Accelerating the Energy Transition 2025

Public support Public support is critical for building the economic case in the energy transition. Broad community buy-in helps minimize resistance, increase societal acceptance and enhance the willingness to pay for cleaner technologies, even at higher costs. However, despite a strong economic case, public support for policy changes and infrastructure investments can be undermined by misinformation, concerns over real or perceived negative impacts, unawareness of broader benefits and scepticism around the benefits of government policies and business actions. Confidence in the transition depends on governments and businesses crafting a compelling “societal case” that clearly demonstrates the tangible benefits of clean energy solutions. Building consensus and addressing public concerns early and transparently are key to securing sustained, long-term support. This effort should focus not only on expanding renewables but also on a broader set of clean energy solutions and infrastructure, including shifts from coal to lower-emission fuels, tailored to each country’s unique energy context. The transition must be gradual, building on existing resources and capacities. India serves as an example of balancing economic realities and public support. The country faces the dual challenge of providing affordable energy to its growing population and industries through existing sources such as coal, while simultaneously expanding its renewable energy markets to meet rising demand. This reflects both the complexities and opportunities of transitioning to meet diverse energy needs. Reforms to reduce or phase out fossil fuel subsidies are often promoted for both economic and environmental reasons. However, successfully implementing these measures requires a focus on fostering public support and ensuring equitable outcomes throughout the energy transition. Governments play a key role in building public support by ensuring that the benefits from clean energy projects are visible and distributed fairly across communities, particularly those most impacted by the transition. Governments need to lead by designing equitable policies, while businesses must actively participate in dialogue to build public trust. The G20’s endorsement of 10 voluntary principles for a just and equitable transition reinforces the importance of these efforts.4 Clear, long-term energy planning at both regional and national levels is key to setting a vision and direction that empowers businesses, financiers and communities to effectively contribute to the energy transition. Technology readiness Technology readiness plays a key role both for both the economic and business cases. Some technologies such as thermal storage, clean hydrogen, SAF, advanced nuclear solutions and carbon capture, utilization and storage (CCUS) are proven and ready to scale-up, while others continue to progress towards market readiness. However, misconceptions persist about the maturity of many advanced solutions, particularly for technologies such as small modular reactors, which are often perceived as nascent, despite being based on decades-old technology. The evolution of technology readiness can be viewed in two phases: what has been achieved and what remains to be done. Solar, wind and batteries, now considered mature and commercially viable, reached this point after decades of sustained government support through subsidies, tax incentives and market creation efforts, alongside 2.1 Enablers for the economic case Confidence in the transition depends on governments and businesses crafting a compelling “societal case” that clearly demonstrates the tangible benefits of clean energy solutions.Certain “dual impact” levers address both the economic and business cases, underscoring that these are not competing objectives. Examples include scaling-up enabling infrastructure, such as grids and transmission networks, establishing stable regulatory environments and streamlining permitting processes. These levers are crucial to accelerating the transition, as they improve both societal outcomes and financial viability for investors. This paper discusses the challenges and enablers specific to each case while emphasizing that they are integral parts of a cohesive strategy that requires balanced, coordinated action across stakeholders. Accelerating the Energy Transition: Unpacking the Business and Economic Cases 8