Last month, the United Nations Secretary General proposed five critical actions to jump-start the renewable energy transition. Today being World Environment Day, it is fitting to share them again below.
First
Renewable energy technologies, such as battery storage, must be treated as essential and freely-available global public goods.
Removing obstacles to knowledge sharing and technological transfer – including intellectual property constraints — is crucial for a rapid and fair renewable energy transition.
Governments around the world should lead this charge, bringing together tech companies, manufacturers and financiers. In doing so, a global coalition could be established on battery storage to fast-track innovation and deployment.
Second
According to the UN Secretary General, it is also necessary to secure, scale up and diversify the supply of critical components and raw materials for renewable energy technologies.
Since supply chains for renewable energy technology and raw materials are concentrated in a handful of countries at the moment, governments need to create incentives to build more supply chains and, in connection with this, governments must invest in skills training, research and innovation.
Third
Governments must build frameworks and reform bureaucracies to level the playing field for renewables.
This includes the need for governments to fast-track and streamline approvals of solar and wind projects, modernize grids and set ambitious 1.5-degree-aligned renewable energy targets that provide certainty to investors, developers, consumers and producers.
Governments must also prevent bottlenecks, where gigawatts of renewable projects are held up by red tape, permits and grid connections.
Fourth
Governments must shift subsidies away from fossil fuels to protect the poor and most vulnerable people and communities.
Each year, governments around the world pour around half a trillion dollars into artificially lowering the price of fossil fuels — more than triple what renewables receive.
In addition, while people suffer from high prices at the pump, the oil and gas industry is raking in billions from a distorted market.
Fifth
Private and public investments in renewable energy must triple globally to at least $4 trillion dollars a year.
For solar and wind power, upfront payments account for 80 per cent of lifetime costs. That means big investments now will reap big rewards for years to come.
Unfortunately, some developing countries pay seven times more in financing costs than developed countries. Regarding this, governments need to put in place blended finance that provides the necessary structures to close existing funding gaps and unlock the trillions held by private actors. This means adjusted risk frameworks and more flexibility to scale up renewable finance.
(Source: United Nations)
