Despite record investments in renewable energy, current funding for clean energy deployment is insufficient for the world to reach the 1.5 degree Celsius warming path under the Paris Agreement, the report says. think tank REN21 said in its annual report.
Despite record investment in renewable energy reaching $622.5 billion in 2023, the world is still far from what is needed to meet climate change and sustainable development goals. REN21 Executive Director Rana Adib said in the report’s foreword.
Estimates suggest that the world will need to invest more than twice as much annually in clean energy solutions by 2030. $1.3 trillion – If it helps us reach the 1.5 degrees Celsius goal.
“The gap in investment opportunities between high- and low-income countries, compounded by unequal access to capital, remains a major obstacle to a just energy transition,” Adib said.
“Interest rates in emerging countries remain significantly higher than in developed countries, further hindering progress towards sustainability.”
Last year, global renewable power capacity additions jumped an estimated 36% to 473 gigawatts (GW), a new record for the 22nd consecutive year, according to REN21 analysis.
According to the International Energy Agency, renewable energy installations increased by almost 50% in 2023, driven by a surge in solar power and new installations in China, according to the IEA’s 2023 Renewable Energy Report.
Last year, China commissioned as much solar power as the entire world did in 2022, and wind power additions increased 66% year-on-year. Globally, solar power alone accounts for three-quarters of additional renewable energy capacity, according to the IEA.
Despite record capacity additions and investments in renewable energy, the world needs more than double current annual investment to maintain Paris Agreement goals.
“We’re not even at 50% of our annual requirements,” REN21’s Adib told Bloomberg in an interview published Thursday.
“The government is working, but it must be accompanied by action.”
Written by Tsvetana Paraskova, Oilprice.com
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