Macroeconomic & Geopolitical

Climate Transition: A World of Compromises (Part I)

July 2022 – 3 min read

What will success look like a decade from now? Looking back, we will not see a first-best solution or a one-size-fits-all optimal path. Instead, we will be looking at a lot of hard and messy compromises along the way.

The world has embarked on a journey to rid itself of energy sources that emit so much greenhouse gas that they warm the Earth’s climate to the point of endangering the sustainability of human life. But after years of technological progress, investments, and global climate commitments, 85% of global energy consumption still comes from fossil fuels. It is not that the transition is too hard or too expensive, but rather that this big transformation of the global economy will require a thousand compromises and trade-offs along the way.

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Agnès Belaisch

Managing Director, Chief European Strategist

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