Key Impact Points:
- Global renewable energy growth: Solar energy additions hit 600 GW in 2024, poised to surpass coal as the leading power source in 2025.
- Falling costs driving adoption: Solar module prices fell 35% to under 9 cents/kWh, while EV battery prices dropped below $100/kWh, achieving parity with fossil fuels in several regions.
- Policy advancements: Major nations strengthened net-zero pledges, with Ethiopia banning non-electric car imports and Indonesia planning to phase out fossil fuels entirely within 15 years.
Renewables Are Reshaping Global Power
Renewable energy progress surged in 2024, with global solar capacity growing by 600 GW and grid storage installations doubling to 170 GWh. Renewables now outpace fossil electricity investments by a ratio of 10:1.
“As a share of electricity, solar and wind are scaling twice as fast in the Global South as in the Global North,” the report highlights, with countries like Namibia and Pakistan using Chinese solar exports to double electricity capacity in two years.
Cleantech Adoption Accelerates with Falling Costs
Solar module prices dropped 35% to under 9 cents/kWh, while EV battery prices declined 20% to below $100/kWh. This has propelled EV cost parity globally, with milestones achieved in China and soon expected in Europe, the US, and India.
“The average EV battery in 2024 used less than half as much nickel and cobalt as a decade ago, with new technologies set to double energy densities in five years,” the analysis states.
Stronger Policies and Net-Zero Pledges
Countries on five continents have committed to a 1.5°C-aligned emissions path, with Mexico pledging net zero by 2050 and the UK targeting an 81% reduction by 2035. Governments are taking bold steps, with Ethiopia banning non-electric car imports and Indonesia aiming to retire all fossil fuel plants within 15 years.
Challenges Ahead in Efficiency and Methane
Efficiency and methane reduction remain critical areas for action. Primary energy intensity improvements slowed to 1% in 2023, down from 2% in 2022, underscoring the need to double progress. Methane pollution rose at twice the expected rate, highlighting the urgency of tackling super-pollutants.
“Measuring alone is not enough; we need to act,” experts emphasized.
A Decisive Moment for the Energy Transition
2025 marks a pivotal year for the global energy transition. With fossil fuel demand peaking in many regions, a shift in subsidies from fossil fuels to clean energy could bridge investment gaps in emerging economies.
“The time is now for leaders and locals around the world to see these signs of progress — and hit the ground running,” the report concludes.
