IRENA 2024 Outlook: Urgent Action Needed To Align Global Energy Transition With 1.5°C Climate Target – Report

The 2024 IRENA World Energy Transitions Outlook highlights a pressing need for global commitment to meet the 1.5°C climate target. Despite recent advancements in renewable power, the global energy transition remains off track, with fossil fuels still prevalent in the energy mix, particularly among the world’s largest emitters. Current national plans only fulfill about half of the renewable capacity necessary by 2030, and achieving a just, inclusive transition continues to pose challenges, particularly in developing countries where investment levels remain insufficient.

The report emphasizes that international cooperation, robust financial frameworks, and specific commitments from the G20 are critical to accelerating renewable deployment and efficiency improvements. For instance, the proposed New Collective Quantified Goal (NCQG) for climate finance, set for agreement at COP29, aims to increase renewable energy investments in the global South, thereby supporting Nationally Determined Contributions (NDCs) and raising ambition levels for renewable power and energy efficiency by 2030.

To achieve the 1.5°C pathway by 2050, IRENA outlines an aggressive but feasible scenario, requiring an annual addition of 1,044 GW in renewable capacity and extensive electrification across multiple sectors. By 2050, electricity is expected to comprise over half of global final energy consumption, primarily sourced from renewables such as wind and solar. Complementary measures like clean hydrogen and carbon capture are essential, especially in sectors where electrification is less practical.

Barriers persist, particularly in financing and infrastructure development. Many developing countries face a financing gap, as international investment is still concentrated in a few leading regions. IRENA advocates for substantial reform in financing structures, proposing direct investments, grants, and subsidies to enable widespread renewable adoption. This framework would help foster local industry growth, support training, and enable policy changes to ensure economic benefits reach underserved communities.

IRENA’s call to action underscores the urgent need for a global paradigm shift, focusing on an equitable energy transition that balances investment, infrastructure, and policy reforms. The report identifies the 2025 NDC submission as a crucial milestone for aligning policies and scaling commitments to achieve a net-zero future. Through strengthened international collaboration and a focus on economic inclusivity, the energy transition can pave the way for a sustainable global economy by mid-century.