Failing to accelerate the energy transformation would prompt significant economic consequences. Delayed action would not only make decarbonization more expensive and disruptive later – it would also expose economies to escalating risks. –Higher adaptation and disaster recovery costs as climate impacts intensify –Growing investor uncertainty in carbon- intensive assets and sectors –Loss of competitiveness in global markets where clean technologies are the new standard –Widening inequality and social instability, particularly in fossil fuel-dependent regions left behind In short, the cost of inaction is not only environmental – it is economic, financial and geopolitical. The real risk lies not in moving too fast, but in moving too slowly. To ensure that market forces drive the transition forward, three critical shifts are needed: –Align financial incentives with energy goals: De-risk clean energy through innovative and blended finance, public-private partnerships and robust carbon markets to unlock private capital at scale. –Improve market conditions for clean energy: Modernize grids, scale storage and implement effective carbon pricing to level the playing field and reduce system costs. –Drive innovation and cost competitiveness: Invest in next-generation technologies and scale up clean technology manufacturing to accelerate deployment and lower costs. The energy transformation is at a crossroads, and policy ambition alone will not be enough. Economic viability must take centre stage. Governments, investors and businesses must work together to build a market-driven energy transformation that delivers strong financial returns while addressing the energy trilemma. Success will depend on one critical factor: making this transformation a profitable, scalable and self-sustaining economic opportunity. Governments, investors and businesses must work together to build a market- driven energy transformation that delivers strong financial returns. Fostering Effective Energy Transition 2025 49