What are the main drivers of the energy transition in the 21st century?

• A. Rising fossil fuel subsidies.
• B. Climate change concerns, falling costs of renewables and storage, energy security, air quality improvements, and policy/regulatory support.
• C. Declining demand for energy.
• D. Increased use of coal.

Answer: (B)

Energy transition is propelled by a mix of environmental, economic, health, and policy forces. Climate change concerns push societies to cut greenhouse gas emissions, while the falling costs of renewable energy and energy storage make clean power more affordable and reliable. Security considerations drive diversification of energy sources to reduce dependence on imported fuels and volatile markets. Improvements in air quality and public health motivate replacing fossil fuels with cleaner electricity and transportation options. Strong policy and regulatory support—carbon pricing, mandates, subsidies for clean technologies, and grid modernization—provide the necessary incentives and clarity for investors. Together, these factors create a powerful, overlapping push toward cleaner energy. Substantial fossil-fuel subsidies, a broad drop in overall energy demand, or a rise in coal use would work against this trend.