Fossil fuel subsidies are one of the biggest financial barriers hampering the world’s shift to renewable energy," said UN Secretary-General António Guterres.<br />The International Monetary Fund revealed that $5.9 trillion was spent on subsidizing the fossil fuel industry in 2020 alone.<br />Shifting subsidies from fossil fuels to renewable energy leads to a reduction in their use and also contributes to sustainable economic growth, job creation, better public health, and more equality.<br />"An estimated $4 trillion a year needs to be invested in renewable energy until 2030 in order to reach net-zero emissions by 2050," stated the UN chief.<br />Investment in renewables will cost significantly less compared to subsidizing fossil fuels.<br />The reduction of pollution and climate impact alone could save the world up to $4.2 trillion per year by 2030.<br />The funding is there, but commitment and accountability are needed, particularly from global financial systems.<br />Efforts must aim to dismantle roadblocks to knowledge-sharing and the transfer of technology, including intellectual property rights barriers.<br />Essential technologies such as battery storage systems allow energy from renewables to be stored and released when needed.<br />When paired with renewable generators, battery storage technologies can provide reliable and cheaper electricity to isolated grids and off-grid communities.<br />A robust supply of renewable energy components and raw materials is crucial.<br />More widespread access to all the key components and materials is needed, from minerals required for building wind turbines to elements for producing electric vehicles.<br />Greater investments are needed, including in people’s skills training, research and innovation, and incentives to build supply chains through sustainable practices.<br />While global cooperation is critical, domestic policy frameworks must urgently be reformed to streamline and fast-track renewable energy projects.<br />Policies and processes must be introduced to reduce market risks and incentivize investment.<br />Nationally determined contributions must set renewable energy targets that align with the goal of limiting the increase in global temperatures.<br />To achieve this, the share of renewables in global electricity generation must grow from 29% today to 60% by 2030.
