Tag: Wood Mackenzie

Energy volatility could fast-track global EV adoption to 50% above base case

Stuart Mitchell

As the Middle East conflict continues to drive volatility in global oil markets, Wood Mackenzie’s base case already projects EVs jumping from 4% of the global fleet today to 25% by 2040. But the firm’s latest Horizons report identifies three factors that could jolt EV sales even higher: governments boost EV supply chain investment to strengthen resilience to oil market shocks, high fuel prices prompt more consumers to switch to EVs and EV technologies advance faster than expected. “If these forces converge all at once, the effect on EV adoption…

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Wood Mackenzie warns AI data centre power race threatens projects and consumers

Stuart Mitchell

The race to power artificial intelligence is pushing US data centre development to break the speed limit of grid development – creating significant risk for projects, markets and consumers, according to a new Wood Mackenzie report. With grid transmission build-outs 5-10 years away and competitive pressure mounting, data centre operators are pursuing collocated generation and flexible interconnection models. Wood Mackenzie’s latest Horizons report “Breaking the speed limit: Can US data centre development outpace grid development?” warns that these projects face far greater technical, regulatory and economic hurdles than the industry…

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Wood Mackenzie analysis reveals the European Union’s (“EU”) carbon storage injection capacity targets face a significant shortfall given challenges to project delivery

Stuart Mitchell

The EU’s ambitious carbon storage targets, set in mid-2024 under the Net Zero Industry Act (NZIA), face a significant shortfall, with expected available injection capacity by 2030 falling well below the required 50 million tonnes per annum (“mtpa”), according to new Wood Mackenzie analysis. This independent study reveals widespread project delays and regulatory challenges are undermining Europe’s carbon capture and storage (CCS) ambitions. The widening gap Wood Mackenzie’s assessment shows that the EU’s CO₂ injection capacity available by 2030, as assessed in October 2025, is projected to be around 28.5 million…

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Wood Mackenzie forecasts trillion-dollar boom in carbon offsets and CCUS markets by 2050

Stuart Mitchell

Global carbon markets are poised for transformative growth. Two key strategic areas have emerged as critical components of global decarbonisation efforts: Carbon Capture, Utilisation and Storage (CCUS) and carbon offsets. Wood Mackenzie’s two long-term outlook reports forecast substantial market size growth, surpassing trillions of dollars in value by mid-century. Wood Mackenzie’s Carbon Markets and CCUS research teams predict that rising demand, policy evolution, strategic corporate deals, and technological advancements will fuel steep growth trajectories for both sectors. “CCUS will likely become crucial for abating process emissions in hard-to-abate industries”, said…

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Japan to exceed 2030 renewables target supported by US$100 billion investments

Stuart Mitchell

Over US$100 billion of investment in wind and solar power plants are expected to push the renewables share to 27% of Japan’s generation mix by 2030, exceeding the country’s target, says Wood Mackenzie. Outlined in the 5th Strategic Energy Plan, Japan had aimed for between 22% and 24% of the country’s generation mix to be attributed to renewables in 2030. Last year, renewables made up 19% of the country’s power generation, including about 8% of wind and solar power. Wood Mackenzie research director Alex Whitworth said: “We estimate over US$100…

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