What are the five key priorities to de-risk the energy transition?

De-risking and unlocking capital flows will be critical for energy projects to reach the point of financial investment decision, sooner. This will require smart planning, permitting, policy and regulation frameworks to drive returns from long-term investment into energy infrastructure, as well as new insurance products to deal with residual risk. It will also mean directing more capital to research and development, early-stage pilot and demonstration projects and the emerging energy tech start-up ecosystem.

Integrating well-thought-out design principles into new energy infrastructure and retrofitting existing infrastructure will be critical to help build resilience. As the custodians of innovation, research and development teams in the world’s top energy companies have a major role to play in developing new technical solutions for the problems faced by the sector.

A successful transition will require access to more and new streams of raw materials and the re-tooling of entire supply chains. The current crisis has emphasised the importance of resilient supply chains in maintaining momentum on renewable energy projects and maintaining secure supply. Attracting and reskilling the workforce of the future — both the next wave of graduates and existing industry talent — must be a top priority.

Energy companies must earn social acceptance for the infrastructure projects and lifestyle changes needed for a successful transition. This will require engagement and education at a macro level — to build broad acceptance of the need to invest in decarbonisation strategies — and at a community level, where essential energy transition infrastructure will be built.

A de-risked transition is one that is fair, balanced and just. Emerging markets that have contributed the least to global warming must be able to access the capital required to enable the switch to renewables. The cost of transition must be spread fairly within countries and across communities to make sure no one is left behind.