The world’s transition toward a clean-energy future faces many challenges, the greatest of which is cost and the economic impact, according to Womble Bond Dickinson’s 2024 Energy Transition Outlook Survey report released Tuesday. The findings of the third annual survey revealed that while the “pathway to achieving net-zero ambitions is challenging, there remains a commitment to a lower-emissions future,” said Jeff Whittle, head of WBD’s Global Energy and Natural Resources Practice.
The survey showed that 56% of respondents, comprised of 456 decision-makers in the energy industry, saw “cost and economic impact” amid rising interest rates and equipment prices as “a leading challenge impacting the energy transition,” with 47% of those expressing concern about inadequate tax and incentive support. Money is “no longer cheap,” and that was a top concern for the survey respondents, the report said, as central banks have raised interest rates significantly over the past two years and “may well have to keep rates higher for longer.” “Higher interest rates raise the associated levelized cost of electricity — or the average of what it will cost to produce electricity in today’s terms incorporating everything from construction to fuel to financing fees,” said Lisa R …
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