Global progress in renewable energy is slowing due to political uncertainty

Progress in renewable energy deployment in major energy-intensive sectors around the world slowed in 2023 in the face of high interest rates, supply chain problems and regulatory and policy uncertainty in the wake of the energy crisis, renewable energy think tank REN21 said in a new report on Thursday .

Last year, global renewable capacity additions increased by approximately 36% to 473 gigawatts (GW), a new record for the 22nd consecutive year, according to the REN21 Global Renewables Status Report for 2024.

However, by the end of 2023, only 13 countries worldwide have implemented renewable energy policies across all end-use sectors – construction, industry, transport and agriculture – the think tank said.

“This slow progress now risks compounding as higher capital costs and rising inflation hold back project development as countries weaken existing policies,” REN21 noted.

In the wake of the 2022 energy crisis, some countries accelerated their transition to renewable energy sources, but others “opted to use fossil fuels to ensure their energy supply,” the report said.

According to REN21, global investment in natural gas and coal infrastructure remains significant, although many developing countries are prioritizing short-term economic growth over long-term energy transition.

“Opposition to renewable energy sources continues to challenge the development of the sector, despite technological progress and growing awareness of environmental issues,” the report says.

Earlier this year, REN21 found that despite record investments in renewables, current funding for clean energy deployment is insufficient for the world to achieve the 1.5 degrees Celsius pathway in line with the Paris Agreement.

Despite record investments in renewable energy sources, which amounted to a whopping $622.5 billion in 2023, the world is still far from what is needed to achieve climate and sustainability goals, said REN21 executive director Rana Adib.

Estimates have shown that the world will need more than twice as much annual investment in clean energy solutions by 2030 – $1.3 trillion – if we want to keep the goal of 1.5 degrees Celsius within reach.

Author: Tsvetana Paraskova for Oilprice.com

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