2007 Global Energy Survey

Environmental Sustainability Pressures

Looming Carbon Emission Standards?

The survey indicates a divided and uncertain picture in terms of environmental and sustainability concerns in the energy industry. While most executives believe in serious environmental considerations in the energy industry, most do not believe that a global treaty of agreement on reduction of emissions will occur in the near future.

Executives remain divided on the need for adoption of global emissions standards over the next three to five years: 70 percent of respondents believe that it is important to adopt standards, but more than 80 percent asserts that that none will be adopted within the next three to five years.

That said, an overwhelming majority of respondents (more than 90 percent) indicate that environmental considerations will influence industry economics in the short term. Similarly, 90 percent of executives surveyed agree that environmental considerations will affect their future decisions.

More than half of respondents cite a lack of technology as the major obstacle for the development of more environmentally acceptable energy practices, prodding governments to play a larger role in fomenting  advancement in sustainable technologies. The Economist cites a leading energy executive explaining that national governments will be “responsible to push the use of renewables in a world where globalization stalls and national interests come to the fore.

As long as markets remain open and security of supply is less threatened, slower-acting market mechanisms such as emissions trading will be the primary vehicles for developing alternative energy sources.”