In Search of a Triple Win

The briefing analyzes 1,047 energy policies adopted between January 2020 and November 2021, finding that most governments prioritize short-term poverty reduction over long-term inequality reduction. While 60% of policies could reduce poverty, only 11% are likely to decrease inequality. The authors identify 'win-win' policies (e.g., energy efficiency in social housing) and 'lose-lose' policies (e.g., fossil fuel extraction support), arguing that the social outcomes of energy transitions depend heavily on policy design, contextual factors, and complementary social protections.

• There is a significant gap between the ability of energy policies to reduce poverty versus their ability to reduce inequality. Approximately 60% of analyzed policies (748 policies) have the potential to decrease poverty if implemented correctly, whereas only 11% (143 policies) are likely to decrease inequality.
• A small minority of energy policies achieve both positive environmental and social outcomes. Only 13% of the policies in the dataset are classified as 'win-win,' which includes support for cycling and energy-efficiency programs in social housing and public/commercial buildings.
• Many policies supporting fossil fuels are 'lose-lose,' meaning they are detrimental to the climate and carry high social risks. This is particularly evident in the resource extraction sector, where support for exploration and production can centralize wealth and increase local pollution.
• Clean energy policies are not automatically progressive and can increase inequality in the short term. For example, subsidies for electric vehicles (EVs) and private housing retrofits often benefit higher-income households who can afford the upfront costs, though they may reduce poverty through the creation of low-skilled jobs.
• The social impacts of energy policies vary over time. Fossil fuel subsidies may provide immediate poverty relief by lowering energy prices, but these are often outweighed by long-term costs of pollution and climate change. Conversely, clean energy policies may impose initial costs that are reversed as prices drop and demand increases.
• The mobility sector received the highest amount of public funding (USD 420.3 billion, or 50% of total commitments), but much of this supported fossil fuel-based transport. Airline bailouts, totaling over USD 158 billion, risk increasing inequality if funds primarily benefit shareholders and high-income passengers.
• The buildings sector represents a missed opportunity for social and climate gains, receiving the lowest funding (USD 47.5 billion, or 6% of total commitments) despite the high potential for emission reductions and poverty alleviation through job creation and energy savings.
• Negative social outcomes can be mitigated through specific policy design and complementary measures. Effective strategies include targeting incentives for low-income groups via cash transfers, making industry support conditional on worker protection, and implementing job retraining for workers in declining industries.

APA

Dufour, L., Roth, J., & Picciariello, A. (2022). In Search of a Triple Win. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-04/covid-19-impacts-clean-energy-transition-inequality-poverty.pdf

Chicago

Dufour, Lucile, Joachim Roth, and Angela Picciariello. In Search of a Triple Win. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-04/covid-19-impacts-clean-energy-transition-inequality-poverty.pdf.

Wikipedia

{{cite report |last1=Dufour |first1=Lucile |last2=Roth |first2=Joachim |last3=Picciariello |first3=Angela |title=In Search of a Triple Win |publisher=International Institute for Sustainable Development |date=April 2022 |url=https://www.iisd.org/system/files/2022-04/covid-19-impacts-clean-energy-transition-inequality-poverty.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dufour2022search, author = {Dufour, Lucile and Roth, Joachim and Picciariello, Angela}, title = {{In Search of a Triple Win}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = apr, url = {https://www.iisd.org/system/files/2022-04/covid-19-impacts-clean-energy-transition-inequality-poverty.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }