Energy Transition

Environmental
:   
Transition
April 14, 2023

Energy transition refers to the global shift from using fossil fuels and other non-renewable sources of energy to clean, renewable energy sources like wind, solar, hydropower, geothermal, and biomass. The goal of the energy transition is to reduce the environmental impact of energy production and consumption, as well as to increase energy security and affordability.

The energy transition is driven by a number of factors, including concerns over climate change, the depletion of non-renewable resources, and advances in technology that have made renewable energy sources more efficient and cost-effective. Governments, businesses, and individuals are all playing a role in the energy transition, through policies and regulations, investments in renewable energy infrastructure, and individual actions like adopting energy-efficient technologies and reducing energy consumption.

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Transition

EROI

Metric used to assess the energy efficiency and viability of an energy source or energy-producing process. EROI measures the ratio between the amount of usable energy acquired from a particular energy source and the amount of energy invested to obtain, produce, or harness that energy.
Transition

Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is a proposed policy instrument designed to address the issue of carbon leakage in the European Union's (EU) climate change mitigation efforts.
Transition

Strategic Planning

Strategic planning refers to an organization's process of defining its direction and making decisions on allocating its resources to pursue this strategy. This typically includes developing the organization's vision, mission, objectives, and strategies to achieve them over time.
Transition

Carbon Dioxide Removal

Carbon dioxide removal (CDR), often referred to as "negative emissions technologies," encompasses methods and technologies aimed at actively removing and sequestering carbon dioxide (CO₂) from the atmosphere.
Transition

Compliance vs. Voluntary Carbon Market

Carbon Markets: The compliance carbon market is regulated by laws that enforce emissions reductions, such as the EU ETS and California’s cap-and-trade program. Companies buy or sell carbon credits based on their emissions. The voluntary carbon market, driven by corporate net-zero goals, operates independently but is rapidly expanding. Transactions are increasingly conducted on digital exchanges, with blockchain technology playing a growing role in trading carbon credits.
Transition

Stranded Assets

Stranded assets are assets that have become obsolete or lost their economic value before the end of their expected life span, leaving investors or owners with assets that are no longer profitable or usable.