Social factors: These factors mainly involve the development status and trends of

human society, and their impact on energy demand and consumption. For example,
population growth leads to increased energy demand, urbanization leads to
concentrated energy demand, consumption patterns lead to structural changes in
energy demand, and social awareness leads to quality improvement in energy demand.
These factors have important roles in the challenges and opportunities of energy
transition, and need to be fully considered in energy policies and planning.
Economic factors: These factors mainly involve the development level and
trends of international and domestic economy, and their impact on energy supply and
cost. For example, economic growth brings more energy input and output, trade
patterns affect energy circulation and distribution, energy prices affect energy supply-
demand balance and competitiveness, investment level affects energy development
and utilization. These factors have important roles in the driving force and efficiency
of energy transition, and need to be fully considered in energy market and regulation.
Political factors: These factors mainly involve the stability and trends of
international and domestic politics, and their impact on energy security and
cooperation. For example, international relations affect the allocation and competition
of energy resources, geopolitical games affect the security and smoothness of energy
channels, policy making affects the direction and goals of energy development, laws
and regulations affect the norms and constraints of energy industry. These factors
have important roles in the difficulty and possibility of energy transition, and need to
be fully considered in energy governance and diplomacy.
Environmental factors: These factors mainly involve the condition and trends of
natural environment, and their impact on the limitations and opportunities of energy
development. For example, climate change affects the availability and sustainability
of energy resources, pollution control affects the environmental cost and social
responsibility of energy consumption, ecological protection affects the scope and
conditions of energy development. These factors have important roles in the necessity
and urgency of energy transition, and need to be fully considered in energy
assessment and planning.
Technological factors: These factors mainly involve the advancement level and
trends of science and technology, and their impact on the path and effect of energy
transition. For example, technological innovation brings the development and
application of new clean energy sources, technological diffusion promotes the
dissemination and popularization of advanced energy-saving technologies,
technological application improves the utilization efficiency and emission reduction
effect of traditional energy sources. These factors have important roles in the
feasibility and advantage of energy transition, and need to be fully considered in
energy research and development and support.
Europe

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 Developing clean energy: Europe is a global leader in clean energy development,
with the goal of achieving carbon neutrality by 2050, and vigorously promoting
renewable energy and hydrogen development. Specifically, the EU has adopted the
Renewable Energy Directive, which requires that renewable energy account for 32%
of total energy consumption by 2030, and will reassess this target in 2023. The EU
has also adopted the Hydrogen Strategy, which plans to build at least 6 million
kilowatts of renewable hydrogen electrolysis equipment by 2024, and at least 40
million kilowatts of equipment by 2030, and establish a cross-border hydrogen
transmission network. The EU also supports the research and development and
application of various clean energy technologies, such as solar energy, wind energy,
geothermal energy, hydropower, etc., and provides various financial and policy
incentives.

Paying attention to energy security: Europe is facing a crisis of natural gas

supply shortage and price surge, which exacerbates its dependence on major suppliers
such as Russia. In order to reduce import dependence, increase energy diversity and
flexibility, the EU has taken a series of measures. For example, the EU has adopted
the Regulation on Security of Gas Supply, which requires member states to establish
risk assessment and prevention plans, increase gas storage facilities and pipeline
interconnection, establish regional cooperation mechanisms, and cope with possible
supply disruptions. The EU has also adopted the Regulation on Electricity Market
Design, which requires member states to improve the competitiveness and
transparency of the electricity market, increase cross-border trade and transmission
capacity, establish regional security coordination centers, and improve the stability
and flexibility of the electricity system. In addition, the EU also supports increasing
liquefied natural gas (LNG) imports from countries such as the United States, Qatar,
Egypt, etc., as well as increasing pipeline gas imports from countries such as Norway,
Azerbaijan, etc.

Enhancing technological innovation: Europe has a strong innovation advantage

in clean energy technologies, especially in wind power generation, smart grid, carbon
capture and utilization, etc. In order to maintain this advantage, the EU has invested a
lot of funds and human resources to support various technological innovation projects
and platforms. For example, the EU has set up the Horizon 2020 program, which
provides nearly 20 billion euros of funding support for clean energy technology
innovation. The EU has also set up the Strategic Energy Technology Plan, which
provides a multilateral cooperation platform for clean energy technology innovation,
involving multiple stakeholders such as governments, enterprises, academic
institutions, etc. In addition, the EU also provides risk capital, commercialization
guidance, market access and other support services for clean energy technology
innovation through institutions such as the European Innovation Council.

Promoting international cooperation: Europe is an active participant and

promoter of global energy governance, advocating the establishment of multilateral,

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rule-based and low-carbon energy cooperation mechanisms. To achieve this goal, the
EU has carried out extensive energy dialogue and cooperation with various countries
and regions. For example, the EU has established the EU-US Energy Council with the
United States to conduct regular consultations on issues such as climate change, clean
energy, energy security. The EU has established the EU-China Energy Cooperation
Platform with China to conduct technical exchanges and policy coordination on areas
such as renewable energy, smart grid, carbon market. The EU has established the
Africa-EU Energy Partnership with Africa to provide financial and technical support
for clean energy in Africa. In addition, the EU also actively participates in multilateral
energy organizations and mechanisms such as the International Energy Agency (IEA),
the International Renewable Energy Agency (IRENA), the Clean Energy Ministerial
(CEM), etc., to promote the process of global energy transition.

North America

Developing clean energy: North America is an important participant in global

clean energy development, with the goal of achieving net-zero emissions by 2050, and
vigorously developing renewable energy sources such as wind, solar, biomass, etc., as
well as low-carbon energy sources such as nuclear, carbon capture and utilization, etc.
Specifically, the United States has adopted the Clean Power Plan, which requires the
power sector to reduce carbon emissions by 32% from 2005 levels by 2030, and will
rejoin the Paris Agreement in 2021 to promote global climate governance. Canada has
adopted the Net-Zero Emissions Act, which requires carbon neutrality by 2050, and
will host the Clean Energy Ministerial in 2021 to strengthen international cooperation.
Mexico has adopted the Energy Transition Act, which requires renewable energy to
account for 35% of total electricity generation by 2024, and will host the International
Renewable Energy Agency Conference in 2021 to share experiences and challenges.

Paying attention to energy security: North America faces the problem of fossil
fuel oversupply and price volatility, as well as the problem of unstable and high-cost
clean energy supply. In order to increase energy self-sufficiency and reduce
dependence on external markets, North America has taken a series of measures. For
example, the United States has promoted the development of shale gas and oil shale,
becoming the world’s largest producer of natural gas and oil, and exporting liquefied
natural gas (LNG) and crude oil. Canada has strengthened pipeline interconnection
with the United States, expanding its export market for oil and gas, and built coastal
LNG export facilities. Mexico has reformed its energy market, introducing private
sector investment and competition, increasing oil and gas exploration and production.

Enhancing technological innovation: North America has a strong innovation

advantage in clean energy technologies, especially in electric vehicles, smart grid,
carbon capture and utilization, etc. In order to maintain this advantage, North America
has invested a lot of funds and human resources to support various technological
innovation projects and platforms. For example, the United States has established the

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Advanced Research Projects Agency-Energy (ARPA-E), which provides nearly $3
billion of funding support for clean energy technology innovation. Canada has
established the Strategic Innovation Fund, which provides $2 billion Canadian dollars
of funding support for low-carbon technology, clean technology, digital technology
and other fields. Mexico has established the Mexican Council for Science and
Technology, which provides scientific policy guidance and funding support for
renewable energy, energy conservation, environmental protection and other fields.

Promoting international cooperation: North America actively participates in

global clean energy cooperation mechanisms such as the Clean Energy Ministerial
(CEM), the International Renewable Energy Agency (IRENA), the Carbon Pricing
Leadership Coalition (CPLC), etc., sharing experiences, coordinating policies and
promoting actions with other countries and regions. North America also carries out
bilateral or multilateral energy cooperation with Europe, Asia and other regions, such
as the US-EU Energy Council, the US-Canada-Mexico North American Energy
Cooperation Framework, the US-Japan Energy Cooperation Initiative, etc., promoting
the transfer and application of clean energy technologies.

Middle East

Developing clean energy: The Middle East is the world’s largest producer and
exporter of oil and gas, but also faces challenges such as resource depletion,
environmental pollution, climate change, etc. In order to reduce dependence on fossil
fuels, improve energy efficiency and sustainability, Middle Eastern countries have
formulated renewable energy development goals and plans, and vigorously developed
clean energy sources such as solar, wind, biomass, etc. Specifically, Saudi Arabia has
formulated the Vision 2030, which requires renewable energy installed capacity to
reach 60 gigawatts by 2030, and renewable energy power generation to account for
50% by 2030. The UAE has issued the 2050 Energy Strategy, which aims to achieve
44% of renewable energy in the UAE’s energy structure by 2050. Egypt plans to
increase clean energy power generation to 20% of total power generation by 2022 and
40% by 2035. Morocco plans to achieve renewable energy meeting 50% of electricity
demand by 2030 and 100% by 2050.

Paying attention to energy security: The energy security problem of Middle

Eastern countries mainly manifests in two aspects: one is the fluctuation and
uncertainty of the fossil fuel market, and the other is the stability and cost problem of
clean energy supply. In order to improve energy security level, Middle Eastern
countries have taken a series of measures. For example, Saudi Arabia promotes
diversified economic development, reduces dependence on oil revenues, and
establishes the world’s largest sovereign wealth fund - Public Investment Fund (PIF),
which invests in non-oil sectors. The UAE has built the first nuclear power plant in
the Arab world - Barakah Nuclear Power Plant, which started commercial operation
in 2020. Egypt has strengthened its natural gas cooperation with Israel, Cyprus and

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other countries, creating a Mediterranean natural gas hub, and joined the Eastern
Mediterranean Gas Forum (EMGF).

Enhancing technological innovation: Middle Eastern countries have strong

innovation potential and advantages in clean energy technologies, especially in solar
energy, wind energy, carbon capture and utilization, etc. In order to maintain this
advantage, Middle Eastern countries have invested a lot of funds and human resources
to support various technological innovation projects and platforms. For example,
Saudi Arabia has established the Advanced Research Projects Agency-Saudi (ARPA-
S), which provides funding support for clean energy technology innovation, and
established King Abdullah City (KAUST), which serves as an innovation center
integrating education, research and entrepreneurship. The UAE has established the
Future Fund, which provides funding support for low-carbon technology, clean
technology, digital technology and other fields, and established Masdar City, which
serves as a demonstration zone integrating renewable energy, smart city and
environmental protection. Egypt has established the Egyptian New Energy and
Renewable Energy Authority (NREA), which provides scientific policy guidance and
funding support for renewable energy, energy conservation, environmental protection
and other fields.

Promoting international cooperation: Middle Eastern countries actively

participate in global clean energy cooperation mechanisms such as the Clean Energy
Ministerial (CEM), the International Renewable Energy Agency (IRENA), the
Carbon Pricing Leadership Coalition (CPLC), etc., sharing experiences, coordinating
policies and promoting actions with other countries and regions. Middle Eastern
countries also carry out bilateral or multilateral energy cooperation with Europe, Asia
and other regions, such as the EU-Gulf Cooperation Council Energy Dialogue, the
Middle East and North Africa Solar Plan, the Eastern Mediterranean Gas Forum
(EMGF), etc., promoting the transfer and application of clean energy technologies.

Japan and Korea

Developing clean energy: Japan and Korea are both major energy importers.
Affected by the Fukushima nuclear accident in 2011 and the Saudi-Russian oil price
war in 2020, they have accelerated their pace of clean energy development. Japan has
formulated the Green Growth Strategy, which aims to increase renewable energy to
22%-24% of primary energy supply by 2030 and to 50%-60% by 2050. Korea has
proposed the Green New Deal, which aims to increase renewable energy to 20% of
primary energy supply by 2030 and to 30%-35% by 2050. Japan and Korea are
actively developing clean energy sources such as solar energy, wind energy, hydrogen
energy, etc., while promoting the gradual elimination of nuclear power and coal
power.

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 Paying attention to energy security: Japan and Korea both face high external
energy dependence, low domestic resource endowment, high geopolitical risk and
other energy security problems. In order to improve their energy security level, Japan
and Korea have taken a series of measures. For example, Japan has established the
world’s largest strategic oil reserve and signed a Joint Reserve Agreement with the
United States to cope with possible oil supply disruptions. Korea has established the
world’s largest liquefied natural gas (LNG) reserve and signed a Free Trade
Agreement with the United States to ensure stable LNG imports. Japan and Korea
have both strengthened their energy cooperation with the Middle East, Africa,
Southeast Asia and other regions, diversifying their energy import sources.

Enhancing technological innovation: Japan and Korea have strong innovation

strength and advantages in clean energy technologies, especially in solar energy, wind
energy, hydrogen energy, etc. In order to maintain this advantage, Japan and Korea
have invested a lot of funds and human resources to support various technological
innovation projects and platforms. For example, Japan has established the Strategic
Innovation Creation Program (SIP), which provides funding support for clean energy
technology innovation, and established the New Energy Industry Technology
Development Organization (NEDO), which serves as an innovation institution
integrating research, development and demonstration. Korea has established the
Green New Deal Fund, which provides funding support for low-carbon technology,
clean technology, digital technology and other fields, and established the National
Research Foundation of Korea (NRF), which serves as an innovation institution
integrating science, engineering and social sciences.

Promoting international cooperation: Japan and Korea actively participate in

global clean energy cooperation mechanisms such as the Clean Energy Ministerial
(CEM), the International Renewable Energy Agency (IRENA), the Carbon Pricing
Leadership Coalition (CPLC), etc., sharing experiences, coordinating policies and
promoting actions with other countries and regions. Japan and Korea also carry out
bilateral or multilateral energy cooperation with Europe, America, Asia and other
regions, such as the Japan-EU Energy Partnership, the US-Japan Clean Energy
Partnership, the Korea-US Nuclear Energy Cooperation Agreement, the Korea-China
Renewable Energy Cooperation Agreement, etc., promoting the transfer and
application of clean energy technologies.

Australia

Developing clean energy: Australia is the world’s largest exporter of liquefied

natural gas and coking coal, and the world’s second largest producer of uranium.
Australia has abundant renewable energy resources, such as hydropower, wind power,
solar power, geothermal power, etc. Australia has formulated the Renewable Energy
Target 2020, which aims to increase renewable energy to 23.5% of electricity supply
by 2020. Australia has also formulated the Technology Investment Roadmap, which

6
aims to reduce carbon emissions to zero by 2050, and identifies clean hydrogen,
carbon capture and storage, low-carbon steel and other technologies as priority areas
for development.

Paying attention to energy security: Australia faces energy security problems

such as excessive energy exports, insufficient domestic energy supply, and vulnerable
energy infrastructure. In order to improve its energy security level, Australia has taken
a series of measures. For example, Australia has established the National Liquid
Petroleum Gas Security Mechanism to ensure the supply of domestic liquefied
petroleum gas. Australia has also established the National Electricity Market to
facilitate electricity trade and competition among states. Australia has also
strengthened its energy cooperation with regions such as the United States, Japan and
Korea, diversifying its energy export markets.

Enhancing technological innovation: Australia has strong innovation strength

and advantages in clean energy technologies, especially in solar energy, wind energy,
hydrogen energy and other fields. In order to maintain this advantage, Australia has
invested a lot of funds and human resources to support various technological
innovation projects and platforms. For example, Australia has established the
Renewable Energy Fund, which provides funding support for clean energy technology
innovation, and established the Renewable Energy Agency, which serves as an
innovation institution integrating research, development and demonstration. Australia
has also established the Carbon Capture and Storage Flagship Program, which
provides funding support for the research and development and commercialization of
carbon capture and storage technologies, and established the Carbon Capture and
Storage Research Centre, which serves as an innovation institution integrating
science, engineering and social sciences.

Promoting international cooperation: Australia actively participates in global

clean energy cooperation mechanisms such as the Clean Energy Ministerial (CEM),
the International Renewable Energy Agency (IRENA), the Carbon Pricing Leadership
Coalition (CPLC), etc., sharing experiences, coordinating policies and promoting
actions with other countries and regions. Australia also carries out bilateral or
multilateral energy cooperation with Europe, America, Asia and other regions, such as
the Australia-EU Energy Partnership, the Australia-US Hydrogen Strategy
Partnership, the Australia-Japan Carbon Capture and Storage Cooperation Agreement,
etc., promoting the transfer and application of clean energy technologies.