Bump in the Road to Global Energy Transition: The Bottlenecks of the Carbon Markets

Abstract

This study develops a theoretical framework to assess the key drivers of carbon markets, that is, carbon markets approach in the global energy transition. The developed Global Low Carbon Energy Transition (GLCET) framework is then applied to the six metareviews of the literature, with the exception of the literature reviews of Groups 1 and 2 (Section 2). Based on this metareview, the study also considers the key drivers of the GLCET, namely, DE carbonisation of the power sector, fossil fuel phase-out, geopolitical security. Based on the MOSCOW technique, the author concludes that DE carbonisation of electricity is very important and critical (MO), phasing out fossil resources is challenging but requires some solutions (S) and in third place (W) the impact of geopolitical security on GLCET is not very important. The author’s main recommendation is to develop a more qualitative framework to understand the main challenges of the global energy transition.