Thread by @delivernetzero

The @IEA indicate that 75% of emissions reductions required by 2070 can be delivered by tech that ALREADY exists 💡

How can #energyinnovation be accelerated to ensure these techs are ready? 🚀

Check out our short briefing: bit.ly/2WW42kp
A🧵below 👇

#EnergyTwitter

Studies indicate energy technologies take 20-68 years to move from 1st prototype to 1% of a national market ⏰

Accelerating this process requires the emergence of:
📜supporting policies
⚖️regulatory frameworks
🤝firm engagement &
🙋‍♀️societal support

..to drive market creation

As energy represents a complex legacy sector, this process will be slowed and shaped by inertia contained within existing systems, as new technologies increasingly drive disruption 🎆

Accelerating innovation therefore depends on funding and policies put in place TODAY✅

UK energy innovation funding has drastically increased since the early 2000s 📈

Until recently, this has mostly focused on cost reduction+ deployment of large scale renewable electricity techs, delivered by existing firms using centralised infrastructure+ markets

UK funding however, continues to grow and diversify.

The 2020 Energy White Paper announced a £1b #NetZero Innovation Portfolio that aims to reduce the cost of transition, nurture new products+ influence consumer behaviour.

The portfolio has ten broad areas of focus 👇

These commitments build on the 2018 Clean Growth
Strategy, which dedicated £2.5 billion to low carbon
innovation 2015-2021 💷

In 2018, the UK spent £832.5m on #energyinnovation funding, an increase of £365.45m since 2015 to align with @MICleanEnergyRD commitments🤝

Additional funding support includes the #IndustrialStrategy Challenge Fund 'Prospering from the Energy Revolution' 💡Focused on smart local energy system demonstrators, smart meter roll out, nuclear and offshore wind sector deals+ exploration of low carbon hydrogen

If funding is to effectively advance this broad range of techs, a stable, coherent innovation policy mix needs to encourage:

🚎Mainstream deployment of existing techs
👨‍🔬Ongoing research into earlier-stage techs, &
🏦Reform of existing systems to allow new solutions to emerge

Six approaches to energy innovation policy making could support these efforts...

1⃣ Provide greater demonstration & deployment support
🔹 Create co-funding opportunities with firms
🔹 Tilt policy+ regulatory frameworks to favour certain approaches to create demand

2⃣ Convene cross-sector coalitions
🔹Engage with coalitions that exert pressure and develop pervasive narratives, helping to provide legitimacy for new approaches

3⃣ Shift from supporting individual innovations towards managing broader systems change
🔹Support both the rapid diffusion of existing technologies and the development of complementary
innovations, helping to avoid innovation bottlenecks

4⃣ Implement strong green industrial policy
🔹Use public procurement to catalyse early market development, stimulate stable market demand+ shape systems transformation
🔹Develop equitable public-private partnerships to effectively engage industry+ reduce public risk

5⃣ Focus on building favourable public narratives
🔹 Support business model innovation by existing+ emerging firms to create new ways to engage consumers
🔹 Harness trusted voices to build consumer acceptability via increased information sharing+ responding to concerns

6⃣ Challenge existing institutions
🔹 Address the influence of existing policy paradigms on policy maker decisions+ regulatory environments
🔹 Work with incumbent firms to accelerate change or confront them if their interests do not align with net zero

Adopting these approaches face issues that need to addressed if they are to be implemented effectively. These include:

📊 Lack of stable, long-term policy environment
🔀 Increased interaction between multiple systems
🛡️ Incumbent resistance
💭 Values underlying policy decisions

More detail on accelerating #energyinnovation can be found in our full briefing on the Delivering Net Zero website: bit.ly/2WW42kp

Thank you for reading, we hope you found this useful 🙏

Please share and reply with any comments, feedback or questions #netzero