From ESGDrive.com, 4/26/2024:
JPMorgan warns clean energy transition could take ‘decades or generations’
- JPMorgan Chase said a “reality check” was needed on the timeline for a global energy transition, noting that the shift from fossil fuels to renewable energy takes time in a report the bank unveiled last week. The report . . . called the transition a “highly complex” process and said it “should be measured in decades or generations, not years.”
- The global energy strategy report, spearheaded by JPMorgan’s Global Head of Energy Strategy Christyan Malek, identified inflation, high interest rates and geopolitical issues — such as the Russia-Ukraine war and Middle East tensions — as key obstacles hindering governments from facilitating the energy transition. . . .
The research also offered a long-term solution for the energy transition, following the coal-to-gas substitution, built on a market-based approach: the creation of a global carbon tax and emission trading system.
“Climate change is a global problem and addressing it regionally is not effective,” the report said, adding that “eventually, a global carbon price would allow the free market to do the work,” instead of placing the burden of the transition on government and public policies.
This approach, according to Malek’s research, would guarantee “the most efficient distribution of a limited carbon budget” and allow governments to streamline their attention on balancing the social aspects of the energy transition with environmental goals.
The strategy would also provide a solution for the steep price tag that comes with the energy transition, one the report said requires a significant level of investment and currently offers “subpar returns.” The bank estimated the wind and solar buildout between 2024-2030 alone will require approximately $3 trillion annually — which amounts to 0.5% of the global annual GDP — highlighting how cost-intensive the move to renewable energy could be.
Most people, including Global Heating activists, have no idea of the scale of our energy consumption. Which averages almost 20 terawatts primary power now. Half of which would still be needed even if we could achieve the perfect electrification of everything. The total actual average production from wind and solar combined in 2022 was 0.33 terawatts. Nuclear was 0.30.
Scale.
Late to the reply, but this bank is known to support fossil fuel interests. To me, this report reads as an excuse to keep subsidizing fossil fuels. Every year without an appropriate carbon tax is another year fossil fuels get subsidized while the citizens of the world take the cost burden. This is a report meant to appear climate-friendly while squeezing as much money out of fossil fuels as possible before the world gets wiser.
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