The International Renewable Energy Agency (IRENA) has issued an assessment ahead of COP29, showing significant challenges in meeting global renewable energy targets set at COP28
These targets, aiming to triple the world’s renewable energy capacity and double energy-saving efforts by 2030, are important for aligning with the Paris Agreement’s climate goals.
Global renewable energy targets falling short
IRENA’s report reveals that current efforts fall far short of what is needed. For example, while global investment in renewables hit $570 billion last year, it falls short in comparison to the required $1.5 trillion annually.
Spending on energy-saving measures also needs to rise from $323 million to $2.2 trillion annually to meet the doubling target.
The agency highlights the necessity of ramping up investment and implementing stronger policies to bridge the gap. This includes easier permitting processes and modernising power grids, essential for scaling renewable energy deployment effectively. Without these measures, IRENA warns, achieving the targets remains distant.
Developing countries left behind
Geopolitically, the distribution of investments shows that 84 per cent of renewable investments are concentrated in the EU, China, and the United States.
Investments in Africa are minimal and have decreased recently. This shows the need for a more equitable distribution of financial resources, especially to support renewable energy transitions in developing economies.
While solar energy is showing promising growth, other sectors like onshore and offshore wind, bioenergy, and geothermal are lagging significantly behind required targets. Energy efficiency efforts, crucial for reducing overall energy consumption, have also seen little progress.
Climate financing decisions
Looking ahead, countries must revise their nationally determined contributions (NDCs) under the Paris Agreement to significantly increase their renewable energy targets. IRENA emphasises the urgency of these updates, stressing that current plans are insufficient to meet the escalating climate challenges.
While electric vehicle (EV) sales have seen a notable increase, the outlook for heat pumps, critical for efficient heating, has been less optimistic. After a brief rise, heat pump sales declined, particularly in Europe, underscoring ongoing challenges in transitioning to low-carbon heating technologies.
Overall, IRENA’s assessment shows the need for a substantial scale-up in both public and private investments, as well as policy improvements, to accelerate the global transition from fossil fuels to renewable energy sources. The upcoming COP29 in Azerbaijan will be pivotal in shaping new financial targets and strategies to catalyse climate action, particularly in developing countries.
