Lack Of Climate Finance Hindering Global Renewable Deployment: IRENA

Climate Finance Still A Challenge For Developing Countries Amid RE Push

The recent report on energy transition and climate finance released by the International Renewable Energy Agency (IRENA) underscores the pivotal role of the energy sector in reducing emissions, particularly in light of the updated Nationally Determined Contributions (NDC) targets. The study reveals that 90% of participating parties have identified renewable energy generation as a key driver in achieving their communicated targets, constituting 23% of the overall share of renewable energy in electricity generation by 2030. Furthermore, 15% of parties have set quantitative targets for increasing total renewable energy capacity by the same timeframe.

UNFCC NDC target

Reportedly members have mentioned climate finance as a key challenge, followed by technology transfer, low-cost finance, and just transition and socio-economic benefits, as well as the lack of data for developing targets and modelling scenarios. The IRENA report adds that, developing an adequate financial mobilization will ensure countries’ confidence in enhancing and implementing the level of ambition in energy sector targets. There is a need to continue to support Members in the assessment of renewable energy options for considering technology transfer and socio-economic benefits for a just transition.

It adds that, countries will be preparing for the next round of NDC submissions in 2025.As per. In their responses, Members most frequently mentioned climate finance as a key challenge, followed by technology transfer, low-cost finance, and just transition and socio-economic benefits, as well as the lack of data for developing targets and modelling scenarios (Figure 3). Adequate financial mobilisation will ensure countries’ confidence in enhancing and implementing the level of ambition in energy sector targets. There is a need to continue to support Members in the assessment of renewable energy options for considering
technology transfer and socio-economic benefits for a just transition, the IRENA report said. 

Based on data from UNFCC, the IRENA report suggests developing climate finance as a key challenge, followed by technology transfer, low-cost finance, and just transition and socio-economic benefits, as well as the lack of data for developing targets and modelling scenarios. It would require developing an adequate financial mobilization will ensure countries’ confidence in enhancing and implementing the level of ambition in energy sector targets. There is a need to continue to support Members in the assessment of renewable energy options for considering technology transfer and socio-economic benefits for a just transition.