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

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🗞️ 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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