The energy transition and the quest for a carbon-neutral world have brought about declining investments in fossil fuels worldwide, pushed by lower subsidies and rising carbon taxes. In the current phase of global economic recovery, where renewables are not yet able to fill this gap, energy demand largely exceeds the available supply, driving prices upwards. In Europe, where policymakers are drawing up new green finance regulations, energy prices have skyrocketed until December 2021 and only alternative overseas supplies have been able to temporarily reverse this trend. On the other side of the Atlantic, the US has devised a large infrastructure and investment plan focusing on clean energy and sustainable transportation. Even China, in light of a breakthrough pledge to reach carbon neutrality by 2060, is undertaking a massive effort to switch its energy sources and its investments abroad, but fossil energy production is still on the ground. Finally, Mediterranean and Gulf economies, still largely dependent on oil exports, are faced with a diversification challenge – embraced through national plans - that can no longer be postponed.
What lies ahead for energy markets that struggle to fill the gap with renewable sources? Which kinds of energy investments are likely to be at the forefront of this decade? And which players would be empowered by the green transition, and at what price?