What are some of the key engineering challenges to achieving a sustainable energy transition?
Global fossil fuel emissions in 2023 grew by 1.1% compared to levels in 2022.1 Curbing these emissions continues to raise financial, technological, social, and regulatory challenges. These challenges may be more acute in low- and middle-income countries, particularly those most affected by climate change, where there is an urgent need for climate adaptation as well as mitigation measures, such as cleaner energy, and a shortfall in climate financing.
- Reducing emissions while facing growing demand - Population growth, urbanisation, economic development and emerging technologies are increasing energy needs, while millions still lack reliable access to energy.
- The investment gap - Despite rising investment in renewable energy, an estimated $25 trillion funding gap remains between current spending and what is needed to achieve net zero by 2050.
Engineering our way to a sustainable energy transition
What key roles do the industry, government and professional engineers play in a safe and sustainable energy transition?
Engineers have a central role to play in tackling the obstacles to achieving secure and sustainable energy. Engineering expertise is crucial in designing and optimising systems that harness energy from solar, wind, hydro, and other sources.
Governments at the supranational, national and local levels play pivotal roles in the energy transition, from establishing policy direction to investing in sustainable public infrastructure. They can also help set industry standards and protocols. While renewable energy and storage technologies are already cost-competitive, upfront capital expenditures and unfavourable regulatory frameworks can make fossil fuel alternatives more attractive for financing, potentially hindering the transition to cleaner energy sources. By reducing regulatory uncertainty, the government can lower the cost of financing and derisk investments in renewable energy and storage.
Engineering and engineering-intensive industries, such as mining, construction and manufacturing, play a crucial role in driving innovation, research and development, and investment in energy technology, and in implementing sustainable technologies at scale. This includes deploying renewable energy systems, energy efficient practices and cleaner technologies in manufacturing processes. They also have a role to play in setting and adhering to standards to increase quality, safety and reliability.
