Newsletters | Request Trial | Log in | Advertise | Digital Issue   |   Search
  • CCUS
  • Cap & Trade Markets
  • Voluntary Markets & Offsets
  • Corporate & Finance
  • Net Zero Strategies
  • Podcasts
Search
Related Articles
BP softens emissions goals in push for ‘orderly’ transition
Oil and gas major revises down scope three targets as it plans slower reductions in oil and gas production to 2030
Investors warn against carbon removal
UN-convened alliance of financial institutions demands focus on carbon mitigation rather than removal
CCUS expansion gaining momentum – IDTechex
Capacity will reach 1.8gt/yr of CO₂ by 2043, according to modelling by research agency
Europe urged to fight US for low-carbon investment
Continent should match US policies such as the Inflation Reduction Act to attract capital for net-zero push, says former vice-president Al Gore
Carbon at the centre of the energy transition
Our newly rebranded service responds to feedback from customers on what they care about most
Outlook 2023: Growing focus on a fair and inclusive energy transition
Integrating the principles of a just transition will increasingly be at the core of energy transition strategies
Outlook 2023: The full stack of energy flexibility markets
As flexibility markets open up and evolve, they create new opportunities for businesses to realise value from their energy assets
Direct air capture must cut costs to succeed
Project developers believe dramatic reductions are possible, but only with global policy support
Outlook 2023: The geothermal prize in tackling the energy trilemma
Geothermal has seen limited development to date. But technological improvements and the prospect of critical mineral recovery could tip the balance of project costs
Outlook 2023: Three major trends to drive Europe’s PPA market
Looking forward to next year, Pexapark explores three trends that will define the continent’s PPA sphere after a year of turmoil
Higher carbon pricing for net zero by 2050 could drive stagflation
Net zero Energy transition Carbon prices
Vincent Lauerman
20 August 2021
Follow @PetroleumEcon
Forward article link
Share PDF with colleagues

Transition economic impact could echo 1970s oil shock - PIIE

Rise in carbon prices required by 2030 could serve as negative supply shock to global economy of similar magnitude to 1973-74 quadrupling of oil prices, thinktank says

The global energy transition required to avoid cataclysmic climate change will now need to be abrupt rather than gradual following decades of policy procrastination. This could potentially cause a period of slow economic growth combined with high price inflation, or "stagflation", akin to the one following the 1973-74 oil price shock, according to a paper by Washington-based thinktank Peterson Institute for International Economics (PIIE). “Reasonable optimism about the long-run effects of the transition to a carbon-neutral economy is no reason to overlook transition costs,” Jean Pisani-Ferry, an economist at PIIE says in the paper. “These costs, while bearable, are likely to be significant.”

Also in this section
China eyes global collaboration on CCUS
22 July 2025
Sinopec hosts launch of global sharing platform as Beijing looks to draw on international investors and expertise
Nigeria bids to unlock carbon market billions
22 July 2025
Africa’s most populous nation puts cap-and-trade and voluntary markets at the centre of its emerging strategy to achieve net zero by 2060
EU’s binding CCS targets: A burden or a blessing?
17 July 2025
Oil and gas companies will face penalties if they fail to reach the EU’s binding CO₂ injection targets for 2030, but they could also risk building underused and unprofitable CCS infrastructure
Brazil eyes leadership role in global carbon market
9 July 2025
Latin American country plans a cap-and-trade system and supports the scale-up of CCS as it prepares to host COP30

Share PDF with colleagues

Rich Text Editor, message-text
Editor toolbarsBasic Styles Bold ItalicParagraph Insert/Remove Numbered List Insert/Remove Bulleted List Decrease Indent Increase IndentLinks Link Unlinkabout About CKEditor
COPYRIGHT NOTICE: PDF sharing is permitted internally for Petroleum Economist Gold Members only. Usage of this PDF is restricted by <%= If(IsLoggedIn, User.CompanyName, "")%>’s agreement with Petroleum Economist – exceeding the terms of your licence by forwarding outside of the company or placing on any external network is considered a breach of copyright. Such instances are punishable by fines of up to US$1,500 per infringement
Send

Forward article Link

Rich Text Editor, txt-link-message
Editor toolbarsBasic Styles Bold ItalicParagraph Insert/Remove Numbered List Insert/Remove Bulleted List Decrease Indent Increase IndentLinks Link Unlinkabout About CKEditor
Send
Sign Up For Our Newsletter
Project Data
Maps
Podcasts
Social Links
Featured Video
Home
  • About us
  • Subscribe
  • Reaching your audience
  • PE Store
  • Terms and conditions
  • Contact us
  • Privacy statement
  • Cookies
  • Sitemap
All material subject to strictly enforced copyright laws © 2025 The Petroleum Economist Ltd
Cookie Settings
;

Search

  • CCUS
  • Cap & Trade Markets
  • Voluntary Markets & Offsets
  • Corporate & Finance
  • Net Zero Strategies
  • Podcasts
Search