State of Energy Policy 2024

The last four years unleashed a wave of new energy policies that addressed pressing energy security concerns and accelerated the uptake of clean energy. The global economic crunch triggered by the Covid19 pandemic prompted governments to launch new recovery and relief packages, with many prioritising clean energy transitions. Close to 150 countries - covering close to 95% of global greenhouse gas (GHG) emissions set forth new, more ambitious climate commitments, leading about 50 governments to tighten energy efficiency, renewables and emissions standards alongside these new incentives for clean energy. Since 2020, clean energy investment grew 60% globally.

Energy security has prominently reemerged as a priority for policymakers. Russia’s invasion of Ukraine in 2022 led to energy price spikes globally, highlighting the risks posed to interconnected energy systems. Countries were reminded anew of traditional energy security concerns, while the shift to clean energy brought forth new ones, particularly in terms of supply chain concentration of key technologies and the critical minerals essential to their production. Disruptions to trade routes amid growing geopolitical tensions and climate-induced extreme weather are complicating the situation, exposing energy systems to new vulnerabilities. More than ever, countries are having to consider and adopt new approaches to balance the interconnected goals of sustainability, affordability, competitiveness and security.

Against this backdrop, the IEA has produced its inaugural edition of State of Energy Policy. Intended as a ‘first-of-its-kind’ global inventory, this annual publication provides users with the most comprehensive up-to-date energy policies by countries and sectors, highlighting the most substantial changes in the preceding 12 months. It draws upon the expertise, insights, and review of numerous international experts, to compile more than 5 000 policy records across 50 key policy types from more than 60 countries, all available in a public database, the Energy Policy Inventory. Distinct trends emerge from this comprehensive review as to the types of policy governments use to bridge the gaps to their long-term pledges while ensuring energy security, and where these policies have gained traction.

Government incentives for clean energy grew to unprecedented levels, and are now a major driver for rising clean energy investment. Since 2020, governments have earmarked almost USD 2 trillion in direct investment support for clean energy – nearly triple the amount committed to clean energy in response to the 2007-08 financial crisis. Some 80% of this earmarked funding is concentrated in just three regions: China, the European Union and the United States. Many measures are framed as efforts to boost clean technology deployment and to secure positions in emerging industries that promise to be major future sources of growth and employment. New spending measures continue to be approved. In the first half of 2024 alone, more than 40 countries earmarked clean energy support, totalling to USD 290 billion.