% by 2030, with room for an upward revision in 2023.
And finally, for the energy transition to become a reality, it is vital that all of this leads to a change in consumer behavior. Their commitment will be critical to address the energy transition successfully.
As we have seen, we all have a fundamental role in this whole process. Industries must research and develop new energy alternatives, and institutions must encourage and promote their implementation through policies executed by both companies and citizens so that we all behave more responsibly towards the environment.