The forthcoming referendum on membership of the EU on 23 June has major implications for energy and climate policy, and the UK’s transition to a low carbon economy.
EU energy policy is progressive, long term and focused on an effective energy transition to a low carbon future. It has been shaped by input from member states including significant input from several UK Governments. This ensures that EU energy policy is not subject to change every UK electoral cycle, unlike much of UK domestic energy policy.
China’s move towards a low carbon future with high-efficiency, low-emissions plants comes hand in hand with their rapid development in Carbon Capture and Storage (CCS) technology to remove CO2 emissions from their plants.
If the fossil fuel energy sector thought things were tough now, they could be about to get much worse, unless it takes decisive action.
Although many people may not have given December’s climate change summit in Paris (COP21) more than a cursory glance, the agreement made by almost 200 countries to keep global warming below 2°C could change the face of the industry within little over a decade.
The oil and gas industry is currently in crisis — supply exceeds demand and has resulted in oil prices falling to less than half their value of 12 months ago. According to the Financial Times in June 2015, this has led to postponement or cancellation of ca. $200 billion worth of projects worldwide (Adams, 2015). The industry is restructuring and many staff are being laid off; figures quoted in June 2015 indicate 150,000 worldwide (Eaton, 2015).
As a management consultancy for the energy transition, our business is to have insight into the energy industry and its future evolution. Our insight comes from experience in the sector, an understanding of current and future energy challenges and an ability to take a fresh perspective on matters. This article explores the lessons that the energy industry can learn from the natural world.