The INETTT Annual Meeting 2025

The Annual Meeting 2025 of the International Network of Energy Transition Think Tanks (INETTT) brought member think tanks from across the globe to Mexico City for 4 days of in-depth discussions, strategic collaboration and the exchange of knowledge. It was hosted by the INETTT Secretariat and Instituto de Desarrollo, Energía y Ambiente (IDEA) from the 2^nd to the 5^th of September. 

The meeting unfolded around the four central themes of transforming power systems, decarbonising industry, financing requirements, and evaluating socioeconomic impacts of energy transitions.

Transforming power systems

The power sector is one of the most significant sources of GHG emissions, which have likely peaked, or will do soon. A key driver of its transformation is the expansion of renewables, while at the same time supporting effective grid integration and distribution upgrades. As one participant put it: “Lack of grids keeps the fossil fuels burning.”  

Members shared country experiences on grid stability and flexibility, from Mexico, Colombia and Türkiye to India and South Korea. Sector coupling, decentralised renewables and storage are emerging as important solutions, with members across Asia and Africa contributing their experiences to the discussions. A fireside chat highlighted what tomorrow’s power systems will need to deliver stability on the path to 100% renewables. 

Reliable and affordable electricity underpins socioeconomic growth. The energy transition is not only technological but also a socioeconomic transformation. Our work helps ensure transitions support both climate and development goals. 

Delivering this transformation means rethinking markets, regulation and infrastructure at scale. Bold policies are essential. Our member think tanks bring independent expertise to policymakers, helping shape solutions across diverse market designs. 

The conversations reinforced that the power sector is a lever for the whole economy: “We need to change the framework of how we think about grid stability. It’s not only about building data centres; it’s about supporting low-heat industry, buildings and transport.” 

INETTT’s Power Sector Working Group tackles exactly these challenges, with members collaborating across regions to guide one of the most critical areas of the transition. Our sessions in Mexico were also a timely opportunity to agree on priority areas for upcoming INETTT work. 

Industrial decarbonisation

Another core theme in Mexico City was industrial decarbonisation. Heavy industry is both energy- and emissions-intensive, yet vital to economic development. Participants discussed how to reconcile these realities while moving towards climate neutrality by mid-century. 

Industry accounts for a significant share of emissions and is closely tied to economic growth and energy demand. While high-temperature processes and complex supply chains pose challenges, coordinated policy, strategic siting and clear demand signals can accelerate decarbonisation. Our lively discussions centred on several key elements for success: 

·  Build industrial strategies around local strengths, such as abundant renewable energy, access to critical minerals or established industrial clusters – considering the implications of cross-border measures such as Article 6 and CBAM. 

·  Locate new facilities near renewable energy sources to reduce costs, lower carbon intensity and make efficient use of grid and generation capacity. 

·  Leverage the role of small and medium enterprises in the transition: interesting examples shared included those from Pakistan’s textile industry and tequila companies in Mexico. 

·  Embed equity through policies that support workers and communities in traditional industries, ensuring a #justtransition. 

·  Focus on both demand and supply: with examples from Brazil to South Africa, clear signals, supportive policy, market incentives and committed off-takers can turn low-carbon technologies into actionable investments. In addition to security of supply, security of demand for green products, for example, should also be addressed.  

·  Plan for system-wide coordination: clean electricity for industry must be balanced with residential, health and other economic needs to maximise benefits across society. 

Industrial decarbonisation is complex but feasible. Success depends on aligning policy, technology and demand, leveraging local strengths and embedding equity into the transition. With coordinated action, industry can become a driving force for decarbonisation. 

INETTT members come from diverse regions with very different industrial landscapes, providing a unique opportunity to share experiences, learn from one another and design country-specific solutions. The network’s dedicated Industry Working Group supports this collaboration, helping members exchange insights, best practices and solutions tailored to their local contexts. 

Planning financing requirements 

To keep the Paris goals within reach, around US$2.44 trillion of climate- and nature-related investments are required annually in emerging markets and developing countries (EMDCs), excluding China, by 2030. 

Scaling up investment in energy transitions is critical and integrated planning can support the development of strong investment ecosystems as well as address existing disparities, for instance the distribution of investments, which is currently focussed on advanced economies and larger EMDEs. 

Transition financing plans help establish a country-driven consensus and reconcile climate and development goals in a whole-of-the-economy approach, thereby reducing the risk of disorderly transition and stranded assets. They include short and medium-term public spending targets within a more systemic view, which helps align private sector, domestic resources and international finance.

Transition financing plans include the following key building blocks:

·  Climate investment needs assessments: how do projected ‘real economy’ changes affect sectoral climate investment needs? 

·  Implications of the climate strategy for public spending: projected public policies and incentives to enable climate investments, the role of the private sector and estimates of additional public spending needs. 

·  Financing public action: identifying options to bridge gaps by redirecting climate-harmful expenditure, revenue from new fiscal instruments, green bonds, Multilateral Development Banks and Public Development Banks, Bilateral and multilateral climate funds as well as international carbon markets. 

To put theory into action and explore collaboration opportunities amongst INETTT member think tanks, participants engaged in an interactive group work, which included investment needs assessment, sectoral policies design to trigger investments and drafting a financing plan for a fictional country.   

Socioeconomic impacts and embedded equity in energy transitions 

Energy transitions are not only a technical challenge and require an enabling socioeconomic framework. 

·  Discussions highlighted the importance of integrating socioeconomics and macroeconomic implications of the transition into modelling and financing plans, including the consequences on GDP, consumption, fiscal revenue, disaster costs, employment, inflation, and more. By anticipating labour market shifts and designing the right education, training and industrial policies and evaluating local value added, we can build the enabling framework that maximises benefits for both society and the economy. 

·  Geopolitics also shapes transitions. Questions of global North-South relations, historical responsibility, trade dynamics and today’s economic order are inseparable from how transitions unfold and who stands to gain… or lose. 

·  The very meaning of “just energy transition” varies across regions and communities, reflecting different histories, needs and priorities. What unites them is the recognition that transitions must be fair, inclusive and rooted in local realities. 

Socioeconomic impact is not an “add-on” to technical change in the power and industrial sectors. It is what links systems transformation with broader development and equity goals. In the Just Transition Working Group, our member think tanks work across regions to bring these perspectives to the table, ensuring that socioeconomic considerations are part of decision-making from the start. 

The discussions at INETTT’s Annual Meeting 2025 underscored that placing people at the centre of the energy transition is what makes it durable, legitimate and ultimately successful. To learn more about INETTT’s just transition work, check out our brief.