REN21 (Renewable Energy Policy Network for the 21st Century), a policy network and a multi-stakeholder governance group which is focused on renewable energy policy, recently published their Global Status Report 2024 which is their comprehensive annual overview of the state of renewable energy worldwide:
Here are my Top 10 Key Takeaways:
1. Increased Renewable Energy Usage Renewable energy usage grew by 58% between 2012 and 2022, but fossil fuels still dominated, accounting for 65% of the energy consumption growth during this period.
2. Investment Gaps
Despite a global investment increase of 8.1% in renewable energy, reaching approximately USD 623 billion in 2023, this falls significantly short of the USD 1,300 to 1,350 billion required annually to meet global climate goals.
3. Disparities in Financing
Developing countries face high costs of capital (up to 10%), compared to less than 4% in developed nations, which hinders their ability to invest in renewable energy and exacerbates global inequality.
4. Electricity Grid Bottlenecks
The integration of renewable energy is hampered by outdated grid infrastructure, insufficient financing, and permitting delays, leaving 3,000 GW of potential renewable projects underdeveloped.
5. Policy Impact
Initiatives like the U.S. Inflation Reduction Act and the RePowerEU plan have made progress in diversifying supply chains and reducing dependency on a few manufacturing countries, boosting renewable energy investment.
6. Regional Efforts.
Latin America and the Caribbean have increased their 2030 renewable energy targets, aiming for 80% of electricity generation and 36% of total energy supply from renewables.
7. COP28's Role
COP28 was a significant win for the renewable sector, driving higher ambition, though it was criticized for not focusing enough on the entire energy system and the crucial role of financing.
8. Development Finance Challenges
Public finance is essential to mobilize private investments, yet in 2022, only 1.4% of global renewable energy investment came from development finance, highlighting a critical gap.
9. Structural Challenges.
The report underscores the persistent structural barriers that limit the deployment of renewable energy projects, particularly in developing countries.
10. Urgency for System-wide Change
The report calls for a comprehensive, well-funded shift to renewable energy to create equitable, resilient, and prosperous societies globally.
Here's the full report.
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