Energy Transition "Unstoppable" as Clean Energy Surpasses Fossil Fuels

Strategic Insights -

The transition to clean energy has reached a critical momentum, with a record $2 trillion flowing into global clean energy last year, outpacing fossil fuels by $800 billion and increasing by almost 70 percent in a decade. United Nations Secretary-General Antonio Guterres hailed this development as "unstoppable," citing a new UN technical report that highlights the vast benefits and actions needed to accelerate a just transition globally. The report shows that solar photovoltaic and offshore wind have become significantly cheaper, with solar PV now 41 percent and offshore wind 53 percent cheaper than fossil fuels. This shift in energy landscape is not only about power but also about possibility, as the carbon emissions saved by solar and wind globally approach what the entire European Union produces in a year.

Key Takeaways:

  • The global clean energy sector received a record $2 trillion last year, surpassing fossil fuels by $800 billion and increasing by almost 70 percent in a decade.
  • Solar photovoltaic (PV) and offshore wind have become significantly cheaper, with solar PV now 41 percent and offshore wind 53 percent cheaper than fossil fuels.
  • Over 90 percent of new renewables worldwide produce electricity for less than the cheapest new fossil fuel alternative.
  • The carbon emissions saved by solar and wind globally are almost equivalent to what the entire European Union produces in a year.
  • The UN Secretary-General identified six key areas for speeding up the energy transition: ambitious national climate plans, modern grids and storage, meeting soaring demand sustainably, a just transition for workers and communities, supercharging the energy transition with trade and investment, and mobilizing finance to emerging markets.
  • The report emphasizes the need for reform of global finance, stronger multilateral development banks, and debt relief, including debt-for-climate swaps.

Statistics:

  • $2 trillion: The amount flowing into global clean energy last year
  • $800 billion: The difference between the amount flowing into clean energy and fossil fuels last year
  • 70%: The increase in global clean energy investment over the past decade
  • 41%: The decrease in cost of solar photovoltaic energy compared to fossil fuels
  • 53%: The decrease in cost of offshore wind energy compared to fossil fuels
  • 90%: The percentage of new renewables worldwide producing electricity for less than the cheapest new fossil fuel alternative

Sources:

  • Xinhua: "UN chief says energy transition 'unstoppable' as clean energy flows $2 trillion last year"
  • International Renewable Energy Agency (IRENA): New data on global energy landscape