IRENA Report Urges Governments To Address Investment Bottlenecks In Renewable Energy Before COP30

The International Renewable Energy Agency (IRENA), the COP30 Brazilian Presidency, and the Global Renewables Alliance (GRA) have released a report highlighting that global efforts in renewable energy and efficiency are lagging, despite significant progress in 2024. The report was presented during a pre-COP30 event in Brasília. In 2024, renewable capacity additions reached 582 GW, but this falls short of the COP28 UAE Consensus target to triple renewables to 11.2 TW by 2030.

To meet the ambitious goal set by the UAE Consensus at COP28, an annual increase of 1,122 GW is required from 2025 onwards. This necessitates a growth rate of 16.6% each year throughout the decade. The report also stresses that energy efficiency needs urgent attention, as global energy intensity improved by only 1% in 2024, far below the necessary 4% annual improvement to maintain the 1.5°C climate target.

The report urges countries to integrate renewable targets into their national climate plans (NDC 3.0) before COP30 in Belém. It calls for doubling collective NDC ambition to align with global renewable goals and scaling investment in renewables to at least USD 1.4 trillion annually from 2025 to 2030. This figure is more than double the USD 624 billion invested in 2024.

United Nations Secretary-General António Guterres stated, "Renewables are deployed faster and cheaper than fossil fuels – driving growth, jobs, and affordable power. But the window to keep the 1.5°C limit within reach is rapidly closing. We must step up, scale up and speed up the just energy transition – for everyone, everywhere."

Francesco La Camera, IRENA Director-General, emphasized that renewables represent a significant economic opportunity: "This report shows the path: accelerate deployment, modernise grids, scale clean-tech and strengthen supply chains." He called for increased ambition by raising targets, mobilising finance, and enhancing cooperation among major economies to lead the energy transition.

The report highlights that G20 nations are expected to account for over 80% of global renewables by 2030. The G7 economies are anticipated to play a crucial role by increasing their share to around 20% of global capacity within this decade.

Infrastructure and Supply Chain Needs

Ben Backwell, Chair of the Global Renewables Alliance, noted that industries like wind, solar, and hydropower are already contributing significantly to growth and security. He stressed the need for long-term government plans that align with national ambitions and deliver projects through effective pipelines.

The report underscores the importance of investing in grids, supply chains, and clean-tech manufacturing for solar panels, wind turbines, batteries, and hydrogen technologies. Despite a 7% increase in renewable energy investments in 2024, actual disbursements remain insufficient for building robust project pipelines.

Ensuring Fair Trade Practices

The report also calls for fair trade practices for critical renewable technologies and international cooperation to protect trade corridors for essential materials and components. Strategic investments in modernising electricity grids are crucial for integrating new capacities and enhancing energy security.

An estimated USD 670 billion per year is needed until 2030 for grid expansion and modernisation. Additional investments are required to rapidly scale up energy storage solutions to facilitate renewable integration while maintaining grid stability.

The findings highlight an urgent need for action from major economies worldwide. By aligning policies with ambitious targets and increasing financial commitments towards renewables infrastructure development globally will be key steps forward.

With inputs from WAM