The transition to renewable energy is easier said than done

We are on a path to “net zero” carbon emissions, says Edward Chancellor, but fossil fuels will be with us for some time yet.

Employee checking solar panels
Chinese solar panels: made with electricity generated by coal
(Image credit: © Zhao Ming/VCG via Getty Images)

Modern civilisation is built on fossil fuels. Oil, natural gas and coal still account for around 85% of the world’s primary energy inputs. While these represent a small fraction of reported global GDP, they support all other economic activities. Ending our dependence on hydrocarbons was always going to be a tough call. The ongoing process of deglobalisation makes it even harder.

In his new book, Grand Transitions, Canadian scientist Vaclav Smil describes how the modern carbon-based energy system supplies fuels for transportation, and inputs for what he calls the “four pillars” of our economy: iron, cement, plastics and ammonia. Currently there are no readily available mass-scale alternatives for the use of petrochemicals in feedstocks or fuel for bulk shipping and air travel. Despite growing concern over the risks posed by climate change, the use of fossil fuels has increased by around 20% since the turn of the century.

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Edward Chancellor

Edward specialises in business and finance and he regularly contributes to the MoneyWeek regarding the global economy during the pre, during and post-pandemic, plus he reports on the global stock market on occasion. 

Edward has written for many reputable publications such as The New York Times, Financial Times, The Wall Street Journal, Yahoo, The Spectator and he is currently a columnist for Reuters Breakingviews. He is also a financial historian and investment strategist with a first-class honours degree from Trinity College, Cambridge. 

Edward received a George Polk Award in 2008 for financial reporting for his article “Ponzi Nation” in Institutional Investor magazine. He is also a book writer, his latest book being The Price of Time, which was longlisted for the FT 2022 Business Book of the Year.