The energy transition is a technology revolution which will continue to attract capital and build its own momentum. Policy makers who wish to drive rapid change need to put in place the right enabling environment.
This paper presents a brief overview of technology revolutions and how they interact with financial markets. It notes that capital has tended to flow to new growth technologies, and that capital is now flowing rapidly into the new energy technologies that are driving change.
Over the past 200 years, there have been five key technology revolutions, each with four phases that are analogous to the four seasons. If the energy transition is the sixth technology revolution, then we are in the springtime of renewables.