We’re in the midst of an energy transition that continues to evolve.
An economic rebound after the COVID-19 pandemic has triggered price spikes for multiple commodities. The conflict in Ukraine has led to even further increasing energy prices and security-of-supply concerns. However, the transition to a lower-carbon energy system continues and accelerates, and the coming decades will likely see a rapidly-changing energy landscape.
McKinsey’s Global Energy Perspective 2022 provides insights into the longer-term trends that will continue to be essential in shaping future energy systems. Global fossil-fuels demand is projected to peak between 2023–2025 and especially after 2030, sustainable fuels, hydrogen, and CCUS are projected to grow significantly. By 2050, the share of sustainable fuels in the energy demand for transportation could be between 6% and 37%, depending on net-zero ambition levels across countries. And the report also supports the view that the 1.5° goal is put of reach with a pure focus on electricity. We will also need eFuels to achieve that goal.