Promoting the transition to green growth

The energy sector presents a particular challenge to achieving green growth, due to its size, complexity, path dependency and reliance on long-lived assets. Green growth policies for the energy sector can achieve important outcomes, including better resource management, innovation and productivity gains, creating new markets and industries, and reducing environmental damage. It is possible, using existing and emerging technologies, to halve global emissions by 2050, with an additional cumulative investment of USD 46 trillion. All technology options are needed, and fundamental changes are also required by key energy users: transportation, industry and buildings. The energy revolution that is needed can be characterised by the following elements: improved energy efficiency, widespread introduction of carbon capture and storage, increased deployment of renewable energy, nuclear energy, continued fuel switching, and support for new and enabling technologies. Broadly, the key policies that are required to set the framework for the transformation of the energy sector include (these will vary by energy sector): • Provide price signals for externalities. • Eliminate fossil fuel subsidies. • Set frameworks to make markets work. • Radically improve energy efficiency. • Foster innovation and green technology policy.