, APAC
129 views
Photo by Pixabay via Pexels

Global energy transition faces growing challenges: McKinsey

A significant gap exists between climate ambitions and reality.

Despite significant progress, much still needs to be done as the global energy transition enters a new phase, marked by rising costs, complexity, and increased technology challenges, McKinsey said in a new report.

The Global Energy Perspective 2024 also said that the pace of progress is falling short of what is needed to meet the Paris Agreement targets despite commitments to net-zero goals. A growing gap is emerging between climate targets and the actions being taken, it added.

McKinsey projects global energy demand to increase by 11% to 18% by 2050. Emerging economies, with their growing populations and rising middle classes, will drive most of this growth.

The report also said low-carbon energy sources are expected to dominate global power generation by 2050, increasing from 32% to between 65% and 80%. This shift is largely due to lower renewable energy costs, but supportive policies and incentives also play a crucial role.

Meanwhile, fossil fuels will continue to be part of the global energy mix through 2050, but their role will diminish, McKinsey said. These are expected to meet between 40% and 60% of global energy demand by 2050, down from 78% in 2023. 

Investment in fossil fuels will likely persist for the next decade to ensure energy supply meets demand, it added.

“To successfully navigate this next phase and meet the Paris Agreement goals, urgent action will be needed and the pace of change must accelerate,” McKinsey said.

“The clean energy transition will also need to be balanced with affordability, energy system resiliency, and energy security in an increasingly uncertain macroeconomic environment,” it added.

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!