The report is part of a document released by the United Nations today, which indicates that renewable energies have undergone a “remarkable transformation” with a significant drop in costs and an increase in production capacity, signaling a global shift from fossil fuel-dominated systems to those driven by “local and low-cost” renewable energies.
Entitled ‘Seizing the moment of opportunity’, the document was presented by UN Secretary-General António Guterres, who stated that the era of fossil fuels is failing and a new energy era is starting, characterized by “cheap, clean, and abundant energy” fueling a world of economic opportunities. “Just follow the money,” he said.
Optimistic in tone, the report provides data on the rise of renewables but warns of “significant political and economic barriers and obstacles.”
A new report from the International Renewable Energy Agency (IRENA), also released today, highlights the positive development of renewables, which last year maintained their lead in cost-effectiveness in global energy markets.
In 2024, photovoltaic energy was, on average, 41% cheaper than the lowest-cost fossil fuel alternatives, while onshore wind projects were 53% cheaper, according to IRENA’s report.
Similarly, the UN report (which also involved collaboration with IRENA, among other entities) emphasizes that solar and wind energies are currently the cheapest and fastest options for electricity production.
In terms of annual electricity production, renewable energies increased by 81% last year, compared to a 13% increase for fossil fuels, and sales of electric vehicles surged by 3,300% between 2015 and 2024.
In addition to investment increases, clean energy jobs reached 34.8 million in 2023, with the sector contributing to a 10% growth in global GDP and almost a third of the European Union’s GDP that year.
“Several studies show that systematic adoption of renewable energies and improvements in energy efficiency, combined with progressive policies, can continue to generate net gains in jobs, GDP, and other social benefits as the transition progresses,” states the UN document.
However, it warns that renewable energy is still not replacing fossil fuels in energy systems at the required pace and scale, necessitating new policies, laws, infrastructure modernization, and diversified investments (Africa has almost no renewable energy investments).
It also highlights that government subsidies for fossil fuels remain high.
António Guterres remarked that fossil fuels are “running out of space,” reflected in greenhouse gas emissions: the savings (in emissions) from renewables are almost equivalent to what the whole European Union produces in a year, he said.
No government, industry, or interest can prevent the future of clean energy, said the Secretary-General, cautioning against attempts by the “fossil fuel lobby of some fossil fuel companies,” which will not succeed as the “point of no return” has already been surpassed.
Even Texas, United States, he noted, is leading in renewable energies.
Despite progress, António Guterres warned that the 1.5-degree temperature increase limit “is in jeopardy” and called for an acceleration in emission reductions, inviting countries to present ambitious reduction proposals during the UN General Assembly’s High-Level Week in September.
He also urged major tech companies to power all their data centers with 100% renewable energy by 2030.
