What is the energy transition?

The energy transition refers to the global shift from fossil fuels (coal, oil, and gas) to cleaner, more sustainable energy sources (like renewables). The goal is to reduce greenhouse gas emissions, particularly carbon dioxide (CO₂), to combat climate change while ensuring reliable and affordable energy for everyone.

What is the energy transition’s current status globally?

In 2024, the world recorded its hottest year on record, exceeding 1.5°C above pre-industrial temperatures. While the Paris Agreement set a goal to limit global warming to 1.5°C, current trends suggest we are on track for 2.2°C of warming by 2100, as indicated by DNV’s Energy Transition Outlook. Achieving the 1.5°C target is still technically possible, but the window is rapidly closing. Transitioning from a fossil-fuel economy to a decarbonized future is one of humanity’s greatest challenges, made more urgent by extreme weather events and environmental degradation. Yet, the pace of change remains insufficient to meet the global climate goals.

What needs to be done to accelerate decarbonization?

To accelerate decarbonization, urgent and decisive action is needed to meet the 1.5°C target of the Paris Agreement. Rapid scaling of renewables and low-carbon solutions is critical. DNV advocates for a whole-systems approach to the energy transition, focusing not just on phasing out fossil fuels but on creating an integrated energy system that minimizes emissions while ensuring reliability, affordability, and sustainability. This system will incorporate technologies like wind, solar, energy storage, hydrogen, and CCS, intelligently implemented across the entire energy value chain. This decarbonization process is not the responsibility of one sector or a traditional clean energy company, but a collaboration between individuals, companies and governments.

Is it too late to make a difference in the energy transition?

No, it’s not too late! While the impacts of climate change are already being felt, every effort to reduce emissions helps limit further damage. The sooner we act, the more we can protect the planet for future generations.

What is, according to DNV, necessary to accelerate the energy transition?

The energy transition is no longer a question of possibility—it’s a necessity. Science and innovation have shown that a clean, sustainable energy future is within reach, but accelerating the transition requires bold action from policymakers, businesses, and consumers.

At DNV, we believe the key to rapid progress lies in:

• Scaling renewable energy with storage, grid modernization, and backup solutions.
• Deploying carbon capture and storage (CCS) to cut emissions in hard-to-abate sectors.
• Electrifying transportation through EV adoption and smart grid integration.
• Leveraging hydrogen & biofuels for industries where electrification is challenging.
• Adopting ‘whole systems thinking’ which views energy sources, technologies, and infrastructure as one connected/interconnected system.
• Ensuring a just transition by creating jobs and equitable access to clean energy.
• Driving global collaboration to share technology and finance clean projects worldwide.

The path to a carbon-free future is clear, but urgency is critical. Clean energy isn’t tomorrow’s goal; it’s today’s mission. DNV invites everyone to play their part:

• Policymakers can set regulations and incentives to accelerate change.
• Consumers can drive demand for clean energy and sustainable choices.
• Companies and NGOs can lead innovation and invest in low-carbon solutions.

Does the energy transition mean stopping all fossil fuels immediately?

No. The energy transition is a gradual process. The transition is about significantly reducing dependence on fossil fuels over time while ensuring energy remains reliable and affordable. Some fossil fuel use will continue in the near term, but with increasing efficiency and carbon capture technologies to reduce emissions. Fossil fuels will still play a role, especially in sectors that are harder to decarbonize (like aviation and heavy industry). The focus is on phasing out fossil fuels over time while scaling up renewable energy and other low-carbon technologies.

Why is reducing CO₂ emissions important? Isn’t CO₂ a natural part of the atmosphere?

CO₂ is naturally present in the atmosphere, but human activities—mainly burning fossil fuels—have dramatically increased its levels, leading to global warming. Excess CO₂ traps heat, disrupting weather patterns, melting ice caps, and raising sea levels. Reducing emissions helps slow these dangerous effects.

What is “carbon neutrality,” and how does it relate to the energy transition?

Carbon neutrality means achieving a balance between the amount of CO₂ emitted into the atmosphere and the amount removed or offset (e.g., through reforestation or carbon capture). The energy transition is a key part of reaching carbon neutrality because it focuses on reducing emissions at the source by shifting to clean energy.

What is CO₂ storage, and is it safe?

CO₂ storage (or carbon capture and storage, CCS) involves capturing CO₂ emissions from industries or power plants before they reach the atmosphere—or directly from the ambient air (Direct Air Capture)— and storing them deep underground. It is a well-researched technology with strict safety measures to prevent leaks, and CO₂ is stored in stable geological formations, much like natural gas has been for millions of years.

Extensive research and pilot projects have shown that CCS is a safe and effective way to reduce emissions. The stored CO₂ is monitored to ensure it doesn’t leak into the atmosphere or harm humans or the environment.

Can we really power the entire world with renewable energy?

Yes, studies show that it’s technically and economically feasible to power the world with 100% renewable energy. However, it requires significant investments in infrastructure, technology, and grid modernization, as well as international cooperation to ensure a smooth transition.

How can we rely on renewable energy if the sun doesn’t always shine and the wind doesn’t always blow?

Renewable energy sources like solar and wind are weather-dependent and intermittent, but this challenge is managed using:

• Energy storage (batteries and other storage technologies) to store excess electricity when production is high for later use.
• Grid interconnections to balance supply and demand by connecting diverse energy sources across regions.
• Backup power sources like hydropower, bioenergy, and in some cases, gas or nuclear for stability.
  With these solutions, renewable energy can reliably power homes and businesses.

What is “energy storage,” and why is it important for renewables?

Energy storage systems (like batteries, pumped hydro, or thermal storage) store excess energy produced by renewables for use when the sun isn’t shining or the wind isn’t blowing. Storage is crucial for ensuring a stable and reliable energy supply as we increase our reliance on intermittent renewable sources.

Does nuclear energy have a role in the energy transition?

Nuclear energy is a low-carbon power source that can provide reliable, around-the-clock electricity. It doesn’t produce CO₂ during operation, making it a key part of the energy transition for some countries to complement renewables. However, it has challenges, such as high costs, waste management, and public concerns about safety. Whether nuclear energy is used depends on a country’s policies, resources, and public acceptance. Some countries are expanding nuclear energy, while others are phasing it out over concerns about waste disposal, safety, and cost.

Are biofuels part of the energy transition?

Sustainable fuels can play a role, especially in sectors where electrification is challenging, such as aviation and heavy-duty transport. However, their sustainability depends on how they are produced. Biofuels made from waste materials or sustainably grown crops are preferable to those that compete with food production or contribute to deforestation.

What role do electric vehicles (EVs) play in the energy transition?

EVs are a critical part of decarbonizing transportation, which is a major source of CO₂ emissions. By replacing internal combustion engines with electric motors powered by renewable energy, EVs can significantly reduce emissions. Additionally, EVs can serve as energy storage devices, helping to balance the grid when connected to smart charging systems.

Is hydrogen safe?

Yes, hydrogen is safe when handled properly. It’s already used in many industries and is no more dangerous than gasoline or natural gas, and technologies exist to transport, store, and use it safely. Safety measures, such as proper storage and leak detection, make its use in energy systems secure.

Hydrogen can be a clean energy carrier, especially when produced using renewable energy (called “green hydrogen”). It’s particularly useful for decarbonizing sectors like heavy industry and long-distance transport.

What is “green hydrogen,” and how is it different from other types of hydrogen?

Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable electricity (a process called electrolysis). It’s considered “green” because it produces no CO₂ emissions. Other types of hydrogen, like “blue hydrogen” (produced from natural gas with carbon capture) or “gray hydrogen” (produced from fossil fuels without carbon capture), have higher emissions. Green hydrogen is key for decarbonizing hard-to-abate sectors like steelmaking and shipping.

What is ‘whole energy systems thinking’?

The world’s energy system is going through an incredible transformation, becoming increasingly interconnected, dynamic, and complex. We are transitioning from a fossil fuel-based energy system to one dominated by renewable electricity. Unlike the old system, where supply could easily adapt to demand, the new system’s supply will be variable, depending on solar and wind availability. Additionally, the old system’s separate value chains for transport, industry, and households will merge into a single, interconnected system dominated by electricity. Navigating this transition will require a more holistic approach to energy systems meaning that we no longer view energy sources, technologies, and infrastructure in silos but as one connected system. This is ‘whole energy systems thinking’. 

What is “electrification,” and why is it important?

Electrification refers to replacing fossil fuel-based technologies (like gas-powered cars or oil-fired heaters) with electric alternatives (like EVs or heat pumps). It’s a key strategy for reducing emissions, especially when the electricity comes from renewable sources.

Will the energy transition make electricity more expensive?

In the short term, there may be costs associated with building new infrastructure and technologies. However, in the long term, renewable energy is becoming increasingly cost-competitive, and in many cases, it’s already cheaper than fossil fuels: renewables like solar and wind are among the cheapest energy sources available today. As infrastructure improves, prices are expected to stabilize or decrease. The energy transition also reduces the economic risks of climate change, such as damage from extreme weather events.

What about jobs? Won’t people lose work in fossil fuel industries?

While some jobs in fossil fuel sectors may decline, efforts are being made to retrain workers for new opportunities in the green economy. The energy transition is also creating millions of jobs in renewable energy, energy efficiency, electric vehicles, other clean technologies, and related fields. Governments and businesses are working to ensure a fair transition for workers.

What about developing countries? Can they afford the energy transition?

The energy transition must be inclusive. Developing countries often need financial and technological support to adopt clean energy solutions. International cooperation, funding, and partnerships are essential to ensure that all countries can benefit from the transition without being left behind.

What is “energy efficiency,” and why is it important?

Energy efficiency means using less energy to achieve the same outcome—for example, by using LED lights instead of incandescent bulbs or improving insulation in buildings. It’s a key part of the energy transition because reducing energy demand makes it easier to meet needs with clean energy sources.

What is a “smart grid,” and how does it help the energy transition?

A smart grid is an electricity network that uses digital technology to monitor and manage the flow of energy. It allows for better integration of renewable energy, improves reliability, and enables consumers to use energy more efficiently. For example, a smart grid can automatically shift energy use to times when renewable generation is high.

How does the energy transition affect energy security?

The energy transition can improve energy security by reducing dependence on imported fossil fuels and diversifying energy sources. Renewable energy is often produced locally, which can make countries more self-sufficient and less vulnerable to global energy market fluctuations.

What is “just transition,” and why is it important?

A just transition ensures that the shift to a low-carbon economy is fair and inclusive, particularly for workers and communities dependent on fossil fuel industries. It involves retraining programs, social support, and creating new job opportunities in clean energy sectors to ensure no one is left behind.

What are “negative emissions,” and how do they work?

Negative emissions refer to removing more CO₂ from the atmosphere than is emitted. This can be achieved through natural methods (like reforestation) or technological solutions (like direct air capture, which pulls CO₂ from the air and stores it underground). Negative emissions are essential for offsetting emissions from sectors that are hard to decarbonize.

What is THE GREAT TRANSITION initiative?

THE GREAT TRANSITION is an initiative to accelerate the energy transition. It highlights the opportunities and solutions the transition brings to people around the world. The initiative shares inspiring films, videos, images, facts, and figures on progress made, and actions needed. It provides a platform for dialogue, questions, and discussions, and tools to show support for the transition and its heroes.

Who is leading THE GREAT TRANSITION initiative?

The GREAT TRANSITION is an initiative by DNV, an independent energy expert, providing assurance and risk management across the globe. Driven by its purpose to safeguard life, property, and the environment, DNV is committed to accelerating the transition towards a safe, secure, decarbonized future.

Why is DNV running this initiative?

DNV’s Energy Transition Outlook clearly shows that the energy transition is progressing too slowly to meet the climate goals of the Paris Agreement. Through THE GREAT TRANSITION initiative, DNV aims to connect, inspire and provide tools and knowledge to consumers, companies, NGOs and policymakers across the globe to accelerate the energy transition.
The path to a carbon-free future is clear, but urgency is critical. Clean energy isn’t tomorrow’s goal; it’s today’s mission. With this initiative DNV invites everyone to play their part:

• Consumers can drive demand for clean energy and sustainable choices.
• Companies and NGOs can lead innovation and invest in low-carbon solutions.
• Policymakers can set regulations and incentives to accelerate change.

How does DNV’s role in driving this initiative align with DNV’s structural activities in the decarbonization business?

DNV is committed to accelerating the transition towards a safe, secure, and decarbonized future. DNV’s role in driving this campaign aligns deeply with its core activities in the decarbonization business, reinforcing its long-standing purpose of safeguarding life, property, and the environment since 1864. DNV’s vision is to be a trusted voice tackling global transformations, and this initiative amplifies that by highlighting the urgent need for decarbonization. The initiative reflects DNV’s values—caring for the planet, daring to innovate, and sharing expertise and knowledge. These values guide DNV’s structural activities, such as providing advisory services and data-driven solutions, enabling industries to reduce emissions and achieve net zero. By raising awareness and offering solutions, DNV supports the global energy transition, fully aligned with its mission to drive sustainable change.

How far is DNV with reaching its own decarbonization goals?

DNV aims to cut its carbon footprint by 50% by 2025, using 2019 as a baseline. The company is implementing various strategies to pursue this goal, such as adopting renewable energy sources, reducing air travel, and converting our car fleet to electric vehicles. However, DNV recognizes that some emissions will persist. To compensate, it has offset emissions from 2018 to 2023 by supporting reforestation and afforestation projects.