JP Morgan - Renewable transition in adolescence

JP Morgan's 2023 Eye on the Market energy paper focuses on the teenage years of the renewable transition, highlighting that investments in clean tech are outpacing fossil fuel investments, wind and solar generation have exceeded nuclear for the first time, and the IEA projects peak global fossil fuel demand this decade. However, global energy use is still largely reliant on fossil fuels, and there are challenges in electrifying industrial, commercial, residential, and transport energy. Renewables also have limitations in decarbonizing certain industries like steel, cement, ammonia, and plastics, which are primarily made using fossil fuels. The paper also covers various topics such as grid decarbonization, oil demand outlook, levelized cost, critical minerals, energy storage, carbon sequestration, and more. The report also touches on how China's renewable capacity additions in 2022 will exceed those of the US, Europe, India, Southeast Asia, and Latin America combined. The paper concludes that while the transition to clean energy is accelerating, decarbonization will be a gradual process, and the focus should shift from fossil fuel shares to the amount of fossil fuels used.