• Behind global aggregates lie distinctive regional trends. The regions and countries considered here – which account for 90% of global GDP, population and energy demand – have diverse starting points, priorities and ambitions. They also have varying trajectories for energy and emissions which are informed by their different socio-economic circumstances, policies, regulations and more.
• This chapter shines a light on the outlook for these regions and countries. It covers energy supply chains as well as energy itself. Securing positions in the new clean energy economy is increasingly important for many policy makers, as underscored by the European Union’s Net-Zero Industry Act and India’s Production Linked Incentives programme, both of which incentivise cleantech manufacturing.
• Two scenarios are used to explore these regional outlooks: the Stated Policies Scenario (STEPS), which is based on current policy settings and market conditions, and the Announced Pledges Scenario (APS), which incorporates regional and national energy and climate targets and assumes they are met in full and on time.
• Comparing key metrics across regions highlights important differences. For example, car ownership is twice as high in the European Union as it is in Eurasia, but the latter has twice the per capita CO₂ emissions of the former. Countries are at different stages of economic and energy development and have different resource endowments. This shapes their policy priorities and the way they approach clean energy transitions.
• The chapter also looks at topical issues for each region or country that it covers. These include the prospects for electricity demand growth in the United States and China, and the mix of fuels and technologies that can meet it; the role of biofuels and low-emissions hydrogen in Latin America; how clean energy transitions can bring down the European Union’s electricity costs; the potential for critical minerals in Africa; opportunities to accelerate clean energy deployment in the Middle East and to modernise the gas sector in the Caspian region; the role of two/three-wheelers and buses in India’s transport policies; the importance of innovative technologies for power sector transformation in Japan and Korea; and how to tackle emissions from coal-fired power plants in Southeast Asia.
• Across all regions, the energy mix is being reshaped by accelerating deployment of clean energy technologies, notably in the power sector. Although regional circumstances vary, there is a widespread need for enhanced action to speed up the adoption of clean energy technologies by key energy-intensive industrial sectors which face the challenge of decarbonising while simultaneously maintaining competitiveness. International co-operation has a key role to play in this.
  

Country pathways and enabling conditions differ but national ambitions around the world have the potential to reshape energy systems, shifting energy final consumption towards decarbonised electricity and other low-emissions sources.

Under stated policies, the largest economies see a decline in per capita energy demand, while emerging market and developing economies experience a steady increase. However, these changes are modest, and existing global inequalities persist.