This report concludes that energy demand is increasing globally, causing greenhouse gas (GHG) emissions from the energy sector also to increase. It argues that this trend is set to continue, driven primarily by economic growth and the rising population. It highlights the challenges presented by climate change for energy production and transmission but that adaptation options exist. It states that significant cuts in GHG emissions from energy can be achieved, including through switching to lower-carbon fuels, improving energy efficiency in transmission and distribution, increasing use of renewable and nuclear generation, introduction of carbon capture and storage (CCS), and reducing final energy demand. The report argues that stabilisation of emissions at levels compatible with the internationally agreed 2°C temperature target will mean a fundamental transformation of the energy industry worldwide in the next few decades, on a pathway to complete decarbonisation. Incentivising investment in low-carbon technologies is highlighted as a key challenge for governments and regulators to achieve carbon reduction targets.