Region: Global
Country: Global / Non-Specific
Sector: Energy and Power
Keywords: Age of Disruption, Renewable Energy
Document Link(s):
Document Summary:
This year’s report shows that governments need to act more aggressively and press forward with renewables in all sectors. The window of opportunity is closing and efforts must be ramped up significantly. This will not be easy. The share of fossil fuels in overall final energy demand is as high as it was a decade ago. While renewables grew almost 5% per year from 2009 to 2019, fossil fuel shares remained at around 80% over the same period. And with fossil fuel subsidies in 2019 totalling USD 550 billion – almost double the total investment in renewables – the last 10 years of climate policy promises have shown themselves to be mostly empty words.
Document Details:
Despite the impacts of the COVID-19 pandemic, renewable energy set a record in new power capacity in 2020 and was the only source of electricity generation to register a net increase in total capacity. Investment in renewable power capacity rose, although slightly, for the third consecutive year, and corporations continued to break records for sourcing renewable electricity. More countries shifted towards renewables for the electrification of heat. Although production of transport biofuels declined, electric vehicle (EV) sales expanded, as did the linking of EVs and renewable power, although to a lesser extent. China was among the countries that strengthened their commitments to action on the climate crisis, setting a carbon-neutral target. The United States re-joined the Paris Agreement in early 2021.
Meanwhile, previous obstacles to progress in the renewable energy sector persisted during 2020. They include the slow increase in the share of renewables in total final energy consumption (TFEC), inadequate innovation in some sectors, the need for infrastructure development, the lack of affordability in some markets, the absence of sufficient policy and enforcement, and ongoing support for fossil fuels.
For the first time, the number of countries with renewable energy support policies did not increase from the previous year. Despite greater interest in net zero targets during 2020, these targets do not necessarily cover all greenhouse gases or sectors, nor do they necessarily lead to increased attention to renewables or to success in meeting renewable energy targets. While such targets are in place in nearly all countries, many countries were not on track to achieve their 2020 targets in multiple sectors, and many had not yet set new targets as their 2020 targets expired. In addition, investments in fossil fuels outlined in COVID-19 recovery packages worldwide were six times greater than the level of investments allocated to renewable energy.
As in past years, the highest share of renewable energy use was in the electricity sector (26% renewables); however, electrical enduses accounted for only 17% of total final energy consumption. The transport sector, meanwhile, accounted for an estimated 32% of TFEC and had the lowest share of renewables (3.3%). The remaining thermal energy uses, which include space and water heating, space cooling, and industrial process heat, represented more than half (51%) of TFEC; of this, renewables supplied some 11%.
As of 2019, modern renewable energy (excluding the traditional use of biomass) accounted for an estimated 11.2% of TFEC, up from 8.7% a decade earlier. Despite tremendous growth in some renewable energy sectors, the share of renewables has increased only moderately each year. This is due to rising global energy demand, continuing consumption of and investment in new fossil fuels, and declining traditional use of biomass (which has led to a shift towards fossil fuels).
This slow progress points to the complementary and fundamental roles of energy conservation, energy efficiency and renewables in reducing the contribution of fossil fuels to meeting global energy needs and reducing emissions. With the concentration of carbon dioxide (CO2) in the atmosphere still rising to record levels even as emissions have fallen, it has become increasingly clear that a structural shift is needed to reach long-term climate targets.
Updated: December 28, 2023