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Project Transitions

Investment in the energy system of tomorrow requires substantial resources and informed policy making to achieve energy-security, economic and environmental objectives. The International Energy Agency (IEA) estimates 26 trillion USD in investments will be needed in the energy sector by 2030 to sustain current energy trends. Energy business-as-usual, however, and the resulting environmental impacts, are not sustainable as they result in energy insecurity and climate damages.

More infrastructure investment is needed, but how can governments ensure it comes in a form that enhances social welfare? Will policy incentives take into account the realities of an energy system characterised by slow capital turnover, and great infrastructure variability among nations and within national borders? What are the policies that meet security, economic and environmental objectives in light of energy-sector inertia? How can governments empower investors to make investment and technology choices in the near term that most cost effectively meet energy and environmental objectives in the long term? These are the questions that motivate Project Transitions

In particular, Project Transitions seeks to answer:

• how energy security and climate change concerns complicate and increase the urgency of the investment challenge
  
  
• how capital-stock turnover, technology performance, timing, and climate uncertainty impact investment choices across different sectors (power, buildings, industry) and geographic areas
  
  
• what are the most important near-term energy infrastructure decisions that should be made and
  
  
• how policies can influence various investment drivers to encourage climate responsive ventures in new builds and refurbishments