Last week, COP28 closed with an agreement to transition away from fossil fuels and triple global renewable energy and nuclear power production by 2050. While COP agreements notoriously overpromise and underdeliver, the global support to increase low-carbon energy generation makes one thing abundantly clear: the world is going to need more innovation. Meeting energy demands and emissions goals will best be met by doubling down on and expanding economic freedom globally. 

The task of moving away from fossil fuels quickly or suddenly is wildly unrealistic as they supply 80% of the world’s energy needs. Global energy demand is expected to increase 50% by 2050, with a majority of that growth coming in the developing world. Fossil fuels are also responsible for many of the goods that have advanced human prosperity including fertilizers, cell phones, cookstoves, clothing, and more.

While a mandated, full transition away from fossil fuels is neither well-advised or likely, scaling down and meeting consumers’ needs will require innovative breakthroughs to a scale and pace that has not historically been seen. To accomplish those objectives, policymakers should unleash the power and ingenuity of people and markets.