Despite record-breaking growth in renewable energy, the world is dangerously off track to meet crucial climate goals. If we are serious about securing a sustainable, equitable and resilient energy future, we must act now.
1. Empower people for an inclusive energy future
The clean energy shift will create millions of jobs — but only if workers are given the tools to transition. In the UK alone, National Grid estimates 400,000 new roles will need to be filled by 2050. However, without effective workforce planning, economic disparities will deepen. This ‘just transition’ is crucial, ensuring workers in carbon-intensive sectors have access to reskilling programs and vocational training.
The transition must also provide for everyone, not just those who can afford it. Right now, rising energy costs are hitting low-income communities hardest, with 10.6 per cent of Europeans in 2023 unable to afford adequate heating. Without targeted support, millions more risk being left behind.
Stronger social safety nets, direct financial assistance and affordability-focused policies must be non-negotiable. The EU’s Social Climate Fund is a step forward to protecting the most vulnerable, but deeper reforms are needed to avoid widening equality.
2. Drive innovation and accelerate efficiency
Innovation is the backbone of the energy transition, and without it, the transition will stall. A recent European Commission study highlights key research areas such as next-gen batteries, offshore wind and green hydrogen as heavyweights in the energy sector, but funding and policy support remain inconsistent.
Scaling up investment in these technologies is crucial. Smart solutions — like AI-driven energy optimization, analytics and automation — can also help maximize efficiency and reduce waste. Energy efficiency is one of the fastest, most cost-effective ways to slash emissions and improve energy security. Yet despite ambitious targets — like the goal set at COP28 to double efficiency by 2030 — progress remains slow.
Businesses must embrace smarter energy optimization technologies. Governments should introduce incentives and enforce efficiency targets to support private sector investments and accelerate progress. The technology exists — now it’s about putting it into action.
3. Modernize grids and infrastructure
The world’s energy grids were built for the energy mix of the past, not the future. Renewables require a more flexible approach. Transmission and distribution investments must increase to keep grids running reliably even with variable, and often unpredictable, renewable loads.
Smarter grids, real-time energy management, energy storage and microgrids are critical to handling this switch. Expanding transmission networks will also be essential to connect renewable-rich regions with demand-heavy areas. Without these investments, the International Energy Agency (IEA) states that CO2 emissions will soar — and climate goals will slip further out of reach.
Focusing on challenging sectors such as heavy industry, manufacturing and transport is also essential. According to the IEA, the industry sector emitted 9.0 gigatons of CO2 in 2022 alone, while transport accounts for more than a third of emissions from end-use sectors.
Scaling up investment in electrification, reducing emissions intensity, automation and clean energy alternatives is crucial. Policy clarity, financial incentives and regulatory certainty will also be key to making green technologies the norm rather than the exception in sectors that are tougher to decarbonize.
4. Rethink regulation and financing
Despite massive capacity expansion, renewable deployment still falls short. Slow permitting and continued fossil fuel subsidies are creating an uneven playing field, making it even harder for clean energy to compete and giving legacy sources an unfair advantage.
Governments must double down on policies and incentives that supercharge green energy development, cutting red tape and fast-tracking projects. Energy companies need policy certainty, predictable returns and confidence that decarbonisation pathways are bankable. Unlocking private capital starts with bold, long-term regulatory clarity.
However while investment in clean energy is booming in wealthier nations, many developing countries are struggling to keep up. Without access to financing, they risk being locked into outdated, high-carbon systems.
To ensure that efforts are inclusive, wealthier nations must step up, providing not just money, but also technology and expertise to help these regions move to cleaner energy. Developed countries and international organizations can create partnerships to further support the transition. A global, collaborative approach can accelerate clean energy infrastructure worldwide and ensure no country is left behind.
5. A united approach
The transition to clean energy is still fragmented, making it harder to integrate solutions and share knowledge effectively. Policymakers, innovators and utilities often work in silos when they should be working together — governments creating the right frameworks, utilities driving innovation and adoption and innovators providing the tools and technologies to make the transition seamless.
Working with philanthropies, finance institutions and investors can unlock much-needed funding. To overcome challenging financial barriers, public and private entities should offer competitive financing terms that offset high interest rates and support the long-term success of clean energy projects. Real-time knowledge sharing through digital platforms can further accelerate innovation and modernize the global energy system. When it comes to tackling climate challenges, taking a united approach is the only way forward.
The time to act is now
Just as the Industrial Revolution reshaped economies with bold action and innovation, today’s energy transition is our opportunity to build a cleaner, fairer and more resilient world.
This cannot be an isolated effort. Governments, businesses and innovators must unite to drive this transformation. The stakes couldn’t be higher — but with decisive action, we can revolutionize the global energy system and secure a sustainable future.
