There is a compelling case for clean energy, but the global rollout of renewables needs to pick up the pace if we’re to achieve the necessary targets by 2030.
Why We Need Clean Energy
Burning fossil fuels for energy results in the emission of greenhouse gases (GHG). To limit climate change, we must transition away from fossil fuels and invest in clean energy sources.
The shift to clean energy and the fight against climate change are intrinsically linked. Renewable energy from the sun, wind, water, waste, and Earth’s heat are important solutions that reduce the emission of greenhouse gases and pollutants.
Access to clean energy is a game-changer, not just for the planet but for communities. In places without clean and reliable energy, there are huge impacts on job opportunities, education, healthcare and other important considerations for social and economic development.
Clean energy projects also directly contribute to Sustainable Development Goals, by reducing emissions, providing renewable energy, and contributing to other economic, health and social outcomes.
Access to Clean Energy is Not Universal
According to the International Energy Agency (IEA) , G20 countries account for almost 90% of global clean energy capacity today.
The reality is that more clean energy is urgently needed in the countries in Sub-Saharan Africa, South and Southeast Asia, as well as those countries that are categorized as Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS).
Consider the experience in some of the following countries:
- Pakistan: While Pakistan has initiated some renewable energy projects, progress has been slow due to financial constraints, policy uncertainties, and issues related to the stability of the power sector.
- Bangladesh: Bangladesh faces challenges in scaling up renewable energy despite having significant potential. Limited infrastructure, financial constraints, and a focus on immediate energy needs have contributed to slower progress.
- Cambodia: Cambodia is still in the early stages of renewable energy development. While there have been some projects, challenges include a lack of clear policy frameworks, limited financial resources, and a reliance on traditional energy sources.
- Nigeria: Nigeria faces challenges in scaling up renewable energy due to limited financial resources, policy uncertainties, and a reliance on traditional energy sources. Despite having substantial solar potential, progress has been slower than anticipated.
- South Africa: South Africa has seen an increase in renewable energy projects, but challenges related to the restructuring of the energy market, competition with traditional fossil fuels, and the need for grid upgrades have impacted the speed of transition.
- Kenya: Kenya has made progress in renewable energy, especially in geothermal and wind power. However, some regions still face challenges related to access to electricity, and there has been a pause in agreements for new renewables energy projects.
- Ethiopia: Ethiopia has significant hydroelectric potential, but financing and infrastructure challenges have slowed down the implementation of renewable projects. Political and economic factors can also influence the pace of transition.
Support the Development of Renewables in Emerging Markets
One of the most consequential outcomes from COP28 was agreement on the goal to triple global renewable capacity from 2022 levels by 2030. This would take total capacity above 11 000 GW, in line with IEA’s Net Zero Emissions by 2050 (NZE) Scenario.
However, global renewable capacity is forecast to reach about 7 300 GW by 2028 under existing policies and market conditions. There is a significant shortfall, and one of the specific barriers identified by IEA’s Renewables 2023 report is insufficient financing in emerging and developing economies.
It’s in this context that we highlight the role of carbon credits and renewable energy certificates as tools to encourage investment in these places. Contributing to climate action by investing in these environmental commodities is a simple, tangible action that companies around the world can take right now to accelerate the transition towards clean energy.
