WEF urges major overhaul of energy systems for equitable, long-term supply

GENEVA: A comprehensive reappraisal of the world’s energy systems is urgently needed to find solutions that simultaneously stabilizes supply while moving to a just, low-carbon future, the World Economic Forum urged in a new report released on Thursday.

The report, “Securing the Energy Transition,” proposes an all-inclusive framework that provides a strategic blueprint to make security and resilience the backbone of a transitioning energy system.

Short-term backward steps, such as increasing production of electricity from coal or broad-based consumption subsidies, risk compounding the current energy crisis and derailing the transition, said the WEF in a statement.

“The energy crisis has brought energy security to the forefront of political and corporate agendas and prompted the need to develop responses that are adapted to how the energy system has evolved and to where it needs to transition,” said Roberto Bocca, head of Shaping the Future of Energy, Materials and Infrastructure at the WEF.

“What is now a global crisis is a real opportunity to steer a more direct course towards a secure, sustainable and affordable energy future for everyone. This requires radical collaboration and a pragmatic approach to confront the complexities of the energy transition with immediate actions.”

Energy systems in transition face opportunities and risks from changing markets as well as from increasingly decentralized, digitalized, decarbonized and distributed supply.

The report proposes a comprehensive framework for a secure energy system to guide countries and leaders to plan strategic actions, policies and regulations.

“The energy crisis impacts us all and the world cannot afford short-term fixes … which could increase future risks to both the climate and energy equity. The good news is that the crisis offers an opportunity for interventions that balance energy security with an effective low-carbon transition,” said Espen Mehlum, head of the Energy, Material and Infrastructure Program at the WEF.

The WEF report also recommended 10 immediate actions categorized under four key themes — supply reinforcements, demand management, fiscal measures and investments, and co-ordination and long-term strategy.

While governments are primarily responsible for ensuring their countries’ energy security, addressing this crisis in a sustainable manner will require exceptional levels of engagement and collaboration between states, companies, international organizations and individual consumers, the report said.