Energy policy seeks to shape decisions regarding how much and what type of energy are consumed, produced and where. This complex area encompasses infrastructure development, pricing policies and environmental and security considerations as well as individual choices made by households, businesses and governments alike.

Access to affordable and reliable energy is vital to developing countries’ success. Energy provides vital support for expanding industry, modern agriculture and trade — essential tools that move families out of poverty towards prosperity.

Globally, energy demand continues to increase at an alarming pace. While its acceleration can be explained in part by physical laws and technology advances, most of it stems from individual choices and government policies that influence energy use. Nations that consume vast amounts of energy face difficulty managing how to reduce their energy use while mitigating any environmental consequences from this usage increase.

Decades of research have yielded several established strategies to lower greenhouse gas emissions from energy sectors. These include shifting away from coal, increasing renewables’ share in energy mix, and shifting economies along more sustainable pathways rather than replicating older methods of carbon intensive expansion.

Governments at local, regional and national levels implement policies designed to influence energy consumption. Financial incentives like price controls and rebates are the most commonly employed tools; other incentives can focus on changing behavior through measures like energy efficiency labels or building codes or fuel economy standards for automobiles.