Insight
Energy Executive Commentary
October 2023

The road map for a
Multidimensional Energy
Transition
Dr. Atul Arya, Senior Vice President and Chief Energy Strategist, S&P Global Commodity Insights
Dr. Daniel Yergin, Vice Chairman, S&P Global
Gauri Jauhar, Senior Director, Energy Transition Consulting, S&P Global Commodity Insights
Nick Lowes, Vice President, Energy Transition Consulting, S&P Global Commodity Insights
Vedant Patil, Consulting Principal, S&P Global Commodity Insights
Amey Khanzode, Consultant, S&P Global Commodity Insights
This paper summarizes the findings of the Global Energy Solutions Initiative (GESI). Under the auspices of theInternational Energy Forum (IEF) with S&P Global Commodity Insights as the Chief Knowledge Partner, a series of GESI
leadership dialogues were held between October 2022 and March 2023 in Africa, Asia, Europe, North and Latin America
and the Middle East. The objective of these dialogues was to bring diverse stakeholders and fresh perspectives tofacilitate global conversation and encourage a more inclusive approach to developing sustainable energy transitions.
The authors express their appreciation to IEF Secretary General Joseph McGonigle and the IEF staff.

spglobal.com/commodityinsights
spglobal.com

The road map for a Multidimensional Energy Transition | 1

Table of Contents
Introduction3
Key insights from the GESI dialogues

5

The climate and energy narrative

6

A “just transition”

7

Financing low-carbon energy

7

The role of oil and gas8

Policy tools and frameworks

9Collaboration and engagement

9

The emissions reduction challenge

9

Focus areas for consideration

11

Unlocking finance

12

ESG and green finance criteria 

12Finance and cost of capital

13

Financing new technologies

13

Meeting the needs of the Global South 

14

Affordability and energy security 

14

Decarbonization pathways 

15Capacity building in emerging economies

15

Tackling infrastructure and supply chain bottlenecks

16

Energy infrastructure

16

Critical minerals

16

New frameworks and tools 

17

The need for new policy frameworks and tools

17

Scenarios and road maps

17

Investment decision approaches and criteria

18

Collaboration, partnerships and engagement

19

Public-private sector collaboration

19

Cross-sector collaboration

19

Government-to-government (G2G) collaboration

19

Engaging the public

20

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 2

Introduction
Developments over the past two years demonstrate that the energy
transition is more complicated than was previously thought. While thetransition proceeds, expectations of a linear global transition have been
shaken as climate goals compete with priorities around energy security,
energy access and affordability. A series of shocks, crises and tensions in
the global energy system point to the need to develop a transition that isinclusive of different situations in different parts of the world, reflects adiversity of policy approaches, is resilient and is equitable.
The energy price spike that began in the late summer and early autumn
of 2021 pushed affordability to the fore, leading to policy challenges
in many countries. Described as “the first energy crisis of the energy
transition,” it resulted from a mismatch between strong demand growth andunderinvestment in conventional supplies. The disruption in energy markets
arising from Russia’s 2022 invasion of Ukraine — spiking energy prices,
shortages, a “cost of living crisis,” economic dislocation — not only reinforced
the affordability challenge but also put energy security back on the table
as a central concern for governments and the public alike. The risks haveincreased significantly that recurrent high energy costs will undermine public
support and acceptance for policies and investments to enable the transition
to a low-carbon economy. The prospects of a linear transition have beenfurther shaken by supply chain disruptions, growing geopolitical tensions,permitting delays and persistent inflation, which is affecting both operating
costs and financing.
The emergence of a new North-South divide — between the wealthy
countries of the Global North and the developing countries of the Global
South — has fostered an increasingly sharp debate over the cost andtiming of the energy transition, the relative burdens and its compatibility
with priorities of economic growth, poverty reduction and improved health.
The trilemma of energy security, affordability and sustainability looks very
different in Africa, Latin America and developing countries of Asia comparedwith Europe or the US, where per-capita incomes are as much as 40 times
higher. This divergence makes addressing the gaps in policy, technology andfinancing a significant challenge across geographies.
And then there are “the new supply chains required for net-zero.” Beginningaround 2021 and continuing today, a host of governments and entities — the US,
UK, Japan, Canada, the EU, the World Bank, the International Monetary Fundand the International Energy Agency — have raised alarms about the adequacyof mineral supply and processing capacity to meet the needs of rapidly growing
renewable power and electric vehicles. This question of “the new supply chainsfor net-zero” is further complicated by rising geopolitical tensions.
In addition to all this, there is an unfolding shock of a different kind — the endof easy money. Central banks have continued to raise interest rates to tackle
stubbornly high inflation. Higher interest rates raise the cost of capital for allenergy investments. For developing economies with already high borrowing
costs for energy projects, the higher interest rates make it even moredifficult to make good projects commercially viable and attract investors.
Higher interest rates also raise holding costs and result in potentially lower
inventories of oil and risk higher volatility.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 3

These issues are part of the evolving framework for the energy transition.
But despite the complexity, the political momentum for energy transition
continues. Policy actions in the US and EU have cemented net-zero ambitions
with the launch of the RePowerEU plan in Europe and the Inflation Reduction
Act (IRA) in the US. The latter has been described as “generational” inits impact. The IRA was just one of the three major pieces of legislation
passed by the US Congress and signed into law by President Joe Biden.
Along with the Infrastructure Investment and Jobs Act (IIJA) and Creating
Helpful Incentives to Produce Semiconductors and Science (CHIPS), thislegislation will turbo charge investments in a wide spectrum of clean energy
technologies in the US. We are witness to a new era of US industrial policy.
Over the next decade, US federal spending on clean energy is expected torise more than threefold from 2009 to 2017.1
Additionally, the EU’s Green Deal Industrial Plan is focused on enhancing
the competitiveness of Europe’s net-zero industry and accelerating thetransition. Its objectives include creating a more supportive environment for
scaling up the EU’s manufacturing capacity for the net-zero technologies andproducts required to meet Europe’s ambitious climate targets.
And, on the ground, the energy transition continues to unfold. According toCommodity Insights data, 301 GW of new renewable power were installed
in 2022.2 Commodity Insights expects that 70%-75% of the new generating
capacity installed between 2023 and 2050 will be renewable power (although
this is variable capacity, typically operating at 25%-40% of capacity). Progress
is being registered on large-scale battery storage to enable this growing
share of variable power to become baseload power. The rollout of electricvehicles is accelerating. In the first half of 2023, 28% of new cars sold in China
were EVs; in Europe, 19%; and in the US, 9%.3 Hydrogen, which was hardly on
the agenda half a decade ago, has now become a major target for investment
and projects, and biofuels and renewable natural gas are also gaining greater
scale. Technology advances, government support, regulation, growing private
sector support — all of these will continue to push the transition forward.
This paper summarizes the findings from GESI dialogues. It aims to bringattention to the issues to be addressed by policymakers, energy industry
leaders and financial institutions and to present different ideas andapproaches to enable progress. Its mission is not to offer recommendations
or conclusions, but rather to contribute by capturing the wide spectrum ofperspectives on the energy transition and what will be required to achieve it.
We emphasize the timeliness of this paper. The COP 28 meeting at the endof 2023 will be of singular importance in addressing the questions thatemerged in the GESI process and that are reflected in this paper. COP 28 willbe the platform both for addressing the greater complexity of the energy
transition, including the North-South divide, and at the same time identifying
the technologies, policies, opportunities and commitments for meeting theurgent needs of the energy transition. We hope that this paper will contributeto the dialogue at COP 28 and to the overarching endeavor of understanding
and meeting the challenges of the energy transition.
1. Congress’s Climate Triple Whammy: Innovation, Investment, and Industrial Policy, Lachlan Carey and Jun
Ukita Shepard, Aug. 22, 2022, RMI.
2. Renewable power includes solar photovoltaics/concentrating solar power, onshore/offshore wind,biomass and waste, geothermal, ocean and other renewables.
3. See the Commodity Insights Pulse of Change: BEV and PHEV sales update — Mainland China shareremained around 30% in May 2023. These figures include battery-electric vehicles (BEVs) and plug-in
hybrid electric vehicles (PHEV). Sales data was compiled for January–May 2023, except in the US, wheredata is available for January–April 2023.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 4

Key insights from the GESI
dialogues
The GESI dialogues highlighted different perspectives on the opportunities,
challenges and constraints in reducing greenhouse gas (GHG) emissions andin implementing and ensuring an orderly and affordable energy transition.4
The diverse participation enabled fresh ideas and insights to emerge, as well
as new perspectives on existing topics.
Notable discussion points and emerging ideas are summarized in this section.
The following overarching themes permeated many of the dialogues andrepresent observations and comments made by participants:– First, although the climate science is now clear about the need to reduce
emissions, there are significantly divergent views on how to achieve climate
goals. This is most notable in the different viewpoints of the Global Northand Global South, as well as in disconnects between policymakers and theindustrial and financial sectors responsible for implementing the policy goals.
– Second, setting linear, global targets and predefined emissions pathways
that do not account for important aspects of the energy trilemma may be
counterproductive to meeting climate goals. The current energy transition
is complex and multidimensional. Concerns were voiced at the dialogues
that focusing on a singular pathway to achieving net-zero emissions by
2050 could undermine achievement of other sustainable development
objectives, constrain financing for critical energy projects and put at risk
the necessary public support for climate policies. Net-zero targets formany countries go beyond 2050. For example, China, Indonesia and Nigeria
have net-zero targets of 2060, and India, 2070. China and India are the firstand third-largest emitters in the world, although both have strong policies
promoting energy transition.
– Third, finance is not flowing fast enough, notably to the Global South, fora multitude of reasons. This includes optimistic expectations that “ideal”
zero-carbon technologies will become commercially viable relatively
quickly and could be deployed at scale around the world. There is a need toprioritize progress over perfection and get finance flowing now to rapidly
deploy commercially viable technologies.

“The math of carbon
budgets and climatechange is unforgiving. But
so is the math of meeting
the world’s energy needs— and energy demand andemissions are both goingup, not down.”
GESI participant– Fourth, many participants expressed questions about the speed andcomprehensiveness of the transformation of the global energy system. In
prior transitions, externalities such as the impact and cost of emissions
were not considered. Moreover, prior transitions led to new energy sources
being added to existing sources. No primary energy source has ever been
largely or completely phased out, as proposed by some in the current
transition. For many participants, these differentiators make this transition
more challenging than any previous energy transitions.

4. Dialogues were held in Cape Town, South Africa, on the sidelines of Africa Energy Week; in Riyadh,
Saudi Arabia, on the sidelines of the Future Investment Initiative conference and of the IEA-IEF-OPEC
Symposium on Energy Outlooks; in Bali, Indonesia, on the sidelines of the B20/G20; in Washington DC,
hosted by the Centre for Strategic and International Studies; in Panama City at the OLADE conference;and in Davos, Switzerland, on the sidelines of the World Economic Forum (WEF) . Solution-oriented
roundtables were subsequently held in Houston during CERAWeek by S&P Global.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 5

– Fifth, at the same time, there was much optimism and confidence among
many participants that the pace of technology innovation may continue
to accelerate and that costs of new technologies such as carbon captureand storage (CCS), hydrogen and storage will decline rapidly within thisdecade. That would enable these critical technologies to be deployed atscale. Furthermore, innovations in digital technologies and smart grids
will support rapid electrification. The impact of artificial intelligence onenergy systems is only beginning to be understood. Some participants
felt that there would be opportunities for the Global South to leapfrog in
deployment of new technologies such as green hydrogen and storage.
– Sixth, although the Global South faces many challenges today, participants
were optimistic about the future and keen to engage with industry leaders,
policymakers and nongovernmental organizations (NGOs) in the Global
North to develop creative solutions for the citizens of the developing
economies. There was widespread recognition that the path to net-zero will
have to travel via the Global South, and therefore, it is in everyone’s interest
to collaborate and cooperate for the shared goals to achieve net-zero.

The climate and energy narrative– There is broad recognition among diverse stakeholders of the urgencyof the climate challenge and the need to reduce emissions. However,the prevailing linear energy transition narrative has critical deficiencies,at least from the viewpoint of some participants. These include theneeds of the Global South, public concerns over energy affordability andsecurity and the sheer scale and complexity of the global energy system.
Recognizing the multidimensional nature of the transition could create amore effective and inclusive outcome.
– Reaching a global consensus on the energy transition appears morechallenging owing to major differences on a number of issues. There aredivergent viewpoints among stakeholders on aims, priorities and speed of
net-zero pathways. This is most apparent in the very different perspectivesof the Global North (principally the wealthy OECD countries) and the Global
South (developing countries in Africa, Asia and Latin America).
– Some believe that the voice of the Global South has not been given due
consideration in global climate dialogues. Developing countries believethat they are not responsible for the bulk of historical emissions and feelthey should be able to develop their own natural resources, includinghydrocarbons where appropriate, to support their economic growth. It
was noted that in many countries in the Global South, energy transitionmeans moving away from wood and waste to liquefied petroleum gas (withbetter functionality, convenience and avoiding in-door air pollution) andthus “transitioning from not having energy to having energy.” The conceptof a wholesale global transition from traditional biomass to renewableenergy, without taking local conditions into consideration, was considered
impractical by representatives from developing countries.

According to the AsianDevelopment Outlook
2023 Thematic Report, “Abillion people in the [Asia]
region were still livingon less than purchasing
power parity of $3.20 a day
in 2017 and 940 million
lack reliable power supply.
Meeting development
goals while avoiding
catastrophic climate risks
cannot be achieved withouttransforming Asia’s growth
patterns.”– Support was expressed for an adaptable approach to energy transition, as
each country will have its own opportunities and challenges, and its own
way forward. Many believe that there is not a single global one-size-fits-all
net-zero pathway. Seeking the application of a single pathway is creating
challenges for industries and finance. Developing and evaluating the mosteffective emission pathway for a specific country, sector or company
requires novel and flexible approaches.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 6

A “just transition”– The concept of a “just transition” has different meanings in different partsof the world. In the US, it refers to the environmental and employment
needs of poor and minority communities in areas of energy production andensuring that workers in fossil fuel industries and communities dependent
on these industries have opportunities for alternative livelihoods. This isexacerbated by a view that energy assets in the US are disproportionality
located in poor communities. In Europe, a just transition also means
recognizing and addressing differences among regions in terms of energy
production and consumption. For the developing world, a just transition
seeks to ensure that economic development and poverty alleviation are
given due consideration in energy policy and investment decisions. A better
understanding of the varying concepts of “justice” in energy therefore
requires a broad global perspective that encompasses energy industry
workers levelling up in advanced societies and industrialization and accessto energy in the Global South. From this perspective, some participants in
GESI dialogues starkly asserted that policymakers and investors should be
more concerned about “stranded lives” than “stranded assets.”– A just transition requires “just finance.” Some dialogue participantsargued that finance provided by multilateral development banks and otherinstitutions should not be predicated on prescriptive decarbonization
actions, such as refusing to finance natural gas pipelines or shutting down
coal-fired power plants when there are no affordable and socially viable
alternatives. Just finance should include broader considerations of national
economic development and poverty alleviation.

Financing low-carbon energy– In developed markets, investors are seeking clean energy investments,
but there is a shortage of commercially attractive projects as measured
against the amount of money available. The incentive-based approachand the large capital available through the US IRA has been welcomedby US domestic and some international companies, and this is reflectedin the strong uptake of applications. As of this writing, according to the
Commodity Insights assessment, more than $400 billion of new capital
investments based on the IRA have been announced.5 Moreover, according
to some estimates, total government funding for the IRA could be threetimes the stated $370 billion. Nevertheless, multiple implementation
challenges remain, including issuing the detailed supporting tax guidance,
streamlining permitting processes to enable projects to progress andavailability of trained workers.6 Further, the international reaction to the
IRA has been mixed, with some countries and companies asserting that it
disadvantages their own domestic industries, draws investment away andrisks increasing global trade frictions.

The International Energy
Agency’s Africa Energy
Outlook 2022 states, “Morethan 5,000 billion cubic
metres (bcm) of natural
gas resources have been
discovered to date in Africa
which have not yet been
approved for development.
These resources could
provide an additional 90
bcm of gas a year by 2030,
which may well be vitalfor the fertiliszer, steel andcement industries andwater desalination… Africa’s
industrialization relies inpart on expanding natural
gas use.”The IEA Critical Minerals
Review 2023 notes that
“Critical minerals, essential
for a range of clean energy
technologies, have risen
up the policy and businessagenda in recent years…. but
a combination of volatile
price movements, supply
chain bottlenecks andgeopolitical concerns hascreated a potent mix of risks
for secure and rapid energy
transitions.”– One of the biggest challenges to the financing of clean energy projects is
the risk premiums and high cost of capital, particularly in the Global South.
In these projects, investor risks are primarily policy-driven. Companies have
limited experience, tools and methodologies to assess and manage risk ina business environment heavily influenced by policy uncertainties rather
5. See the Commodity Insights Investor Sentiment: Oil fundamentals punch through negative energy sector
outlook of 1H2023.
6. Comments reflect the situation at the time of the dialogues; progress has been made recently on theseissues by the Biden administration.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 7

than conventional market forces. Unless new approaches are developed,
investors will continue to apply high hurdle rates, constraining energy
investments in the Global South.

The UN Conference on
Trade and Development
World Investment Report
2023 highlights thatdeveloping countries
need renewable energy
investments of about $1.7
trillion each year but
attracted only $544 billion
in clean energy foreign
direct investment in 2022.
The report also notes thatinvestment needs in power
grids, storage and energy
efficiency vastly exceed
requirements in renewableenergy generation.

– Finance is required to flow into all elements of the zero- and low-carbon
energy value chains. This includes critical mineral supply chains, which are
currently, for a number of minerals and metals, highly concentrated andvulnerable to shortages and disruptions.
– Policymakers and investors will have to find ways to resolve the “mining
paradox” whereby mining of minerals critical for electrification of theenergy system is described as a “dirty” activity. As a result, mining is off
limits for sustainable finance and incurs local opposition and delayed
permitting. The time required to open a new tier 1 mine is typically 16 to 20
or more years. Demand will grow substantially in the coming decades forminerals such as copper, lithium, cobalt and nickel. S&P Global researchshows that energy transition demand for copper will double over the next
12 years, while demand for the other three critical minerals is expected to
grow 23 times over the same period in the US.7 As a result, future shortageof metals and/or price spikes will become almost inevitable unlessfinancing and permitting obstacles are urgently tackled.
– To facilitate the development of carbon hubs and a carbon management
industry, the business model needs to evolve. Carbon would need tocome to be viewed as a product with value rather than a problem tobe solved. This will encourage more robust and standardized carbon
pricing mechanisms, facilitate new commercial models and support thedevelopment of innovative new businesses.

The role of oil and gas– There was considerable discussion about the future role of oil and gas.
Since the primary aim of the energy transition is to reduce global warming,some participants in the GESI dialogues argued that the focus should beon emissions, not fuel sources, and climate policies should be technology/
fuel agnostic. Governments should set a level playing field and let themarket decide. Expressed differently, it was argued that an objective
should be to decarbonize fossil fuel use rather than “stopping fossil fuels.”
Nevertheless, other participants highlighted that the technologies to do
this are not (yet) available at the required scale. There was much discussion
as to whether and when global fossil fuel demand will peak — and thenbegin to decline — and of the rate of decline.
– Continued investment in new oil and gas will be required to avoid significant
supply-demand imbalances, given the natural decline rates of existingproduction. Some participants highlighted that, without new investment,
existing oil and gas output could decline by more than 75% by 2050. Ensuring
adequate oil and gas investments while recognizing that demand will decline
over the longer term will require innovative investment approaches.
– There is growing recognition that the oil and gas industry needs to be partof the climate dialogue and a key driver of climate solutions, given thatit provides 55% of the world’s energy today and has the balance sheets,
engineering capabilities and ability to execute at scale. The industry’s
expertise is particularly important in technologies such as CCS, offshore
wind and low-carbon hydrogen.
7. See the S&P Global Inflation Reduction Act: Impact on North America Metals and Minerals Market.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 8

Policy tools and frameworks– The “energy trilemma” of energy security, affordability and sustainability
is certainly on the agenda, in part driven by new geopolitical rivalries andconflicts. Energy strategies and policies are being realigned with the newgeopolitical risks; policymakers will need new frameworks, models andtools for this new geopolitical environment.
– Current frameworks and models tend to be narrowly focused on
specific elements of the energy trilemma and specific impacts (climate,societal or economic). More holistic models, which consider the fullrange of socioeconomic impacts of energy and climate policies,
would help policymakers understand the broader implications.
Multidimensional frameworks and models are needed to fully understanda multidimensional transition.
– At present, there is a lack of a global road map that recognizes andexplicitly models the priorities, challenges and constraints that werehighlighted in the GESI dialogues: a net-zero road map that is tested against
realities and that captures the differing pathways for developing countries.
Such a road map would help policymakers and investors better alignpolicies, strategies and plans with net-zero goals of the Global South.

Collaboration and engagement– Conversations around energy transition are taking place in silos, andconstructive, solution-oriented dialogue among different stakeholders
needs to be augmented. There is a genuine need for more listening,education and understanding. Governments, industry and investors needto do more to engage with the general public. And governments could be
more transparent with the public about the choices, costs and tradeoffs ofthis energy transition.
– Meeting the global climate challenge will require a big step up incollaboration within and between governments and among government,
industry and finance. While some areas would benefit from greater global
standardization, the more urgent request was deemed to be for policy
coherence and stability within countries.

The emissions reduction
challenge
The Paris Agreement in 2015 created a new framework for emissions
reductions and focus on climate change, with an ambition to limit global
warming to well below 2 degrees C, and ideally 1.5 degrees C, compared withpreindustrial times.8 This has led to actions and commitments around theworld by a wide spectrum of countries and companies, including ambitious
declarations to achieve net-zero emissions.

8. According to Climate.gov, Earth’s temperature has risen by about 1.1 degree C since the preindustrial
era. https://www.climate.gov/news-features/understanding-climate/climate-change-globaltemperature.

spglobal.com/commodityinsights

All countries ranked in the
top 10 of the WEF’s Energy
Transition Index 2023 arefrom Western and Northern
Europe, and account for
2% of energy-related CO2
emissions, 4% of totalenergy supply and 2% of
global population. There
was only one country fromAfrica in the top 50.

The road map for a Multidimensional Energy Transition | 9

But here is the dilemma: While there is a growing sense of urgency from thegeneral body of climate science, the realities of the global energy system andthe diverse status of global economies create challenges to meeting thesegoals. According to S&P Global Commodity Insights, the current Nationally
Determined Contributions (NDCs) would reduce global emissions by only 10%
in 2030 relative to 2019 levels. This compares with the 43% reduction that theIntergovernmental Panel on Climate Change (IPCC) sets as the benchmark
required to align with a 1.5 degrees C pathway.9
Nevertheless, net-zero declarations continue to grow: 158 countries havestated net-zero targets, with 28 countries embedding the targets into
national law. Policy developments with the launch of RePower EU and Green
Deal Industrial Plan in Europe, and the troika of the IRA, the IIJA and CHIPS
in the US will turbo charge investments in a wide spectrum of clean energy
technologies and mark the launch of a new era of industrial policy, aimed at
substantially reducing emissions within this decade.
Despite the rise in climate ambition and supporting policies, in the last 30
years the share of hydrocarbons in the global primary energy mix has hardly
changed, from 81% to 80%. Global GHG emissions are estimated to haveincreased by 0.9% in 2022, hitting a new record of 52 gigatonnes. Energy
demand has continued to grow in most emerging and developing economies
as hundreds of millions more people with increased access to reliable andaffordable energy have achieved improved living standards.
So, the challenge is how to bend the emissions curve while ensuring economic
growth. The climate policies of the Global North will be insufficient to achieve
the global goal of net-zero unless there are reductions in emissions from fastgrowing developing economies.

Current trajectory/baseline scenarios
project that emissions will fall by lessthan 25% by 2050; achieving the 1.5
degrees C goal will likely require a
reduction of 90% or more.
In large measure, closing the gap
between climate ambition andactual emissions trajectories will bedependent on scaling low-carbon
technologies and on continuing
advances in technologies. According
to Commodity Insights, investment
in renewable power and energy

Global greenhouse gas emissions vs. fossil share of primary energy
demand, 1990–2022
90%
Fossil fuel share of primary energy
demandThe widening gap between current
emissions trajectories and thepathway required to achieve netzero by 2050 is illustrated byemissions scenarios developed
independently by the IEA and by
Commodity Insights.10

88%
86%
84%

2010
1990

82%
80%
78%

2000

2020

2022

76%
74%
72%
70%
32,00037,00042,00047,00052,000Global GHG emissions (MtCO₂e)
Data compiled June 15, 2023.
MtCO2e = metric tons of carbon dioxide equivalent.
Source: S&P Global Commodity Insights.
© 2023 S&P Global.

9. Climate Change 2022: Mitigation of Climate Change, Working Group III contribution to the Sixth
Assessment Report of the Intergovernmental Panel on Climate Change
10. IEA NZE 2022 and S&P MTM and ACCS scenarios are back cast from a 1.5 degrees C objective, i.e.,
what would be required to achieve this goal? Other scenarios are forward projections based on current or
anticipated changes to policies and markets.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 10

storage amounted to around $477
billion in 2022 and will average$700 billion per year throughto 2030 — with the majority ofinvestments currently centered ina handful of countries and regions(China, European Union, and North
America).11 Nevertheless, there could
be a $25 trillion cumulative funding
gap between forecast spending andthe investment needed to achieve
net-zero by 2050.12

Energy-related CO2 emissions, 2010–50 (MtCO2e)

40,000

History
Inflections
IEA STEPS 2022

DiscordACCS
IEA APS 2022

Green Rules
MTM
IEA NZE 2022

35,00030,00025,00020,00015,000A further manifestation of thecurrent gap is in funding pledged
10,000for mitigation and adaptation fordeveloping countries. At COP27
5,000
in November 2022, the Parties
acknowledged the lack of progress
0
2010
2015
2020
2025
2030
on the collective climate finance
Data compiled July 1, 2022.
pledge of $100 billion (madeSource: S&P Global Commodity Insights.
originally at COP15 in 2009) and© 2023 S&P Global.
urged developed countries to meetthe goal. Futhermore, developing
countries continue to express frustration at the lack of capital available
for conventional energy development that they state is needed to promoteeconomic growth and reduce energy poverty. Reflecting the fact that energy
security was a top priority for nations ahead of COP27, the Implementation
Plan emphasized the need to move toward “low-emission” energy in addition
to renewable energy.

2035

2040

2045

2050

Focus areas for consideration
The main purpose of the GESI dialogues was to explore the issues andchallenges around transitioning the global energy system to a lower carbon
future while maintaining stability, security and affordability of energy
supplies. During this exploration process many ideas were expressed around
potential focus areas for solutions. In this section we summarize the key
ideas expressed by participants grouped in five broad areas:– Unlocking finance– Meeting the needs of the Global South– Tackling infrastructure and supply chain bottlenecks– New frameworks and tools– Collaboration, partnerships and engagement
The authors have not assessed the costs and feasibility of the ideas aired in
the discussions and summarized here, so they are offered as questions andsubjects for consideration rather than recommendations from the initiative.
11. See the Commodity Insights How will global investments in clean energy evolve to 2030?.
12. See the Commodity Insights Energy Transition: Gaps in the Pathways.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 11

Unlocking finance
ESG and green finance criteria– Do “sustainable” finance criteria need to be more holistic and pragmatic?
Industry and finance could jointly create achievable, holistic criteria thatconsider a broad range of UN Sustainable Development Goals (SDGs) andnot just emissions, and that recognize the need for “sustainable”, “viable”
and “orderly” energy transitions. This means giving consideration to energy
access and affordability as well as climate. For example, putting greater
emphasis on emission outcomes rather than fuels would support a morebalanced approach considering all aspects of the energy trilemma andmight better facilitate funding for critical technologies such as carbon
capture, utilization and storage (CCUS) and direct air capture (DAC). Wouldusing the term “energy transformation” (making energy sources clean)rather than “energy transition” be a helpful step, emphasizing a focus onemissions and a goal to decarbonize emissions from fossil fuel use rather
than to “stop investment in all fossil fuels”?
– Would harmonization and greater inclusivity of ESG/green financeassessment methodologies improve their usefulness? The myriad
different taxonomies and criteria appear to be constraining investment.
Greater harmonization would be beneficial. However, it is also importantto acknowledge the differences among business sectors in their ability
to decarbonize, and therefore the need to accept diverse pathways andtimelines towards sustainability.

“We should be moreconcerned about stranded
lives than stranded assets”
GESI participant“ESG assessment
methodologies need
to better recognize thecomplexity of the global
energy system, and theregional differences indecarbonization pathways”
GESI participant– Would more granular and flexible benchmarking criteria improveassessment of companies’ decarbonization performance? This includes
considering the specific locations in which companies operate and thenature of their operations. Industry and investors could jointly establish
realistic emission pathways tailored to each sector and region, ensuringthat different approaches and strategies can be recognized and valued
appropriately. Taking these factors into account means, for example,
that different benchmarks would be applied to a company predominantly
operating in sub-Saharan Africa compared to a company operating in Europe.
– What should be the role of natural gas in sustainable emissions
pathways? This is most pertinent where gas is displacing coal, or where
the development of local gas resources will significantly boost economic
development and poverty reduction, or where gas is needed for power
generation to balance the variability of renewable power. Gas is also an
important fuel for industrial applications, heating and cooking. There wasbroad consensus that gas has a significant role to play for the foreseeable
future if methane emissions associated with gas value chain are brought
down as agreed under the Global Methane Pledge. There will be increasingneed for elimination of flaring, venting and fugitive emissions — and (longerterm) CCUS.
– Could changes to funding rules within multilateral development banks(MDBs) accelerate decarbonization? MDBs could take a holistic approach
to funding oil and gas projects instead of a blanket moratorium. There areoil and gas investments that would be critical for meeting SDGs or help
reduce emissions by transitioning from coal to gas or by eliminating use ofdiesel for power generation. Such projects could provide significant nearterm benefits at relatively low cost.

spglobal.com/commodityinsights

The 2023 Global Gas
Flaring Tracker reportfrom the IBRD/World Bankhighlights that “Global gas
flaring decreased by 3%
to 139 bcm in 2022 from144 bcm in 2021, the lowest
level since 2010. If put toproductive purposes, theamount of gas flared in
2022, could generate asmuch electricity as subSaharan Africa currently
produces in a year”.

The road map for a Multidimensional Energy Transition | 12

Finance and cost of capital– What new approaches are needed to assess and manage credit risk andreduce cost of capital for renewable energy projects, especially in the
Global South? One of the challenges hindering the flow of finance into
zero- and low-carbon projects is the limited understanding of risks and thecommercial dynamics of these projects among banks and other financial
institutions, compared to conventional fossil fuel projects. This can beaddressed by increased awareness and knowledge-building to ensure that
financial institutions can accurately assess and manage risk.
– Could regional funding pools facilitate energy development in the Global
South? For example, a new energy fund for Africa. Such regional sourcesof finance can better assess credit risks for sustainable investments
and potentially reduce the associated cost of capital. Pooling regional
resources and expertise would also provide a centralized mechanism tofacilitate and support private investments in renewable energy projects.
– Are new risk assessment methodologies needed for clean energy projects?
A significant amount of funding is available for low-carbon projects, butthere is a shortage of bankable projects that meet current risk criteria. This
is in part because renewable energy projects typically can carry significant
policy risks, which companies struggle to price and manage compared
to conventional market risks. To increase the portfolio of projects,
investors will need to be willing to make decisions based on a different andpotentially greater set of uncertainties.

“85% of global renewableenergy investment
benefitted less than 50% of
the world’s population and
Africa accounted for only
1% of additional capacity in2022”, IRENA World Energy
Transitions Outlook 2023

– How to address the problem of lack of assured offtake agreements
constraining investment? This is especially relevant for projects involving
low carbon hydrogen for which many new projects are being announced. Will
market demand materialize at sufficient speed to support a multitude of
projects, and what are the methods to stimulate sustainable market demand?
– Seed money from MDBs could unlock many multiples in private finance— but more effective collaboration will be required to achieve this. MDBs
can also assist developing countries in building stronger institutionalframeworks and reducing risks associated with renewable investments.
– The challenge of timing and supply chains. Participants observed thatsome renewables projects are being delayed owing to rising supply chain
costs and are behind held in abeyance on the expectation that supply
chain costs will fall. Developers will have to assess the degree of cost risk
they are willing to assume if solar and wind deployment is to continue atthe required pace. Onshoring and “friend” shoring of clean energy supply
chains may also cause delays in project execution and increase costs.
– Transparent and competitive bidding processes could reduce the (perceived
and actual) country risk of projects in the Global South. Such a level-playing
field where different investors and technologies have an equal opportunity
to participate will facilitate financing from MDBs and private capital.

Financing new technologies– Can the IRA be adopted as a template for supporting clean energy
technologies in wealthier nations? Financing “first-of-a-kind” or othercommercially risky projects presents significant challenges, emphasizing
the need for strategic investments and funding sources that understandspglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 13

the unique nature of these initiatives. Currently, the “carrot” approachof the IRA appears to be more effective at driving investment into clean
energy projects than regulatory “sticks”. Mechanisms such as the IRA could
enable new technologies to be de-risked in the richer Global North (throughpiloting and scale up) before deployment in the Global South.
– New business models may be needed to drive deployment of emerging
technologies. Even where technologies are on the path to scale, businessmodels to commercialize them at scale may not yet be fully road-tested
and available. A prime example is the creation of CCUS value chains.

“Government policy support
is key to de-risking of new
low carbon technologies
provided it is appropriately
targeted and formulated”
GESI participant– Should there be more focus on, and funding for, carbon removal
technologies? There is growing realization, as highlighted by the IPCC, thatcarbon removal and utilization/storage technologies must be part of thetechnology mix for net-zero, as emissions mitigation efforts alone will fallshort. For such technologies to be viable at scale, current CO2 capture
costs will have to fall, carbon prices will have to rise, and/or significant
subsidies provided — and technology development to proceed.
– Maintaining a balanced and realistic perspective on technology isnecessary. Being overly optimistic about future technology deployment andwaiting for an ideal solution can delay meaningful short and nearer-term
investments — “the perfect is the enemy of the good”. Immediate progress
will require prioritizing quick wins, balancing innovation and practicality, andaction sooner rather than later. This includes focusing on enhancing energy
efficiency and lowering the carbon intensity of existing operations.

“Energy transitions arefundamentally technology
transitions”
GESI participant– How to ensure investment that is needed urgently across the entire
low carbon energy value chain? The financing challenge is not limited to
end-use deployment. Adequate investment in research and development,
infrastructure, and supply chains is crucial to drive innovation and facilitate
the transition. Capacity ramp-up, and funding, is required in all supply chains.

Meeting the needs of the
Global South
Affordability and energy security– Affordability and energy security are critical in the Global South.
People and politicians in the Global South are very price sensitive asenergy accounts for a significant proportion of the cost of living, balanceof payments and has great political and social sensitivity. Participants
highlighted that affordability and availability take precedence oversustainability, especially in today’s inflationary environment. This meansthat reliable and affordable resources such as domestic coal is preferredover cleaner but more expensive and imported LNG. Countries in the
Global South define “energy security” more broadly as providing stable,reasonably-priced energy supplies.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 14

Decarbonization pathways– Multiple transition pathways for the Global South. A “horses-for-courses”
approach recognizes that each country will have its own opportunities
and challenges, and its own way forward. Regional energy pathways forpoorer countries could focus on basic needs in terms of energy accessand affordability — and once these are assured, consider more challenging
climate goals. To meet these needs, many countries in the Global Southwant to be enabled, and supported, to build their economic and industrial
capacity through conventional fossil fuels, especially gas, both tomeet economic growth needs and reduce burning of wood and waste.
“Technology leapfrog” from traditional biomass to renewables may beappropriate in some circumstances but appears to be a difficult transition
pathway for many low-income economies.
– To what degree will the Global South be able to set its own pathways?
Can the countries of the Global South develop regional solutions to harness
and develop their own energy resources in a sustainable manner? For
example, by aligning energy development with social and environmental
goals, a regional program could support Africa’s energy transition while
addressing the unique challenges and needs of the continent.
– Should financial support to energy projects in the Global South beconditional on the type of fuel or technology? Should “just finance”
eschew prescriptive and burdensome conditions around use of fossil fuels?
And should alternative approaches such as the Just Energy Transition
Partnership (JETP) be explored? Some participants considered JETP
problematic due to its narrow focus on eliminating (low cost) coal, including
where reliable and affordable replacements may not be readily available.
Making renewable energy more competitive in the Global South, e.g., throughreducing cost of finance, was suggested as a more effective solution.
– Should more funding be directed towards climate adaptation efforts in
the Global South? These regions are often vulnerable to the impacts ofclimate change and require financial support to adapt and build resilience
in infrastructure, communities and ecosystems.

“Africa is endowed withrich natural energy
resources, including
renewables. But it needs
to carbonize before it candecarbonize”
GESI participant– Policymakers and project developers could gain public support by
tackling local air pollution alongside carbon emissions reduction. Linking
carbon emissions solutions to other imperatives like pollution will offer
immediate and tangible benefits and secure wider local support. It is
important to ensure that social, local environmental, and climate agendas
are in sync.
– The aggregation of local small-scale renewable energy generation,
storage, and demand response initiatives could provide a route tofinancing. By combining and scaling up individual microprojects, more
substantial and financially viable projects can be established.

Capacity building in emerging economies– Reducing risks and facilitating investments in cleantech projects
requires capacity-building in multiple areas, including logistics, legal,
policy and regulatory capacity. Support could also include collaboration insoft financing mechanisms in low carbon such as technology transfer andresearch and development, in addition to direct financing.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 15

– How can the necessary new skill sets be developed in local populations?
Efforts need to be stepped up significantly in training local staff — todevelop, finance, implement, operate and maintain new low carbon
energy systems. This will require cross-sectoral collaboration between
governments and industry.

Tackling infrastructure andsupply chain bottlenecks
Energy infrastructure– Governments need to streamline regulatory and permitting processes.
The protracted and uncertain permitting processes in many countries
for key energy infrastructure such as siting, pipelines and transmission
lines are causing significant delays and leading to project cancellations.
Permitting and local challenges need to be appropriately and equitably
resolved in a timely way if energy sustainability, affordability and security
goals are to be met.

“Current permitting
processes in the US score 5
out of 10 at best”
GESI participant– New commercial models are needed to tackle the “gridlock” ofconnecting renewable power. Waiting times for grid connection for windand solar farms have reached 10 years or more in some countries, which
is severely impacting the rate of grid decarbonization. This is partly due topermitting delays but also due to the very different geographical footprintof renewable power compared to conventional fossil fuels.
– Deployment of distributed generation and improvements in local grid
efficiencies is essential to support the growth of renewable energy
systems. While the needs for expanding transmission grids receive
significant attention, it is important not to overlook the development oflocal distribution networks and distributed generation. Neglecting this
aspect can lead to downstream bottlenecks and hinder the effective
integration of renewable energy sources.

Critical minerals– How will a projected global supply shortage of critical minerals and thecurrent supply chain risks impact the energy transition? Governments
are starting to give this urgent attention but delays in addressing theissue, especially around permitting may result in future price spikes,
shortages and cost increases for key metals — and thus act as a brake on
the energy transition.
– Resolving the ‘mining paradox’ will be important for an orderly and timely
energy transition. Mining and metals investments are seen by some only
through a “sustainability lens” and not as a key part of the decarbonization
solution. They are therefore shunned by ESG-oriented investors andother investors under ESG pressures. However, it was proposed that ESG
investors should take a more holistic view on the “net carbon benefits”
from mining and processing the minerals critical to the energy transition.
Mining companies will need, in turn, to convey their actions and progress
more clearly on sustainable operating practices.

spglobal.com/commodityinsights“A circular economy
approach is needed for
critical minerals: movetowards 100% recoveryof mineral ores, minimize
waste generation, recycling”
GESI participant

The road map for a Multidimensional Energy Transition | 16

– Industrial consumers, particularly in the OECD, will need to accelerate
efforts to develop long-term sourcing strategies and plans for criticalminerals. Reducing supply chain risks will require diversification of globallyconcentrated supply sources.

New frameworks and tools
The need for new policy frameworks and tools– Policymakers would benefit from new frameworks to progress the energy
transition within the new geopolitical environment. For example, will the“electrify everything” approach need to be reassessed when supply chainsappear vulnerable to geopolitics and capacity bottlenecks? Should there
be more focus on technologies with less geographically concentrated, andtherefore less geopolitically vulnerable, supply chains such as hydrogenand CCUS?
– Stakeholders need a more complete macroeconomic and socioeconomic
understanding of the multidimensional energy transition and its
implications. Issues should not be addressed in silos but rather consideredin an integrated manner, recognizing the interdependencies and synergies
among different aspects of the energy transition. It will therefore beimportant for policymakers to adopt more holistic models that capturesystemic interactions and systemwide impacts. There needs to be deeper
macroeconomic understanding of the energy transition to avoid adverse
supply shocks and economic disruptions that undermine public support.
– Mechanisms are needed to support appropriate levels of investment
in oil and gas supply to avoid future shocks and disruption while also
providing for carbon abatement. There is much debate about future oiland gas demand. While a smaller part of the overall mix in the future, oiland gas is expected to continue to play a significant role in meeting energy
needs. About half the automobile fleet in 2050 will likely be oil-powered
because of the time it takes to turn over the auto fleet, and natural gas
will be required in an electrified world to stabilize systems relying on
renewables — at least until long duration storage becomes commercially
viable and implemented at scale. In addition, the annual 4%-5% natural
decline in existing oil and gas resources requires ongoing investment. The
fear of “stranded assets” is one factor causing historically low investment
in new oil and gas supply.

Scenarios and road maps
– Better understanding and utilization of scenarios will enable
policymakers to effectively address the challenges and complexities ofthe energy transition. This entails recognizing the drivers, identifying gaps,
and exploring potential solutions within different scenarios. The potential
impact of scenarios on economic growth needs to be carefully analyzed.
– There is a need for energy transition scenarios/road maps that reflect
the Paris ambition while capturing the complexities and constraints
to achieving it. These include issues of energy access and affordability(especially in the Global South), availability and rate of deployment of

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 17

finance, supply chain capacities, geopolitical drivers and constraints,
competitiveness and deployment rate of new technologies, permitting
delays, indigenous peoples’ concerns and local challenges. Additionally,
accepting that considerable use of CCUS, negative emission technologies(NETs) and nature-based solutions (NBS) will be needed longer term toachieve the goals of the Paris Agreement. Such pragmatic transition
scenarios can help support a robust policy framework for an orderly
and balanced transition — one that can also deliver energy security andaffordability while occurring at a much faster pace than past transitions.

“Energy transition
roadmaps must have anelement of wealth creation
into local economies, notjust focus on reducing
emissions.”– In particular, realistic forecasts for the supply and demand of criticalminerals should be incorporated into transition scenario models. Thisentails considering various factors such as mining production capacities,
timelines to bring new mines and processing capacity onstream,
geopolitical dynamics, and technological advancements that may affectdemand and availability. Adequate minerals supply is often treated as agiven in scenario models.

GESI participant

Investment decision approaches and criteria– New investment decision frameworks may be needed whereby
organizations accept emission reduction goals as a given and seek themost economic ways to achieve them. Conventional project investment
metrics such as internal rate of return hurdle rates may be of less relevancewhen there is an overarching non-financial objective.
– Companies may need new approaches to assess and manage policy risk
in a business environment heavily influenced by policy rather than market
forces. Businesses must adapt to the dynamic policy landscape and develop
strategies to navigate potential regulatory changes and uncertainties.
– Is there a need for a broader decision metric than levelized cost ofelectricity (LCOE)? When assessing power project economics, policymakers
may need to look beyond LCOE and conduct a comprehensive analysis of theentire value chain. By evaluating the lifecycle costs and benefits, including
social and environmental aspects, investors can gain a more complete
understanding of the overall economic implications. Projects may beevaluated both against alternatives and against the cost of inaction.
– Better models could enable investment evaluation across all SDGs.
To achieve a comprehensive understanding of the implications of anaccelerated energy transition, it would be constructive to generate holistic
and integrated frameworks and models that encompass multiple SDGs.
This includes such goals as universal energy access, poverty reduction,and improved health. Capturing economywide impacts requires integrating
economic, energy, industrial, mobility and social aspects. Incorporating awide range of factors enables more informed decisions about the allocationof resources.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 18

Collaboration, partnerships
and engagement
Public-private sector collaboration– What should be the role of governments in identifying the mosteffective approaches to achieve emissions goals? The US government is
adopting a hands-on approach with the IRA, which is supporting a rangeof technologies. Will such an approach help to accelerate collaboration
between industry and finance across a wide range of key technologies— renewables, carbon removal, storage, hydrogen — in the effort toaccelerate technology scale-up and deployment?

Cross-sector collaboration– Financial investors need to work with industry to jointly develop
new evaluation models for decarbonization projects to demonstrate
their long-term value proposition and risk manageability. To overcome
information asymmetry, industry can help investors understand thetechnology parameters and risk criteria for new technology projects such
as CCUS and hydrogen which have little or no historical data (banks better
understand the parameters and risks of oil and gas projects throughextensive historical data).
– More collaboration forums and mechanisms are needed between energy
suppliers and energy buyers. Energy suppliers and buyers have complex
interactions as they impact each other’s Scope 2 and 3 emissions. One
example of such a collaboration is the Asia Clean Energy Coalition, launchedby a group of manufacturers with the aim of driving better alignment among
energy buyers, project developers, financiers and policymakers.

Government-to-government (G2G) collaboration– G2G collaboration efforts such as the Clean Energy Ministerial could
provide a growing platform for knowledge sharing around what works inpractice. An example is the UK partnering with other governments to sharepolicy frameworks, business models, and model contracts for CCUS andhydrogen, based on the development of the UK’s hub-based model.
– Other governments will be looking carefully at the learnings fromthe design and implementation of the US IRA. One clear question is
the impact of an incentive-based policy approach versus a regulatorycompliance approach. Also, the learnings from the practical application of
the IRA will be studied closely, since on-the-ground project delivery is theultimate yardstick of success.
– More G2G collaboration is needed around carbon markets andcarbon accounting. Efforts should be directed to creating more robust
carbon markets, which would have a meaningful impact on emissions.
Regulators will need to facilitate the standardization and developmentof methodologies for carbon accounting including standard assessmentof carbon intensity of products. This will become a critical issue with thewider roll out of the EU Carbon Border Adjustment Mechanism (CBAM),
which is likely to stir much discussion and debate with the Global South.

spglobal.com/commodityinsights“To encourage investment,
carbon needs to be viewed
as a valuable tradable
product rather than waste”
GESI participant

The road map for a Multidimensional Energy Transition | 19

– Cross-regional interconnection of power grids will move to the front
as issues, but their implementation is complex. This will become
increasingly important as renewable power takes a larger share of theenergy mix. However, development of such grids will encounter many
challenges, including regulatory and legal, coordination and sovereignty,
and investment.
– To support the COP process, should forums of the major global emitterscollaborate to jointly tackle the issues? Besides COP, other forums
including the G-20 and the Major Economies Forum on Energy and Climate(MEF) are likely to be necessary to reach meaningful consensus aroundsome objectives, road maps and actions.

Engaging the public– More regular and timely engagement with publics will help reduce theinformation asymmetry around the challenges of energy transition. Publics
require more clarity and information from their governments about costs,
prices, timelines and impacts. This will mean more transparency fromgovernments about costs and dislocations from energy transitions, andmore discussion around what is, and is not, doable. Energy transition
should not be seen as a threat to jobs in economies heavily dependent on
fossil fuels. Bringing NGOs and publics into the conversation about theactual mechanics of the energy transition would be constructive.

“The battle for hearts andminds will be waged andwon with the public”
GESI participant

Despite the numerous challenges, many dialogue participants expressed a
sense of optimism. Renewable energy is now competitive in many locations,deployment of clean technologies is rising rapidly, action on methane
emissions is progressing at pace, and there is a sense of growing pragmatism
among policymakers. The broadening of the energy transition dialogue —bringing out different perspectives and the diverse pressures shaping them
— was seen as a positive step.

spglobal.com/commodityinsights

The road map for a Multidimensional Energy Transition | 20

CONTACTS
Americas: +1 800 597 1344
Asia-Pacific: +60 4 296 1125
Europe, Middle East, Africa: +44 (0) 203 367 0681
www.spglobal.com/commodityinsights
www.spglobal.com/en/enterprise/about/contact-us.html© 2023 by S&P Global Inc. All rights reserved.
S&P Global, the S&P Global logo, S&P Global Commodity Insights, and Platts are trademarks of S&P Global Inc. Permission for any
commercial use of these trademarks must be obtained in writing from S&P Global Inc.
You may view or otherwise use the information, prices, indices, assessments and other related information, graphs, tables andimages (“Data”) in this publication only for your personal use or, if you or your company has a license for the Data from S&P Global
Commodity Insights and you are an authorized user, for your company’s internal business use only. You may not publish, reproduce,
extract, distribute, retransmit, resell, create any derivative work from and/or otherwise provide access to the Data or any portion
thereof to any person (either within or outside your company, including as part of or via any internal electronic system or intranet),firm or entity, including any subsidiary, parent, or other entity that is affiliated with your company, without S&P Global Commodity
Insights’ prior written consent or as otherwise authorized under license from S&P Global Commodity Insights. Any use or distributionof the Data beyond the express uses authorized in this paragraph above is subject to the payment of additional fees to S&P Global
Commodity Insights.
S&P Global Commodity Insights, its affiliates and all of their third-party licensors disclaim any and all warranties, express or implied,
including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use as to the Data, or the results
obtained by its use or as to the performance thereof. Data in this publication includes independent and verifiable data collectedfrom actual market participants. Any user of the Data should not rely on any information and/or assessment contained therein in
making any investment, trading, risk management or other decision. S&P Global Commodity Insights, its affiliates and their thirdparty licensors do not guarantee the adequacy, accuracy, timeliness and/or completeness of the Data or any component thereofor any communications (whether written, oral, electronic or in other format), and shall not be subject to any damages or liability,
including but not limited to any indirect, special, incidental, punitive or consequential damages (including but not limited to, loss of
profits, trading losses and loss of goodwill).
ICE index data and NYMEX futures data used herein are provided under S&P Global Commodity Insights’ commercial licensing
agreements with ICE and with NYMEX. You acknowledge that the ICE index data and NYMEX futures data herein are confidential
and are proprietary trade secrets and data of ICE and NYMEX or its licensors/suppliers, and you shall use best efforts to prevent theunauthorized publication, disclosure or copying of the ICE index data and/or NYMEX futures data.
Permission is granted for those registered with the Copyright Clearance Center (CCC) to copy material herein for internal referenceor personal use only, provided that appropriate payment is made to the CCC, 222 Rosewood Drive, Danvers, MA 01923, phone +1-978750-8400. Reproduction in any other form, or for any other purpose, is forbidden without the express prior permission of S&P Global
Inc. For article reprints contact: The YGS Group, phone +1-717-505-9701 x105 (800-501-9571 from the U.S.).
For all other queries or requests pursuant to this notice, please contact S&P Global Inc. via email at ci.support@spglobal.com.

spglobal.com/commodityinsights