The Challenge of Climate Change—Complete Energy Systems Transformation: No Nuclear, No Net Zero

Abstract

AbstractTo achieve Net Zero, natural gas, gasoline, diesel, and fuel oils must be replaced with another source. However, most of the current low-carbon energy sources will also need to be replaced as almost none have more than about 25 years remaining of useful life. The pace and scale of the needed change is unprecedented: almost the whole of the world’s primary energy supply must be replaced. The (re)development of the entire energy system is inherently a sovereign risk and it can only be governments who set national energy policy. There is no doubt that markets will continue to play a part in future energy systems, but at the top level, the pace and scale of change to achieve Net Zero is simply far too fast for markets to adapt properly. This chapter is a call to action to the national policy makers and presents this challenge as an opportunity for creating higher-quality jobs and potentially highly attractive and long-dated investment options. The chapter also outlines some risks, including political indecisiveness and policy volatility as potential impediments to making the most of this opportunity and achieving the Net Zero.