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Global Energy Transition Off Track – IRENA 

The global energy transition is off-track to meet the 1.5°C climate target, the World Energy Transitions Outlook Preview has warned. The report, commissioned by the International Renewable Energy Agency (IRENA), shows progress has been made in some areas, notably in the power sector where renewables account for 40% of installed power generation globally, contributing to an unprecedented 83% of global power additions in 2022. However, two-thirds of that occurred in China, the EU and the US, leaving developing nations further behind. To keep 1.5°C alive, deployment levels must grow from some 3,000 gigawatt (GW) today to over 10,000 GW in 2030. Although global investment in energy transition technologies reached a new record of US$1.3 trillion in 2022, yearly investments must more than quadruple to over US$5 trillion to stay on the 1.5°C pathway. By 2030, cumulative investments must amount to US$44 trillion, with transition technologies representing 80% of the total, or US$35 trillion, prioritising efficiency, electrification, grid expansion and flexibility. Furthermore, public sector intervention is required to channel investments towards countries in a more equitable way. In 2022, 85% of global renewable energy investment benefitted less than 50% of the world’s population. Africa accounted for only one per cent of additional capacity in 2022. The full World Energy Transitions Outlook will be released later this year.  

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