Access to electricity is increasing; more investment needed for green energy transition

The Energy Progress Report 2024, a document co-authored by several multilateral organizations including the WHO and the World Bank, shows that the world has made significant progress toward access to electricity. The report includes insights into international financial flows that support clean energy development in developing countries.

In 2021, 91 percent of the world’s population had access to electricity, up from 83 percent in 2010. However, some 733 million people still lack access, mostly in sub-Saharan Africa and South Asia. Efforts to close this gap have been hampered by the COVID-19 pandemic, which has delayed infrastructure projects and diverted resources. Taking these challenges head on, India has made significant progress toward achieving its goal of universal access to electricity through government initiatives and investments in rural electrification.

The transition to clean cooking solutions has been slow, with some 2.4 billion people still using traditional cooking methods. The limited adoption of clean cooking technologies is due to factors such as affordability, cultural preferences and supply chain issues. The report highlights the need for integrated policies that address both supply and demand, including subsidies, public awareness campaigns and support for local entrepreneurs.

Renewable energy use has increased due to lower costs and supportive policies. More investment is needed in low-income countries. In 2021, global renewable energy use rose to 19.3 percent from 16.3 percent in 2010. Solar and wind were the main drivers of this growth. China, the United States and the European Union are the largest investors in renewable energy.

Over the years, energy efficiency improvements have made a significant contribution to reducing energy consumption and addressing climate change. According to a recent report, global primary energy intensity, which measures the energy efficiency of an economy, showed an annual improvement of 1.9 percent between 2010 and 2021. Although this is slightly below the annual target of 2.6 percent required to achieve Sustainable Development Goal 7, initiatives to increase energy efficiency have included introducing energy efficiency standards for appliances, buildings and vehicles, as well as implementing financial incentives and public awareness programs. Notably, countries such as Germany and Japan have set remarkable examples in energy efficiency through sustained policy measures and investment commitments.

Financial flows supporting green energy initiatives in developing countries are crucial to driving their progress towards Sustainable Development Goal 7. In 2021, these flows reached $23 billion, a 10% increase from the previous year. Multilateral development banks and bilateral donors have played a significant role in financing clean energy projects, including renewable energy installations, energy efficiency programmes and technical assistance. However, the report calls for increased financial commitments to meet the growing energy needs of developing countries and support the transition to sustainable energy systems.

The outlook for achieving Sustainable Development Goal 7 is mixed. While significant progress has been made in some areas, significant challenges remain. The report highlights the need for increased international cooperation, improved policy frameworks and greater financial investment to accelerate progress. It also highlights the importance of harnessing technological innovation, building local capacity and supporting inclusive approaches that ensure no one is left behind in the global energy transformation.