Despite falling renewable energy prices, there are a series of macroeconomic and institutional barriers to action. Three will be discussed. The first is overcoming economic dependence. Governments face deep fiscal dependence on fossil fuel revenues, particularly with mounting public debt in the wake of recent health and geopolitical shocks. Infrastructure is built to last decades and it might not work as well with renewable energy sources that don’t have the same storage capacity (yet). The second theme is transforming supply and demand. This means expanding energy access, accelerating fuel switching, and securing energy systems for a low-carbon future. It also addresses the planned, just phase-down of extraction, pipelines, and refineries, and redirecting fossil fuel subsidies toward clean alternatives.
