Global renewables summit roots for more financing

The 79th edition of the United Nations General Assembly in New York brought together global leaders who emphasized the urgent need to further scale-up renewable energy adoption worldwide. Over the last two decades, renewable energy capacity has grown eight times while costs have plummeted by 80 percent. The average cost of solar power has hit a new low of 4 cents per kilowatt hour, making it more cost-effective than many traditional energy sources. Despite these positive trends, leaders stress that the pace of progress is still insufficient and the scale of adoption needs to increase significantly. Key areas requiring immediate investment include grid infrastructure, AI technology, and the Global South. In many developed countries, aging electricity grids pose a challenge, while several regions in the Global South lack grid infrastructure altogether. Governments are called upon to take action by setting renewable energy targets in their Nationally Determined Contributions (NDCs), implementing policies to attract private investments, and streamlining permitting processes. Permitting procedures are identified as a critical factor in the success of renewable energy projects, with delays hindering progress towards ambitious energy targets. Leaders underscore the potential for expanding and diversifying value chains in the energy transition sector, highlighting the importance of sustainable industrial development. They acknowledge the historical exploitation of Africa's resources and advocate for equitable initiatives that benefit the continent's population. African heads of state have committed to re-engineering the African Union and driving the Africa Green Industrialization Initiative to promote sustainable industrial growth. The upcoming Accelerated Partnership for Renewables in Africa forum in Nairobi, organized in collaboration with IRENA, aims to boost renewable energy expansion in the region. Leaders stress the need to address both supply and demand for renewable energy to foster innovation, partnerships, and enhanced solutions. Africa's favorable climate conditions present opportunities to drive economic growth, job creation, and improve livelihoods while generating substantial financial returns. The importance of financing, particularly through public-private partnerships, is highlighted as crucial for advancing renewable energy projects. Leaders also address non-financial barriers such as regulatory capacity and procurement processes that can impede progress. Collaborative approaches like pooled procurement and pooled investments in regions are proposed to accelerate the transition to renewable energy. By collectively investing in renewable energy projects and securing collective offtake agreements, small countries can overcome limitations and speed up the transition to sustainable energy sources by 2030.