A global target to triple renewable capacity by 2030 to over 11,000 gigawatts is poised to take centre stage at Cop28. The target is aligned with limiting temperature to 1.5C and is reasonably likely to be agreed in Dubai. However, achieving this goal requires a substantial increase in financial support and reform. Renewable energy can outperform oil, coal, and gas economically, leading to the displacement of fossil fuels. To phase out fossil fuels at the necessary speed and scale to limit global warming to 1.5C, we need a managed decline and a plan for implementation. The rapid expansion of renewable energy must be supported by concrete processes and resources to ensure successful implementation. This includes financing for the Global South.
G20 leaders acknowledged that a yearly investment of $4 trillion by 2030 is needed to triple renewable energy. Out of the current $1.7 trillion allocated to clean energy, only about 15% are invested in the Global South outside China. According to the International Energy Agency (IEA), the Global South outside China will require an estimated yearly investment of $1.9 trillion by 2030. Of this amount, three-fifths ($1.14tn) will need to come from private sources, while two-fifths ($760bn) will need to come from public sources.
Since the Paris Agreement, investment in renewable energy has remained largely stagnant. The Global South outside of China needs financial reforms to meet the renewable energy target. The G20 leaders claimed that these goals would be met “within existing policies”, which is an absurd claim. To ensure that the renewable target and energy package at COP are not hollow, we require financial support.