Thoughtful analysis piece in @TheEconomist - “The energy transition will be expensive - But not catastrophically so” (1/5)

Cc: @dwallacewells @ramez @Noahpinion @JesseJenkins

www.economist.com/special-report/2022/10/05/the-energy-transition-will-be-expensive

Reason 1 for optimism - it’s the incremental cost that matters, not the absolute one (vast majority of “costs” would have happened anyway). (2/5)

Reason 2 for optimism - carbon pricing is hugely effective, and now covers 1/4 of global emissions (3/5)

Reason 3 for optimism - the economics of green energy have improved considerably, and virtuous cycle of deployment-cost declines likely to continue (4/5)

Challenges cited in the piece:

- rising inflation & interest rates mean costs (which depend on debt financing) will rise significantly

- change has to happen at scale & quickly

- developing world is experiencing major population growth, which will compound challenges

(5/5)