Global Leaders Call for Increased Renewable Energy Investment

By Valerie Volcovici and Simon Jessop

NEW YORK (Reuters) – World leaders on Tuesday urged for significantly increased investment in renewable energy to combat climate change, stressing that developing nations require financial support for this transition.

Speaking at the Global Renewables Summit, Kenyan President William Ruto advocated for investing in renewables in Africa, aligning with last year’s COP28 summit commitment to triple clean energy capacity by 2030. Ruto emphasized that Africa receives less than 50% of global renewable energy investment, despite housing 60% of the world’s prime solar opportunities. He noted the continent is rich in resources, yet often lacks access to them due to “unreliable or expensive energy.”

Barbados Prime Minister Mia Mottley pointed out that fossil fuel subsidies surpass renewable energy subsidies, making it challenging for small states to pursue clean energy projects. “Small states face the reality that the cost of renewable energy will probably exceed that of traditional fossil fuels,” she stated.

Recent reports, including one from the International Energy Agency, indicate that tripling the global renewable capacity within this decade is feasible. However, accomplishing this requires robust regulations, particularly concerning project permits, alongside investments in transmission and battery storage.

Azerbaijan, host of this year’s COP29 climate summit in November, aims to galvanize governments for a new global commitment to increase electricity storage sixfold.

Earlier, a coalition of major companies, finance houses, and cities known as Mission 2025 urged governments to adopt strategies likely to unlock up to $1 trillion in clean energy investments by 2030. These strategies entail setting new capacity targets and offering tax incentives or long-term electricity contracts to stimulate investment.

“WE DID IT”

In his concluding major address on climate change, U.S. President Joe Biden celebrated his $369 billion climate law, reflecting on the successful passage of the Inflation Reduction Act in 2022. “We were told it couldn’t get done and we did it,” he stated, noting how the legislation has spurred innovation and created hundreds of thousands of jobs. Biden mentioned that private companies have pledged over $1 trillion in clean manufacturing investments, adding, “We are just getting started.”

While some companies and investors are excited about artificial intelligence technologies for their potential solutions, concerns linger about the energy-intensive data centers required to support them. Andres Gluski, CEO of U.S. power firm AES Corporation, expressed that AI presents challenges but could also offer solutions. He remarked, “With AI, we could develop new materials that outperform copper for batteries. If we face labor shortages, AI will assist us. If demand management is required, AI will be beneficial.”