National priorities in the power system transition to net-zero: No one size fits all

Net-zero emissions targets are increasingly being adopted globally. However, there is a disconnect between policy mechanisms, that primarily focus on incentives to reduce emissions, and technological requirements to achieve this aim. In this context, an absence of CO₂ removal incentives effectively precludes complete decarbonization, while potentially increasing the cost. Here, we quantify the effectiveness of carbon tax, negative emissions credit, and technology improvements in delivering net-zero targets cost-effectively in the UK, Poland, Texas, and Wyoming power systems. We show that the combination of a carbon tax and negative emissions credit is critical to reaching net-zero targets. From the techno-economic perspective, while all cost reduction is welcome, a further cost reduction of renewable energy is uniquely valuable in minimizing the transition cost. However, even with the availability of electricity storage, dispatchable and low-carbon thermal plants are key to cost-effectively maintaining system reliability, regardless of the costs of other alternatives.