Five ways to kick-start the renewable energy transition

Four key climate change indicators – greenhouse gas concentrations, sea level rise, ocean temperatures and ocean acidification – set new records in 2021. This is yet another clear sign that human activity is causing planetary-scale changes across land, seas and oceans, with huge and lasting impacts.

The key to solving this crisis is ending our dependence on energy generated by fossil fuels - the main cause of climate change.

United Nations Secretary-General António Guterres said: "The lifeline is right in front of us." He emphasized that renewable energy technologies such as wind and solar already exist today and, in most cases, are more powerful than coal and other Fossil fuels are cheaper. So now they need to work quickly and at scale.

Guterres outlines five key actions that the world needs to prioritize now to transform energy systems and accelerate the transition to renewables – “Because without renewables, there is no future. ”

　Making renewable energy technology a global public good

　Making renewable energy technology a global public good Public goods, meaning they are available to everyone, not just the rich. This requires removing barriers to knowledge sharing and technology transfer, including intellectual property barriers.

Key technologies such as battery storage systems enable renewable energy sources, such as solar and wind, to be stored and released when people, communities and businesses need power. According to the International Renewable Energy Agency, they will help increase the flexibility of energy systems due to their unique ability to quickly absorb, retain and reinject electricity.

Furthermore, when paired with renewable generators, battery storage technology can provide reliable and affordable power to isolated grids and off-grid communities in remote areas.

​Improving global access to components and raw materials

A stable supply of renewable energy components and raw materials is critical. Wider access to all key components and materials – from the minerals needed to produce wind turbines and power grids, to electric vehicles – will be key.

Expanding and diversifying manufacturing capabilities on a global scale requires significant international coordination. In addition, greater investment is needed to ensure a just transition, including in personnel skills training, research and innovation, and incentives to build supply chains through sustainable practices that protect ecosystems and cultures.

　Creating a level playing field for renewable energy technologies

While global cooperation and coordination are critical, they must be urgent Reform domestic policy frameworks to streamline and accelerate renewable energy projects and promote private sector investment.

The technology, capacity and funding for the renewable energy transition exist, but policies and processes are needed to reduce market risks to enable and incentivize investment – ​​including through streamlining planning, permitting and Regulate processes, and prevent bottlenecks and red tape. This could include allocating space for large-scale expansion in special renewable energy zones.

Nationally determined contributions, individual climate action plans developed by countries to reduce emissions and adapt to climate impacts, must set renewable energy targets consistent with 1.5 degrees Celsius. The share of renewable energy in global electricity generation must increase from the current 29% to 60% by 2030.

Clear and strong policies, transparent processes, public support and the availability of modern energy delivery systems are key to accelerating the adoption of wind and solar technologies.

Shifting energy subsidies from fossil fuels to renewable energy

Fossil fuel subsidies are hindering the world’s transition to renewable energy one of the biggest financial obstacles. The International Monetary Fund (IMF) said that in 2020 alone, some $5.9 trillion was used to subsidize the fossil fuel industry, including through explicit subsidies, tax breaks, and health and environmental damage that was not accounted for in the cost of fossil fuels. This equates to approximately $11 billion per day.

Fossil fuel subsidies are inefficient and unfair. According to data from the International Monetary Fund, in developing countries, about half of the public resources used to support fossil fuel consumption benefit the richest 20% of the population.

Shifting subsidies from fossil fuels to renewable energy will not only reduce emissions, but also contribute to sustainable economic growth, create jobs, improve public health and promote equality, especially for the world poor and most vulnerable people everywhere.

　Increase investment in renewable energy

By 2030, there will be a need to invest in renewable energy at least 4 Trillion dollars, including investments in technology and infrastructure to enable net-zero emissions by 2050.

Although this investment is not as high as the annual fossil fuel subsidies, it will pay off. By 2030, reducing pollution and climate impacts alone could save the world up to $4.2 trillion annually.

Money is already available, what is needed is commitment and accountability, particularly from the global financial system, including multilateral development banks and other public and private financial institutions. They must adapt their loan portfolios to accelerate the transition to renewable energy.

To paraphrase Guterres, renewable energy is the only way to achieve true energy security, stable electricity prices and sustainable employment opportunities.