Insights & Indicators Energy Pathways featuring Jeff Currie
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Apr 26, 2024 Jeff Currie, Chief Strategy Officer at Carlyle and a leading commodity analyst, dives into the intricacies of energy pathways. He explains how the shift to renewable energy is not just about adding sources, but transforming the entire infrastructure. The conversation emphasizes the role of policy in steering decarbonization and how the financial landscape impacts energy resources. Currie also highlights the significance of copper due to increased electricity demand driven by AI advancements, challenging conventional divestment strategies.
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Energy additions vs transitions
- Energy additions describe adopting new energy sources alongside existing ones, like wood and coal.
- An energy transition is switching from one source to another, which necessitates pathways from old to new infrastructure.
Revenge of the Old Economy
- The "revenge of the old economy" thesis describes how underinvestment in traditional sectors leads to eventual system breakdown.
- Higher prices and returns are needed to attract capital back, but hurdles like sustainability concerns raise the bar.
The role of policy in energy transition
- Policy is crucial for energy transitions, particularly since the economics of renewables aren't yet fully competitive.
- A carbon tax is the most effective solution, but global adoption faces political obstacles.