Global energy fundamentals : economics, politics, and technology

"Energy is a key prerequisite for modern life and it represents the life blood of modern societies. Every international order in modern history has been based on an energy resource: coal was the backdrop for the British Empire in the 19th century, oil has been at the core of the subsequent 'American Century', and today many expect China to become the 21th century's world renewable energy superpower. That is, the strategic importance of energy is so pervasive to shape global economic and geopolitical dynamics. Over the last two decades, the global significance of energy has become even more pronounced, as two major issues increasingly gathered international recognition and awareness: climate change, and energy access in the developing world. Global energy supply has always been, and it continues to be, largely based on fossil fuels. Notwithstanding the most recent renewable energy developments, 80 per cent of global energy supply indeed remains based on coal, oil and natural gas. The combustion of these fossil fuels is responsible for around 75 per cent of global greenhouse gas emissions, making energy the largest cause of climate change. A structural response to this major threat to humanity can therefore only come from the energy sector, notably through a global clean energy revolution."