According to the 2025 Energy Transition Index, which factor is crucial for attracting long-term investment in energy transition?
Adaptive and stable policy frameworks
The World Economic Forum's Fostering Effective Energy Transition 2025 report, which produces the Energy Transition Index, lists five recommended actions to sustain momentum. The very first is to adopt stable, adaptive policy frameworks that drive long-term investment and support cooperation, with globally aligned policies tailored to local contexts.
The other options run contrary to the report: high electricity tariffs deter investment, rapid fossil-fuel subsidies undermine the transition itself, and deregulated industrial zones do not provide the regulatory predictability that long-term capital seeks.
Hence the correct answer is Adaptive and stable policy frameworks.
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