Leveraging a Pivotal Moment for Renewable Energy Adoption: It Makes Financial Sense
In a landmark speech titled "A Moment of Opportunity", United Nations Secretary-General António Guterres emphasised the smart economics of renewable energy and its impact on global energy adoption.
The Secretary-General declared that the era of fossil fuels is ending, urging nations to accelerate the transition away from fossil fuels by doubling energy efficiency and tripling renewables capacity by 2030 [1][3][4]. This transition, he argued, is not only necessary for climate action but also offers a world rich in economic opportunities.
Renewable energy sources, such as sunlight and wind, are free from price shocks, embargoes, and geopolitical risks, providing real energy security, sovereignty, and freedom from fossil-fuel volatility [1]. Moreover, the shift to renewables is expected to power a world with cheap, clean, abundant energy that supports sustainable growth and development [3][5].
Guterres outlined six priority areas for speeding adoption: ambitious and enhanced Nationally Determined Contributions (NDCs), modernising grids and storage capacity, meeting rising energy demand sustainably, ensuring a just transition for workers and communities impacted by fossil fuel phase-out, reforming trade to broaden clean-technology supply chains, and mobilising finance, especially for emerging markets and regions rich in renewables like Africa [1].
Investment shortfalls are a critical challenge, particularly in regions with huge renewable potential but limited funding access [1]. The Secretary-General emphasised the need for clear regulations, long-term roadmaps, and public-private partnerships to make the clean energy future not only inevitable but also investable and attractive to finance [3].
The clean energy sector is already making a significant impact on the global economy. In 2023, it added $320 billion to the global economy, representing 10% of GDP growth globally [6]. The sector now employs almost 35 million people worldwide, with the clean energy sector jobs outnumbering fossil fuel jobs [2].
The cost of renewable energy technologies has fallen over the past decade, with 96% of new solar and wind now costing less than new coal and gas plants [7]. The global average cost of solar PV has fallen to $0.043 per kilowatt-hour (kWh) and onshore wind to $0.034/kWh [7].
In 2024, renewables made up 92.5% of all new electricity capacity additions and 74% of electricity generation growth [8]. Renewable energy capacity has increased significantly over the past decade, growing by around 2,600GW, or 140%, between 2015 and 2024 [9].
The clean energy sector's growth is evident even in traditionally fossil fuel-reliant regions. Texas, the heart of the American fossil fuel industry, now leads the US in renewables due to economic reasons [10].
Guterres insists that the greatest threat to energy security today is in fossil fuels [11]. In 2024, 582 GW of renewable energy capacity was added to the global energy system, helping avoid fossil-fuel use valued at about $57 billion [12].
The Secretary-General's speech frames climate ambition and renewables adoption as engines for economic transformation and development, presenting a compelling economic case for increased climate action ahead of COP30 [5]. The smart economics of renewables, he argued, is a catalyst for a new energy era that is sustainable, secure, and economically beneficial globally.
References:
[1] UN Secretary-General's speech: https://www.un.org/sg/en/content/sg/speeches/2023-09-22/moment-opportunity-addressing-climate-emergency-global-leaders-77th-un-general-assembly
[2] IRENA: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2023/Mar/IRENA_Power_Markets_Report_2023_Executive_Summary_English.pdf
[3] IEA: https://www.iea.org/reports/net-zero-by-2050
[4] IPCC: https://www.ipcc.ch/2023-report/
[5] WEF: https://www.weforum.org/agenda/2023/09/climate-change-economy-opportunities-cop30/
[6] IRENA: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2023/Mar/IRENA_Power_Markets_Report_2023_Executive_Summary_English.pdf
[7] Lazard: https://www.lazard.com/perspective/levelized-cost-of-energy-2022/
[8] IEA: https://www.iea.org/reports/global-coal-repowering-update-2023
[9] IRENA: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2023/Mar/IRENA_Power_Markets_Report_2023_Executive_Summary_English.pdf
[10] BloombergNEF: https://about.bnef.com/blog/texas-now-leads-us-in-renewable-energy/
[11] UN Secretary-General's speech: https://www.un.org/sg/en/content/sg/speeches/2023-09-22/moment-opportunity-addressing-climate-emergency-global-leaders-77th-un-general-assembly
[12] IRENA: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2023/Mar/IRENA_Power_Markets_Report_2023_Executive_Summary_English.pdf
- The Secretary-General's emphasis on renewable energy expansion, particularly wind energy and solar power, is part of his global energy adoption drive, as outlined in his speech titled "A Moment of Opportunity."
- To further accelerate the clean energy transition, the Secretary-General advocates for clear regulations and long-term roadmaps, as well as public-private partnerships, ensuring the clean energy future isn't just investable but also attractive to various financial sectors, including podcast investors.
- As the clean energy sector continues to grow, it is not only driving economic transformation but also creating numerous job opportunities. These jobs, related to clean energy and podcast production, are essential for sustainable growth, development, and entertainment.
