ABSTRACT
In this chapter we will discuss the likely shape of the energy economy in future years. This is not a prediction as it would be impossible to accurately predict what will happen. We do know that there are extreme pressures to develop a new trajectory. Energy security concerns have seen the development of new nuclear capacity on the one hand and the push for more renewable capacity on the other. Nowhere is the debate more focused than Europe. For example, Sweden has announced that it will revoke a 30-year ban on the development of new nuclear capacity. The EU has announced the 20/20/20 goals for 2020. Clean coal technology that uses carbon capture technology is being demonstrated along with geological storage options. The EU still actively advocates carbon trading as a means of reducing emissions. In the US the election of a new President heralds a new era of re-engagement in the global climate dialogue. Additionally the US seems likely to introduce a Cap and Trade system similar to that of the EU ETS.
