The Urgency of Seizing the Global Renewable Energy Opportunities

Reducing the use of fossil fuels is a crucial yet highly complex aspect of the energy transition. Still, opportunities are on the horizon. With strong commitment and responsible implementation, the growth of renewable energy sources over the years opens a wider door to accelerate decarbonization.

Renewable Energy Growth

“Renewables are here to stay because they are the foundation of energy security and sovereignty,” said UN Secretary-General António Guterres in his remarks on Climate Action. The Paris Agreement, adopted in 2015 by 195 parties, marked a significant step in a collective, global shift to a net-zero world.

Transitioning from fossil fuels to renewable energy sources takes the center stage of this effort. Renewable energy refers to energy sources that can be replenished, such as solar, wind, and hydropower. The International Energy Agency (IEA)’s pathway to net-zero projects that almost 90% of global electricity generation in 2050 will come from renewable sources. Solar PV and wind, in particular, are expected to account for 70% of it. Both have grown rapidly over the years, doubling the capacity and share of electricity generation between 2018 and 2023.

The United Nations’ report on energy transition states that this growth is driven by policy support and significant cost reductions for solar PV and wind power generation. The infrastructure development is also faster than coal and gas facilities. By estimates, 96% of new large-scale solar PV and wind projects have lower costs than new coal and gas plants. Even compared to costs offered by existing fossil fuel plants, 75% of solar PV and wind plants are still cheaper.

This development offers a solid opportunity to accelerate energy transition and strengthen energy access and security. Not only that, it also generates benefits in other sectors, such as job creations, pollution reduction, and economic growth.

Lack of Investment and Other Barriers

Despite the progress, there are still barriers to ensuring a just and inclusive energy transition. One of the biggest obstacles is the limited capital and financing flow to developing countries. The UN report cites that in 2020–2023, developed countries attracted 18 times more energy transition-related investment than 154 Emerging Markets and Developing Economies (EMDEs) excluding China. As of 2023, over 30 developing countries still have not registered utility-sized international investment projects for renewable energy.

Substantial investment is especially crucial, considering many developing countries still lack reliable and accessible energy sources. In Egypt, for instance, low-income households must rely on fossil fuels, which cost around 10% of their monthly income. Additionally, a study reveals that around 1.1 billion people in developing countries are energy-poor, showing no electricity usage at night via satellite imagery. Establishing renewable energy projects will help address this issue and strengthen energy access and sovereignty, especially in rural and hard-to-reach communities.

Achieving this, along with keeping 1.5°C in reach, will require scaling up clean energy investment to around 1.4–1.9 trillion USD a year by 2030. This amount includes investment in renewable energy, energy efficiency, and other transition-related measures that can reduce greenhouse gas emissions in energy generation.

Ensuring an inclusive and just energy transition also means safeguarding human rights and environmental protection across the supply chain. After all, a just energy transition should also minimize impacts on biodiversity during critical mineral extractions and eliminate any forms of modern slavery and exploitation in the renewable energy supply chain.

Realizing Inclusive and Just Energy Transition

We are racing against the ever-rising global temperatures, which underscores the urgency of seizing the opportunity of renewable energy as timely as possible.

The UN report emphasizes several key strategies, such as:

Provide clear and coherent policy
Invest in enabling infrastructures
Integrate renewable energy to meet electricity demand in emerging sectors like tech
Center human end environmental rights in energy transition
Increase cooperation on trade and investment.

Realizing these strategies must involve active participation from governments, international organizations, development finance institutions, and the private sector to establish smart and pragmatic policies and greater international cooperation.

Editor: Nazalea Kusuma

Kresentia Madina

Reporter at Green Network Asia | Website | + posts

Madina is the Assistant Manager for Digital Publications at Green Network Asia. She graduated from Universitas Indonesia with a bachelor's degree in English Literature. She has three years of professional experience working on GNA international digital publications, programs, and partnerships particularly on social and cultural issues.