Global Renewable Energy Switch Hits "Positive Tipping Point"

Strategic Insights -

As the world continues to grapple with the challenge of curbing climate change, two United Nations reports have revealed that the global switch to renewable energy has reached a crucial milestone. The reports, released on Tuesday, highlight a significant shift away from fossil fuels and towards clean energy sources, with solar and wind power becoming increasingly cheaper and more widespread.

Key Takeaways:

  • The global switch to renewable energy has passed a "positive tipping point," where solar and wind power will become even cheaper and more widespread, according to two United Nations reports.
  • Last year, 74% of the growth in electricity generated worldwide was from wind, solar, and other green sources, according to the U.N.'s multiagency report, Seizing the Moment of Opportunity.
  • 92.5% of all new electricity capacity added to the grid worldwide in 2023 came from renewable sources, including solar, wind, and hydroelectric power.
  • Sales of electric vehicles have increased from 500,000 in 2015 to over 17 million in 2024, with the three cheapest electricity sources globally last year being onshore wind, solar panels, and new hydropower.
  • Fossil fuels, which are the chief cause of climate change, include coal, oil, and natural gas, with the cheapest fossil fuel being nearly twice as expensive as the cheapest renewable energy source.
  • The United Nations Secretary-General, Antonio Guterres, noted that the "fossil fuel age is flailing and failing," and that the world is "in the dawn of a new energy era," where cheap, clean, and abundant energy powers a world rich in economic opportunity.
  • The reports showed that last year, there was $2 trillion in investment in green energy, which is about $800 billion more than in fossil fuels.
  • United Nations officials emphasized that while the switch to renewable energy is remarkable when compared to 10 years ago, it is happening at a pace too slow to meet global climate targets.
  • Africa represented less than 2% of the new green energy capacity installed last year, despite having significant electrification needs, due to high costs of capital.

Statistics:

  • 74% of the growth in electricity generated worldwide in 2023 came from wind, solar, and other green sources.
  • 92.5% of all new electricity capacity added to the grid worldwide in 2023 came from renewable sources.
  • Sales of electric vehicles increased from 500,000 in 2015 to over 17 million in 2024.
  • The global renewables growth has been mostly in developed countries, including China, where one-tenth of the economy is tied up in green energy, as well as countries such as India and Brazil.
  • Africa represented less than 2% of the new green energy capacity installed last year.
  • Last year, global fossil fuel subsidies amounted to $620 billion, compared to $70 billion for renewables.
  • The International Renewable Energy Agency (IRENA) reported that solar power is now 41% cheaper and wind power is 53% cheaper globally than the lowest-cost fossil fuel.

Sources:

  • United Nations, Seizing the Moment of Opportunity (multiagency report)
  • International Renewable Energy Agency (IRENA) energy cost report
  • Antonio Guterres, United Nations Secretary-General
  • Adelle Thomas, Bahamian climate scientist of the Natural Resources Defense Council
  • Jonathan Overpeck, University of Michigan environment dean
  • The Associated Press, climate and environmental coverage.