Renewable energy benefits both people and nature in multiple ways that we might not know of. Explore how the world’s fastest-growing energy sources like solar and wind can support not just our climate and the environment, but also our economies and societies. But first, let’s clarify what renewable energy is all about.
What is renewable energy?
Renewable energy is energy derived from natural resources that can replenish themselves in less than a human lifetime, without depleting the planet’s resources.
These resources – such as sunlight, wind, rain, tides, waves, biomass, and thermal energy stored in the earth’s crust – are available, in one form or another, across the globe. These energy sources are not only renewable and inexhaustible, they also emit fewer greenhouse gases and can minimise environmental and societal impacts.
The energy sources currently driving our economies and societies are fossil fuels, namely oil, coal, and gas. These fuel sources cannot replenish as fast as we are burning them, while their extraction and production emits planet-heating greenhouse gases and pollution that threatens human health.
But renewable energy is more than just an alternative fuel. It is the foundation for a transformative shift beyond the energy sector: building a renewables-based economy — where energy systems, economic development, societal well-being, and resilience are mutually reinforcing and rooted in sustainable energy.
Key benefits: beyond energy, toward prosperity and resilience
Economic development, jobs, inclusion
- Deployment of renewables generates economic activity across the full value chain — from resource extraction and manufacturing to installation, operation and maintenance. That creates opportunities for local economic and industrial development and long-term jobs. In 2023, employment in the renewable energy sector reached a record high globally of 16.2 million jobs created, up from 13.7 million in 2022.
- As technologies mature and deployment scales, the cost of renewables continues to fall, making clean energy increasingly cost-competitive, fostering energy affordability and enhancing productivity of households and businesses.
- Local ownership and decentralised energy — central pillars of a renewables-based economy — open the door to community empowerment, energy democracy and social equity. Citizen-led energy communities grow stronger, enabling ordinary people to gain ownership and stake in sustainable energy, with potential for greater inclusion of under-represented groups, including women, youth, and indigenous communities.
Energy security, stability, accessibility
- Renewable energy can be generated locally — reducing dependence on imported fossil fuels. This decentralised production strengthens energy security, resilience, and climate adaptation measures, keeping essential services running and improving the trade balance while cushioning communities and nations from global supply disruptions or price spikes.
- In a renewables-based economy, energy becomes more accessible and stable — a backbone for reliable development, including in remote or vulnerable regions.
Climate, environment and health
- Renewable energy produces little to no greenhouse gases or air-polluting emissions. By replacing fossil-fuel-based power, transport and industry, renewables can significantly reduce air pollution and associated health risks.
- Their lower demands on water and land and reduced impacts on wildlife and habitat make renewables a much more environmentally sustainable choice, if implemented with the right set of quality standards and safeguards. At the same time, renewable energy strengthens adaptation and resilience to climate change impacts, while supporting biodiversity.
Renewables as the backbone of modern economies
- Transitioning to renewable energy enables a structural transformation of economies — not only by replacing fossil fuels, but by reimagining how we produce, consume, govern and benefit from energy. This transition underpins the broader vision of a renewables-based economy: one that centres sustainable energy as the foundation for economic stability, equity, resilience and long-term prosperity.
- A renewables-based economy aligns energy systems with broader social and environmental goals — embedding renewable energy into industry, transport, buildings, agriculture, and more. This systemic integration enables economies to leapfrog toward sustainability while strengthening resilience to climate shocks, supply chain disruptions, and economic volatility.
Where renewable energy can (and is) being used — and why we need a full-economy view
Renewables are already being deployed across all major sectors —buildings, industry, agriculture, transport, although many of them still rely heavily on fossil fuels
- Buildings: efficient electrification of heating through heat pumps, an increasing number of distributed renewable energy installations in buildings, like rooftop solar, provide clean and independent heating and cooling, reducing reliance on fossil fuels and lowering emissions. 60 countries had policies aimed at integrating renewable energy and energy efficiency in buildings in 2024.
- Industry: renewable electricity and heat already power, food processing, pulp and paper production, through bioenergy, and even high-energy industrial processes like steel and cement production, through green hydrogen and electrification. 49 policies supporting renewables in industry were in place across 28 countries in 2024.
- Agriculture: renewables support agricultural activities and reduce emissions, through for example, solar-powered irrigation, geothermal greenhouses, biogas production, and agrivoltaics, mitigating the competition for land between energy and food production.
- Transport: through sustainable biofuels, and the electrification of vehicles powered by renewable electricity, transport can decarbonise. Electric vehicles already accounted for over 20% of global car sales in 2024. The global agrivoltaics market was valued at around USD 4.59 Bn in 2024.
Despite these advances, renewable uptake remains uneven across sectors — especially for heating and fuels. In a renewables-based economy, it is critical to expand deployment beyond electricity to all energy carriers and end-use sectors.
A call for systemic change — toward a renewables-based economy
The benefits of renewable energy are clear — economic and industrial development, energy security, climate, economic and community resilience, climate mitigation, environmental protection, and health gains, . But to fully realise these gains, we must embrace a broader transformation: shifting from a fossil-fuel-driven business-as-usual model toward a renewables-based economy.
This means:
- Holistically embedding renewable energy across all sectors — transport, buildings, industry, agriculture — rather than treating renewables as just another power source.
- Prioritising decentralised, locally owned energy systems, community participation and equitable access.
- Aligning economic development, employment, industry and infrastructure planning with renewable energy goals.
- Designing energy systems that serve resilience, social inclusion, and long-term sustainability — rather than short-term profit based on exhaustible resources.
In this way, renewables become more than a climate solution — they become the foundation of a fairer, more resilient, and inclusive global economy for prosperous societies.
Tools and resources
The Renewables Global Status Report (GSR) stands alone as the world’s only crowd-sourced account of renewable energy. It dives into policies, markets, and beyond, offering the most current global narrative on renewable energy.
Since 2005, the GSR has partnered with numerous contributors to highlight ongoing advancements and emerging trends that define the future of renewables. This annual report is a collaborative endeavor involving hundreds of experts who contribute data, review chapters, and co-author the findings.
The Global Futures Report: Renewables for Sustainable Transport (GFR) delves into strategies for rapidly expanding renewable energy adoption in transportation, a sector that consumes 30% of the world’s energy. REN21’s reports serve as frameworks for discussing the future of renewable energy, pinpointing opportunities, barriers, and paths forward. Specifically focusing on transport, this report aims to highlight crucial areas of divergence among stakeholders, guiding strategic conversations rather than providing definitive conclusions.
REN21’s Renewable Energy and Sustainability Report (RESR) serves as a comprehensive reference that assesses both the advantages and potential drawbacks of deploying renewable energy. It draws on a wide array of existing solutions and best practices globally to maximise the benefits of renewables while minimising their negative impacts. Establishing these benchmarks is crucial for guiding a sustainable shift towards renewable energy and fostering the trust and support needed from society.
There are plenty of cities in the world that already source 100 percent of their electricity from renewables. Now, they are taking steps to expand their ambitions to get rid of fossil fuels in heating, cooling, transport and industry. This report is an annual stocktaking of how city action can directly support the transition to renewable energy. It aims at making data available, more standardised, easier to evaluate and to compare.
