View source for Energy policy

{{Short description|How a government or business deals with energy}}
{{for|the academic journal|Energy Policy (journal)}}
{{Lead too short|date=June 2022}}
[[File:TAP TANAP SCP Schah Denis.png|thumb|300px|Example of energy policy decisions: The goal of the [[Southern Gas Corridor]], which connects the giant [[Shah Deniz gas field]] in [[Azerbaijan]] to Europe, is to reduce Europe's dependency on Russian gas.]]

'''Energy policies''' are the government's strategies and decisions regarding the [[Energy production|production]], [[Energy distribution|distribution]], and [[World energy supply and consumption|consumption of energy]] within a specific [[jurisdiction]]. Energy is essential for the functioning of modern economies because they require energy for many sectors, such as industry, transport, agriculture, housing. The main components of energy policy include [[legislation]], international treaties, [[Energy subsidy|energy subsidies]] and other [[public policy]] techniques.

The energy sector emits more greenhouse gas worldwide than any other sector.<ref name=":0" /> Therefore, energy policies are closely related to [[climate policies]]. These decisions affect how high the [[greenhouse gas emissions]] by that country are.

The main components of energy policy include:

* Legislation and regulation – Governments implement laws to promote renewable energy, set efficiency standards, and regulate fossil fuel extraction.<ref>{{Cite web |title=International Energy Outlook 2023 - U.S. Energy Information Administration (EIA) |url=https://www.eia.gov/outlooks/ieo/ |archive-url=http://web.archive.org/web/20250702073922/https://www.eia.gov/outlooks/ieo/ |archive-date=2025-07-02 |access-date=2025-07-16 |website=www.eia.gov}}</ref>
* International treaties – Agreements like the Paris Climate Accord influence national energy strategies by setting emission reduction targets.<ref>{{Citation |title=UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE (UNFCCC) |date=2008-11-28 |work=The Complete Guide to Climate Change |pages=392–403 |url=https://doi.org/10.4324/9780203888469-65 |access-date=2025-07-16 |publisher=Routledge |isbn=978-0-203-88846-9}}</ref>
* Subsidies and incentives – Many governments provide financial support for clean energy technologies while phasing out fossil fuel subsidies.<ref>{{Citation |last=Sabine |first=Schlemmer-Schulte |title=International Monetary Fund (IMF) |date=October 2014 |work=Max Planck Encyclopedia of Public International Law |url=https://doi.org/10.1093/law:epil/9780199231690/e492 |access-date=2025-07-16 |publisher=Oxford University Press |isbn=978-0-19-923169-0}}</ref>
* Public policy techniques – These include carbon pricing, renewable portfolio standards, and energy efficiency mandates.<ref>{{Cite journal |date=2023-12-31 |title=Results and Performance of the World Bank Group 2023 |doi=10.1596/ieg184584|doi-access=free }}</ref>

The energy sector is the largest contributor to global greenhouse gas (GHG) emissions, accounting for over 73% of total CO<sub>2</sub> emissions worldwide. As a result, energy policies are intrinsically linked to climate policies. Decisions regarding energy infrastructure—such as reliance on coal versus renewables—determine a nation's carbon footprint and its ability to meet international climate commitments (Intergovernmental Panel on Climate Change. For instance, countries investing in wind, solar, and nuclear energy typically achieve faster decarbonization than those dependent on coal and oil.

Given the urgency of climate change, many nations are transitioning toward low-carbon energy systems through policies like the U.S. Inflation Reduction Act (IRA) and the European Green Deal, which incentivize renewable energy adoption while reducing fossil fuel dependence.<ref>{{Cite journal |last=Krebs |first=I. |last2=Artola |first2=F. J. |last3=Sovinec |first3=C. R. |last4=Jardin |first4=S. C. |last5=Bunkers |first5=K. J. |last6=Hoelzl |first6=M. |last7=Ferraro |first7=N. M. |date=2020-02-01 |title=Axisymmetric simulations of vertical displacement events in tokamaks: A benchmark of M3D-C1, NIMROD, and JOREK |journal=Physics of Plasmas |volume=27 |issue=2 |doi=10.1063/1.5127664 |issn=1070-664X|arxiv=1908.02387 }}</ref>{{TOC limit|3}}

==Purposes==
Access to energy is critical for basic social needs, such as lighting, heating, cooking, and healthcare. Given the importance of energy, the price of energy has a direct effect on jobs, economic productivity, business competitiveness, and the cost of goods and services.

Frequently the dominant issue of energy policy is the risk of supply-demand mismatch (see: [[energy crisis]]). Current energy policies also address environmental issues (see: [[climate change]]), particularly challenging because of the need to reconcile global objectives and international rules with domestic needs and laws.<ref>{{cite journal |last1=Farah |first1=Paolo Davide |last2=Rossi |first2=Piercarlo |date=December 2, 2011 |title=National Energy Policies and Energy Security in the Context of Climate Change and Global Environmental Risks: A Theoretical Framework for Reconciling Domestic and International Law Through a Multiscalar and Multilevel Approach |journal=European Energy and Environmental Law Review |volume=2 |issue=6 |pages=232–244 |ssrn=1970698}}</ref>

The "human dimensions" of [[energy use]] are of increasing interest to [[business sector|business]], utilities, and policymakers. Using the [[social sciences]] to gain insights into energy [[consumer behavior]] can help policymakers to make better decisions about broad-based [[climate and energy]] options.<ref>{{Cite web |title=Nudge • Nudging consumers towards energy efficiency through behavioural science |url=https://www.nudgeproject.eu/ |access-date=2022-06-04 |website=Nudge |language=en-US}}</ref> This could facilitate more [[efficient energy use]], [[renewable energy commercialization|renewable-energy commercialization]], and [[carbon emission|carbon-emission]] reductions.<ref>Robert C. Armstrong, Catherine Wolfram, Robert Gross, Nathan S. Lewis, and [[M.V. Ramana]] et al., "The Frontiers of Energy", ''Nature Energy'', Vol 1, 11 January 2016.</ref>

== Approaches ==
{{See also|Sustainable energy#Government policies}}

The attributes of energy policy may include [[legislation]], international treaties, incentives to investment, guidelines for [[energy conservation]], [[tax]]ation and other public policy techniques. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool.

[[Energy planning]] is more detailed than energy policy.

=== National energy policy ===
Some governments state an explicit energy policy. Others do not but in any case, each government practices some type of energy policy. A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives.

There are a number of elements that are contained in a national energy policy. Some important elements intrinsic to an energy policy include:<ref>{{Cite book |last=Hamilton |first=Michael S |url=https://www.taylorfrancis.com/books/9781317471479 |title=Energy Policy Analysis: A Conceptual Framework |date=2014 |publisher=Routledge |isbn=978-1-317-47147-9 |edition=0 |language=en |doi=10.4324/9781315704647}}</ref>

* What is the extent of [[energy independence|energy self-sufficiency]] for this nation
* Where future energy sources will derive
* How future energy will be consumed (e.g. among sectors)
* What are the goals for future [[energy intensity]], ratio of energy consumed to [[GDP]]
* How can the national policy drive province, state and municipal functions
* What specific mechanisms (e.g. taxes, incentives, manufacturing standards) are in place to implement the total policy
*Do you want to develop and promote a plan for how to get the world to [[net zero emissions]]?
*What [[fiscal policy|fiscal policies]] related to energy products and services should be used (taxes, exemptions, [[energy subsidies|subsidies]], etc.)?
*What legislation affecting [[Efficient energy use|energy use]], such as [[Minimum Efficiency Performance Standards|efficiency standards]], [[emission standard]]s, is needed?

=== Relationship to other government policies ===
{{Further|climate change policy|environmental policy}}
Energy policy sometimes dominates and sometimes is dominated by other government policies. For example energy policy may dominate, supplying free coal to poor families and schools thus supporting [[social policy]],<ref>{{Cite web |date=2022-05-31 |title=WB-6 countries struggling to secure electricity production in their old coal power plants |url=https://balkangreenenergynews.com/wb-6-countries-struggling-to-secure-electricity-production-in-their-old-coal-power-plants/ |access-date=2022-06-04 |website=Balkan Green Energy News |language=en-US}}</ref> but thus causing [[air pollution]] and so impeding [[Health policy|heath policy]] and [[environmental policy]].<ref>{{Cite web |title=Health and climate change: country profile 2022: Turkey - Turkey {{!}} ReliefWeb |url=https://reliefweb.int/report/turkey/health-and-climate-change-country-profile-2022-turkey |access-date=2022-06-04 |website=reliefweb.int |language=en}}</ref>{{Rp|page=13}} On the other hand energy policy may be dominated by [[defense policy]], for example some counties started building expensive nuclear power plants to supply material for bombs.<ref>{{Cite web |title=The links between nuclear power and nuclear weapons - |url=https://cnduk.org/resources/links-nuclear-power-nuclear-weapons/ |access-date=2022-06-04 |language=en-GB}}</ref> Or defense policy may be dominated for a while, eventually resulting in [[stranded asset]]s, such as [[Nord Stream 2]].

Energy policy is closely related to [[climate change policy]] because totalled worldwide the energy sector [[Greenhouse gas emissions|emits more greenhouse gas]] than other sectors.<ref name=":0">{{Cite web |title=Climate change – Topics |url=https://www.iea.org/topics/climate-change |access-date=2022-06-04 |website=IEA |language=en-GB}}</ref>

Energy policy decisions are sometimes not taken democratically.<ref>{{Cite web |last=Kasturi |first=Charu Sudan |title=Kazakhstan unrest highlights tricky terrain of fuel subsidy cuts |url=https://www.aljazeera.com/economy/2022/1/13/kazahstan-unrest-highlights-tricky-terrain-of-fuel-subsidy-cuts |access-date=2022-01-15 |website=www.aljazeera.com |language=en}}</ref>

=== Corporate energy policy   ===
In 2019, some companies "have committed to set climate targets across their operations and value chains aligned with limiting global temperature rise to 1.5°C above pre-industrial levels and reaching net-zero emissions by no later than 2050".<ref>{{Cite web |date=22 September 2019 |title=87 Major Companies Lead the Way Towards a 1.5°C Future at UN Climate Action Summit |url=https://unfccc.int/news/87-major-companies-lead-the-way-towards-a-15degc-future-at-un-climate-action-summit |access-date=11 May 2020 |website=UNFCCC}}</ref> Corporate [[power purchase agreement]]s can kickstart renewable energy projects,<ref>{{Cite journal |last=Christophers |first=Brett |date=2022-05-19 |title=Taking Renewables to Market: Prospects for the After-Subsidy Energy Transition: The 2021 Antipode RGS-IBG Lecture |journal=Antipode |language=en |article-number=anti.12847 |doi=10.1111/anti.12847 |s2cid=248939579 |issn=0066-4812|doi-access=free }}</ref> but the energy policies of some countries do not allow or discourage them.<ref>{{Cite web |title=PPA structures and parties involved around the world - DLA Piper Corporate PPAs |url=https://www.dlapiperintelligence.com/corporateppa/countries/ |access-date=2022-06-01 |website=www.dlapiperintelligence.com}}</ref>

== By type of energy ==
=== Nuclear energy ===
{{Excerpt|Nuclear energy policy|file=no}}

=== Renewable energy ===
{{Excerpt|renewable energy policy|Public policy landscape|paragraphs=1-2}}

== Examples ==
=== China ===
{{excerpt|Energy policy of China|paragraphs=1-2|file=no}}

===India===
{{excerpt|Energy policy of India|paragraphs=1-3|file=no}}

===Ecuador===
{{excerpt|Energy policy of Ecuador|paragraphs=1|file=no}}

=== European Union ===
[[File:RF NG pipestoEU.gif|thumb|Russia was a key [[Russia in the European energy sector|oil and gas supplier to Europe]] (map from 2013). This changed with the [[Russian invasion of Ukraine]] in 2022.]]{{excerpt|Energy policy of the European Union|paragraphs=1|file=no}}

===Russia===
{{excerpt|Energy policy of Russia|paragraphs=1-2|file=no}}

=== United Kingdom ===
{{excerpt|Energy policy of the United Kingdom|file=no}}

===United States===
{{excerpt|Energy policy of the United States|paragraphs=1-3|file=no}}

== By country ==
Energy policies vary by country, see tables below.
{{world topic|Energy policy of|title=Energy policy by country|noredlinks=yes|state=expand}}
{{world topic|Energy in|title=Energy by country|noredlinks=yes|state=expand}}

==See also==
{{Portal|Energy|Renewable energy}}
*[[Energy economics|Energy balance]]
* [[Energy industry]]
*[[Energy security]]
*[[Energy supply]]
*[[Energy transition]]
*[[Environmental policy]]
*[[Petroleum politics]]
*[[Sustainable energy]]
*{{in title|Energy policy of}}

==References==
{{Reflist}}

==External links==
{{Commons category|Energy policy}}
*[https://www.iea.org/policies/about ''"Energy Policies of (Country x)"'' series], [[International Energy Agency]]
*[http://esa.un.org/un-energy UN-Energy] {{Webarchive|url=https://web.archive.org/web/20110625024206/http://esa.un.org/un-energy/ |date=2011-06-25 }} - Global energy policy co-ordination
*[http://www.ren21.net Renewable Energy Policy Network (REN21)]
*[http://www.enerdata.net/enerdatauk/knowledge/eshop/market-report-by-category.php Information on energy institutions, policies and local energy companies by country, Enerdata Publications]

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{{Footer energy}}
{{Environmental social science}}
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[[Category:Energy economics]]
[[Category:Environmental social science]]
[[Category:Climate change policy]]