World Energy Trilemma 2015

“It’s time to get something done.” That is the clear message from the energy sector to the policymakers involved in the global climate change negotiations (COP 21) that will take place in Paris in December 2015.

The 2015 annual World Energy Trilemma report prepared by the World Energy Council, Oliver Wyman and MMC’s Global Risk Center uniquely presents the views of the global energy sector on what is needed from the forthcoming Paris negotiations to enable energy leaders to continue to make progress on meeting national and global energy goals.

The sector set out five priority action areas to enable a secure energy transition.

The energy challenges faced by each country are unique and complex, as shown by the 2015 Energy Trilemma Index. The Index ranks 130 countries on their performance in providing secure, equitable, and environmentally sustainable energy and scores countries on their balance between the three dimensions.

An estimated US$48-54 trillion in investments is needed to address this energy trilemma worldwide over the next two decades. New technologies are offering countries evolving choices on how they source and use energy now and in the decade to come and, along with this, opening new markets, changing business models and offering operational improvements for energy companies. Progress in meeting the energy trilemma depends on governments setting in place clear market frameworks and consistent energy goals to create the conditions to support energy investments and innovation. Progress in meeting the energy trilemma depends on governments setting in place clear market frameworks and consistent energy goals to create the conditions to support energy investments and innovation.

Five priority actions areas

To meet climate targets, development goals and balance the energy trilemma a focus on five key mechanisms is needed.

1Why is this report important?

This report presents the views and recommendations of global energy leaders on how to ensure a successful transition of the energy sector in support of greenhouse gas emission reductions. We captured their views through workshops in India, UAE, Johannesburg, Paris, and Washington, DC, as well as interviews and input from the 95 member countries of the World Energy Council.
2Why the focus on the 2015 global climate negotiations?

There is policy uncertainty hanging over the energy sector. Policy makers and business leaders in both the energy and financial service sector need to know the goals and framework in which to make investment decisions. As we’ve highlighted in previous year’s reports, policy and regulatory uncertainty slows investments and increases the cost of capital. Clarity on energy goals will send a clear signal to the energy and financial sector on where and how to commit investments to ensure we have secure, affordable, and environmentally sustainable energy.
3What is the energy sector’s main message?

It’s a clear and strong message: come to an agreement. The UN Negotiations are now in their 20th year and the report shows that the energy community believes the time is ripe for action on climate change. The sector needs policy clarity. But, the energy leaders also outlined enablers, such as research and development and a focus on energy efficiency that must be in place to ensure a successful transition and robust energy sector to continue to fuel our economies and social development.