WEIM2022 - Regional

ABOUT
WORLD ENERGY The World Energy Council is the world’s principal independent and
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COUNCIL affordable, stable and environmentally sensitive energy system for the
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Published by the World Energy Council, March 2022
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WORLD ENERGY The World Energy Issues Monitor provides a snapshot of what keeps CEOs,
Ministers and experts awake at night in nearly 100 countries.
ISSUES MONITOR The Monitor helps to define the world energy agenda and its evolution over
2022 time. It provides a high-level perception of what constitute issues of critical
uncertainty, in contrast to those that require immediate action or act as
developing signals for the future. It is an essential tool for understanding the
complex and uncertain environment in which energy leaders must operate,
and a tool through which one can challenge one’s own assumptions on the
key drivers within the energy landscape.
This 13th iteration of the World Energy Issues Monitor is based on insights of
nearly 2,200 energy leaders in 91 countries to provide 51 national assess-
ments across six world regions.
In addition to this report, the Interactive Issues Monitor Online Tool allows
the visualisation of the data that underpins the Issues Maps. This tool has
been produced in conjunction with the Council´s project partner, Arup
World Energy Issues Monitor 2022, published by the World Energy Council.
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PAGES
TABLE OF CONTENTS
INTRODUCTION
04
GLOBAL OVERVIEW
04
REGIONAL OVERVIEW
06
REGIONAL DEEP DIVE
Africa
10
Asia
Europe
Latin America and the Caribbean
WORLD ENERGY ISSUES MONITOR 2022

Middle East & Gulf States
North America
ACKNOWLEDGEMENTS
33
3
INTRODUCTION
The 2022 annual edition of the World Energy Issues Monitor Survey was undertaken immediately following
the conclusion of the 26th Conference of the Parties (COP26), held in Glasgow, UK, during November
2021. This year’s survey provides a snapshot in time of the views of close to 2,200 energy leaders from 91
countries. Designed as a horizon-scanning tool, the World Energy Issues Monitor is the largest survey of its
kind of senior energy professionals, governments, and civil society.
The survey considers 25 core energy transition issues, which are analysed to give an averaged level of: a)
uncertainty; and b) impact that respondents attribute to each energy transition issue. These are displayed
pictorially in global and regional maps.
The timeframe of the survey means that the results predominantly reflect the post-COP26 and continuing
pandemic context. Although maps commentaries consider the geopolitical environment of early 2022,
recent events related to the military conflict in Ukraine have led to important disruptions to energy
markets. The survey results provide an overview of the context immediately precedent to the outburst of
the conflict and shed light on the key issues that were keeping energy leaders awake at night.
This report focuses on the Issues Survey regional insights. For the full global results and methodology,
please refer to the World Energy Issues Monitor Global Outlook. You may find the global, regional and
country deep dives and the data that underpins the Issues Maps on the Interactive Issues Monitor Online
Tool, produced in conjunction with the Council´s project partner, Arup.
In addition, the Council will be soon engaging the world energy community in an Energy Security Pulse
Survey for a continued monitoring of the impact of unfolding geopolitical events on energy markets.
GLOBAL OVERVIEW
The 2022 World Energy Issues Monitor global survey results and commentaries reflect the perceptions
of the Council’s worldwide community of energy leaders on the energy decision-making environment
between November 2021 and January 2022.
These perceptions call out Commodity Prices and Geopolitics as the most critical issues for energy deci-
sion-makers in the context immediately precedent to the escalation of the Russia-Ukraine conflict. The
tracking of perceptions over time shows how the perceived uncertainty related to these issues has dramat-
ically increased globally. This year, findings pointed out record price increases in natural gas and obstacles
to supply as key drivers of the rising climate of uncertainty. The energy interdependence between many
countries contributes to keeping Geopolitics firmly on the uncertainty agenda. In addition, regional deep
dives have highlighted how geopolitical tensions within the context of high market interdependencies risk
to exacerbate uncertainties even further.
The Council’s World Energy Trilemma, assessing the crucial balance needed between energy security,
energy equity and environmental sustainability for healthy energy systems, is particularly relevant
to understand today’s decision-making environment in relation to the Russia-Ukraine conflict. The
long-standing climate change challenge, the impacts of the pandemic and a fast-paced evolving decision
landscape creates further imbalances within the system.
Building on the Trilemma Index, this Issues Monitor survey iteration has identified issues that affect the
energy equity dimension such as energy affordability with the sharpest increase in impact and uncertainty
on energy leaders’ decision-making choices compared with 2020, suggesting that further imbalances
of performance between the Trilemma dimensions can be expected at country and regional levels as we
move forward.
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Figure 1: 2022 Global Energy Issues Map
WORLD ENERGY ISSUES MONITOR | 2022

Global
Commodity Prices
Geopoli�cs
Climate Change Management

Hydrogen
Economic Growth
Investor Environment
Cyber Security Risks
Market Design and Regula�ons
Support Mechanisms Innova�ve Transport

Electric Storage Innova�on
Regional Integra�on
Affordability
Future of Work
Cross Border Trade
Decentralised Systems
Urban Design Demand Pull Energy Efficiency

Digitalisa�on
Land and Water Availability
Quality Energy Access
Renewable Energies
Nuclear
Demographic Pa�erns
------- Centre-point line

Cri�cal Uncertain�es: what keeps energy leaders awake at night Ac�on Priori�es: what keeps energy leaders busy at work
GLOBAL KEY MESSAGES

1. Uncertainties increase again across the board. The most striking finding of this year’s Global
Energy Issues Map is the enormous degree of uncertainty ascribed to almost all the issues energy
leaders were asked to assess, with Commodity Prices, Geopolitics and Climate Change Management
and Economic Growth topping the list.
2. Equity-related concerns highlight the need to humanise the energy conversation. Issues that
affect Energy Equity such as Commodity Prices, Affordability, Quality Energy Access and Market
Design have seen the sharpest increase in impact and uncertainty compared to 2020 and stress the
need to humanise energy transition.
3. Collaboration in seen as key to turning critical uncertainties into action priorities. Energy leaders’
perspectives point to the importance of stabilising Critical Uncertainties and finding practical ways to
reach a point of greater confidence. There is a need to explore the drivers of change and their wider
impact on energy and energy+ communities, which includes the adjacent sectors, to allow for stable
route mapping.
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REGIONAL OVERVIEW
The survey outcomes and emerging findings were tested with the Council’s regional energy communities
during a series of virtual workshops held in January and February 2022. The sessions were designed to
leverage the power of community in order to identify drivers of change and their wider impact in the
different regional energy contexts.
While acknowledging the great socio-economic and political diversity across and within regions, two cross-
cutting themes emerged from the discussions:
1. NEW OPPORTUNITIES FOR INVESTMENT AND POLICY DECISION MAKING: Public and private
sector decision-makers in different regions have pointed out the increasing attractiveness of clean energy
technologies as phasing out of fossil fuels subsidies gathers pace.
AFRICA: Energy transition is critical to the region and provides significant opportunities
for economic growth and equitable transition. Basic energy access is still low, linked to low
levels of incomes, but action priorities targeted at maximising the potential of the region’s
abundant renewables resources and developing associated infrastructure are critical to the
region’s economic growth and prosperity.
ASIA: Most of the existing renewable capacity in the region was stimulated through Feed-
in-Tariffs or special programmes. With many of these coming to an end or being reset, there
is an opportunity to reframe the policies and adapt commercialisation models to accelerate

transition.
EUROPE: Continued high levels of uncertainty surrounding the interplay of geopolitics

and commodity prices are seen across the region. The impact of consistently high gas and
electricity prices on domestic consumers, raises energy affordability up the action priority
list for energy leaders in Europe, and has put the spotlight back on the debate around
nuclear as a potential opportunity to meet sustainability targets and anticipated demand
growth.
LAC: Latin America has enormous sustainable energy potential due to its abundance of
natural, renewable energy resources. Exploitation of this historically underutilised resource,
coupled with electrification of transport systems and the establishment of a green hydrogen
economy, provide significant opportunities for economic growth and recovery from the
significant toll the pandemic has taken across the region.
MEGS: Increased digitalisation initiatives, continued diversification to renewables, and

energy efficiency and waste management programmes offer new opportunities for policy
leadership and economic growth across the region. But to achieve net-zero targets, policy
makers are counting on hydrogen and carbon capture, utilisation and storage (CCUS)
technology gains, which will require significant investment and the establishment of multi-
stakeholder partnerships.
NORTH AMERICA: The impact of the pandemic continues to put severe stress on supply
chains, fuel costs and transport costs, fuelling inflation and raising uncertainty in financial
markets. But opportunities exist in managing and investing in energy transition, with support
for the commercialisation of hydrogen projects for transportation and thermal energy,
and a growing acceptance that the timing of investment decisions to meet 2050 targets is
becoming critical.
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“Energy matters are now centre stage in a world of more digitally connected, politically contested,
interdependent and diverse societies.”
Dr Angela Wilkinson, Secretary General & CEO, World Energy Council, UK
ACTION PRIORITIES ACROSS REGIONS

(WHAT IS KEEPING ENERGY LEADERS BUSY AT WORK – FROM HIGHEST TO LOWEST SCORES)
AFRICA Renewable Energies ASIA Renewable Energies

Digitalisation Digitalisation
Demographic Patterns Demographic Patterns
Energy Efficiency Quality Energy Access
Market Design Demand Pull
EUROPE Renewable Energies LAC Renewable Energies

Digitalisation Energy Efficiency
Energy Efficiency Demand Pull

Demographic Patterns Urban Design
Quality Energy Access Quality Energy Access
NORTH
MEGS Renewable Energies AMERICA Renewable Energies
Energy Efficiency Demographic Patterns
Demographic Patterns Energy Efficiency
Land & Water Availability Quality Energy Access
Quality Energy Access Digitalisation
COMMON TO ALL REGIONS

FREQUENT OCCURRING
Renewable Energies ACROSS SEVERAL REGIONS
UNIQUE REGIONAL ISSUES Digitalisation
Africa: Market Design Demographic Patterns
LAC: Urban Design Energy Efficiency
MEGS: Land and Water Quality Energy Access
Availability Demand Pull
2. COLLABORATION IS SEEN AS KEY TO TURNING CRITICAL UNCERTAINTIES INTO ACTION

PRIORITIES: Confirming outcomes from the global analysis, regional deep dives have identified
willingness to strengthen connections within and between regions to achieve shared objectives and
capitalise on synergies.
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AFRICA: Regional collaboration is seen as key to maximising utilisation of renewable
resources, achieving economies of scale and sharing policy best practice with respect to
rural electrification, market design and issues surrounding energy privatisation. Joint power
projects such as the West African Power Pool and West African Gas pipeline demonstrate
the benefits of regional collaboration, along with international interconnection agreements
(for example, between Morocco and Spain, and Morocco and Portugal). Collaboration is also
seen as key to applying joint pressure on advanced economies, international development
partners and global donors to provide resources to support an African green energy and
development agenda.
ASIA: Despite its diverse geographical, economic and geopolitical characteristics, the
region’s key critical uncertainties of commodity prices and geopolitics mirror the global
Issues Map. The region’s energy leaders consider the route to net-zero a global issue that
requires inter-regional and international collaboration, and highlights the need for economic
development and energy transition to be mutually reinforcing with multiple routes to
transition being explored.
“Leadership uncertainty reflects the complex challenges of coordinating actions on net-zero energy uses,
without triggering new threats to regional and global stability.”
Dr Angela Wilkinson, Secretary General & CEO, World Energy Council, UK
EUROPE: The region’s collaborative approach is consolidated around the EU’s Energy
Union. Climate change management across the continent is focused on the EU Green
Deal, but there is great uncertainty around what policy will be implemented and how (for
example, will carbon pricing be included.) Energy security concerns, intertwined with
regional geopolitics are causing significant issues, and considerable uncertainty with respect
to commodity pricing. These are recurring issues for the Continent, but questions are being
asked about governance of energy and electricity security and overall market design.
LAC: Significant gains can be derived from energy diversification across the region,
as well as enhanced cooperation and increased energy integration to capitalise on the
complementarity of energy resources between countries. Reduction in costs is seen as
a driver, along with enhanced energy security resulting from mitigation of the uneven
fluctuations in costs, and periodic scarcity of supply due to extreme weather (drought)
of the region’s main energy resource – hydro. As a developing region, LAC requires the
support of international agencies to fund energy transition and reduce investor and
regulatory uncertainty.
MEGS: Collaboration with other countries and institutions to develop solutions around
demand-side management, energy efficiency, carbon capture and storage, hydrogen
and smart transportation is seen as critical to the region’s energy transition away from its
historical strong reliance on oil and gas.
NORTH AMERICA: The problem of transition costs and social acceptance across the region
is at the forefront of energy leader’s minds. Social equity issues are going to be significant
if not managed correctly. The response to the COVID-19 pandemic provides an example of
how organisations can come together to develop technical solutions – in this case, a vaccine.
This exemplifies the power and possibility of collaboration and needs to be replicated in the
push to develop technological solutions to the challenges posed by climate change.
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CRITICAL UNCERTAINTIES ACROSS REGIONS
(WHAT IS KEEPING ENERGY LEADERS AWAKE AT NIGHT – FROM HIGHEST TO LOWEST SCORES)
AFRICA Commodity Prices ASIA Commodity Prices

Economic Growth Climate Change Mngmt
Geopolitics Geopolitics
Regional Integration Economic Growth
Climate Change Mngmt Hydrogen
EUROPE Commodity Prices LAC Economic Growth

Geopolitics Commodity Prices
Climate Change Mngmt Climate Change Mngmt
Market Design Investor Environment
Investor Environment Market Design
NORTH
MEGS Commodity Prices AMERICA Climate Change Mngmt
Economic Growth Cyber Security Risks

Geopolitics Market Design
Climate Change Mngmt Investor Environment
Innovative Transport Affordability
FREQUENT OCCURRING
UNIQUE REGIONAL ISSUES ACROSS SEVERAL REGIONS
Africa: Regional Integration Commodity Prices

Asia: Hydrogen Economic Growth
MEGS: Innovative Transport Geopolitics
North America: Cyber Security Climate Change Management
Risks and Affordability Market Design
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REGIONAL DEEP DIVE
AFRICA
Africa
Commodity Prices
Geopoli�cs
Economic Growth
Innova�ve Transport Investor Environment
Demand Pull Support Mechanisms
Hydrogen Affordability
Urban Design Quality Energy Access

Decentralised Systems Market Design and Regula�ons

Cross Border Trade
Future of Work Energy Efficiency
Nuclear Digitalisa�on
Renewable Energies

The Africa survey results includes perspectives of energy leaders from:
Algeria Egypt Morocco

Cameroon Ethiopia Niger
Congo (Democratic Republic) Kenya Nigeria
Côte D’Ivoire Malawi Tunisia
Emerging findings illustrated in the Issues map above were tested with the Council’s regional energy
community during a digital workshop held on 26 January 2022.
The discussion was facilitated by the views and contributions of the following panel:
Prof. Adeola Adenikinju, Head, Department of Economics, University of Ibadan, Nigeria
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Nabil Jedaira, Senior Business Development Manager, EDF, Morocco
Dr Izael da Silva, PhD, Deputy Vice-Chancellor, Research and Innovation, Strathmore University, Kenya
Dr Hafez El-Salmawy, Professor of Energy Engineering, Zagazig University, Egypt
The region’s World Energy Council Member Committees and Future Energy Leaders participated in the
audience and contributed with questions and additional inputs.
OVERVIEW
Consistent with most other regions, Commodity Prices are the most Critical Uncertainty in this
year’s Issues Monitor, dominating the Africa Issues map. The remaining issues are clustered in
the high impact, lower uncertainty area, around the centre point line of the map, with no clear
distinction of priorities.
Consistent with the global map, Renewable Energies remain a stable Action Priority, with impact
and uncertainty accorded similar scores to 2021.
AFRICA DEEP DIVE

In 2022, more energy issues moved towards being critical uncertainties at the global level, but this is not
observed across the Africa region, where Commodity Prices stand out as the Critical Uncertainty keeping
energy leaders across the region awake at night. The significance attributed to this single issue, is likely
to be strongly influenced by the timing of the survey, which was completed in Q4, 2021, when gas prices
across the region were showing a 40% rise over the previous year.
Although the region in aggregate is a net exporter of energy, many countries are net importers. This
has increased countries’ vulnerability to commodity price fluctuation, and to the related impact that the
pandemic has exerted on global markets and supply chains.
Africa’s overall impact on climate change is currently small; yet, the continent remains extremely
vulnerable to the effects of global warming. As its young and urban population continues to increase,
the region’s impact on the climate is likely to grow and a development approach is required to empower
energy transition and mitigate future climate impact.
“We have the task of educating new generations so they can help the whole planet to navigate the
transition”
Dr Izael da Silva, PhD, Deputy Vice-Chancellor, Research and Innovation, Strathmore University, Kenya
“The decisions taken at COP26 to move to a net-zero carbon world are ones that Africa cannot ignore,
and the region needs to ensure that the policies it implements will enable it to meet the net-zero
trajectory. With COP27 convening in Egypt in November 2022, there will be a strong focus on the
continent and its ambitions.
Africa is a continent with a young population and abundant energy resource. The impact of the region
on climate change is minimum but we are the most vulnerable. Where are we at capitalising on turning
disadvantages into advantages?”
Dr Hafez El-Salmawy, Professor of Energy Engineering, Zagazig University, Egypt
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THE CHALLENGE: COMMODITY PRICE VULNERABILITY COUPLED WITH ECONOMIC
GROWTH URGENCY
The region’s commodity price vulnerability can be explained by the number of its countries which
are net energy importers, particularly of coal and gas, and by the regional disparities in access to
indigenous resources. However, this has been aggravated by the impact of the COVID-19 pandemic on
global markets.
“Commodity prices are very important as they impact on economic growth, government revenue,
foreign exchange rate, and financing of critical public infrastructure, in an oil-exporting developing
economy like Nigeria. It is difficult to remove subsidies on energy when poverty and unemployment
are high. Anything that impacts on commodity prices, like oil, will have a significant effect on oil-
dependent economies.”
Prof. Adeola Adenikinju, Head, Department of Economics, University of Ibadan, Nigeria
Commodity prices assume particular importance in the region as they are tied to economic growth,
government revenue, foreign exchange, and financing of critical public infrastructure. However, the
dynamics affecting global commodity prices are exogenous to Africa and are determined by the interplay
of forces such as geopolitics, economic recovery and inflation at the global level and in specific trading
partner countries, such as China, US, EU and the UK.
Other local issues identified as critically uncertain in Africa include regional unrest, project financing,
transition costs and general acceptance of the need for energy transition, and electricity prices. A careful
examination of these factors shows that economic growth and a worsening standard of living in many
African countries contribute to regional unrest and resistance to energy price increases; it is difficult to
remove energy subsidies when poverty and unemployment are high.
Geopolitics is rated highly in this year’s Issues Monitor Survey. This can be explained by disruptive events in
Morocco, Tigre, and Kenya and long-standing issues in northern Nigeria. Energy transition is not possible
without political stability.
THE OPPORTUNITY: LEVERAGING THE GREEN ECONOMY AND DIGITALISATION FOR

ECONOMIC GROWTH
Low energy access is associated with the overall low GDP for Africa. Action Priority issues such as
renewable energies, quality energy access, demographic patterns, energy efficiency, aging infrastructure,
and rural electrification are consistent with Africa’s agenda for economic development.
Across the region it is perceived that decentralisation offers a means to increase accessibility, but there is
a need to focus on developing policy priorities and the agenda to move towards a green economy. Kenya
has shown that significant progress can be made in rural access via mini grids, solar home systems and grid
diversification.
Energy leaders also perceive the energy transition as favourable for Africa – the continent is richer in
renewable energies than in oil and gas. The policy priority is to tap into and develop renewable energies as
an energy access tool. The energy infrastructure is still predominantly young, but new infrastructure is also
needed. Additional problems lie with the capacity of the energy system and consumer acceptance. There is
a need to continue progress on building an integrated, decentralised distributed system to deliver a more
efficient supply.
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“Rural electrification in Morocco almost at 100% today. Priority is developing smart grids which
is a solution for renewables integration and response management. Digitalisation is essential and
is a precursor to any programs to achieve energy efficiency. All this is mandatory for Morocco to
increase competitiveness domestically and internationally.”
Nabil Jedaira, Senior Business Development Manager, EDF, Morocco
Digitalisation, coupled with Internet of Things (IoT) integration, is a necessity for the region. Digitalisation
reduces the cost of the production of electricity and enables it to be better targeted, whilst optimisation
of big data also saves money and brings down investment costs. Digitalisation is also an essential precursor
to any energy efficiency programs.
THE NEED: COLLABORATION TO CREATE ECONOMIES OF SCALE AND PROMOTE

INVESTMENTS
Energy leaders across the region consider regional collaboration as the key to maximising the utilisation
of renewables, achieving economies of scale and sharing policy best practice with respect to rural
electrification, market design and resolving issues surrounding energy privatisation. Joint power projects
such as the West African Power Pool and West African Gas pipeline demonstrate the benefits of regional
collaboration, along with international interconnection agreements (for example, between Morocco and

Spain, and Morocco and Portugal).
Collaboration is also seen as key to applying joint pressure on advanced economies, international
development partners and global donors to provide resources to support an African green energy and
development agenda and ensure energy transition is a just transition, which leaves no-one behind and does
not place significant burdens on individuals.
Establishing a favourable investor environment across the region is considered essential to energy
transition. Trade agreements and the development of infrastructure projects to attract investment in the
region are required, and Pan-African collaboration can improve stability and increase investor confidence.
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REGIONAL DEEP DIVE
ASIA
Asia
Commodity Prices

Geopoli�cs
Economic Growth
Hydrogen
Regional Integra�on Cyber Security Risks

Energy Efficiency
Cross Border Trade Innova�ve Transport
Future of Work
Support Mechanisms Electric Storage Innova�on

Affordability
Demand Pull
Decentralised Systems Urban Design
Digitalisa�on
Nuclear
Renewable Energies

The Asia survey results includes perspectives of energy leaders from:
Australia Japan New Zealand

China Korea (Republic of) Singapore
Hong Kong SAR, China Mongolia Vietnam
India Nepal
Emerging findings illustrated in the Issues map above were tested with the Council’s regional energy
Khiimorisain Purevdorj, Specialist at Department of Energy Efficiency and Conservation, Energy
Regulatory Commission, Mongolia
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Masaaki Hanaoka, Senior Executive Director, Japan Energy Association / Secretary General, Japan
Member Committee, World Energy Council, Japan
Mike Thomas, Managing Director, The Lantau Group, Hong Kong SAR, China
Wei Wei, Senior Research Fellow, Institute of World Economics and Politics, Chinese Academy of Social
Sciences (CASS), China
OVERVIEW
Consistency is the theme across Asia, with the 2022 Issues Map remaining remarkably
aligned between 2021 and 2022. Commodity Prices and Geopolitics stand out as the Critical
Uncertainties, with the region strongly impacted by energy security concerns and large price
rises in energy costs. Hydrogen scores highly on the Critical Uncertainties quadrant and is
accorded more interest than many other regions.
Few issues appear in the Action Priorities quadrant, with Renewable Energies, Digitalisation and
Quality Energy Access topping the list of what is keeping energy leaders across the region busy
at work.

ASIA DEEP DIVE
With a population of 4.5 billion, representing 40% of the world’s total, this large continent is extremely
diverse geopolitically, economically and geographically, so care must be taken to avoid generalisations. In
this region, energy transition continues to occur at different speeds and via different routes.
THE CHALLENGE: DIVERSIFYING THE ENERGY MIX IN TIMES OF UNCERTAINTY
Many countries in the region are experiencing rapid population growth which, coupled with weak
economic growth, is leading to poverty. The impact of COVID-19 and geopolitics have accelerated the
economic and energy disparity that was already evident pre-pandemic.
Fossil fuel dependence raises uncertainty and concerns about energy security, particularly as financial
institutions commit to phasing-out investment in coal power projects as a response to decisions taken
at COP26. This is of particular concern for Mongolia, which has a greater than 90% dependence on
coal power. The country is double impacted by climate change management and commodity prices
fluctuations, as it counts on indigenous fossil fuel production for 80% of its growing energy needs, and on
imports from neighbouring countries, Russia and China, for the remaining 20%.
Pakistan also perceives high vulnerability to fluctuations in commodity prices, due to being a net importer
of natural gas (70% indigenous and 30% imported). This perception has been further aggravated by the
significant increases in the price of imported gas in recent months.
In this challenging context, countries across the region see no one single energy source as sufficient to
balance the Energy Trilemma of energy security, sustainability and affordability. Instead, there is a shared
view that diversified pathways must be followed to reduce risk and achieve carbon reduction/net-zero
targets.
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“There is no single energy source we can use to wipe out this uncertainty.”
Masaaki Hanaoka, Senior Executive Director, Japan Energy Association / Secretary General, Japan Member
Committee, World Energy Council, Japan
Yet, Asian countries have pledged carbon neutrality, or committed to massive carbon reduction, which
will affect business and social activities. This year’s Asia Issues Map reflects mixed sentiment of anxiety,
frustration, significant challenges and economic concerns. Against this environment, energy transition
is seen as an imperative, with many countries continuing to invest in renewables, nuclear, hydrogen and
sophisticated grid-management systems.
“Fossil fuels will phase out in a periodic manner as the supply chain and technological constraints
for renewables are managed by stakeholders during the energy transition. There is no doubt that
natural gas is here to stay for at least another decade.”
Umair Ahmed, Deputy Manager - Strategy, Engro Corporation, Pakistan/ Future Energy Leader, World Energy
Council
THE OPPORTUNITY: GREATER CLARITY AROUND RENEWABLES STRATEGIES FOR

MULTINATIONALS, AS END-USERS, AND FOR COMMERCIAL INVESTORS
The region’s existing renewables capacity was stimulated through Feed-in-Tariffs or special programmes.
With many of these coming to an end, or being reset, there is an opportunity to reframe the policies and
adapt commercialisation models to accelerate transition. This is occurring in China, the Philippines and
some other countries across the region. Simultaneously, the cost of renewables technology has fallen,
making implementation more favourable.
“Merchant markets will see they can make more money moving faster towards renewables as they
are displacing ever more volatile and expensive fuel, and it will be harder to get funding for long-
term gas contracts (too much uncertainty). This uncertainty steels the resolve to move to things that
are less exposed to this risk – that will be the shift factor in policy and commercial opportunities.”
Mike Thomas, Managing Director, The Lantau Group, Hong Kong SAR, China
Technological breakthroughs are seen as key to energy transition. In electric vehicles, there is competition
in lithium-ion cells between lithium iron phosphate, and nickel manganese cobalt oxide, and potentially also
with sodium-ion batteries. The different technological roadmaps will impact the development of electric
vehicles and also alter the demand for different commodities.
With respect to Hydrogen, which features as a Critical Uncertainty in this year’s Asia Energy Issues Map,
there are still multiple technical challenges to be overcome. In addition, international supply chains will
need to be developed to accommodate the volumes predicted, and existing infrastructure will need to be
re-purposed.
“Market disruption comes down to market design. We need to learn from past problems and review
our existing market design.”
Sam Muraki, Executive Advisor, Tokyo Gas Company / Regional Vice-Chair for the Asia Pacific and South Asia,
World Energy Council, Japan
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THE NEED: FACING THE CHALLENGE OF ENERGY TRANSITION TOGETHER, GLOBALLY
Comparison of the Asian and Global energy Issues maps shows that energy prices and geopolitics increase
in uncertainty from 2020 to 2021 regionally and globally.
Within the region, countries share the view that carbon neutrality must be addressed as a global issue, and
that international collaboration and global solutions are required. At a country level, the government of
Japan has targeted 14 key areas in its carbon-neutral strategy, including demand-side management. The
Chinese government continues to emphasise that cutting emissions is not aimed at curbing productivity
or achieving zero emissions, that the economic development and green transition should be mutually
reinforcing, and that no ‘one-size-fits-all’ approaches should be adopted.
The region also shares concerns of geopolitical tension and conflict as extremely harmful to international
collaboration and of their negative impact on energy transitions. For example, there is close attention to
how the escalating conflict in Ukraine can impact LNG markets as prices go up, and as demand and prices
become increasingly tied.
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REGIONAL DEEP DIVE
EUROPE
Europe
Commodity Prices
Geopoli�cs
Hydrogen
Support Mechanisms Market Design and Regula�ons
Economic Growth
Affordability Innova�ve Transport
Future of Work Regional Integra�on
Cross Border Trade

Energy Efficiency
Urban Design
Digitalisa�on
Demand Pull
Quality Energy Access Renewable Energies
Nuclear

The Europe survey results includes perspectives of energy leaders from:
Austria Greece Netherlands Spain

Belgium Iceland Poland Switzerland
Bosnia and Herzegovina Italy Portugal Turkey
Croatia Kazakhstan Romania United Kingdom
Estonia Latvia Russian Federation
Finland Lithuania Serbia
Germany Malta Slovenia
Emerging findings illustrated in the Issues Map above were tested with the Council’s regional energy
Alexey Gospodarev, Executive Director, Russian National Committee, World Energy Council, Russian
Federation
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Andrei Covatariu, Co-founder, ECERA / Member of the Task Force on Digitalization in Energy, United
Nations Economic Commission for Europe
Carsten Rolle, Executive Director, Weltenergierat Deutschland / Director Energy and Climate Policy,
Federation of German Industries (BDI), Germany
Fergal McNamara, Manager, Regulation and Policy, ESB / Chairman Distribution and Market Facilitation
Committee, Eurelectric / Chair, Ireland Member Committee, World Energy Council
Francisco Laverón, Head of Energy Prospective Innovation and Sustainability, Iberdrola, Spain
OVERVIEW
Following the global trend in this year’s Issues Monitor, there is an increase in uncertainty
across most issues, with Commodity Prices and Geopolitics standing out as the region’s Critical
Uncertainties. Both these issues are strongly influenced by energy security concerns and
significant price hikes, particularly in gas prices, being experienced across Europe. The rapidly
unfolding Russia-Ukraine situation is significantly adding to these pressures and concerns.
Hydrogen continues to be viewed with a high degree of uncertainty, but is not yet making a
significant impact, whilst Nuclear also appears on the Action Priority horizon.
Renewable Energies continue to be the focus for Action Priority across the continent, whilst

Quality Energy Access assumes greater uncertainty as the pandemic continues to impact
working patterns and transport.
EUROPE DEEP DIVE

Results are ‘on trend’, in that Europe’s results reflect the world energy mood. Uncertainty has not
decreased in the past year, despite the improved COVID situation. Geopolitics is playing an important role
in this environment of continued uncertainty, resulting in energy security and affordability concerns.
THE CHALLENGE: ENERGY SECURITY AND AFFORDABILITY
The challenges of an uneven post-COVID recovery, a long winter, and regional extreme weather events,
such as hurricanes, have all influenced the current high gas prices, which also impact electricity prices.
Carbon prices are currently at around EUR80 per ton, and energy prices are higher and not expected to
fall back to previous levels anytime soon. Energy leaders predict that volatility in electricity prices is likely
here to stay, or even increase. Gas demand is increasing due to harsh European winters and a greater
proportion of renewables in the electricity mix. In parallel, there is an increase in supply tensions related to
geopolitics across the region.
High commodity prices have a strong impact on domestic consumers, with price volatility inducing
affordability issues, which are likely to move to the Action Priority segment of the Issues Map. Bankruptcy
among energy traders is increasingly becoming an issue and raises questions about whether increased
security measures will be required to secure supply.
Whilst understandably focusing on gas, oil and electricity as key commodities, it is worth noting that the
availability of critical metals and human capital (knowledge and expertise) are both factors that contribute
to the energy security dimension.
From our World Energy Trilemma, Europe scores low on energy security (particularly if Russian supplies are
removed from the mix), exposing disparities in domestic resource availability and import/export balances,
as well as flaws in governance of energy and electricity security, which is bringing into question market
design and regulation across the region.
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“ Investment in clean energy is rising, but not nearly enough to meet demand, and the phase out of
fossil fuel generation.”
Andrei Covatariu, Co-founder, ECERA / Member of the Task Force on Digitalization in Energy, United Nations
Economic Commission for Europe
THE OPPORTUNITY: IS THERE AN OPPORTUNITY AROUND NUCLEAR?
Nuclear has a positive impact on sustainability, but debates surrounding its deployment are on-going.
Nuclear is not clearly defined as a priority at a regional level, though many countries are planning
on building new reactors. Nuclear may evoke a different result in the current environment, due to
taxonomy debates on whether nuclear and gas should stay in the energy mix long-term. The issue is
more on the agenda now than last year. But, is taxonomy the right approach to deal with technology
issues?
There are two distinct views on the role of nuclear in Europe:

1. Nuclear in Europe is like the rest of the world. It will be important in some countries but, in general,
expansion is not on the horizon. It can be considered as a technology that in general terms won’t have
a huge impact in the future.
or:
2. Nuclear is a low carbon and reliable source of dispatchable generation. Costs are predictable,
which is very important under current price uncertainty. Given the current focus on sustainability and
expected demand growth, increasing nuclear capacity may be an affordable solution to fight global
warming. The UN economic commission report shows nuclear power releases less carbon emissions
than any other energy source. It also points to the need to have a technology-neutral approach.
THE NEED: MARKET DESIGN AND COMMITMENT TO PRACTICAL MEASURES
Energy prices have become very salient in European politics, leading to significant government
intervention in many countries (e.g., Spain, Romania, France, Italy). Across the region, there is a
perception that Issues Monitor scores related to market design, support mechanisms and affordability
are spill over effects of current high commodity prices, which is, in turn, a consequence of geopolitics:
“ All of the price fluctuation are really due to geopolitics and consequent commodity prices increases
and this is being confused with the energy transition, which is in fact the solution. This of course
explains why Climate Change management is one of the critical uncertainties.”
Fergal McNamara, Manager, Regulation and Policy, ESB / Chairman Distribution and Market Facilitation
Committee, Eurelectric / Chair, Ireland Member Committee, World Energy Council
Climate Change Management is focused on the EU Green Deal, but there is significant uncertainty
around what policy is implemented and how. For example, carbon pricing is controversial and there
is uncertainty as to whether it will be included within the Green Deal. There is a need to ensure that
investments in decarbonised resources are made at the right level and at a pace that supports climate
targets. It will also be necessary to maintain security of gas and oil supply over the coming years. These
efforts must be carefully planned, with practical measures, otherwise energy price volatility could
increase dramatically, potentially putting the energy transition at risk.
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REGIONAL DEEP DIVE
LAC
La�n America and the Carribean
Economic Growth
Commodity Prices
Geopoli�cs


Affordability
Innova�ve Transport
Support Mechanisms
Decentralised Systems Digitalisa�on
Cross Border Trade

Future of Work
Land and Water Availability Urban Design
Hydrogen

Demand Pull Energy Efficiency
Renewable Energies

The Latin America and the Caribbean survey results includes perspectives of energy leaders from:
Argentina Chile Ecuador Paraguay

Brazil Colombia Panama Uruguay
community during a digital workshop held on 03 February 2022.
Juan Roberto Paredes, Senior Renewable Energy Specialist, Infrastructure and Environment Sector,
Interamerican Development Bank
Noelia Medina, Adviser to the Director of Energy, MIEM, Uruguay
Ricardo Mejia, Regional Manager Latin America, EPRI
21
Tulio Alves, Executive Director, Comisión de Integración Energética Regional (CIER)
OVERVIEW
Showing analogous responses to Africa, the Latin America and Caribbean region reports
clustering of all issues in the high impact area of the map, along with higher uncertainty. The
map is striking in its depiction of no clear distinction of priorities. No issues fall into the Action
Priorities quadrant.
LATIN AMERICA AND THE CARIBBEAN DEEP DIVE

This year’s Issues Map for the Latin American and Caribbean region must be framed in the context of
the pandemic. Interamerican Development Bank (IDB) studies show that nearly 33% of all COVID-19
related deaths worldwide occurred in Latin America and the Caribbean, despite the region constituting
only 8% of the total world population. In addition, it is estimated that more than 52 million people across
the region dropped out of the previously growing middle-class sector in 2020, eroding years of work to
grow this segment. Worse, 44 million people fell into poverty in the same year, threatening the future of
an entire generation. In addition, more than 39 million jobs were estimated to be lost by 2020, worsening
pre-pandemic stagnation and tearing at the social fabric of the region. The situation is further exacerbated
by climate change – people on the lowest incomes are the most vulnerable to the impacts of drought,
wildfires, sea-level rise and other extreme weather events. IDB estimated that the annual cost of climate-
induced damage in the region by 2050, if global warming is not kept below 2ºC, will amount to $100
billion, threatening development gains post-pandemic and far into the future.
It is therefore unsurprising to see Economic Growth being deemed the highest Critical Uncertainty for
the region, with Commodity Prices and Climate Change Management also keeping the region’s energy
leaders awake at night.
The region has a major challenge in guaranteeing the availability of energy to meet demand, with
affordable prices and quality, as well as ensuring basic energy access and supply for the entire population,
particularly given the environmental challenges some countries are facing. In 2021, the Southern Cone,
and Brazil in particular, faced the worst drought in a century, forcing a return to thermal power generation,
with an impact on the emission of greenhouse gases. In addition, the worsening economic environment
is creating a cost burden and rising inflation, which is significantly impacting the population, with
disproportionate effects on the poorest citizens.
With respect to Climate Change Management, COP26 was perceived positively in the region, with targets
deemed as being clearer. Almost 20 LAC countries signed up to the global methane-reduction agreement
– The Global Methane Pledge. And Argentina, Colombia, Ecuador, Brazil, Chile, Honduras, Peru, Costa
Rica, Guatemala, Cuba, Mexico, Panama, Paraguay and Uruguay committed, together with other countries
at a global level, to reduce deforestation and land degradation by 2030. Most countries in the region
increased their climate change ambition, but Brazil and Mexico, which together consume close to 50% of
the region’s energy, were less ambitious in their Nationally Determined Contributions (NDCs).
THE CHALLENGE: LOW ECONOMIC GROWTH AND THE LACK OF LEADERSHIP CLARITY
From this year’s Issues Map, Economic Growth is clearly accorded the highest degree of uncertainty.
Growth rates across the region are averaging between 2% and 6% which, in turn is generating
22
additional uncertainty with respect to the economic stability of investments and availability of finance.
Energy leaders agree that long-term vision, economic monitoring and forecasting are key to stable
economic growth, and that job creation and investment need to be brought centre stage.
Social unrest in some countries and the growth of extreme right and left political wings are creating
very large uncertainties in terms of political and economic issues, which impact energy policies. The
general climate of uncertainty is impacting everyone, including the region’s research institutions.
Energy leaders agree that governments must consider long-term planning and include environmental
targets as part of their plans for the region’s economic recovery.
THE OPPORTUNITY: TRANSPORT AND TECHNOLOGY INNOVATION
What are the opportunities across the region that can be turned into Action Priorities?
There is much discussion across the region about carbon neutral and net-zero scenarios, with up to 15
million net jobs forecasted to be created across the sector in the next decade. The region is very well
positioned to take advantage of energy transition. It houses the world’s largest copper and lithium
reserves, which are critical to electromobility and energy storage technologies, and is keen to take

advantage of the associated innovation ecosystems that are being developed.
“The research and development priorities are the same for the whole world: we are on the way to look
for integrated energy systems. It requires a more integrated approach through digital integration
technologies and systems. We need to look at things holistically, comprehensively, unified. Efficient
use of electrification, electric mobility, and artificial intelligence - this way we can be more efficient.”
Ricardo Mejia, Regional Manager Latin America, EPRI
In addition, the region has an abundance of natural resources, particularly renewable energy sources,
that are available for exploitation and development.
“Latin America has enormous energy potential due to its abundance of natural resources,
particularly in relation to non-conventional, renewable energy sources, although historically, this
potential has been underutilised.”
Tulio Alves, Executive Director, Commission for Regional Energy Integration (CIER)
Electromobility and the development of the green hydrogen economy with IDB support are also
opportunities for the region and instrumental to energy transition. In Uruguay, transport accounts for
two thirds of the country’s fuel requirements, so it is critical that it is addressed.
Regional energy leaders consider that Hydrogen should feature in the Action Priorities quadrant of the
Issues Map. Mexico’s Federal Electricity Commission (CFE) has taken a lead in hydrogen and expects
its green hydrogen plant to start producing clean fuel in 2023. Colombia and Chile are positioning
themselves as potential large-scale producers of hydrogen, and Brazil is also expected to launch its
hydrogen roadmap this year.
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THE NEED: LONG-TERM VISION AND REGIONAL COOPERATION
According to regional energy leaders, energy transition will require between three and five times the
current level of investment, and needs the support of international agencies, as well as the ability to attract
capital from the private sector, to be successful.
A high degree of investor uncertainty exists at present, which requires the introduction of regulation to
support renewables and infrastructure projects to reduce uncertainty and perceived risk. Uruguay has
launched the first sustainable bond for US$15 million and an award-winning certificate of origin of the
energy they consume as a step in this direction.
The RELAC Initiative (energy compact to boost renewables in Latin America and the Caribbean, with 15
member countries across the region) has an objective of reaching at least 70% of renewable energy in the
region’s electricity mix by 2030. The current contribution is 58%; the 10% increase required in the next 8
years implies a 15% reduction in emissions and will require long-term vision and increased cooperation to
give more certainty to the growth of renewables.
Significant gains can be derived from energy diversification across the region, as well as enhanced
cooperation and increased energy integration between countries. Reduction in costs is seen as a driver,
along with enhanced energy security resulting from mitigation of the uneven fluctuations in costs and
periodic scarcity of supply due to extreme weather (drought) of the region’s main energy resource
– hydro.
24
REGIONAL DEEP DIVE
MEGS
Middle East and Gulf States
Commodity Prices
Geopoli�cs Economic Growth
Hydrogen
Innova�ve Transport Climate Change Management
Regional Integra�on Investor Environment

Affordability
Support Mechanisms
Demand Pull
Future of Work Cross Border Trade
Urban Design
Digitalisa�on
Nuclear Quality Energy Access

Renewable Energies
Energy Efficiency

The Middle East and Gulf States survey results includes perspectives of energy leaders from:
Jordan Lebanon Saudi Arabia United Arab Emirates

H.E. Eng Yousif Al Ali, Assistant Undersecretary for the Electricity, Water and Future Energy Sector,
United Arab Emirates
Pierre El Khoury, General Director and President of the Board, Lebanese Center for Energy
Conservation (LCEC) / Secretary General, Lebanon Member Committee, World Energy Council, Lebanon
25
OVERVIEW
The Middle East and Gulf States (MEGS) continue to be aligned with the overall global Issues
Map, with higher uncertainty overall and Commodity Prices and Geopolitics rising up from
Action Priorities to Critical Uncertainties.
Commodity Prices top the list of Critical Uncertainties, closely followed by Economic Growth
and Geopolitics, which show enormous shifts over their relative 2021 position. Hydrogen also
increases up the uncertainty axis.
Renewable Energies, Energy Efficiency and Land and Water Availability remain Action Priorities,
as consistent factors in the region’s energy transition strategy.
MIDDLE EAST AND GULF STATES DEEP DIVE

This year’s Issues Monitor Survey results cover four countries across the region: two (Lebanon and
Jordan) are net oil importers, and two (United Arab Emirates and Saudi Arabia) are oil producers.
The high overall uncertainty rating is strongly influenced by the pandemic context and is particularly
reflected in the high scores afforded to Economic Growth, Geopolitics and the Investor Environment
in this year’s map.
Deeper analysis of the survey results shows additional Critical Uncertainties for the region include
Institutional reliability and continuity, the long-term impact of the pandemic, the future of oil and gas
demand, greenflation and financial crisis, as well as transition costs and societal acceptance of energy
transition.
Energy leaders in the region question whether the high degree of uncertainty across so many issues
makes it difficult to take action, and shift into Action Priority mode. Uncertainty impacts decision
making and presents a challenge for policy setting.
“ If climate change is the biggest challenge, uncertainty is only an excuse. This is a challenge of
setting policies”
Dr Mari Luomi, Research Fellow II, King Abdullah Petroleum Studies and Research Center (KAPSARC),
Kingdom of Saudi Arabia
There is an acknowledgement that the momentum of a sustainable post-COVID recovery has been lost
– and disappointment that there is no real mention of a green recovery even at COP26.
Nationally determined contributions (NDCs) from 6 GCC countries are in place, but despite huge
levels of interest in hydrogen and Carbon Capture, Utilisation and Storage (CCUS), very few tangible
quantitative targets have been set.
Energy leaders agree that governments need to set clear mid-term targets (through 2030) and
implementational roadmaps to deliver on COP26 pledges.
26
The next two COPs will be held in the MEGS region (COP27 in Egypt in November 2022, and COP28
in the United Arab Emirates in the following year), indicating the region’s ambition and commitment to
energy transition and climate change mitigation.
THE CHALLENGE: OIL & GAS RELIANCE
The region is still heavily dependent on its indigenous oil and gas reserves, and faces unique challenges
when it comes to financing, land allocation and providing an attractive investor environment to
facilitate energy diversification and transition.
Countries within the region are, however, looking to global partners to collaborate on energy
transition solutions around demand-side management, energy efficiency, CCUS, hydrogen and smart
transportation.
“The UAE exerts efforts towards diversifying energy sources as it is the foundation of achieving a
balance between sustainable development and environmental preservation.”
H.E. Eng Yousif Al Ali, Assistant Undersecretary for the Electricity, Water and Future Energy Sector, United
Arab Emirates

THE OPPORTUNITY: NEW MOMENTUM FOR DIGITALISATION, ENERGY EFFICIENCY,
AND RENEWABLE ENERGY
New opportunities for the region are presented by diversification to renewable energies, energy efficiency
and digitalisation. For countries like Jordan and Lebanon, which do not have sufficient oil and gas
resources, there is a pressing need to invest in renewable energies to increase energy security.
Jordan now has a track record in deploying renewable energies and implementing energy efficiency
measures. The participation of renewables in the country’s energy mix is 25% and the country has a plan to
export green energy to other countries, including Europe, in the near future. Coupled with an e-Mobility
project and a smart grid and storage initiative, the country is aiming to reach 30% renewables penetration.
The UAE has made significant progress in the past year in renewable energy deployment. Today, the
country stands on a large clean energy capacity (solar and nuclear). This is a great achievement, but the
country’s leadership has more ambitions and is confident of achieving net-zero by 2050. However, more
needs to be done on pathfinding to 2050.
The MEGS region lacks transport networks – plans, strategies and investment are all required to improve
mobility. This represents a huge challenge and opportunity for the region that will require significant
investment.
Hydrogen-fuelled transport is being considered as part of the solution, particularly in the UAE, which is
looking to stimulate commercial interest in hydrogen production. In the mid- and short-term, the UAE
hopes to showcase the export of blue hydrogen and ammonia by COP28 and believes it can make the case
for hydrogen in the UAE.
Other issues to be addressed include water and land use/degradation. To counter these environmental
challenges, ambitious waste management programmes are being undertaken in Saudi Arabia, Dubai and
other Emirates in the UAE. Water availability is a constant challenge across the region and in the UAE in
particular, where mangrove planting is being undertaken to tackle water scarcity.
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THE NEED: TO ACHIEVE NET ZERO THE REGION WILL NEED TO EXCEL ON HYDROGEN
ON CARBON MANAGEMENT
The region is very focused on a net-zero target, as well as consolidating a circular carbon economy
framework and carbon policy. The KAPSARC Circular Carbon Economy Index (of 30 countries) maps how
countries are performing on the road to net zero/circular carbon economies.
Hydrogen is becoming more and more interesting for energy leaders and political decision makers
globally and across the region. The UAE plans to achieve net zero by 2050 and this can only be done with
hydrogen. Saudi Arabia and the UAE are making significant investments and developing partnerships, as
are Morocco, Tunisia and Egypt. Costs for green hydrogen will need to be driven down so that the fuel is
competitive with natural gas, with blue ammonia and hydrogen seen as transition fuels.
Regional energy system integration, electrification and interdependency are all issues to be addressed and
provide focus for future Action Priorities.
28
REGIONAL DEEP DIVE
NORTH AMERICA
North America
Hydrogen

Affordability
Commodity Prices Geopoli�cs

Innova�ve Transport
Future of Work
Decentralised Systems Support Mechanisms

Cross Border Trade

Demand Pull Economic Growth
Nuclear
Digitalisa�on Quality Energy Access
Urban Design
Energy Efficiency
Renewable Energies

The North America survey results includes perspectives of energy leaders from:
Canada Mexico United States of America

community during a digital workshop held on 03 February 2022.
Mike Howard, Emeritus CEO, Electric Power Research Institute (EPRI), USA
Dan Ford, Power and Utilities Equity Analyst / Board Member, Electric Power Research Institute
(EPRI), USA
Neil Wilmshurst, Senior VP, Energy Systems Resources, Electric Power Research Institute (EPRI), USA
Oskar Sigvaldason, President, SCMS Global / Member, Future of Engineering Committee, Canadian
Academy of Engineering, Canada
29
OVERVIEW
Climate Change Management, with Commodity Prices seemingly less of an issue than across
the rest of the world. But uncertainty remains high, with the region following the global pattern
of clustering uncertainty and few clear Action Priorities.
Hydrogen makes an appearance as a critical issue, moving from low to high uncertainty
compared with the 2021 map, and Renewable Energies remain as a defined Action Priority, with
the degree of uncertainty reducing over the past year.
NORTH AMERICA DEEP DIVE

The investment environment is experiencing a high degree of uncertainty, due to inflation. Rising
interest rates raises capital cost, and lowers the amount of capital, leading to a bigger gap between
winners and losers.
There is no surprise from the financial market point of view that uncertainty has increased. It has
its roots in COVID, and the region sees opportunities and risks in trying to manage global energy
transition. A business approach to transition will be key.
THE CHALLENGE: CLIMATE CHANGE AND MANAGEMENT
Climate change management is in the top five critical uncertainties globally and is the biggest one for the
region.
“There is a growing concern that climate change is recognised as a societal risk, but that there isn’t a
common understanding on the potential severity. That uncertainty in being able to quantify the risk
at an individual level is causing some confusion.”
Mike Howard, Emeritus CEO, Electric Power Research Institute (EPRI), USA
North America is in a unique position with respect to climate change management – The Federal
Government is a relatively weak regulator, whilst individual states are strong regulators, creating
unevenness across the country, impacting on how transition moves forward.
In Mexico, the Issues Map results reflect uncertainty around the energy policy implemented at the
beginning of the current federal administration, which has moved away from the 2014 Energy Reform for
market liberalisation. The country’s Electric Energy Law bill presented in October 2021 is aimed at rescuing
the state oil company PEMEX with the view of, together with the national electricity company CFE,
achieving energy self-sufficiency. The bill envisions the use of heavy oil and coal for electricity generation.
Further uncertainties centre around policy and regulatory frameworks for clean energy, together with
issues of import dependence and energy security.
In Canada, uncertainty about climate change is dominant. The country is in the top 10 ranking for emissions
per capita and little progress on climate change management has been made in the past 10 years. There
is significant frustration, resulting from setting and missing targets because planning and regulatory
30
frameworks are not in place. Despite a carbon price at federal level, there is recognition in the industry
that pricing will not solve the problem on its own and needs to be combined with targeted incentives and
regulations. Additional uncertainty surrounds an appreciation of the magnitude of investment needed for
transition and the need to stimulate public-private partnerships and cooperation among different levels
of government. There are some positives to report – much work has been done in reducing methane
emissions. CCS with generation was first built at scale in Canada, at the same time as sequestering
hydrogen from refineries, and the country is also now building its first nuclear facility in three decades.
THE OPPORTUNITY IN UNCERTAINTY: GETTING INVESTMENTS RIGHT
Why does uncertainty continue to increase? Energy leaders in the region think it is because people are
more aware of the issues and are increasingly eager for answers. For example, with respect to hydrogen,
there is now much greater awareness of hydrogen as part of a future energy system, but it is still not clear
what the impact will be and how the technology can be deployed and over what timeframe.
“Why has the uncertainty in hydrogen gone up, when we always talk about and invest in hydrogen?
It’s because more people are more aware that hydrogen is part of the solution. And they are less
clear about how it’s going to play out”

Concerns about affordability and inflation are also at front of mind. There is severe stress on supply chains,
fuel costs and transport costs. Some of this can be traced to the impact of the pandemic and may be
transitory, but some of it results from a change in behaviour as a result of decarbonising. There has been a
big reaction from companies and markets to not spend as much money as they would usually in response
to higher prices.
Another contributor to the climate of uncertainty relates to the timing of investment decisions: When will
investment decisions for infrastructure be made with the 2050 target in mind? By the early 2030s most of
the infrastructure for 2050 will already be locked in – this leaves just 10 years to solve uncertainties, gain
acceptance, and put the financing in place. Uncertainty comes from the ‘closing window’ and concerns
about exactly what to build, where to position it and the availability of raw materials.
Additional concerns surround transitioning existing assets in the most cost-effective way. Gas plants are
likely to be phased out, but there is no clear timeline or defined roadmap to what will replace them. There
will be impact on other components of the energy system and consideration should be paid to bringing
new technologies into operation in a timely manner.
“We have 10 years to get the uncertainties figured out so that the market sees these options as
investable. That’s where the uncertainty is coming from, people realise the window is closing, and it’s
closing fast”
Some very new technologies are seen as essential; for example, hydrogen, particularly for thermal energy
in building high-temperature applications in industry. Most work on hydrogen in Canada has been focused
on fuel cells for the transportation sector with less emphasis paid to its application in thermal energy.
Work in the UK, Germany and the Netherlands shows it may be possible to change natural gas delivery
infrastructure to using 100% hydrogen, but this is a long way off. There is progress, but movement from
discovery, to building, to commercialisation takes a significant amount of time. Energy leaders think there
31
is a significant opportunity for Canada to work with the US on the systematic selection of key technologies
for energy transition, including hydrogen.
THE NEED: TO GET PEOPLE ONBOARD AND TO COOPERATE FOR SHARED GOALS
The biggest challenge to climate change management is an unhappy population. Across the region, there
is massive unhappiness with energy prices, which has slowed down movement on decarbonisation. There
is a need to have some environmental context in ‘Build Back Better’ to make change affordable. Subsidies,
nuclear, expansion of credit for renewables, introduction credit for hydrogen, are all considered critical to
the affordability of transition and to ensure that the politics of transition are not impacted negatively.
“The biggest risk to moving forward from a policy perspective is that your population is unhappy.
And there is no question that globally we have seen a response that [the] population are unhappy
about what has happened to energy prices. That has slowed down the movement that was underway.”
Dan Ford, Power and Utilities Equity Analyst / Board Member, Electric Power Research Institute (EPRI), USA
The problem of transition costs and social acceptance for the region is therefore very accurate. Transition
costs are not known precisely, but astounding numbers are frequently quoted. Will we be able to make
those investments? Are there any lessons from dealing with the COVID pandemic that are applicable
for climate change management? While COVID is a source of uncertainty, there has been tremendous
amounts of investment in R&D to combat the virus, and also unprecedented international collaboration
which enabled vaccine development in record time. Our experience of the pandemic shows that
international collaboration is possible, but is there the will to transfer this to climate change? This will be a
critical factor moving forwards.
But, in all the concerns about policy, technology, finance and infrastructure, it must not be forgotten that
energy transition is a human issue. We must consider the future work force – where will they come from?
How will they be reskilled? What does the societal impact look like? How are new technologies, such as
AI going to be implemented? And will the current mobility/flexibility in working practices initiated by the
pandemic continue to be part of the future of work.
Social equity issues are going to be significant if not managed correctly. If energy transition is not made
equitable then everyone will lose.
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ACKNOWLEDGEMENTS
The project team would like to thank the individuals who informed the project’s approach, supplied
information, provided ideas, and reviewed drafts. Their support and insights have made a major
contribution to the development of the report. A special thanks to the nearly 2200 energy leaders
who took part in the survey and enabled this work to take place.
WORLD ENERGY COUNCIL – PRINCIPAL CONTRIBUTORS

Dr Angela Wilkinson (Secretary General and CEO), Paul Appleby (Chief Insights Officer), Olulana Nwosu
(Director, Policy & Markets), Andrew Vickers (Senior Adviser, Communications & Engagement),
Jean-Marie Dauger (Chair), Mike Howard (Co-Chair), Norbert Schwieters (Vice Chair – Finance),
Klaus-Dieter Barbknecht (Vice Chair – Strategic Alliances), Leonhard Birnbaum (Chair – Studies
Committee), Oleg Budargin (Vice Chair – Congress, 2022), Beatrice Buffon (Vice Chair – Europe),
Claudia Cronenbold (Vice Chair – Latin America/Caribbean), Elham Mahmoud Ibrahim (Vice Chair –
Africa), Shigeru Muraki (Vice Chair – Asia Pacific/South Asia), Fahad Al Turki (Vice Chair – Gulf States
/ Middle East), Jose Antonio Vargas Lleras (Chair – Programme Committee), Omar Zaafrani (Chair
– Communications & Strategy Committee), Sandra Winkler (Director, Membership & Institutional

Relations), Michel Ange Medlej (Senior Manager, Regional Activation), Haydee Jimenez (Senior Regional
Manager, Latin America and the Caribbean), Anna Urrutia (Senior Regional Manager, Latin America and
the Caribbean), ), Sjoerd Ammerlaan (Regional Manager, Europe), Suji Kang (Regional Manager, Asia),
Tatsuya Matoba, (Regional Manager, Asia), Michael Aziz (Regional Manager, Anglophone Africa, Middle
East & Gulf States), Latsoucabé Fall (Regional Manager, Francophone Africa), Talita Covre (Business,
Industry and Policy Insights), Lucia Kocincova (Senior Manager), Aaliya Deen (Innovation and Insights
Executive), Eoin McCorkindale (Trainee Research Coordinator).
WORLD ENERGY ISSUES MONITOR ACTIVE WORKING GROUP

Andrey Logatkin (Russian Federation), Angela Ogier (New Zealand), Atul Choudhari (India),
Bartlomiej Kolodziejczyk (Australia), Brock King (Canada), Burkhard von Kienitz (Germany),
David Hardie (Canada), Rebecca Yuen (Hong Kong, China), Hasmik Barseghyan (Armenia), J
ean-Eudes Moncomble (France), Jeanne Chi Yun Ng (Hong Kong, China), Juan Celis (Colombia),
Klaus Hammes (Sweden), Munyaradzi Murape (Botswana), Namejs Zeltins (Latvia), Nevin Alija (Portugal),
Nicole Kaim-Albers (Germany), Priit Mändmaa (Estonia), Rahul Sharma (India), Randika Unknown (Sri
Lanka), Randolph Brazier (United Kingdom), Renata Viggiano (Italy), Salihe Kaya (Turkey), HE Eng Sharif
Al Olama (United Arab Emirates), Sogo Mayokun Abolarin (Nigeria), Sudhanshu Bansal (India), Tharindu
De Silva (Sri Lanka), Virgil Musatescu (Romania), Yena Chae (Rep. of Korea).
CONTRIBUTING EXPERTS FOR REGIONAL ANALYSES

Adeola Adenikinju (Nigeria), Alexey Gospodarev (Russia), Andrei Covatariu (Europe Region) Carsten
Rolle (Germany), Dan Ford (United States of America), Fergal McNamara (Ireland), Francisco Laverón
(Spain), Hafez El-Salmawy (Egypt), Izael Da Silva (Kenya), Juan Roberto Paredes (Latin America Region),
Khiimorisain Purevdorj (Mongolia), Mari Luomi (Kingdom of Saudi Arabia), Masaaki Hanaoka (Japan), Mike
Howard (United States of America), Mike Thomas, (Hong Kong SAR, China), Nabil Jedaira (Morocco), Neil
Wilmshurst (United States of America), Noelia Medina (Uruguay), Oskar Sigvaldason (Canada), Pierre El
33
Khoury (Lebanon), Ricardo Mejia (Mexico), Sam Muraki (Japan), Tulio Alves (Latin America Region), Umair
Ahmed (Pakistan), Wei Wei (China), Yousif Al Ali (United Arab Emirates).
CONTRIBUTING MEMBER COMMITTEES FOR NATIONAL ANALYSES

Algeria, Argentina, Australia, Austria, Belgium, Bosnia and Herzegovina, Cameroon, Chile, China,
Colombia, Congo (Democratic Republic), Croatia, Ecuador, Estonia, France, Finland, Germany, Greece,
Hong Kong (China), Iceland, India, Italy, Japan, Jordan, Kazakhstan, Kenya, Korea (Republic), Latvia,
Lebanon, Lithuania, Malta, Mexico, Mongolia, Morocco, New Zealand, Nigeria, Panama, Paraguay,
Poland, Portugal, Romania, Russian Federation, Saudi Arabia, Serbia, Slovenia, Spain, Turkey, United Arab
Emirates, United Kingdom, United States of America, Uruguay, Vietnam.
WORLD ENERGY ISSUES MONITOR TEAM

Olulana Nwosu(Director, Policy & Markets), Talita Covre (Business, Industry and Policy Insights), Aaliya
Deen (Innovation and Insights Executive), Eoin McCorkindale (Trainee Research Coordinator), Lucila
Galtieri (Designer).
PROJECT MANAGEMENT
Paul Appleby (Chief Insights Officer), Olulana Nwosu(Director, Policy & Markets), Andrew Vickers
(Senior Adviser, Communications & Engagement), Talita Covre (Business, Industry and Policy Insights),
Fiona Watson (Editor).
34
TRUSTEES
JEAN-MARIE DAUGER CLAUDIA CRONENBOLD

Chair Vice Chair – Latin America/Caribbean
MIKE HOWARD ELHAM MAHMOUD IBRAHIM

Co-Chair Vice Chair – Africa
LEONHARD BIRNBAUM SHIGERU MURAKI

Chair – Studies Committee Vice Chair – Asia Pacific/South Asia
NORBERT SCHWIETERS FAHAD AL TURKI

Vice Chair – Finance Vice Chair – Gulf States / Middle East
KLAUS-DIETER BARBKNECHT JOSE ANTONIO VARGAS LLERAS

Vice Chair – Strategic Alliances Chair – Programme Committee
LEONHARD BIRNBAUM OMAR ZAAFRANI

Chair – Studies Committee Chair – Communications & Strategy Committee

OLEG BUDARGIN
Vice Chair – Congress, 2022
BEATRICE BUFFON ANGELA WILKINSON

Vice Chair – Europe Secretary General
WORLD ENERGY COUNCIL PARTNERS
California ISO PwC
EDF Rosseti
ENGIE Rosatom
Gazprom Tokyo Electric Power Co
Oliver Wyman
35
WORLD ENERGY COUNCIL MEMBER COMMITTEES
Algeria Hungary Panama

Argentina Iceland Paraguay
Armenia India Poland
Austria Indonesia Portugal
Bahrain Iran (Islamic Rep.) Romania
Belgium Ireland Russian Federation
Bolivia Italy Saudi Arabia
Bosnia & Herzegovina Japan Senegal
Botswana Jordan Serbia
Bulgaria Kazakhstan Singapore
Cameroon Kenya Slovenia
Chile Korea (Rep.) Spain
China Kuwait* Sri Lanka
Colombia Latvia Sweden
Congo (Dem. Rep.) Lebanon Switzerland
Côte d’Ivoire Lithuania Syria (Arab Rep.)
Croatia Malta Thailand
Cyprus Mexico Trinidad & Tobago

Dominican Republic Monaco Tunisia
Ecuador Mongolia Turkey
Egypt (Arab Rep.) Morocco United Arab Emirates
Estonia Namibia United States of America
eSwatini (Swaziland) Nepal Uruguay
Ethiopia Netherlands Vietnam
Finland New Zealand
France Niger
Germany Nigeria
Greece Norway
Hong Kong, China SAR Pakistan
*awaiting membership approval
62–64 Cornhill
London EC3V 3NH
United Kingdom
T (+44) 20 7734 5996
F (+44) 20 7734 5926
E info@worldenergy.org
www.worldenergy.org | @WECouncil
36

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ABOUT

Further details at www.worldenergy.org and @WECouncil

Published by the World Energy Council, March 2022

World Energy Council

Registered in England and Wales No. 4184478

WORLD ENERGY ISSUES MONITOR 2022

WORLD ENERGY ISSUES MONITOR | 2022

Climate Change Management

Support Mechanisms Innova�ve Transport

WORLD ENERGY ISSUES MONITOR 2022

Quality Energy Access

------- Centre-point line

GLOBAL KEY MESSAGES

is an opportunity to reframe the policies and adapt commercialisation models to accelerate

EUROPE: Continued high levels of uncertainty surrounding the interplay of geopolitics

MEGS: Increased digitalisation initiatives, continued diversification to renewables, and

ACTION PRIORITIES ACROSS REGIONS

AFRICA Renewable Energies ASIA Renewable Energies

EUROPE Renewable Energies LAC Renewable Energies

WORLD ENERGY ISSUES MONITOR 2022

COMMON TO ALL REGIONS

2. COLLABORATION IS SEEN AS KEY TO TURNING CRITICAL UNCERTAINTIES INTO ACTION

AFRICA Commodity Prices ASIA Commodity Prices

EUROPE Commodity Prices LAC Economic Growth

WORLD ENERGY ISSUES MONITOR 2022

Africa: Regional Integration Commodity Prices

Urban Design Quality Energy Access

Decentralised Systems Market Design and Regula�ons

Land and Water Availability

------- Centre-point line

The Africa survey results includes perspectives of energy leaders from:

Algeria Egypt Morocco

AFRICA DEEP DIVE

WORLD ENERGY ISSUES MONITOR 2022

THE OPPORTUNITY: LEVERAGING THE GREEN ECONOMY AND DIGITALISATION FOR

THE NEED: COLLABORATION TO CREATE ECONOMIES OF SCALE AND PROMOTE

WORLD ENERGY ISSUES MONITOR 2022

Climate Change Management

Regional Integra�on Cyber Security Risks

Support Mechanisms Electric Storage Innova�on

Land and Water Availability

------- Centre-point line

The Asia survey results includes perspectives of energy leaders from:

Australia Japan New Zealand

WORLD ENERGY ISSUES MONITOR 2022

THE CHALLENGE: DIVERSIFYING THE ENERGY MIX IN TIMES OF UNCERTAINTY

THE OPPORTUNITY: GREATER CLARITY AROUND RENEWABLES STRATEGIES FOR

WORLD ENERGY ISSUES MONITOR 2022

Aﬀordability Innova�ve Transport

Future of Work Regional Integra�on

Cross Border Trade

Land and Water Availability

Quality Energy Access Renewable Energies

------- Centre-point line

The Europe survey results includes perspectives of energy leaders from:

Austria Greece Netherlands Spain

WORLD ENERGY ISSUES MONITOR 2022

EUROPE DEEP DIVE

THE CHALLENGE: ENERGY SECURITY AND AFFORDABILITY