Report
Patrick Artus

The reasonable energy transition timeline

To comply with the climate commitments (which is not the case currently), a transition over 30 or 40 years towards renewable energies will be needed. But this transition cannot (and also, should not) be done suddenly, and it must comply with a number of timelines: The gradual slowdown in oil consumption, given the shift to electric cars and the reduction in the use of plastic; In a first stage, the gradual replacement, as fast as possible, of coal with natural gas for electricity production, the global consumption of which will increase sharply; Obviously, growth in renewable energies at a faster pace than today, until they account for total energy consumption towards 2060. While investments in renewable energies must be increased, one cannot now (and this is not necessary) stop investments in oil and, above all, natural gas, the consumption of which will increase due to the substitution of gas for coal .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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