The world is at a pivotal moment in its pursuit of sustainability, nearly a decade into the Sustainable Development Goals (SDGs) set out to forge a more sustainable and equitable world by 2030. Among these goals, SDG 7 targets the essential aspects of energy—ensuring universal access to affordable, reliable, and modern energy services, substantially increasing the share of renewable clean energy in the global mix, and doubling the global rate of improvement in energy efficiency.
The Evolution of Global Energy Access
“We have made considerable progress,” noted a spokesperson during the recent Global Stocktaking organised by the UN General Assembly. Indeed, the journey has been remarkable. From nearly 1.1 billion people lacking electricity access in 2014, we’ve decreased this figure by approximately 350 million by the end of 2023. Additionally, the introduction of renewables into the energy mix has seen a significant uptick, though the doubling of our global energy efficiency rates remains an unfinished goal.
India’s Remarkable Clean Energy Milestones
A standout example of national progress is India, where profound political commitment has spurred extraordinary achievements.
“Since 2015, India has connected 28 million households, impacting 120 million people, to the electricity grids—a third of the global total during the last decade,”
Moreover, India has added over 150,000 MW of clean energy capacity, demonstrating not just quantitative growth, but a transformational impact on the lives of its citizens, opening doors to enhanced education, healthcare, and economic opportunities.
Financing the Future
The financial strategies accompanying India’s clean energy transition have been notably innovative. The nation has redirected a significant portion of its GDP from traditional savings like gold and land to more liquid financial assets. “This liquidity infusion has fortified our banking sector, enabling robust financing of renewable energy projects,” a financial expert from India commented.
Challenges and Opportunities in Global Supply Chains
The ongoing COVID-19 pandemic and geopolitical conflicts underscore the necessity of diversifying supply chains. The development of localized supply hubs across the world has its pros and cons. While it promotes resilience and supports climate action, it also raises issues such as increased protectionism and trade barriers, which can stymie the flow of essential materials and technologies across borders.
Unified Carbon Markets: A Path Forward
The article points to the fragmentation of carbon markets as a barrier to efficient capital allocation. Thirty-six carbon trading systems are in place, with over twenty more under consideration. A unified carbon market could be a game-changer, increasing investment in undercapitalized regions by creating efficiencies and scale.
Can We Flip the Switch on Our Energy Future?
As we approach the closure of the UN Decade of Sustainable Energy for All, it is critical to acknowledge both our achievements and the challenges that remain. At ReNew, there is a strong belief in the power of collective action and international collaboration to drive the clean energy transition forward. But, the journey isn’t just for policymakers and industry leaders; everyone has a role to play.
Photo by Sungrow EMEA on Unsplash
