Wood Mackenzie – Energy Transition Outlook, 2023

Wood Mackenzie's Energy Transition Outlook for 2023 highlights the possibility of achieving the 1.5C target with limited temperature overshoot, emphasizing the importance of actions taken in this decade. Scaling up low-carbon power supply and infrastructure at twice the pace of the last decade is crucial, although delays in renewable assets pose challenges. An annual investment of at least $1.4 trillion is required for renewables, infrastructure, and energy transition technologies, increasing to $2.4 trillion for net zero. Oil and gas still play a role in the transition, with annual spending of $0.5 trillion in the base case and $0.2 trillion for net zero. Electricity is projected to dominate the energy market, with renewable energy as the main power source. Efforts to achieve net zero will require increased energy efficiency and demand-side management. Carbon capture technologies and sustainable resource supply are essential for achieving sustainability goals. The recent conflict in Ukraine has added complexity to the pathway to net zero, highlighting the importance of policy and global cooperation in addressing energy challenges and climate change.