Regional insights

World Energy Outlook 2023

Different starting points, different pathways

This chapter focuses on the prospects for selected countries and regions over the period to 2050 under the Stated Policies Scenario (STEPS), which considers the current policy landscape and market conditions, and the Announced Pledges Scenario (APS), which assumes all long-term commitments are met in full and on time. Together these selected countries and regions account for nearly 90% of global energy consumption today.
The global energy crisis prompted a range of new initiatives, notably in advanced economies and China, that aim to increase the pace of clean energy deployment. Measures vary from region to region, but they all tend to place greater emphasis on boosting the share of renewables in electricity generation, incentivising electric car sales and improving energy efficiency.
Energy needs in many emerging market and developing economies are increasing rapidly, which require major new investment in energy infrastructure ranging from electricity generation and grids to electric vehicle charging stations. Levels of ambition vary, but there is a widespread recognition that clean energy technologies can offer cost-effective solutions for a range of development objectives. Some emerging market and developing economies face difficulties to obtain financing. Concessional funding has a role to play in this regard, as do initiatives such as the Just Energy Transition Partnerships.
Several countries have adopted policies that encourage the diversification of supply chains for clean energy technologies. This includes policies to promote clean energy technology manufacturing, for instance, the Inflation Reduction Act in the United States, the Net Zero Industry Act in the European Union and the Production Linked Incentives scheme in India.
Despite moves by countries to reduce dependence on imported fuels and on geographically concentrated clean energy technology supply chains, the need for international trade and co-operation remains strong. No country can expect to be wholly self-sufficient, and most will continue to depend on imports and exports. International collaboration on innovation in particular will remain vital in the development of clean energy technologies.
Today, a number of countries rely heavily on revenue from oil and gas production, and they face the prospect that these revenues will decline as clean energy transitions advance. This underlines the need for broader economic diversification to compensate for falling fossil fuel export revenue in the APS. Some countries are already taking steps in that direction.

Chart showing energy consumption, GDP per capita and population for each region of the world, key milestones by 2030, and the 2050 energy mix in the STEPS and APS scenarios

End-use modern energy consumption per capita (GJ)

Chart showing energy consumption, GDP per capita and population for each region of the world

With the deployment of clean energy technologies reshaping future energy supply mix across the world, the need for international cooperation for security, trade & innovation remains prominent