Reclaiming Energy Report: Part 1 - The Profit Trap Subsidies, Fossil Fuels and Energy Expansion

18 December 2024

40 minutes read

The dominant market-driven energy model is failing us. To achieve a rapid and fair energy transition, governments must take charge: nationalise fossil fuels, phase them out, and lead with public, socially accountable energy policies that prioritize people over profits.

Reclaiming Energy Report: Part 1 - The Profit Trap (PDF, 9.71 MB)

Average time to read: 40 minutes

Publication type: Report
Part of series: Public Power trilogy

Authors

Summary

Part 1 demonstrates the failures of the dominant market-based energy model.

Privatisation, liberalisation and the profit motive are standing in the way of the rapid and equitable energy transition we need. While the renewable energy sector is growing, fossil fuel consumption continues to rise to meet ever-growing energy demand — we are witnessing an energy expansion, rather than an energy transition. Meanwhile, millions of people across the world lack access to sufficient energy to meet their basic needs. And fossil fuel companies continue to evade regulation and rake in bumper profits.

Part of the answer is nationalising the fossil fuel industry — this provides the best hope for effective and rapid phase-out of fossil fuels to be achieved. More generally, the role of government must change. At present, governments prop up private firms in the fossil fuels and renewable energy sectors with generous subsidies. Profits are privatised, while risks are socialised.

Instead of acting as market facilitator, governments should instead lead the way through proactive public energy policy. They can do this by establishing democratically accountable and socially controlled public utility firms capable of delivering planned, coordinated and equitable transitions.