In a globally interdependent world, a better financial and investment system cannot be achieved on a country-by-country basis. There may be no one-size-fits-all model for economic development, but without global standards and complementary regulations, the long-term outlook for the world economy will remain bleak.
Governments must address inconsistencies in their energy strategies, consider the links with broader economic policies, and stop sending mixed signals to consumers, producers, and investors. In particular, they must assess whether the right regulatory arrangements are in place to allow clean-energy investments to compete on a risk-return basis.