RECAI: Chief Editor’s note
The small “p” of policy and the big “P” of Politics.
Making a unpopular decision is one thing. The market adapts, and life goes on. But delayed decisions, inconsistent messaging and policy overhauls are another thing altogether. We talk about the impact of policy and regulation on renewable energy markets’ stability and attractiveness, but it is too often politics, not policy, in the driving seat.
We only need to look at the US, UK, Germany, Australia and Poland to find boom-bust cycles, delayed investment, abandoned projects and market exits.
But surely energy is too important to be subject to the big “P” of politics?
With most countries facing an energy imperative of some kind – whether surging demand or decommissioning old plants – governments must create stable markets for conventional and clean energy that are free from bureaucratic obstacles and political point-scoring.
The Intergovernmental Panel on Climate Change’s latest report concludes with 95%–100% certainty that climate change is caused by human activity.
This, combined with other factors like continuous population growth, accelerated urbanization, and increasing consumption across emerging markets, highlights the desperate need to focus on tomorrow’s low-carbon energy strategies.
Renewable technology innovation represents a huge opportunity.
Given that we are currently exploiting only a fraction of the world’s natural renewable sources, we need to stretch our ingenuity and use all the elements to maximize renewable energy’s potential, rather than just relying on the cheapest sources today.
We must also constantly innovate in order to create the right conditions for tomorrow’s disruptive technologies.
Global Cleantech Transactions Leader
UK Environment Finance Leader