Policy Briefs

Energizing the Future: A Holistic Approach to Global Sustainability

Task Force: Energy, Climate and Sustainable Development
Authors: Jitendra Roychoudhury, Dina Azhgaliyeva, Emre Hatipoglu, Filippo Aloisi de Larderel, Marie Petitet, Davide Ponti
Pubblication Date: May 2024

Abstract

The global shift to sustainable energy demands a comprehensive policy approach for an equitable transition, ensuring energy security and addressing rising energy needs. The G7’s urgency to phase out unabated coal-based power plants globally requires crucial financing of their retirement through transition financing mechanisms similar to the Just Energy Transition Partnerships and Energy Transition Mechanism . At the same time, challenges persist with the reliability of solar and wind energy due to their intermittency. In addition, dependency on limited geographies supplying renewable energy technologies highlights vulnerabilities in critical mineral supply chains. The G7 faces complexity in ensuring global energy security amidst enhanced geopolitical risks. However, with the implementation of the proposed solutions, there is a potential for significant positive change. Energy demand growth due to population growth, improvements in energy access, electrification, new technologies, and income growth rises ever higher despite gains from energy efficiency. This policy brief proposes solutions, including financing the retirement of unabated coal-fired power plants, incentivizing local content-based energy technology manufacturing, diversifying technology providers, and increasing electricity trading by developing common principles for electricity trading to support G7’s goals and extending these benefits globally.