Strategic shifts for managing fragmentation TABLE 14 Source: World Economic Forum. Managing a fragmented energy transition is not about enforcing uniformity but about unlocking progress through differentiation. Countries must be empowered to transition at their own speed with strategies adapted to local conditions. The shift from uniformity to differentiation makes global coordination more essential – but in new ways. Existing mechanisms like the Conference of the Parties (COPs) and regional platforms were built for a more linear transition model. Today’s diverse energy landscape, shaped by uneven capacities and multi-speed transitions, demands more flexible, context-aware delivery. The challenge now is not to replace existing structures, but to adapt them. In short, it’s crucial to establish fit-for-purpose institutions that preserve shared goals while allowing for differentiated progress (Table 15).Strategic pillarOld paradigm New paradigmGeographic considerationsBest practice examples Policy design One-size- fits-all global policiesContext-aware policy design: region-specific energy strategies aligned with international goals, tailored to local capacities and industrial needsDifferentiated by industrial maturity – e.g. heavy industry hubs versus service economies (United Arab Emirates, Singapore)Chile’s National Green Hydrogen Strategy (2020): uses regional renewable strengths to design differentiated hydrogen hubs, targeting environmental safeguards, local jobs and exports94 Financing Unequal capital access, market-ledClosing of the capital gap: blended finance, risk- sharing and international support mechanisms for emerging economiesEmerging economies (Africa, South Asia) facing highest capital costsSustainable Energy Fund for Africa (SEFA): provides blended capital and technical assistance for early-stage, high-risk clean energy projects across Sub-Saharan Africa95 Infrastructure Centralized, uniform tech deploymentLocalized innovation: context-specific infrastructure like decentralized grids, hydrogen hubs and AI tools adapted to national and regional conditionsAfrica: decentralized grids; Europe: hydrogen hubs; Asia: AI-powered energy optimizationDenmark’s energy islands: establishes artificial islands in the North Sea to centralize offshore wind generation, enabling local use, storage and cross-border clean energy exports96 Cooperation Globalized trade and techStrategic sovereignty: national energy independence, balanced with global cooperation on trade, tech and investment frameworksEU/US: tech alliances; MENA: interconnectors; Asia: supply chain coordinationLaos-Thailand-Malaysia- Singapore Power Integration Project (LTMS-PIP): a regional power integration project to balance supply and improve resilience97 Workforce One-size- fits-all labour strategiesTargeted workforce development: inclusive, localized strategies to build adaptable talent pipelines for diverse energy systemsFossil-heavy regions need re- skilling e.g. Gulf Cooperation Council (GCC); youth-skewed economies need up-skilling (e.g. Saudi Arabia)Germany’s Ruhr transition model: combines re- skilling, income support and innovation hubs to repurpose a former coal region into a clean technology economy98 Business case Subsidy-heavy and unstableMarket-driven transition: competitive, innovation- led conditions supported by stable policies and innovation-driven incentives to ensure a strong business case for needed energy investments and make clean energy the preferred business optionInvestment hubs (US, EU, United Arab Emirates) versus markets needing de- risking (Sub-Saharan Africa, Southeast Asia)US IRA: De-risked over $200 billion in private clean energy investment by linking subsidies to domestic manufacturing and project bankability99 Fostering Effective Energy Transition 2025 44