Energy efficiency will improve faster than global economic growth due to the rapid electrification of the world’s energy system, leading to a plateau in energy demand from 2030. That’s one of the key findings of the Energy Transition Outlook report by DNV GL.
Historically, energy demand and CO2 emissions have moved broadly in line with GDP and population growth, but that relationship will unravel. Electrification, particularly with the uptake of renewables, will change the way in which energy is supplied and consumed. While the global economy and world population are set to grow modestly, energy demand will flatten out and CO2 emissions will drop sharply, so the future energy system will require a smaller share of GDP.
Enabling businesses and households to monitor their own energy consumption and footprint will therefore be critical to encourage sustainable behaviors and minimize energy waste.