From Cost to Value
To make a real difference, we need to shift political focus from cost to value
We no longer live in an age where net-zero carbon solutions can be achieved simply through economic growth and sustainable policies that give rise to clean industries.
Policymakers must make decisions based on system value to realistically measure the impact of policies by taking into consideration not just the cost of energy, but also the broader impacts, encompassing emissions, water footprint, air quality and human health, job creation, energy access and resilience.
Adopting the System Value Approach gives us a more holistic evaluation of the economic, environmental, social and technical outcomes of policies and investments decisions.
Studies undertaken by The World Econimic Forum, prove that an acceleration of a Sustainable Energy Transition can really pay off by delivering a higher net benefit than continuing on our current path.
Cost focus is not enough*
Investing in wind energy is a safe bet – not only from a climate or environmental perspective, but also from a cost perspective. Wind energy relies on a stable and predictable cost model, it is also likely to continue improving in cost effectiveness as the technology develops further. Overall, wind energy hold the potential to drive a more sustainable and cost efficient future.
Opting for renewables entails a higher upfront investment and will require grid upgrades. However, wind is free and abundant, while fossil fuel prices vary. Renewables displace carbon emissions, air pollution, and reduce water consumption.
Netting positive and negative impacts out – a sustainable energy transition has a higher societal return on investment than business-as-usual.
Invest to maximize societal return
As per the IEA, converting to a net-zero by 2050 growth paths, will result in 0.5% additional annual growth of GDP and additional 30 million people working in clean energy, efficiency and low‐emissions technologies by 2030.