Deployment of cheap solar and wind is surging towards the global goal of tripling renewable capacity and doubling energy efficiency by 2030 – with clean energy on course to meet half of all electricity demand worldwide. New actions announced today at COP29 in Baku have given the energy transition a further boost.

Energy Day Key Announcements:

• The Utilities for Net Zero Alliance (UNEZA) – launched at COP28 under the guidance of the International Renewable Energy Agency (IRENA) and the UN Climate Change High-Level Champions – announced doubling its membership and reaching members operating across 5 continents, plus increased annual investments on grids and renewable power generation capacity, supporting the COP29 Global Energy Storage and Grids pledge.
• The COP29 Global Energy Storage and Grids pledge gained momentum, with official backing by UK, Uruguay, Belgium and Sweden. The Global Renewables Alliance urged more countries and non-state actors to join the pledge at the COP29 ministerial meeting.
• The Latin America Energy Organization (OLADE) announced a Regional Target for Energy Efficiency set by member countries to deliver the doubling outcome of the Global Stocktake and a regional agreement on No More Coal-Fired Power Plants in the region.
• The Hydro4NetZero-LAC initiative launched to develop and modernise sustainable hydropower infrastructure increasing the energy systems’ flexibility and resilience.
• The African Energy Commission (AFREC) launched a continental level Energy Efficiency Programme, Strategy and Action Plan, establishing a roadmap for the industry, electricity supply, appliances, buildings, transportation and agriculture sectors.

This builds on announcements earlier during COP29, including:

• Seven Mediterranean Countries committed to develop one terawatt of renewable capacity by 2030 through the TeraMed initiative, led by IRENA and the Global Renewables Alliance. With investments that can reach USD 700 billion, the initiative has the potential to create three million new jobs in the solar industries alone.
• The Breakthrough Agenda – launched at COP26 to accelerate the global adoption of clean technologies – announced that more than 60 countries, responsible for 80% of global emissions, have pledged to support a new series of priority actions to cut carbon in the coming year. These “Baku Priority International Actions” aim to strengthen collaboration in key sectors and advance climate action before next year’s COP in Brazil.
• The Breakthrough Agenda’s new Hydrogen Action Declaration launched with the aim to expand political support for scaling clean hydrogen production and use, with Kazakhstan and Singapore joining the agenda’s hydrogen efforts.
• The listing of the CIF Capital Markets Mechanism (CCMM), on the London Stock Exchange was announced. As a provider of concessional catalytic finance CCMM has the potential to mobilize up to $75 billion in additional climate capital over the next decade to support clean energy transitions in emerging and developing economies.
• A coalition of countries, businesses and organisations, including Mission Efficiency, RMI and the Global Renewables Alliance, urged world leaders at COP29 in Baku to commit to actionable measures to unlock the energy efficiency investment that is crucial to meeting climate targets.
• The Global Alliance for Pumped Storage (GAPS) launched with the support of over 30 governments and international agencies.
• Renewables industries called for urgent action to remove trade barriers at a COP29 event with the World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala and ministers.
• Voters in 10 leading economies say investments in clean energy should be a priority for their governments, showed new data published by the Global Renewables Alliance ahead of COP29.

Nigar Arpadarai, UN Climate Change High-Level Champion for COP29, said:
“At COP29, we’re seeing the surge of real economy progress towards accelerating the clean energy transition. This demonstrates that delivering the UAE Consensus is not only possible but that countries are harnessing the clean energy transition as a route to long-term sustainable growth, resilience and energy security – critically including emerging and developing economies. We now need to urgently focus on mobilising investment at scale, and ensuring finance is accessible, available, and affordable where it is needed most. We must ensure that the transition is fair and equitable, so that no country is left behind”

Urgent call to power up emerging economies

Achieving the Paris Agreement requires a massive increase in renewable energy, energy efficiency measures, and grid infrastructure for emerging and developing countries (EMDCs).

Recent analysis from RMI highlights what is possible – with 87% of power investment flowing into cleantech in 2024 already, up from around half 10 years ago. However, the investment needs of EMDCs (excluding China) for the clean energy transition needs to increase more than sixfold to around $1.6 trillion per year by 2030, according to updated analysis from the Independent High-Level Expert Group. In 2023, Africa received less than 2% of the investment in clean energy, despite accounting for about 60% of the world’s best solar resources, the report shows.

For the first time, the renewables revolution is within reach of countries that have been historically left behind.

To do this, we must accelerate along the highway to private finance to deliver 6x current annual funding levels towards powering up emerging and developing economies, through:

(1) PLATFORMS. More coordinated packages to channel support and make it easier for countries to access finance.

(2) PIPELINES. Project preparation to build bankable pipelines and get finance flowing faster.

(3) POLICIES. Investment-positive Plans & Policies that break down barriers to attract and accelerate investment and support a just transition.

(4) PRIVATE CAPITAL. Private capital incentives, including more and better concessional finance, grant-based blended finance and de-risking instruments including insurance, particularly in lower-income countries .

(5) PEOPLE. Stronger support for green industrialisation, technology innovation and supply chain development within country to capitalise on the domestic economic and social opportunities of the energy transition delivering jobs, economic growth and prosperity.

This package will help to unlock private investment into the EMDCs clean energy transition and further support countries to embed the accelerated clean energy transition into national climate plans, further attracting investment and growing domestic low-carbon industries.

Meanwhile, new research from Ember finds that national targets by governments can bank the improved outlook for renewables driven by real economy progress. A year on from the UAE Consensus being reached, national targets by governments are almost unchanged – despite major upgrades to the market outlook for renewables out to 2030, the analysis shows.

Razan Al Mubarak, UN Climate Change High-Level Champion for COP28, said:
“A massive increase in renewable energy, alongside energy efficiency measures, and grid infrastructure is the cornerstone of the clean energy transition for emerging and developing economies that delivers on both Paris and development goals. It’s in everybody’s interest that developing and emerging economies succeed: there is otherwise no viable route to achieving the Paris Agreement or UAE Consensus. Investors and governments can take confidence from the momentum that’s already underway and work to unleash finance at the scale required.”

Woochong Um, CEO of Global Energy Alliance for People and Planet (GEAPP), said: “Negotiations at COP29 and the convening of the G20 must prioritize an equitable energy transition and universal energy access for emerging economies – where the high cost of capital, and the impacts of climate change hinder progress. Far too many nations remain excluded from the benefits that renewable energy can bring. Only through radical collaboration between the public and private sectors can we break down barriers and accelerate investment.”

Tariye Gbadegesin, Chief Executive Officer Climate Investment Funds, said:
“The first-of-its-kind Climate Investment Funds Capital Markets Mechanism (CCMM) is our most ambitious step forward yet. But to accelerate the global clean energy transition, bold and innovative solutions are required. By offering private investors high-quality, high-impact clean technology and clean energy investment bonds, CCMM is expected to unlock billions in climate capital in the next ten years, which will be used to power energy transitions in emerging markets and developing economies around the world.”