Publication - Key Policy Design Considerations for Affordable and Fair Transitions
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Title
Key Policy Design Considerations for Affordable and Fair Transitions
Publisher
International Energy Agency
Author
International Energy Agency
Published in
October 2024
Abstract
The recently-released IEA report Strategies for Affordable and Fair Clean Energy Transitions examines for the first time the affordability aspects of clean energy transitions, with a particular focus on the inequities in energy consumption and expenditures across households and regions. The analysis shows that the Net Zero Emissions by 2050 (NZE) Scenario’s 1.5 °C pathway is less costly on a global basis than a pathway based on today’s policy settings, as a result of lower running costs of a rapidly decarbonising energy system. This analysis takes into consideration all costs of delivering energy, including capital expenditures, operating expenses, the need to pay back previous investments and financing costs.
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