Despite global commitments to reduce dependence on fossil fuels, a recent report by the International Renewable Energy Agency (Irena) shows that subsidies for these energy sources triple the investment in renewables, which threatens the climate objectives for 2030.
According to this document, fossil fuel subsidies in 2022 reached a record figure of 1.3 trillion dollars. In 2023, investment in renewables barely exceeded $570 billionThis financial imbalance calls into question the commitments made at the Dubai Climate Summit (CoP28), which agreed to triple the capacity for renewable energy generation and reduce dependence on fossil fuels by 2030. Francesco La Camera, Director General of IRENAstressed that despite progress in installing new renewable capacity, the current pace of expansion is insufficient: “We urgently need systemic change away from fossil fuels to correct course and keep the goal of tripling within reach.”
To meet the goal of tripling global renewable capacity, according to this report, a coordinated and effective effort that addresses systemic and structural barrierssuch as, for example, the Lack of adequate infrastructure, poor regulatory policies and lack of workforce skills in the clean energy sector. Besides, It is essential that investments be increased reaching an annual average of $1.5 trillion between 2024 and 2030, according to IRENA projections.
A global commitment
The International Agency also highlights the worrying situation in developing countries, where investments in renewable energy have been disproportionately low. Despite having considerable renewable potential, These regions have only received a small fraction of global investment. So much so that a total of 120 developing countries obtained only 15% of global investment in renewable energy, while sub-Saharan Africa received less than 1.5%, despite having the largest share of populations without access to energy.