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OUTLOOK






                                                                      by the European nations to improve energy security
                                                                      and sustainability. 
                                                                      However, as things currently stand, we forecast a
                                                                      small acceleration of the energy transition in Eu-
                                                                      rope as the most likely energy-related outcome of
                                                                      the Ukraine war. As with COVID-19, we see a Eu-
                                                                      rope that manages to cope with a short-term crisis
                                                                      without  harming its ability to deal with the long-
                                                                      term climate crisis. 
                                                                      At a global level, the net effect of the war on the en-
                                                                      ergy transition is minor. The DNV system dynamics
                                                                      model captures some of the emerging global com-
                                                                      plexities, including changes in energy trade and the
                                                                      effect of increased commodity prices. It also takes
                                                                      account of how regionalization and energy secu-
                                                                      rity boost more short-term coal use in e.g. China,
                                                                      and how the renewables buildout is slowed down
                                                                      by higher commodity prices and at the same time
                                                                      accelerated by the push for energy independence. 
                                                                      We will comment on these developments more fully
                                                                      in our forthcoming Energy Transition Outlook 2022
                            the total emissions change is almost entirely due   towards the end of this year.
                            to reduced gas consumption; the changes in the
                            other energy sources and in carbon capture and
                            storage (CCS) are minor in comparison.
                                                                      References:
                                As things currently stand, we         DNV, 2021 Pathway to net zero emissions, Energy
                                forecast a small acceleration of      Transition Outlook, 2021, www.dnv.com/eto 
                                                                      IEA, 2022 A 10 point plan to reduce the European
                           “the energy transition in Europe           Unions Reliance on Russian Gas, https://www.iea.
                                 as the most likely energy-           org/reports/a-10-point-plan-to-reduce-the-euro-
                                                                      pean-unions-reliance-on-russian-natural-gas 
                                 related outcome of the Ukraine       Recharge, 2022 Germany and Norway mull pipe-
                                 war                                  line for massive hydrogen imports in wake of
                                                                      Russian war,  https://www.rechargenews.com/
                                                                      energy-transition/germany-and-norway-mull-pipe-
                            We emphasize that there are signifi cant uncertain-  line-for-massive-hydrogen-imports-in-wake-of-
                            ties  in  our  forecast.  These  relate  primarily  to  the   russian-war/2-1-1186196
                            duration  and  outcome  of  the  war  itself,  and  the
                            strength duration of the policy measures enforced   Printed with permission from DNV




                             Sverre Alvik


                             Director of Energy Transition Research, DNV. Sverre is responsible for DNV’s Energy Transition Outlook, a
                             forecast of the world’s energy system through to 2050. He coordinates DNV’s effort of understanding the
                             energy transition and how it will impact DNV’s customers and industries. Sverre has worked more than
                             20 years in DNV in the energy and maritime industry with strategy and politics, research & innovation,
                             environment and sustainability, technology and fi nance and the interface between them. He has written a
                             number of papers and publications on these topics.


















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