Strategies for affordable and fair clean energy transitions: world energy outlook special report

Issues of affordability and fairness have moved towards the centre of debates about clean energy transitions in many countries. The global energy crisis revealed the vulnerabilities and risks inherent to today’s fossil fuel-based energy system, while bringing the benefits of transitions – such as greater energy security, improved air quality, reduced emissions and less exposure to volatile fuel prices – into sharper relief. But even as clean energy technologies become increasingly cost-competitive, they still require a step-change in investment to overcome the inertia that favours incumbent fuels and technologies. As living costs have increased around the world, important questions have emerged about how to pay for clean energy transitions, as well as how the costs and benefits will be shared. Low-income households, in particular, risk being locked out of transitions if they cannot afford the upfront costs. The report explores these challenges and how they might be addressed. Its first-of-its-kind analysis provides a comprehensive evidence base for this discussion and a pragmatic look at policy approaches that can safeguard affordability and fairness as transitions advance.