The Internation Energy Agency’s (IEA) Net Zero Emissions (NZE) scenario offers an understanding of what the energy transition looks like if we are to keep global warming under 1.5°C.

In this scenario, there is no room for the development of any new oil and gas fields. This stems from the fact that emissions generated by consuming currently exploited fossil fuel reserves would largely exceed the remaining carbon budget to remain within 1.5°C of global warming. The immediate end to the development of new fossil fuel production projects is a common characteristic of 1.5°C scenarios with low or no overshoot that rely on a limited volume of negative volume and a priority for climate action, emphasized by the UN.

Another aspect of a 1.5°C-aligned energy transition, also confirmed by such scenarios, is the need to restructure our energy network to rapidly and drastically increase the development of “clean” energy capacity.

In the NZE, annual investment in the energy transition must more than double by 2030. This means that, for every dollar invested in fossil fuels, ten must be invested in the energy transition. That includes: six dollars in “clean energy” supply (production and distribution) and four dollars in energy efficiency and end-uses. This gives us a 6:1 ratio of financing for power supply.