Despite an increase in renewable energy deployment, global efforts to triple renewable capacity by 2030 are significantly lagging, reveals a new report from the International Renewable Energy Agency (IRENA).
The report highlights a critical need for increased investment and policy reforms to meet ambitious climate goals.
“Annual investment in renewable capacity would have to triple, from a new record high of USD 570 billion in 2023 to USD 1.5 trillion every year between 2024 and 2030,” according to the first official progress report of the landmark energy goals established by the UAE Consensus at COP28 in Dubai.
Importance of Renewable Energy for Climate Goals
Francesco La Camera, Director-General of IRENA, issued a stark warning regarding the progress toward the UAE Consensus energy goals. “Today, we’re raising the alarm. As the custodian for tracking the progress of the UAE Consensus energy goals, we must flag significant gaps. The COP28 goals of tripling renewables and doubling energy efficiency are key enablers for our global efforts to keep 1.5°C within reach but we risk missing them. The next NDCs [nationally determined contributions] must mark a turning point and bring the world back on track,” Francesco La Camera said.
Dr. Sultan Al Jaber, President of COP28, stressed the importance of 2030 targets, stating, “The goals of tripling renewable energy capacity and doubling annual energy efficiency improvements are essential for achieving the 1.5°C target and promoting sustainable prosperity.” He called for more nations to commit to specific renewable energy and infrastructure targets in their upcoming NDCs.
Renewable Energy and maintaining 1.5°C climate benchmark
Tripling renewable power capacity by 2030 is critical to keep the 1.5°C goal within reach. The science is clear: it is crucial to limit global warming as much and as quickly as possible to mitigate the severe impacts of climate change and ensure a livable planet.
Limiting global warming to below 1.5°C will significantly reduce the risks, adverse impacts, and related losses and damages from climate change. Failing to do so will lead to increasingly frequent and dangerous extreme weather events including heatwaves, droughts, wildfires, rainfall, and flooding, according to the IPCC, the UN climate change report.
Key Findings from the Report
Energy Efficiency: Annual improvements in energy efficiency must double from 2% to 4% each year to align with climate goals.
Investment Needs: To meet the target of tripling renewable energy capacity by 2030, annual investments must surge from a record USD 570 billion in 2023 to USD 1.5 trillion from 2024 to 2030.
Capacity Gaps: Current national plans are projected to deliver only half of the required growth in renewable energy, resulting in a global shortfall of 3.8 terawatts (TW) by 2030.
Recommendations to close the gap
To close the investment and capacity gaps, the report recommends:
- International Collaboration: Channel funds and ensure equitable access to climate finance.
- Enhanced National Ambitions: Countries should elevate their renewable energy goals.
- Specific Targets in Upcoming NDCs: Drive private investment by setting clear objectives.
Urgent policy interventions needed
Bruce Douglas, CEO of the Global Renewables Alliance (GRA), emphasized the need for immediate action. “While the momentum behind renewable energy is unprecedented, it’s clear that we are still falling short of where we need to be by 2030. The industry has proven time and again that we can deliver – and even surpass – expectations when the right frameworks and policies are in place.”
Douglas emphasized the urgency for governments to seize the opportunity presented by the NDC review. “Now is the time for governments to seize the opportunity of the NDC review, to set ambitious, specific and actionable plans that bridge the current gap and achieves the global 3xRenewables target by 2030. Our message is clear: Now Deliver Change.”
Mukhtar Babayev, COP29 President-Designate, highlighted the significance of IRENA and GRA’s findings for accelerating the global energy transition. He outlined key initiatives aimed at enhancing ambition and action for COP29, including the creation of green energy zones, strengthening electric grids, increasing energy storage, and developing clean hydrogen.
“To take tangible steps and turn these recommendations into reality, we are working closely with international partners to ensure that commitments translate into tangible outcomes that benefit all nations, including those most vulnerable to the impacts of climate change. The time for action is now. We call on all stakeholders — governments, businesses and civil society — to intensify their efforts and deliver progress in support of these critical goals,” he stated.
Parviz Shahbazov Ogtay, Energy Minister of Azerbaijan, highlighted that the International Renewable Energy Agency’s report on the Global Renewables and Energy Efficiency Pledge signals a critical need to enhance ambitions and actions in addressing climate change and facilitating the energy transition.
“To achieve tripling target requires countries to enhance their renewable energy ambitions, update their Nationally Determined Contributions, and increase investments,” he said, noting that COP29 (being held in Baku in November 2024) will build on the COP28 agreement by advancing initiatives that accelerate the development of renewable energy potential and remove barriers to its expansion.
