What does the current global energy crisis mean for energy investment?

As well as causing a grave humanitarian crisis, Russia’s unprovoked invasion of Ukraine has had far-reaching impacts on the global energy system, disrupting supply and demand patterns and fracturing long-standing trading relationships. It has pushed up energy prices for many consumers and businesses around the world, hurting households, industries and entire economies – most severely in the developing world where people can least afford it. And it threatens to derail efforts to tackle the world’s critical challenge of reducing global greenhouse emissions quickly enough to avoid catastrophic climate change. We cannot allow tackling climate change to become yet another victim of Russia’s aggression. The global energy crisis and market tumult set off by Russia’s actions have significantly complicated the picture for governments, companies and investors as they try to determine what energy projects to encourage, develop or fund. As the leading global authority responsible for energy security and the clean energy transition, the IEA has been providing the data, analysis and policy advice to help decision-makers around the world – especially governments – make well-informed choices on energy investments that support secure and affordable energy supplies while driving down emissions. We will publish a range of new insights next month in our World Energy Investment 2022 report, which will take into account the rapid changes the global energy system has experienced since last year’s edition, and the upheaval of the past few months in particular. These issues are at the heart of consequential deliberations taking place around the world today – in government ministries, parliamentary debates, company shareholder meetings and at international gatherings, including the World Economic Forum Annual Meeting in Davos later this month.