The COP28 Conference in the United Arab Emirates marked a pivotal moment in global energy policy by committing to transition away from fossil fuels, triple renewable energy capacity, and double energy efficiency by 2030. This ambitious pledge, adopted by over 130 countries, aims to significantly transform the energy landscape by following the International Renewable Energy Agency’s (IRENA) 1.5°C Scenario. The agreement highlights the urgency for policymakers to implement strategies that will facilitate a rapid increase in renewable energy deployment.
The accelerated deployment of renewable energy, coupled with enhanced energy efficiency measures, is seen as the most realistic approach to achieving a 43% reduction in global emissions by 2030, as per the findings of the Intergovernmental Panel on Climate Change (IPCC). While a diverse range of technologies is essential for fully decarbonizing the energy system by 2050, the immediate focus must be on scaling up renewable power and energy efficiency to meet the 2030 deadline. Continuous innovation and development across a broader suite of technologies will be crucial for long-term success.
The goal of tripling renewable power capacity by 2030 is technically feasible and economically viable but requires significant commitment, policy support, and investment. IRENA’s monitoring and analysis of renewable energy development have shown that the technological maturity achieved in renewables, supported by enabling policies, competitiveness, and abundant resources, positions the industry at the core of climate, development, and energy security strategies. Since 2015, renewable power additions have consistently outpaced new fossil fuel and nuclear power installations combined, reaching an estimated 473 gigawatts (GW) in 2023 alone.
However, achieving the tripling of renewables globally will necessitate considerable progress in various areas. This includes accelerated investments in infrastructure and system operation, such as power grids and storage, updated policies and regulations, measures to strengthen supply chains and develop transition-related skills, and a significant scale-up of investment, including public funds supported by international collaboration.
Renewable power additions saw unprecedented growth in 2023, accounting for 87% of newly installed capacity. Solar energy played a significant role, contributing 73% of this growth. The new capacity was mainly concentrated in China, the European Union (EU), and the United States, which collectively accounted for 83% of the additions. China, in particular, reached a new milestone in 2023, with 85% of its new capacity coming from renewable sources. This progress was driven by the decreasing costs of utility-scale solar and wind power, making them competitive against coal and gas-powered generation. China’s rapid advancement can be attributed to its supportive energy and industrial policies.
Elsewhere, the deployment of renewable energy continues to dominate, although it remains concentrated in a limited number of markets. The majority of developing countries have been left out of the transition, despite their considerable energy needs and abundant renewable potentials. The shrinking public finance underscores the need for a more strategic application and use of resources. To address these challenges, there is a call for a 21st-century architecture for international cooperation that ensures every actor plays their part in a global solution. Multilateral development banks and international financial institutions have a critical role to play, given the substantial amount of capital required to develop the necessary infrastructure for enabling private investment.
The COP28 outcomes underscore the urgency of transitioning away from fossil fuels and significantly increasing renewable energy capacity. Achieving the ambitious targets set for 2030 will require coordinated global action, significant investments, and supportive policies. The accelerated deployment of renewable energy and energy efficiency measures is crucial for reducing emissions and aligning with the 1.5°C trajectory, ensuring a more sustainable and equitable energy future.
