IMF study challenges logic of ecological transition

A study by the International Monetary Fund (IMF) challenges the fundamental logic of the ecological transition. While clean energy sectors are expanding, the research suggests they are not replacing hydrocarbons due to a continuous rise in overall energy consumption.

For the past three decades, global political and economic strategies have relied on the idea that innovation in green energy would eventually drive down relative prices and displace fossil fuels, a concept akin to Joseph Schumpeter’s ‘creative destruction’. However, the current trend indicates that increased energy demand is offsetting the gains made by renewable investments, questioning the effectiveness of policies promoted by international COP summits.