Progress on 2030 Renewable Energy Targets by Country

The International Energy Agency states that the global installed capacity of renewable energy must triple by 2030 to limit global warming to 1.5°C above pre-industrial levels. 

This makes the next six years critical in the climate fight, with the upcoming United Nations COP28 event in Dubai representing a great time to assess the progress of countries toward achieving their 2030 targets. 

Checking in on Progress

As set out by their Nationally Determined Contributions in the Paris Agreement, many countries, including major electricity consumers such as the U.S., European Union, China, India, and the UK, have set ambitious targets for increasing their solar and wind power generation capacities by 2030. 

The data, however, suggests that many are struggling to keep pace with the required annual capacity additions that will allow them to hit these targets. 

Currently, China stands out as the only nation on track to meet its 2030 target. In 2022, it not only met but significantly exceeded its required capacity additions to remain on track, adding 168% of the required 101 GW. 

Let’s now take a closer look at how each of these countries are faring, comparing how much wind and solar capacity they needed to add with how much they actually did in 2022.

Overall, the U.S. and India were the furthest off from their targets in 2022, adding only 46% and 57% of what was needed, respectively. European countries, on the other hand, made progress but still need substantial annual additions to meet their targets by 2030.

Playing Catch-Up: The Path to 2030

Collectively, the U.S., European Union, China, India, and the UK account for more than 60% of global electricity consumption, underscoring their profound responsibility in decarbonizing their electricity sectors.

Investments in research and development, policy support, and infrastructure development are all crucial pieces of the puzzle when it comes to achieving 2030 targets. 

With swift and bold action, these nations have an opportunity to transform the global energy landscape and move the needle toward achieving net-zero on a global scale.

The $110 Trillion Cost of the Clean Energy Transition

The Energy Transitions Commission estimates that achieving net-zero by 2050 requires an average annual investment of $3.5 trillion globally between 2021 and 2050.

That’s a total of $110 trillion in capital investment, or 1.3% of projected global GDP, over the next three decades.

The question then arises: where should this substantial sum of money be allocated?

In collaboration with the National Public Utilities Council, this graphic delves into the answers to that question utilizing data from the Energy Transitions Commission.

How Much Will the Clean Energy Transition Cost?

Of the $3.5 trillion dollars that needs to be invested annually into a net-zero economy, around $2.4 trillion should flow into the electricity sector, according to the Energy Transitions Commission. This accounts for 70% of the annual investment.

Decarbonizing the electricity sector holds significant importance as it can serve as a catalyst for the decarbonization of all other sectors, including:

• Buildings, which are becoming increasingly electrified through the growing use of heat pumps
• Electrified road transportation
• Electricity-intensive industrial activities, such as cement, steel, and chemical production
• Green hydrogen production

Now, let’s take a collective look at the avenues of investment needed to reach net-zero by 2050 in more detail.

All figures are in real 2021 U.S. dollars

Overall, the diversity of the table above underscores the multifaceted approach required for a low-carbon transition.

Is the World on Track to Reach Net-Zero?

In 2022, the global capital investment in the clean energy transition totaled $1.1 trillion—approximately one-third of the required annual average to reach net-zero.

With that said, it’s important to note that the $3.5 trillion figure is an average across 29 years. Opportunities to catch up still exist, although the window is closing quickly.

According to the Energy Transitions Commission, investments must double from their current levels to around $2 trillion by 2025 and peak at around $4.2 trillion by 2040.

To remain on track to net-zero, therefore, we must make significant and rapid investments in all sectors, with a primary focus on the power sector.

Learn more about how electric utilities and the power sector can lead on the path toward decarbonization here.