Accelerating change

This concluding chapter distils from preceding analysis and evidence key elements of energy reform strategies. They are comprehensive in addressing market imperfections, risks and distributional impacts to advance and guide low-carbon alternatives to net zero emissions goals. They include industrial policies and emissions pricing consistent with these goals, appropriately sequences and differentiated among easy- and hard-to-abate sectors. They also include adapting government-design energy markets, regulations and infrastructures to low-carbon alternatives. Moreover, country comparative advantages and specializations in advancing low-carbon alternatives mean that acting in isolation would be costly and clearly fail to address the global environmental externality. The chapter concludes by exploring ways that countries, building on their domestic energy reform strategies, can coordinate internationally climate actions and accelerate them towards achieving the Paris Agreement goals. While these approaches vary with technology characteristics and market structures, they point to the importance of sector-focused initiatives in accelerating change alongside country efforts.