Current global energy pledges far from reality

Around $31.5t in investment is needed to power the clean energy shift.

The International Renewable Energy Agency (IRENA) has highlighted a significant gap between governments' commitments and their actual plans and policies, with current programmes projected to deliver only half of the required renewable power growth by 2030.

To bridge this gap and achieve renewable energy and efficiency goals, investments totaling $31.5t are needed from 2024 to 2030, focusing on renewable power, grid infrastructure, energy efficiency, and conservation, according to IRENA’s World Energy Transitions Outlook 2024.

IRENA said international collaboration will play a vital role in securing the finance needed for energy transition. This could be facilitated by new sources of funding such as the global wealth tax championed by this year’s G20, emphasising equity, social or environmental responsibility.

Also critical in achieving energy targets is the setting of enhanced Nationally Determined Contributions (NDC), specifically by major economies. The G20 must triple its installed renewable power capacity by 2030, reaching 9,400 gigawatts (GW), and expand it seven-fold by 2050 to 24,900 GW, compared to 2023 levels to meet the 1.5°C target.

IRENA Director-General Francesco La Camera said NDC 3.0 “provide the last opportunity this decade for countries to step up their stated ambitions.”

“1.5°C hinges on efforts by G20 countries. Their NDCs must match global commitments to triple renewable power capacity and double energy efficiency by 2030,” he said.