Current energy systems are “locked-in” to high carbon production and consumption patterns that can be difficult to break. Structural change in the energy sector will involve more than just changing existing technologies; it will also affect supply chains, physical infrastructure, user practices, markets and regulatory systems. Countries will choose the most appropriate option depending on national circumstances, whether it is low-carbon energy supply, carbon capture and storage or energy efficiency. Flexibility should be built into long-lived new energy assets to allow for changes of environmental regulations and wider economic conditions such as fuel prices.

The transition to a low-carbon energy system is likely to have a positive impact on employment within the energy sector, as renewable energy tends to be more labour-intensive than fossil fuelbased energy, although the actual employment impact will differ by energy technology. Governments should pay attention to the distributional impacts of the energy transition, both within countries in terms of the effect on the poor, who tend to spend a larger share of their income on energy, and between countries, as patterns of trade related to fossil fuels change.