34) Is our energy market design fit for net zero?
In our latest podcast, our Research Partner, Dan Atzori, and our Senior Modeler, Tom Edwards, discuss energy governance challenges and how to overcome them. A number of key stakeholders in the energy transition are raising the issue of whether the governance status quo is adequate for achieving net zero. While there appears a growing consensus on the fact that reforms are needed, different solutions are being proposed. Common is the perception that the government needs to intervene in case of market failures, but answers differ in terms of which interventions could lead to optimal and efficient outcomes and which interventions could end up stifling market forces and innovation. In particular, following the UK Government’s announcement of the latest climate targets, our experts reflect on whether these objectives are achievable, and on the upcoming challenges of decarbonizing mobility and heat. What is more, they consider whether the current market design, introduced with the Energy Act 2013, is in need of a rethink, while sharing their thoughts on the respective roles of the state and market in the energy transition. Keep up to date with net zero governance and financing issuesThe “financing net zero” forum is aimed at all types of investors, providing the community with a platform to exchange information and views, and to discuss common issues and concerns affecting energy policy, regulation and financing, and informed by our independent and objective analysis and insight. The independent third-party mediation and contextual analysis provided by Cornwall Insight will act as a sound basis for informed, empirically-based discussions on these and other key issues.