Clean Energy Transition Deals

In response to the climate emergency and calls for action from science, business, investors, youth and the public at large, we outline an initiative that would support a number of coal-dependent countries in rapidly transitioning their energy systems. 

The energy-related development within the next few years - in particular in a number of emerging and developing countries in Asia - will be a key determinant of whether we can get on a pathway toward 1.5 degrees.

Many of these countries find themselves at a tipping point where they face a need to meet a rapidly increasing energy demand in a situation in which clean energy solutions are rapidly becoming competitive, but where institutions, policies, finance and the energy sector at large remains stuck in a fossil energy system.

Leadership is required in order to scale up investments in the energy transition in line with the 1.5°C objective. A number of in particular European countries that have moved ahead on their own energy transition should take the lead in building coalitions, relying on their domestic experience as well as their active bilateral, multilateral and private sector engagement in supporting the global energy transition.

Clean Energy Transition Deals will require buy-in from the highest levels of government, institutions and private sector. Core economic, planning and sector ministries must be engaged in both high-level policy and technical dialogues on ambitious targets and areas of cooperation that reflect the specific priorities and circumstances of each country.

Clean Energy Transition Deals would be accompanied by an unprecedented scale, quality, alignment and coordination of international technical support through bi- and multilateral channels.

Clean Energy Transition Deals would include mutually reinforcing commitments among key actors:

• Governments, states and cities set ambitious targets and commit to providing investment-enabling frameworks for the clean energy transition.
• Private sector contributes clean energy technology, procure clean energy, make investment commitments and provide finance.
• Expert organizations and public financial institutions provide comprehensive, coherent and streamlined technical and financial support to enable the scaling up of clean and the phasing down of fossil energy.

Clean Energy Transition Deals must address all relevant aspects of the transition, including:

1. Scaled-up investments in renewable energy supply and systems integration coupled with energy efficient and decarbonized buildings, transport and industry.
2. A managed phasing down of fossil energy, in particular coal, while ensuring a just transition and an solutions for handling stranded assets.
3. Maximizing socio-economic benefits in related policy areas such as employment, growth, air quality, trade, and innovation. In addition, potential additional incentives may be identified in unrelated areas through issue linking, e.g. related to market access and investment.