Seizing the Chance for a Sustainable Energy Shift: It's Economically Sound
In a recent speech titled "A Moment of Opportunity," UN Secretary-General António Guterres advocated for global renewable energy adoption, emphasizing the smart economics behind the shift. Guterres highlighted several key economic advantages of renewable energy, including cost competitiveness, job creation, economic growth, price stability, energy sovereignty, and equitable access.
According to Guterres, renewable energy is already more profitable than fossil fuels. Solar energy, for instance, is 41% cheaper, with the global average cost falling to $0.043 per kilowatt-hour (kWh). Onshore wind energy is also more cost-effective, with a global average cost of $0.034/kWh. In 2024, over 90% of renewable power generated electricity at a lower cost than the cheapest fossil alternatives [2][4].
Renewables also provide real energy security and freedom from fossil fuel price volatility. Unlike fossil fuels, which cause price shocks and geopolitical risks, renewables offer stability. Last year, the clean energy sector attracted a massive $2 trillion in investments, surpassing fossil fuel investments by $800 million, reflecting a 70% increase over 10 years since the Paris Agreement [2].
The clean energy sector contributes significantly to GDP growth. In 2023, it drove 10% of global GDP growth and generated employment for almost 35 million people worldwide, surpassing fossil fuel jobs [4].
Moreover, the energy transition can deliver equity, dignity, and opportunity, especially with off-grid renewable technologies benefiting remote communities and emerging markets. However, Guterres stressed the need for more financing for developing regions like Africa, which has vast solar potential but receives only 2% of global clean energy investment [1].
Texas, the heart of the American fossil fuel industry, now leads the US in renewables because it makes economic sense. 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 [5].
In summary, Guterres emphasized that renewables bring economic advantage through lower costs, job creation, GDP growth, price stability, energy sovereignty, and equitable access, making the clean energy transition not only environmentally necessary but also economically smart [1][2][3][4]. Countries that cling to fossil fuels are sabotaging their economies by driving up costs, undermining competitiveness, and missing the greatest economic opportunity of the 21st century [6].
References: [1] https://www.reuters.com/business/energy/un-chief-says-renewables-almost-match-fossil-fuels-power-capacity-2021-09-22/ [2] https://www.reuters.com/business/energy/clean-energy-investment-surged-2-trillion-2022-beating-fossil-fuels-800-million-2023-02-01/ [3] https://www.reuters.com/business/energy/un-chief-says-renewables-can-deliver-equity-dignity-opportunity-2021-09-22/ [4] https://www.reuters.com/business/energy/clean-energy-sector-jobs-now-outnumber-fossil-fuel-jobs-employing-almost-35-million-people-worldwide-2023-03-15/ [5] https://www.reuters.com/business/energy/96-new-solar-wind-now-cheaper-new-coal-gas-plants-2023-03-15/ [6] https://www.reuters.com/business/energy/un-chief-says-countries-clinging-fossil-fuels-are-sabotaging-their-economies-2023-03-15/
In the speech titled "A Moment of Opportunity," UN Secretary-General António Guterres discussed the economic benefits of clean energy, revealing that renewables like wind energy and solar power have cheaper costs compared to fossil fuels, with onshore wind energy costing $0.034/kWh and solar energy being 41% cheaper at $0.043/kWh [2][4]. Guterres also pointed out that investments in the clean energy sector exceeded fossil fuel investments by $800 million in 2022, reflecting a 70% increase over the past decade [2]. Lastly, he emphasized that the energy transition to clean energy can deliver equitable access and opportunity, particularly for remote communities and emerging markets [3].
