Rising concerns over climate change are spurring investments into clean energy to help bring the world closer to net zero.

But where are we in that transition?

And how is that path to decarbonization affecting investments in traditional oil and gas projects?

We are at the beginning of a very long path, but at the start of that, we need to unlock

investment and more specifically we think we need to unlock investment and more specifically we think we need to unlock an

extra one trillion dollars per annum of investment in energy over the next five years.

I'm Allison Nathan and this is exchanges at Goldman Sachs.

To help break down the economic path to net zero, I'm here with my

colleague Michaela Delavina who is head of natural resources research for

Goldman Sachs and E. Miea.

McKellie leads our research on what he's called carbonomics, which examines the economics of getting to a net-zero-carbon world.

McKally, welcome back to the program.

Thank you, Allison, always a pleasure. So let's start with the macro

backdrop. Europe is facing an affordability crisis as the continent struggles to

secure energy supply. That largely owes to Russia's invasion of Ukraine that disrupted energy flows to the

continent, but that supply shock also raised questions about energy sustainability and

the trade-offs needed to get to net zero.

So first give us the background on how we got here.

So, Allison, I think you're right.

Everything comes from the Russian-Ukraine invasion, but in many ways this has just been a catalyst which exposes

weaknesses of the energy system which have been built up over the last 15 years and specifically I think there's three problems here that we need to address.

The first one is diversification of supply. Europe has been relying on Russian gas for 30, 40% of its gas and the main reason is that

...