Across the globe, energy transition policies are reshaping the role of fossil fuels in the energy mix and redefining the relationship between economic growth and carbon emissions. At the heart of the ongoing discussions are perspectives that see advantages in both, delaying the phase down of fossil fuels, and accelerating innovation leadership in clean energy technologies. The European Union, a leader in climate regulation, is implementing a carbon border adjustment mechanism to price and tax carbon emissions entering its borders. Meanwhile, in the United States, the Trump administration is advocating for fossil fuel, referring to it as “liquid gold.”. His “drill, baby, drill” rhetoric has prompted other countries to consider how to balance their decarbonisation commitments with energy security, economic competitiveness, and development goals. Despite different starting points, all countries today are aiming for the same core menu of energy transition solutions: energy efficiency first, then renewable electricity supply and energy end-use electrification, then indirect electrification for intensive energy loads by means of green hydrogen or its derivatives, and finally, carbon removal by both natural means (trees) and technology (carbon capture and storage). Energy transition today is poised between these perspectives. On the one hand, oil, coal, and natural gas still provide around 80 percent of global primary energy. On the other, of a total US$3 trillion of investments in energy in 2024, US$2 trillion flowed to clean energy technologies and infrastructure.
The Future of Fossil Fuels in a Decarbonising World (Mannat Jaspal, Observer Research Foundation)
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