Officials From Energy Sector See A Temporary Slowdown In Decarbonisation

While energy and natural resources executives remain bullish on their long-term ambitions toward net zero, they anticipate a short-term slowdown in the rate of decarbonization due to turmoil in energy markets over the past year. They see more coal being burned to make up for shortfalls in Russian-supplied natural gas. Many expect a shift in focus back toward addressing scarcity and affordability in the next few years, according to Bain & Company’s third annual Global Energy and Natural Resources report.

“Energy and natural resources executives are now a few years into their net zero commitments, and they’re more clear-eyed about what it will take to accomplish them,” said Joe Scalise, global head of Bain & Company’s Energy and Natural Resources practice.

“Their ambitions haven’t changed, and they feel optimistic that they’ll lead the rest of the corporate world through the energy transition. But they know it will be challenging without the government stepping in to support these efforts or customers paying more for sustainable products. At the end of the day, the capital to fund low-carbon businesses is there, they just need to ensure there’s going to be a return on that investment,” Scalise added.

Bain & Company surveyed more than 600 global energy and natural resources executives to assess their opinions and attitudes about the progress of the energy transition, how their companies are managing through these changes, and what barriers they see ahead.