IESE Business School

Energy Prospectives #23 – The Future of Energy: Global Perspectives and European Responses

This is a highlights video of the 23rd edition of Energy Prospectives, organized by IESE Business School in collaboration with Naturgy Foundation. On this occasion, the series of high-level conversations featured Vijay V. Vaitheeswaran, Global Analyst and Former Editor at The Economist, and Christopher Jones, Professor at Florence School of Regulation and Former Deputy Director-General for Energy at the European Commission. The discussion took as its starting point the latest energy shock centered on the Strait of Hormuz, a key chokepoint for global oil, petrochemicals, fertilizers and LNG. Vaitheeswaran explained why, despite the scale of this disruption, today’s economies are better prepared than during the oil crises of the 1970s, and how the shock is accelerating a transition that was already under way toward a new energy system. A central question of the session was how to reconcile climate ambition with energy security and economic competitiveness. The speakers described how governments and companies are seeking energy that is closer to home, more reliable and increasingly clean, while questioning whether the original “net-zero by 2050” narrative remains realistic if other major emitters do not follow Europe’s lead. Jones revisited the European emissions trading system, noting that carbon prices capable of driving industrial decarbonization also risk undermining competitiveness if comparable measures are not adopted elsewhere. The conversation also examined Europe’s position between the United States and China in the global race for clean technologies. The speakers reflected on instruments such as procurement preferences and border adjustment mechanisms and asked whether Europe can continue to act as a “good Samaritan” on climate policy without a clear strategy to protect its industrial base and ensure that others share the burden of decarbonization. Another major theme was the emerging “battery revolution” and its implications for power systems. Vaitheeswaran and Jones discussed how large-scale batteries combined with renewables can provide clean, firm power, enabling very high shares of wind and solar if regulators, grid operators and investors adapt to new realities in storage, flexibility and system planning. They highlighted the need for massive investment in smarter grids and flexible demand, including AI data centers, to avoid “hitting a wall” in renewable integration. Finally, the session addressed the renewed interest in nuclear power across several European countries, the reliance on non-European technologies, and the challenges of achieving scale, standardization and learning-by-doing. The debate invited viewers to reflect on how Europe can move from an “age of idealism” to an era of pragmatic leadership in energy and climate policy, balancing security of supply, sustainability and affordability in a rapidly changing global landscape. In the introduction, Rafael Villaseca, Naturgy Foundation Chairman, framed the session by emphasizing that Europe is facing the daunting challenge of reconciling deep decarbonization with energy security, in a transition market marked by tension, trade-offs and difficult decisions. He underlined that the current energy landscape has changed profoundly, and that in this new context a coherent, global European response is more necessary than ever to navigate the risks and opportunities ahead. To know more: https://industrymeetings.iese.edu https://www.fundacionnaturgy.org/energia-medio-ambiente/foros/energy-prospectives/