THE energy industry, as we know it, is driving climate change at full speed. Energy production accounts for over three quarters of global greenhouse gas emissions and nearly 90 per cent of all carbon dioxide emissions that blanket the earth, trapping the sun’s heat, raising temperatures, changing weather patterns and disturbing the balance of nature.
While the need to substantially increase the share of renewables is widely accepted, it is also recognised that it will take a long-haul effort to wean the global economy off its dependence on fossil fuels — a must if the Paris climate accord target of limiting the global temperature rise to 1.5 degrees Celsius above pre-industrial levels is to be realised.
Achieving these targets requires rapid and far-reaching transitions in energy, as well as substantial investments. The IPCC put the annual average investment needed in the energy system at around 2.4 trillion, representing about 2.5pc of global GDP. Post-pandemic, countries still face financial challenges, which are further complicated by geopolitical conflicts in various regions. The Ukraine war caused an energy crisis Hence, investments in renewables were pushed to the back-burner dampening hopes for a quick green transition.
However, despite these challenges, the tide is gradually turning in support of renewables. Endeavours for transitioning to clean energy have received a big boost, thanks to a strong business sense and market dynamics attracting significant financial flows.
Several factors are changing the trend in favour of renewables.
Several other factors are also changing the trend in favour of renewables, particularly in the solar sector where a sharp decline in prices of photovoltaics or PV panels has made the technology more affordable. In addition, its accessibility in areas beyond the reach of grids and its reliability against the frequent disruptions of grid power, especially in developing countries, has made it an obvious choice.
A report unveiled by UN Secretary General António Guterres in July outlines the rising graph of renewable energy and its accompanying economic opportunities: clean energy sectors drove 10pc of global GDP growth in 2023 alone, while clean energy jobs now employ almost 35 million people across the world, dwarfing fossil fuel job numbers. Investments in renewables have touched the $2tr mark for the first time, bringing in their wake millions of new job opportunities. This rate of investment through 2030 will enable the world to meet the target of tripling renewables.
Another report by the global energy think tank Ember shows that solar generation has doubled over the last three years and was the largest source of new electricity generation for the third year in a row. In global renewable production, solar and wind energy together have surpassed the share of hydropower for the first time.
Pakistan’s solar sector is also registering sizeable and rapid growth. The UN secretary general’s report prominently features Pakistan’s solar boom as a prime example of the potential and adaptability of renewables to safeguard energy sovereignty amidst current global challenges.
In the first seven months of 2024 alone, Pakistan imported 12.5 GW of solar panels positioning itself as one of the world’s fastest-growing solar markets. With more than 300 days of sunlight annually, the target of renewable energy making 60pc of its energy mix by 2030 looks reachable. However, a stark urban-rural electrification divide highlights the need for urgent action to prioritise off-grid solutions. Policy interventions are badly needed to ensure that the benefits of the solar revolution are also shared with the more than 40m people still living without access to electricity in rural Pakistan.
While acceleration in solar generation is expected to continue and bring environmental and economic benefits, the UN chief’s report also points to the imbalance in in-vestments. He notes that “since the Paris Agreement entered into force in 2016, less than one out of every five dollars invested in clean energy has gone to developing countries”. In 2024, they received just 15pc of global clean energy spending. Africa, home to a fifth of the world’s population and 85pc of the global population without electricity access, received a mere 2pc of the global total.
Leaving behind such a large number of people in darkness and poverty is not in sync with the spirit of the SDGs, nor will it help achieve sustainable development for all by 2030. This energy divide can only be narrowed by a balanced and broad-based clean energy investment plan for developing countries, with contributions from the private sector. The leading economies of the G20, accounting for 80pc of global carbon emissions, must lead the way at the upcoming COP30 for bridging climate funding gaps.
The writer is director of intergovernmental affairs, United Nations Environment Programme.
Published in Dawn, August 26th, 2025