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Capgemini’s World Energy Markets Observatory annual report 2021

12 Oct 2021

“The impact of COVID-19 has been important. However, as we saw in the first half of 2021, the pandemic did not lead to a sustained decrease of greenhouse gas emissions compatible with the 1.5°C global warming objective for 2100.
Efforts on low carbon technologies deployment, stationary storage increase, and electrification growth must be multiplied. It is important that sustainability of electrical generation, battery storage and hydrogen production be evaluated over their lifecycles. Renewables have changed the measurement metrics and new ones are needed. Net-zero trajectories for global businesses must rely on indisputable scientific measurement methods and accurate data that include all Green House Gases. Access to energy today is becoming a societal challenge: industry and governments must find the balance between decarbonising and ensuring that global energy needs remain accessible for all.”

Philippe Vié, Group Vice-President Energy and Utilities sector at Capgemini, adds:

As energy consumption and greenhouse gas emissions are on the rise again, we need realistic affordable plans to accelerate energy transition.

Curbing the climate change trajectory requires a shift in gears when it comes to investment, and a requirement to consider the right balance between investment and a tangible result. Every dollar invested must lead to a decrease in emissions.

Much more investment in low carbon generation is needed now if we are to meet both the growth in electrification – 2 to 3 times current capacity required by 2050 – and at the same time, decarbonising electricity generation.”

Recommendations from WEMO to meet climate change goals whilst ensuring energy security of supply, and affordability for citizens, are:

  • Setting ambitious but realistic energy transition plans considering the adaptation time of societies, their industries, and the lifestyles of their populations.
  • Accelerating research in low carbon technologies (solar, wind, electrical batteries, green hydrogen) and reducing administration obstacles for the construction of renewable installations.
  • Measuring the effect of actions taken. Financial institutions should define standardized extra-financial criteria, thus enabling comparisons between efforts undertaken by companies.
  • Paying special attention to cybersecurity. Smarter systems, notably smarter electrical grids, are needed to accommodate a large share of renewables. However, this is tied to an increased cybersecurity risk as more devices become connected to networks.
  • Implementing adaptation measures to cope with the delay in reaching climate objectives.

The World Energy Markets Observatory is an annual publication by Capgemini that monitors the main indicators of the electricity and gas markets in North America, Europe, Asia (including China and India) and Australia. The 23rd edition, which is drafted mainly from public data combined with Capgemini’s expertise in the energy sector, refers to data from 2020 as first half of 2021 (pandemic impacts). Special expertise on regulation and customer behaviour, as well as markets’ data has been provided by research teams at De Pardieu Brocas Maffei, VaasaETT and Enerdata.

For more information and to get access to the report, click here.

About Capgemini

Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organisation of 290,000 team members in nearly 50 countries. With its strong 50 year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2020 global revenues of €16 billion.

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