Building Trust through an Equitable and Inclusive Energy Transition

The report emphasizes that neglecting the social dimensions of the energy transition—specifically equity, justice, and inclusivity—risks eroding trust and causing the transition to fail. It identifies symptoms of an unequal transition, such as persistent energy poverty and skewed investment patterns, and proposes a multidimensional approach involving regulatory reform, targeted finance, and workforce reskilling to ensure a people-centered transition.

• The global energy transition is currently hindered by an oversimplified narrative that focuses primarily on the supply side (shifting from fossil fuels to renewables) while ignoring the complex socio-economic dimensions of equity and inclusivity.
• Energy poverty and affordability are worsening globally; geopolitical and energy crises have pushed approximately 120 million people into extreme poverty, with a projected increase to 132 million by 2030.
• Clean energy investment is heavily concentrated in a few regions, with over 90% of investment growth since 2021 occurring in China and advanced economies.
• Significant disparities exist in energy access, with over 775 million people lacking electricity (including 600 million in Sub-Saharan Africa) and 2.3 billion lacking clean cooking facilities.
• The transition creates a risk of 'winners and losers,' where those in incumbent fossil fuel industries—employing over 32 million people globally—face job losses and may lack the technical skills required for new low-carbon roles.
• A 'just transition' framework requires the maintenance of three types of fairness: distributional justice (fair resource and cost allocation), procedural justice (inclusive decision-making), and recognitional justice (rectifying past harms).
• In the United States, 25% of households (30.6 million) struggle with high energy burdens, and low-income households experience burdens 3.5 times higher than the average.
• Capital costs for renewable energy projects in emerging and developing economies are at least double those found in advanced economies.
• Distributed renewable energy, such as mini-grids and small-scale solar, is identified as the most cost-effective way to provide power to more than 60% of Africa's off-grid population.
• The report identifies a critical need for 'people-positive' community engagement to prevent 'not in my backyard' (NIMBY) movements and avoid costly project delays or cancellations.

APA

World Economic Forum (2024). Building Trust through an Equitable and Inclusive Energy Transition. https://www3.weforum.org/docs/WEF_Building_Trust_through_an_Equitable_and_Inclusive_Energy_Transition_2024.pdf

Chicago

World Economic Forum. Building Trust through an Equitable and Inclusive Energy Transition. 2024. https://www3.weforum.org/docs/WEF_Building_Trust_through_an_Equitable_and_Inclusive_Energy_Transition_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Building Trust through an Equitable and Inclusive Energy Transition |date=January 2024 |url=https://www3.weforum.org/docs/WEF_Building_Trust_through_an_Equitable_and_Inclusive_Energy_Transition_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024building, author = {{World Economic Forum}}, title = {{Building Trust through an Equitable and Inclusive Energy Transition}}, institution = {World Economic Forum}, year = {2024}, month = jan, url = {https://www3.weforum.org/docs/WEF_Building_Trust_through_an_Equitable_and_Inclusive_Energy_Transition_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }