Powering the Future: Risk Governance for a Sustainable, Resilient and Inclusive Energy System

The energy transition presents both risks and opportunities. While the transition process may pose challenges, the far greater danger lies in failing to make the shift. A well-managed transition unlocks unparalleled opportunities for innovation, sustainability, and resilience, making it a critical path toward a more inclusive, secure, and sustainable energy future. To navigate this complex landscape, a broader, more flexible, and forward-looking approach to energy governance is essential—one that can anticipate and address the diverse, context-specific risks that define today's world.This policy brief jointly developed by UNDP Sustainable Energy Hub and UNDP Disaster Risk Reduction and Recovery for Building Resilience Team advocates for a risk-informed approach to energy governance, aligning with UNDP’s initiatives on 'Energy Governance for a Just Energy Transition' and its 'Approach to Risk-Informed Development.' It emphasizes the need to integrate risk assessments into every stage of energy planning, considering social, technological, economic, environmental, and political risks. By addressing the root causes of these risks, policymakers can shift from reactive crisis management to proactive risk prevention and mitigation throughout the energy transition process.To advance risk governance in the energy sector, the paper provides four set of policy recommendations. These align with the UN Common Guidance on Building Resilient Societies, highlighting the importance of a risk-informed, transformative shift toward a sustainable energy future.