The world must mobilize $35 trillion in cumulative investments by 2030 to meet global energy transition targets and keep the 1.5°C climate goal within reach, according to the International Renewable Energy Agency (IRENA).
This figure represents 80% of the total $44 trillion required for a successful transition, with a focus on electrification, energy efficiency, grid expansion, and flexibility. Annual investments must exceed $5 trillion—more than quadruple the $1.3 trillion recorded in 2022.
Despite record-breaking clean energy investments in recent years, progress remains off-track. IRENA warns that current deployment levels—especially in renewables and energy-saving technologies—fall far short of what’s needed. For instance, global renewable capacity must grow from 3,000 GW today to over 10,000 GW by 2030, requiring an average of 1,000 GW added annually.
The Investment gap is particularly stark in developing nations. In 2022, 85% of global renewable energy investment benefited less than half the world’s population. Africa, for example, accounted for just 1% of new capacity. IRENA calls for a fundamental shift in international cooperation and financing mechanisms to address this imbalance.
Public sector intervention is also critical. Around $1 trillion in planned annual fossil fuel investments must be redirected toward transition technologies to avoid stranded assets and ensure long-term sustainability.
Francesco La Camera, IRENA’s Director-General, emphasized the urgency: “The stakes could not be higher. A profound and systemic transformation of the global energy system must occur in under 30 years. We need bold, transformative measures and a new approach to accelerate the energy transition.”
The upcoming COP29 summit is expected to play a pivotal role in shaping new financial targets and strategies, especially for developing economies. Without a dramatic scale-up in both public and private capital, the world risks falling irreversibly behind on its climate commitments.