A policy group based in Paris, REN21, has highlighted a slowdown in the global transition to renewables across major energy-consuming sectors in 2023. According to their annual assessment released on Wednesday, factors such as regulatory gaps, political pressures, and a lack of clear targets have impeded progress.
Despite initial momentum spurred by concerns over energy security amidst the COVID-19 pandemic and the Ukraine war, governments have struggled to sustain the shift towards renewables. By the close of last year, only 13 countries, including the United States, India, and China, had implemented comprehensive policies covering buildings, industry, transport, and agriculture. However, these policies accounted for just 12.7% of the energy consumed by these sectors.
REN21 cautioned that numerous countries have scaled back their renewable energy ambitions, with only 17 out of 69 nations extending targets beyond 2024. Rana Adib, REN21's Executive Director, expressed concern over governments retracting from their commitments and the diminishing economic incentives for energy-consuming sectors.
The report underscored the sluggish pace of reforms and the significant subsidies still granted to fossil fuels, particularly in industry and agriculture, hindering the energy transition. Furthermore, falling fossil fuel prices in 2023 influenced policymaking, intensifying debates around the costs of transitioning to cleaner energy, especially in the lead-up to elections in many countries.
Addressing challenges in decarbonizing heavy industry, particularly “hard to abate” sectors like cement and steel, remains a focal point. While these industries argue that renewables are incapable of meeting the high heat requirements for their processes, Adib emphasized that solutions exist, such as utilizing electric arc furnaces for steel production.
