Energy importing countries going green three times quicker than exporters

A new report shows that energy-importing countries are scaling clean energy three times faster than exporters due to dependence issues.

Recent geopolitical tensions have meant governments are working with renewed vigour to reduce dependence on imported fossil fuels.

The report from DNV says exporting countries outside the regions directly impacted by conflict are increasing production to replace the affected materials, meaning they are decarbonising industry at a much slower rate.

The forecast predicts that the Middle East will be supplying around 40% of global oil production in 2050, compared with 50% in last year’s prediction.

Ditlev Engel, CEO of Energy Systems at DNV, said: “Energy security is redrawing the map of the energy transition. Importing regions are accelerating electrification, renewables and storage to reduce their exposure to the most insecure fossil-fuel markets.

The map of energy supply and demand will continue to morph, yet it is largely dependent on how long Middle East conflicts continue for. A sensitivity analysis explored the scenario in which Middle East conflict continues until 2030, concluding that global oil and gas demand would be 4-6% lower while the conflict persists.