Energizing The Future: A Holistic Approach To Global Sustainability

The global shift to sustainable energy demands a comprehensive policy approach for anequitable transition, ensuring energy security and addressing rising energy needs. The G7’surgency to phase out unabated coal-based power plants globally requires crucial financing oftheir retirement through transition financing mechanisms similar to the Just Energy TransitionPartnerships and Energy Transition Mechanism . At the same time, challenges persist with the reliability of solar and wind energy due to their intermittency. In addition, dependency onlimited geographies supplying renewable energy technologies highlights vulnerabilities incritical mineral supply chains. The G7 faces complexity in ensuring global energy security amidstenhanced geopolitical risks. However, with the implementation of the proposed solutions, thereis a potential for significant positive change. Energy demand growth due to population growth,improvements in energy access, electrification, new technologies, and income growth risesever higher despite gains from energy efficiency. This policy brief proposes solutions, includingfinancing the retirement of unabated coal-fired power plants, incentivizing local content-basedenergy technology manufacturing, diversifying technology providers, and increasing electricitytrading by developing common principles for electricity trading to support G7’s goals andextending these benefits globally.