Transformation of the Global Energy System

The report identifies an 'innovation tsunami' driving the global energy system toward increased electrification, slower total demand growth, and decentralization. It argues that traditional forecasting is failing because disruptive innovations often emerge from outside the energy industry and through complex system interactions. The authors suggest that achieving deep decarbonization will require linking climate policy to more immediate concerns like local air pollution and closing a massive investment gap in carbon capture and sequestration (CCS).

• Four emerging patterns are shaping the energy system: the acceleration of electrification, a slowdown in total global energy demand growth (from 4.5% per annum between 1965-1975 to 1.8% since 2007), the global decline of coal, and the decentralization of energy systems, particularly for the 1.2 billion people lacking electricity access.
• Current trends in efficiency, natural gas usage, and renewables are insufficient to keep global warming below the 2 degrees Celsius limit, and the UN goal of universal modern energy access by 2030 remains difficult to achieve.
• Energy system predictability has decreased due to the decentralization of the value chain, the complex interaction of multiple innovations (such as wind, solar, and storage), chronic under-investment caused by uncertainty, and the fact that many disruptive technologies originate outside the energy sector.
• There is a significant investment gap in carbon capture and sequestration (CCS); estimates from the IEA and Global CCS Institute indicate that required investment exceeds actual investment by 300 times.
• To make climate policy politically realistic globally, it should be linked to more pressing local concerns, as approximately one-quarter of current global emissions come from countries whose policies are primarily motivated by climate change, a fraction that has halved since 1990.
• Several critical uncertainties remain regarding the future of the energy system, including whether oil demand could be cut in half by 2050, the extent to which consumers will drive transformative change via new technologies, the future of the transportation system (EVs vs. hydrogen vs. biofuels), and the survival of traditional utilities.

APA

World Economic Forum (2018). Transformation of the Global Energy System. http://www3.weforum.org/docs/White_Paper_Transformation_Global_Energy_System_report_2018.pdf

Chicago

World Economic Forum. Transformation of the Global Energy System. 2018. http://www3.weforum.org/docs/White_Paper_Transformation_Global_Energy_System_report_2018.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Transformation of the Global Energy System |date=January 2018 |url=http://www3.weforum.org/docs/White_Paper_Transformation_Global_Energy_System_report_2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018transformation, author = {{World Economic Forum}}, title = {{Transformation of the Global Energy System}}, institution = {World Economic Forum}, year = {2018}, month = jan, url = {http://www3.weforum.org/docs/White_Paper_Transformation_Global_Energy_System_report_2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }