According to Fatih Birol, the executive director of the International Energy Agency, a widening gap between the expectations and reality of global energy markets will increase uncertainty as governments, policymakers and businesses are battling to tackle climate change.
Calls for action on climate change will also intensify in the next decade, with a chorus of governments committed to achieving ever tighter carbon-emission goals and investments of renewable energy.
However, the difference between perception and reality is considerable, which is what the IEA exposes via data. The rising chorus of international summits, policy goals, and promises, on the one hand, is the historical high in global CO2 emissions last year.
Take the fast-growing global carbon demand, the biggest carbon factor, up 65% since the turn of the millennium. Their appetite for electricity has been driven by Asia, which currently accounts for 80 percent of all demand.
That’s the problem. After all, the same effect on the environment occurs for a lot of CO2, whether from Mumbai or Detroit. But it is not equally obvious how emissions are that.
Several individuals, such as General James L. Jones, Jr., Emeritus Executive Chairman of the Atlantic Council, argued that this was a moral issue.
Environmental, economic and geopolitical stresses pose significant challenges for policymakers who face increasingly difficult decisions that could have lasting consequences. Failure can further destabilize volatile conflict zones in the world and put a great deal of stress on institutions of global governance.
Without some reference to the role of oil, particularly from the vantage point of the export-based Middle East economy, no discussion is complete about tackling climate change.
Climate-change activism-driven oil divestiture could have catastrophic effects on countries like Iraq which have almost completely dependent governments on oil exports, cautioned Majid Jafar, CEO of Crescent Petroleum.
This is part of the gap in the developed and developing world between expectations.