Energy underpins every sector of the global economy. Decarbonising the energy system is therefore central to limiting global warming in line with the Paris Agreement and mitigating the worst impacts of climate change. Achieving this requires a fundamental transformation of the three pillars of the energy system - demand, supply, and infrastructure - from a primarily fossil-fueled system to an electrified one powered by low-carbon technologies. However, our analysis at both the global level1 and the UK level2 reveals that this transformation has stalled. On the current trajectory, neither the Paris Agreement goals nor the UK's Net Zero targets will be met. Specifically, the UK is on course to miss its Clean Power 2030 target and its 2035 goal of reducing emissions by 81% relative to 1990 levels. To deliver on the climate mitigation goals and targets calls for an acceleration of the transformation of the energy sector at an unprecedented pace and scale. This will require significant capital flows across all three pillars of the energy system. Mobilising such investment demands a de-risked landscape - one underpinned by clear, stable, and long-term policy frameworks as illustrated below.
Kimpton et al. (Tue,) studied this question.