Policy and regulation of energy transition

Abstract

Energy security and affordability have represented for a long time central issues for all countries in the world. Nevertheless, the continuing increase of energy use, the related CO2 emissions and air-quality problems have spurred additional concerns over the way that countries produce and consume energy. Many governments are taking actions to steer away from fossil fuels and to move towards a clean energy future. The path towards this goal is often referred to as clean energy transition. However, our current path is still not in line with the ambitions. Economics and markets can play a role, but policymakers will play the central role. Energy policies have been effective in several sectors and countries to deliver some important results so far – e.g. for cars, appliances, lighting, wind and solar PV in power – but much more needs to be done. Trucks, petrochemicals, aviation, coal power reduction and phase-out, renewables in heat and transport, energy efficiency in industry and buildings, CCUS are some examples of next steps and actions to take. Not leaving behind the good efforts done till now, that need to be continued and stepped up. With a strong focus on renewables and energy efficiency, this chapter looks at the different types of policies that have been effective in delivering these goals and provides examples for the way forward.