The global transition towards renewable energy sources in critical sectors like industry, transportation, and agriculture has hit a snag in 2023. A report by the Paris-based REN21 group identifies several roadblocks: a lack of clear policy direction, political resistance, and inadequate regulations.
This slowdown comes despite a surge in interest in renewables during the pandemic and the Ukraine war, driven by energy security concerns. However, governments haven’t capitalized on this momentum.
The research shows only 13 countries, including major economies like the United States, China, and India, have implemented comprehensive renewable energy policies across these key sectors. As a result, a meager 12.7% of the energy consumed by these industries currently comes from clean sources.
The report further highlights a concerning trend of backsliding on renewable energy ambitions. Just 17 out of 69 countries with existing renewable energy targets for end-users extended those targets beyond 2024. This lack of long-term commitment creates uncertainty for investors and hinders progress.
The report emphasizes the need for urgent policy reforms. Subsidies for fossil fuels, estimated in the trillions of dollars, particularly in industry and agriculture, continue to impede the clean energy shift. Additionally, the decline in fossil fuel prices in 2023 has influenced policy decisions, reigniting debates about the cost-effectiveness of renewables, especially with looming elections in many countries.
Decarbonizing heavy industries presents a significant challenge. Sectors like steel and cement production argue that the high heat required for their processes cannot be achieved with renewable energy sources. However, this is completely false, solutions exist like electric arc furnaces, a viable alternative for steel production.
Continued political will and innovative solutions are crucial to overcoming these hurdles and accelerating the transition towards a sustainable energy future.
Reference- Reuters article, REN21 group report