Energy Transition: Unlocking economic potential with net zero
Energy Transition: Unlocking economic potential with net zero
BALANCING COSTS, OPPORTUNITIES, AND CHALLENGES
Transitioning to net zero will be costly but it also opens up vast economic opportunities in renewable energy and cutting edge technologies to combat climate change, as highlighted in the Draghi Report.
However, the transition is hindered by economic and regulatory barriers. These include high cost of capital, investor risks, low political focus and willingness to act, slow political reaction to changing conditions, lengthy permitting processes, and ‘not-in-my-backyard’ discussions.
A BLUEPRINT TO IMPROVED FRAMEWORKS
In our recent report for Fortum, we highlight the critical need for a long-term investment framework to drive electrification and CO2-neutral energy production in Finland and Sweden. We discuss instruments to ensure capacity adequacy and reduce counterparty risk for investments in emerging industries like clean hydrogen.
Our analysis for Swedish Growth Analysis highlights Nordic best practices, offering clear targets and strategic plans for wind development. We recommend an efficient regulatory framework to expedite permitting and allocate areas for clean energy production, including designating acceleration areas, pre-clearing sites, offering local community remuneration, and securing site exclusivity.
contact us
Signe Rølmer Vejgaard
info
Phone: +45 5373 2310
Mail: sir@copenhageneconomics.com
RELATED WORK
Societal value of demand-side flexibility
Credible green claims: Driving investments in greener production
EU industrial policy: Dependencies in global green technology
Unlocking the potential of African-European green hydrogen trade
RELATED LINKS
Society-optimal long-term investment framework for electrification
Improving framework conditions for wind development in Sweden