The energy transition isn't just about increasing renewables — it’s also about balancing priorities like climate goals, energy security, and affordability. In today's increasingly complex world, a simple linear transition isn't viable. While the need to reduce emissions is clear, the best approach remains uncertain. The world needs an inclusive, resilient, and equitable transition plan that accounts for global variations in policies and challenges.

CERAWeek, taking place this year from March 18 to March 22, brings together global energy leaders to address these issues from an industry perspective. Against the backdrop of the agreement at COP28 to transition away from fossil fuels, CERAWeek 2024 explores potential pathways to scale up renewables while safeguarding energy access and security.

This four-part series highlights key topics from CERAWeek 2024, examines the future of the multidimensional, multispeed, multifuel transition, and spotlights the pivotal role of private sector actors like Hanwha in powering this transition.

When it comes to a multidimensional transition, a strong public sector will empower a strong private sector — but the scale of the energy transformation is simply too large for the public sector to tackle alone.

Climate risk has become a major concern for financial institutions and markets, especially considering that climate policy is relatively new — the first international climate treaty only came into force in 1994. Weak governance, poorly targeted subsidies, and inadequate capacity and planning pose threats to the energy transition. Additionally, with global public debt exceeding 80% of global GDP, the responsibility increasingly falls on the private sector to invest in global energy access and resilience.

As a result, private companies have a unique opportunity to fill in market gaps and spearhead the energy transition — and the most effective solution starts from within. The Carbon Trust emphasizes that up to 90% of an organization’s environmental impact lies in the value chain. Thus, a multidimensional approach should challenge companies to rethink how they supply, transport, and distribute energy in a way that balances all elements of the energy trilemma.

By establishing a multidimensional mindset from end-to-end, private sectors can ensure that energy value chains are streamlined and explore practical solutions to scale up the use of renewables. This strategy boosts operational efficiency and adds tangible value — a vital component of a resilient energy transition. However, rather than overhauling an entire system overnight, pursuing step by step change will fundamentally transform the decarbonization of industries for the long term.

One practical application of this framework is in the maritime industry. Global emissions from all shipping vessels account for about 3% of total GHG emissions each year, but the industry is complicated to decarbonize due to the broad spectrum of vessel types and sizes, the large amounts of energy they use, and the inherently global nature of maritime transport. While the progress in making industries sustainable has so far been linear, the progress in addressing climate change must be exponential. This begins with investing in solutions that harness the benefits of decarbonization, diversification, and innovation.