With the era of cheap fossil fuels now over, the world’s leaders need to grasp the opportunities from renewables. - Sam Kimmins, Director of Energy, Climate Group
Key findings
- Since the start of 2020, the G20 has committed at least USD $470 billion to supporting fossil fuel energy. In contrast, only USD $424 billion has gone to supporting clean energy.
- The report reveals a mixed bag of successes and failures and despite some progress, G20 countries fail to strongly perform across all aspects of leadership and progress on renewable electricity in particular renewable power capacities among other factors.
- Some countries performed strongly in areas like corporate access to renewables or favourable policies, however, their renewable energy ambition and net zero targets are lagging behind that progress.
Growing corporate demand
- Ambitious renewable electricity targets, coupled with more supportive policies, make for an attractive environment for investment in renewable electricity. Aligning those has huge potential for bringing more corporate investment to the countries and accelerating the transition towards more ambitious targets is needed and within reach.
- In 2019, RE100 member demand for renewable electricity represented an estimated USD $98 billion in investment. In 2022 over 380 RE100 companies committed to 100% renewable electricity worldwide. Providing access to renewables, at prices that reflect their cost effectiveness, is vital for markets seeking to benefit from this growing corporate investment opportunity.
- For all countries, the key task that emerges is to align their high-level renewable ambition with developments on the ground, including a growing strong corporate sourcing movement, to keep incentivising changes to the grid beyond business-as-usual scenarios.
Country rankings
- China, Spain, and UK lead in rankings on renewables ambition and progress.
- Australia, India, South Africa, and Japan show promising improvements and opportunities for growth.
- Canada and Brazil score low on ambition, despite existing high renewable electricity use and are examples of countries that could increase the national targets to reflect these achievements on the ground.
- Indonesia must commit to more ambitious interim targets for renewables and stop its heavy coal investments to reflect its international renewable ambition.