On May 30, the International Energy Agency released the “Affordable and Equitable Clean Energy Transition Strategy” report

(hereinafter referred to as the “Report”). The report pointed out that accelerating the transition to clean energy technologies

can improve the affordability of energy and help Alleviate consumers’ cost of living pressure.

The report makes it clear that in order to achieve the net zero goal by 2050, governments around the world will need to make

additional investments in clean energy. In this way, the operating costs of the global energy system are expected to be reduced

by more than half in the next decade. Ultimately, consumers will enjoy a more affordable and equitable energy system.

According to the International Energy Agency, clean energy technologies have more economic advantages over their life cycles

than technologies that rely on fossil fuels, with solar and wind energy becoming more economical choices in the new generation

of clean energy. In terms of application, even though the upfront cost of purchasing electric vehicles (including two-wheelers and

three-wheelers) may be higher, consumers usually save money because of their lower operating expenses during use.

The benefits of the clean energy transition are closely related to the level of upfront investment. The report emphasizes that there

is an imbalance in the current global energy system, which is mainly reflected in the high proportion of fossil fuel subsidies, making

it more difficult to invest in clean energy transformation. According to a report by the International Energy Agency, governments

around the world will invest a total of approximately US$620 billion in subsidizing the use of fossil fuels in 2023, while investment

in clean energy for consumers will be only US$70 billion.

The report analyzes that accelerating energy transformation and realizing the rise of renewable energy can provide consumers with

more economical and affordable energy services. Electricity will significantly replace petroleum products as electric vehicles, heat

pumps and electric motors become more widely used in multiple industries. It is expected that by 2035, electricity will replace oil

as the main energy consumption.

Fatih Birol, Director of the International Energy Agency, said: “The data clearly shows that the faster the clean energy transition is made,

the more cost-effective it is for governments, businesses and households. So, a more affordable approach for consumers It is about

accelerating the pace of energy transformation, but we need to do more to help poor areas and poor people gain a solid foothold in

the emerging clean energy economy.”

The report proposes a series of measures based on effective policies from countries around the world, aiming to increase the penetration

rate of clean technologies and benefit more people. These measures include providing energy efficiency retrofit plans for low-income

households, developing and funding efficient heating and cooling solutions, encouraging the purchase and use of green appliances,

increasing support for public transportation, promoting the second-hand electric vehicle market, etc., to mitigate the potential energy

transition brought about social inequality.

Policy intervention plays a crucial role in addressing the current severe inequalities in the energy system. Although sustainable energy

technologies are critical to achieving energy security and environmental protection, they remain out of reach for many. It is estimated

that nearly 750 million people in emerging market and developing economies do not have access to electricity, while more than 2 billion

people face difficulties in living due to a lack of clean cooking technologies and fuels. This inequity in energy access constitutes the most

fundamental social injustice and urgently needs to be addressed through policy intervention.