· 4 min read
Today, a sustainable energy future seems visibly within our reach. New jobs, cleaner air, healthier communities, and a shared sense of purpose in tackling the defining challenge of our time; this is the promise of the sustainable energy revolution with not just cleaner energy but more equitable growth.
But for this transformation to truly succeed, it must reach everyone. Today, 1.18 billion people still live in energy poverty and 2 billion reside in conflict-affected areas where energy security is critical. Nearly 1 billion people in the Global South lack electricity in healthcare facilities. While there is a lot of ground to cover, the progress we are seeing offers hope and potential for acceleration. For the first time ever, renewables are set to become the largest source of global electricity generation this year.
Yet, even at our current pace, we are still not on track to meet the UAE Consensus of tripling renewable capacity and doubling energy efficiency by 2030. Achieving this will require an unprecedented $3.8 trillion in annual investment. More importantly, we need to ensure these resources are accessible, strategically allocated, and equitably distributed to those who need them most.
As we mark this International Day for Clean Energy, this year demands concrete actions to accelerate a just energy transition worldwide. To this end, we need to:
1. Strategically deploy capital to catalyze systemic change
Global investments in renewables and energy efficiency reached $0.9 trillion in 2023, still well short of the finance needed to meet targets. Innovative financing mechanisms are critical to derisk investments and build a pipeline of bankable projects, potentially reducing annual investment spending by 2 trillion USD annually.
UNDP's support in establishing the Caribbean through the Financial Innovation LAB (FILAB) is a good example to illustrate this. This collaborative initiative overcomes financial barriers, unlocking both public and private capital through robust and strategic partnerships. Similarly, in Paraguay, funded with a $20 million initiative through the Mitigation Action Facility, UNDP has introduced over 300 electric buses in partnership with corporates and financial institutions.
2. Leverage the transformative potential for digital, data, and AI
The energy landscape is undergoing a digital revolution. Smart grids, predictive analytics, and AI-driven geospatial tools are optimizing renewable energy systems and identifying priority investment areas.
With global energy demand expected to grow by 25% by 2040, energy efficiency remains one of the fastest ways to reduce warming. In this context, data-driven solutions can enhance the production, storage, and distribution of renewables, cutting waste and improving overall system efficiency.
This is the ‘Year of Digital,’ and we must harness its power to accelerate progress equitably.
An example is the Clean Energy Equity Index, a product of a UNDP-IBM partnership. By leveraging geospatial and socio-economic data, the index identifies priority investment areas, enabling a more efficient and just energy transition.
3. Strengthen global cooperation to drive clean energy deployment
Despite progress, renewable energy deployment remains uneven. While 85% of installed capacity is concentrated in developed countries, Africa accounts for just 1.6%. South-South collaboration and strategic partnerships are key to overcoming financial barriers and scaling clean energy deployment where it is needed most.
Initiatives like the Africa Minigrids Program, with a $65 billion investment opportunity across 21 countries, Mission 300, which aims to connect 300 million people in Sub-Saharan Africa to electricity by 2030, and the G7’s Energy for Growth initiative are already creating the conditions to scale clean energy through collective action.
But these efforts will only succeed if we, as a global community, recognize that clean energy is a fundamental right, not a privilege.
As countries prepare their updated nationally determined contributions (NDCs) ahead of COP30 and with the G20 under South Africa's presidency seeking to secure agreement on mobilizing finance for a just energy transition, we have key opportunities to move from intent to impactful action. Renewable energy targets in updated NDCs must be doubled, investments must more than double, and our innovation efforts must intensify to push the limits of our ambitions.
Let 2025 be the year we stand behind our commitment to leave no one behind. Let us rise to the challenge, lead with purpose, and unlock the true potential of sustainable energy for development.
The future of energy is not just clean – it is just.
This article is also published on LinkedIn. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
