Global Renewable Report: Continued Dominance of Fossil Fuels

The Paris-based association REN21 (Renewable Energy Policy Network for the 21st Century) has warned of a "continued dominance of fossil fuels" in its latest "Global Renewable Status Report". According to scientists, the prices for oil and gas increased following the Russian attack on Ukraine, which incentivized gasoline and diesel use in many countries. According to the analysis, subsidies for fossil fuels climbed to more than a trillion US dollars per year, the highest value ever recorded. Nonetheless, the war against Ukraine has triggered a shock in the energy markets and strengthened interest in moving away from fossil fuels and the long-term expansion of renewable energy. But until that becomes effective, the high energy costs fully kick in. According to the organization, the number of people without access to electricity rose by 20 million in 2022. Due to the high costs, 100 million people had to revert to using firewood for cooking, which is detrimental to both the climate and health.

The higher prices for raw materials such as silicon and steel also complicate the expansion of renewable energies, yet they still remain among the cheaper alternatives compared to fossil energy production. With 348 gigawatts of new solar installations and 77 gigawatts of new wind power worldwide, renewables continued to grow strongly, particularly in China, India, and the USA. In contrast, Europe saw a 47 percent drop in wind turbine orders, which may be partly due to outdated procurement processes. In Europe, heat pump sales increased by 38 percent, and in the USA, they outsold gas boilers for the first time.

The majority of investments still flow into fossil energies

It's disheartening that a significant portion of investments still goes into the exploration, extraction, and processing of fossil resources. For instance, in 2022, China brought new coal power plants with a capacity of 106 gigawatts online, paradoxically as a response to a historic drought that caused electricity supply shortages. India also continues to rely on coal, and in Europe, oil and gas companies are slowing the transition towards sustainability in the economy. According to REN21, only 17.1 percent of investments were directed towards low-emission or emission-free technologies.

"Most companies still rely on fossil fuels as a core component of their portfolios," the study concludes matter-of-factly.

The vast majority of banks also contribute to the "lock-in" of fossil energies. Only twelve percent of energy projects pertain to renewables.