What is the energy transition?

25 September 2024—In this blog, CISL International Policy lead Katherine Quinn and Policy Analyst Anum Sheikh discuss the energy transition, why moving away from fossil fuels is important, and outline possible steps for a fair and resilient transition to renewable energy.

In the past, we have relied on burning coal, oil, and gas to produce energy, but these fossil fuels are by far the largest contributor to climate change because they emit greenhouse gases that accumulate in the atmosphere and trap the sun’s heat. Fossil fuels are responsible for more than 75 percent of global greenhouse gas emissions.

The energy transition is the shift from relying on fossil fuels to using clean, renewable energy sources like wind, solar, hydropower, and biomass. This transition is essential for reducing greenhouse gas emissions, combating climate change, building energy security into the system globally, and creating a sustainable energy system. It involves not only generating electricity from renewables, but also transforming other sectors, like transportation and heating, to use clean energy. The ultimate goal is to build an energy system that is environmentally friendly, reliable, resilient and fair for all. It represents a fundamental transformation in how we power our homes, businesses, and societies.

Why is it so urgent?

As a global community, we need to expand the renewables sector by at least 16.4% annually to triple renewables by 2030. This goal, which over 130 countries committed to last year, is necessary to keep global warming below 1.5 degrees Celsius in line with the Paris Agreement. Beyond 1.5 degrees, we start to see increasingly catastrophic consequences for humanity and the ecosystems we rely on.

We are currently falling behind on this target, with growth of 12% in South America, 9% in Asia and North America, and 3.5% in Africa in 2023.

Solar and wind are now the fastest-growing electricity sources globally, and seven countries now generate almost 100% of their electricity from renewables; Albania, Bhutan, Nepal, Paraguay, Iceland, Ethiopia and the Democratic Republic of Congo produced more than 99.7% of the electricity they consumed using geothermal, hydro, solar or wind power. A further 40 countries produce at least 50% of their electricity from renewables. But we need to move faster. The last tripling of renewables happened over twelve years, from 2010 to 2022; we now need to triple capacity again in just six years.

What are the benefits of the transition to renewable energy?

Transitioning to renewable energy offers numerous benefits in addition to reducing greenhouse gas emissions and combating climate change. It promotes cleaner air and water, improves public health, and reduces healthcare costs. Renewable energy sources, like wind and solar, are abundant and sustainable, providing long-term energy security and reducing reliance on volatile fossil fuel markets.

Additionally, the shift could create new economic opportunities by generating jobs and supporting a more resilient and equitable energy system for future generations. To make the most of these opportunities, it is important that new renewables projects are carefully planned and co-designed in consultation with local communities so that benefits are realised and equitably shared (for example, co-locating wind farms on agricultural land to generate additional income for landholders).

What are the technologies driving the transition?

Technological advancements have greatly improved renewable energy sources, making them more efficient and affordable. Solar panels and wind turbines, in particular, are now cheaper and better, leading to wider use. Energy storage systems, such as lithium-ion batteries, help address intermittency and store extra energy when the sun isn’t shining or the wind isn’t blowing. Drones and robots assist in monitoring and maintaining renewable energy systems, while smart grids make energy distribution more efficient by reducing waste. AI and data analytics also help predict energy needs and improve how renewable energy is generated and used. But while most of these technologies have their potential, they also have their pitfalls. For instance, some photovoltaic solar panels can’t be recycled with ease; AI is very energy-intensive and other technologies have ethical considerations attached to their supply chains. Therefore, new technologies need to be considered holistically, and their ancillary impacts on climate, nature and social justice must be considered when integrating them into energy systems.

What action can be taken to accelerate the process?

Despite some encouraging progress, phasing out fossil fuels remains a complex task for countries heavily reliant on coal - especially given the imperatives of a just and fair transition for workers and communities. There are different challenges to implementing renewables in various regions, such as geographical landscapes and socio-political contexts. But there are some common ones across the board. Concerted action and international co-operation are therefore essential for timely progress.

To make renewable energy technology globally accessible, barriers to knowledge sharing and technological transfer, especially related to intellectual property rights, must be removed. Improving global access to renewable energy components and raw materials will require international coordination and investments in sustainable supply chains.

Domestically, policies must be reformed to fast-track renewable energy projects (through removing cumbersome planning permissions) and attract private investment. Shifting subsidies from fossil fuels (currently standing in excess of $7 trillion USD) to renewables will further help with this. Regulation for the energy sector (and other energy-intensive industries such as manufacturing and construction) needs to be stronger in incentivising the use of renewable sources over extractive alternatives. Additionally, tripling investments in renewable energy—at least $4 trillion USD annually by 2030—will be necessary. This can include updating the outdated grid to handle renewables and research and development for new technologies.

Planning and implementing these changes require a mindset shift across the economy and society among users, businesses, civil society, and policymakers, as well as a new understanding of how our energy systems are structured. However, most of the solutions are already at hand and will be much cheaper and easier than managing the unmitigated impacts of climate change.