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$1.5 Trillion Annual Investment Needed to Triple Renewable Energy by 2030

by Krystal

The world is falling behind in its efforts to triple renewable energy capacity by 2030, according to a new report from the International Renewable Energy Agency (IRENA). The report, released on Friday, states that annual investments in renewables must increase from $570 billion in 2023 to $1.5 trillion from 2024 to 2030.

Despite a notable increase in the installation of renewable energy capacity, the current growth rate is insufficient to meet established targets, IRENA warns. Current plans by various countries indicate that they will only achieve half of the necessary increase in renewable energy by 2030.

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Countries are expected to submit updated plans, known as Nationally Determined Contributions (NDCs), by February 2025. Some nations may announce their revised targets next month at the COP29 climate summit in Azerbaijan.

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To achieve the goal of tripling renewable energy capacity by 2030, the world needs to expand its installed capacity from the current 3.9 terawatts (TW) to 11.2 TW by the decade’s end. This requires adding an additional 7.3 TW in less than six years. However, IRENA projects that current national plans will create a shortfall of 3.8 TW by 2030, which represents a 34% gap from the target.

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IRENA’s Director-General, Francesco La Camera, emphasized the importance of the upcoming NDCs, stating, “They must mark a turning point and bring the world back on track.”

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Earlier this week, the International Energy Agency (IEA) echoed these concerns, indicating that even with a significant increase in renewable energy installations, the world is not on track to meet its goal of tripling renewable energy capacity by 2030.

The IEA’s “Renewables 2024” report forecasts that global renewable capacity will grow by 2.7 times by 2030, exceeding the ambitions of various countries by nearly 25%. However, it still falls short of the tripling target.

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