Global investment in renewable energy reached a record high in 2022, according to a new report from IRENA and the Climate Policy Initiative.
Across the world US$0.5 trillion was invested in the industry, according to Global Landscape of Renewable Energy Finance 2023.
However, the report states that this still represents less than 40% of the average investment needed each year between 2021 and 2030, according to IRENA’s 1.5°C Scenario.
Investments are also not on track to achieve the goals set by the 2030 Agenda for Sustainable Development.
Since decentralised solutions are vital in plugging the access gap to reach universal energy access to improve livelihoods and welfare under the 2030 Agenda, efforts must be made to scale up investments in the off-grid renewables sector, the report said.
Furthermore, investment in off-grid renewable solutions falls far short of the US$2.3bn needed annually in the sector between 2021 and 2030, it added.
Investments have become concentrated in specific technologies and uses.