Policy Dilemmas and Solutions to the Successful Energy Transition

Abstract

The energy sector is the main contributor to the emission of greenhouse gases (GHG), making the transition to clean energy an indispensable option in coping with the increasing pressure from climate change. Although more countries have committed to carbon neutrality by the mid-twenty-first century, the need to speed up the energy transition has become more urgent. However, the energy transition is more complicated than simply replacing one type of energy with another. It requires firm determination and comprehensive policy support. Some recent energy crises around the world have demonstrated that the challenges in achieving carbon neutrality and a successful energy transition have exceeded expectations. Policy makers have to recognize the need to balance short-term energy security and long-term sustainability. This chapter lists a number of challenges and dilemmas that could undermine policy effectiveness, and then discusses possible solutions. In the end, a managed market mechanism should be established to ensure a smooth transition.