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.
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.
Download
