Challenges and Opportunities

Challenges

Although emerging and developing economies account for two-thirds of the world's population, they represent only one-fifth of global investment in renewables and one-tenth of global financial wealth.

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Women are still underrepresented in the renewable energy workforce with less than a third of total employment.

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For the first time in decades, the number of people without access to electricity is rising and more than half of the countries without universal access to electricity or clean cooking do not have targets to achieve this.

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Annual investment across all areas of the energy sector in emerging and developing countries has fallen by around 20% since 2016, due to the rising cost of debt and equity.

Opportunities

Countries are taking concrete steps to improve local supply chains for renewables to maximise the economic and social value from renewable energy. Regulations governing the use of locally produced materials are in place in more than 20 countries, including 7 advanced economies.

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Renewables are the most efficient and affordable way to achieve universal access to energy. The number of people gaining access to electricity through off-grid renewable-based systems more than doubled from 19 million in 2012 to 41 million in 2021.

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The energy transition is projected to result in a global net gain in employment, with more jobs created by ramping up renewable capacity than lost by phasing out fossil fuels. An estimated 70% of jobs in the oil and gas industry overlap with the skills needed for renewable energy jobs.

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Many governments are addressing the need to increase and diversify the renewable energy workforce, such as by offering programmes to train women, Indigenous Peoples and other marginalised groups.