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1、ENERGY TRANSITION TRENDS 2022FEBRUARY 20222CLIFFORD CHANCEENERGY TRANSITION TRENDS 2022ENERGY TRANSITION TRENDS 2022There remains a narrow window of opportunity for timely action to address the climate crisis and still meet the Paris Agreement targets.The necessary transition from fossil fuels to lo

2、w-carbon energy sources will require massive and sustained levels of investment in renewable energy,increased electrification,the development of electrofuels such as clean hydrogen,and carbon capture and storage to capture emissions that cannot be prevented.At the same time,the vulnerability of ener

3、gy systems has been recently highlighted with price spikes,the more frequent occurrence of significant climate events and the impacts of heightened geopolitical tensions on energy security.The trends that we have highlighted focus on some of the innovations and legal developments that we are seeing

4、in a number of sectors.Its also important to acknowledge the wider context.The COP26 summit in November 2021 underlined that while considerable progress is being made in some areas,the energy transition will not be a straight line,universal or even successful in some places,given the very real count

5、ervailing factors.Some of these include concerns about energy security,issues around greenwashing and a lack of coherent government policies which are desperately needed to create reliable revenue streams for project and other forms of financing.The Glasgow Climate Pact,agreed at COP26,also emphasis

6、ed the need for a just transition,putting people at its centre.Particularly important for the energy transition are the challenges in regions dependent on fossil fuel.Private sector investors and financiers will need to work alongside governments and public sector institutions to understand how ener