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Solar is now 41% cheaper than fossil fuels, UN report shows

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: More than 90% of new renewable energy capacity installed in 2024 was cheaper than the lowest-cost fossil fuel alternative, according to two UN-backed reports released Tuesday
Global renewable capacity grew by a record 582 gigawatts last year, nearly 20% higher than in 2023, with wind, solar and hydropower driving the expansion
UN Secretary-General António Guterres hailed the findings as evidence of a “clean energy revolution,” warning, however, that rising geopolitical and trade risks threaten progress

🔭 The context: Renewable energy has seen dramatic cost declines over the past decade: solar power, once four times more expensive than fossil fuels, is now 41% cheaper; offshore wind is 53% cheaper
Since the 2015 Paris Agreement, investment in clean energy has surged, reaching $2 trillion in 2024 — $800 billion more than fossil fuel
Nonetheless, fossil fuel subsidies still outpace those for renewables nearly ninefold, and many developing countries struggle with financing and infrastructure barriers to scale up clean energy

🌍 Why it matters for the planet: The findings underscore that renewable energy is not only the most sustainable but now also the most economically viable choice for new power generation
This “positive tipping point” strengthens the case for phasing out fossil fuels to meet climate goals
Yet the persistence of subsidies for fossil fuels, supply chain vulnerabilities, and inequities in access risk slowing a just and effective global transition, especially in the Global South

⏭️ What's next: Key priorities include improving grid infrastructure, streamlining permitting processes, and securing stable supply chains to sustain cost declines
Policymakers face pressure to redirect subsidies away from fossil fuels toward renewables and to strengthen cooperation to mitigate geopolitical and trade risks
Progress at COP30 in 2025, along with new policy frameworks from major economies, will signal whether the momentum can be maintained and equitably distributed

💬 One quote: “The transition to renewables is irreversible, but its pace and fairness depend on the choices we make today,” said Francesco La Camera, Director-General of IRENA

📈 One stat: Clean energy sectors accounted for nearly 33% of Europe’s GDP growth and 10% of global GDP growth in 2023, illustrating their growing economic significance

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