Renewable energy growth soars but fails to meet climate targets

Singapore — The world added less than half of the new renewable energy capacity needed to meet its climate goals in 2023, with rising energy demand and weak grid infrastructure slowing the shift from fossil fuels, a leading think-tank said on Thursday.

Global renewable capacity additions increased by 36% in 2023 to reach about 473 gigawatts (GW), breaking the record for the 22nd consecutive year, said the Paris-based REN21, a research group that includes national governments and industry associations among its members.

But it fell far short of the 1,000GW per year required to meet the world’s climate commitments, the group said in its annual outlook report.

“The reality is that energy demand has increased at the same time, especially in China, India and other developing economies,” said Rana Adib, REN21’s executive secretary.

REN21 said the renewables sector was being held back by a lack of investment in grid infrastructure, with an estimated 3,000GW of projects still awaiting grid connections last year.

More effort was also needed to boost energy efficiency and phase out fossil fuel subsidies, which in G20 countries alone stood at a record $1.3-trillion in 2022, it added.

Providing financial support for developing countries to build renewable capacity also remains a major challenge, with financing costs sometimes as high as 20%, five times higher than those in richer nations, Adib said.

“The cost of capital has greatly increased globally, but increased in a disproportionately high way in developing economies,” she said, adding that development finance was also falling short, accounting for only 1.4% of total global renewable investment last year.

Total global renewable investment reached $623bn in 2023, up 8.1% compared to a year earlier, but an estimated $1.3-trillion is required every year to meet climate targets.

At COP28 climate talks last December, countries pledged to triple global renewable energy capacity and double energy efficiency by 2030, but Adib said setting targets was not enough.

“We have the technology — 80% of CO₂ emissions can be abated with existing technology — but we need the political will,” she said.

Reuters