One of the major factors that drive the energy transition is the global concern on climate change. Global concern on climate change has manifested in several countries taking steps to reduce greenhouse gas (GHG) emission levels. These steps are in line with Paris agreement on climate change which calls for limiting global warming to well below 2 degree Celsius and preferably 1.5 degree Celsius. Some of the specific actions taken by some major countries or group are the following:
i) European Union (EU) has set a target to achieve net zero GHG emission level by 2050, reduce GHG emission level by 55% from 1990 level by 2030, and increase the share of renewables to energy-mix to at least 32% by 2030.
ii) EU countries have also decided to phase out use of coal and that there would be no new coal- based power plant after 2020.
iii) In yet another step to reduce GHG emission level, EU countries have set an objective to increase proportion of electric vehicles and hybrid electric vehicles to total vehicles.
iv) United Kingdom aims to phase out completely sale of new passenger cars running on petrol and diesel by 2030 and increase the use of electric vehicles.
v) US has set a target to achieve net zero emissions by 2050, to reduce its GHG emission levels by 50-52% from 2005 level by 2030 and to make electricity sector emission-free by 2035.
vi) China has set a target to achieve carbon neutrality by 2060 and meet 20% of its energy consumption through non-fossil fuels by 2025.
vii) India has announced to achieve net zero emission by 2070 at United Nations Climate Change Conference (COP26) in Glasgow.
As a sequel to above and similar climate actions by other countries, the share of renewables (solar plus wind) to total global primary energy demand is expected to increase from just 2.5% at present to approximately 10% in 25 years hence and share of fossil fuels (petroleum + coal + natural gas) is expected to decline from current 80% to 70% over the same period.