Global Renewable Energy Gains Momentum Amid Geopolitical Challenges

Despite a tumultuous geopolitical landscape and policy shifts, the global transition to renewable energy has accelerated significantly over the past year. This progress comes as nations worldwide strive to meet the looming 2030 decarbonization benchmarks, with the World Economic Forum’s latest report offering a hopeful outlook for global climate objectives.

The flagship report, released in June, highlights improvements in energy equity and sustainability, driven by factors such as easing energy prices, subsidy reforms, and an increased share of clean energy. According to the report, the average Energy Transition Index scores improved by 1.1% in 2025, marking a more-than twofold improvement over the previous three years.

Emerging Economies Lead the Charge

While historically, the most decarbonized nations have been among the wealthiest, developing economies are now making significant strides. Emerging markets in Europe and Asia have shown remarkable progress, climbing the ranks of the Energy Transition Index. This shift underscores a broader trend where developing nations are increasingly at the forefront of the renewable energy revolution.

In a report released late last year, the International Energy Agency (IEA) noted that renewables are on track to meet nearly half of global electricity demand by the decade’s end, driven by a substantial increase in solar energy production capacity worldwide. The IEA projected that global renewable energy additions between now and 2030, estimated at over 5,500 gigawatts, could equal the current power capacity of China, the European Union, India, and the United States combined.

“Renewables are moving faster than national governments can set targets for. This is mainly driven not just by efforts to lower emissions or boost energy security – it’s increasingly because renewables today offer the cheapest option to add new power plants in almost all countries around the world,” stated IEA Executive Director Fatih Birol.

Geopolitical Shifts and Their Impact

However, the landscape is not without challenges. Recent shifts in global politics, particularly in Washington D.C., have introduced new uncertainties. The current U.S. administration has signaled a pivot back towards fossil fuels, a move that could have far-reaching implications for both national and global energy transitions.

Former President Donald Trump’s reduction of climate funding may hinder energy transition projects in several developing countries. Meanwhile, China is poised to increase its influence in the renewable sector, potentially reshaping global energy dynamics. The IEA warns that the energy transition faces obstacles such as geopolitical tensions, supply chain disruptions, economic volatility, and rising costs.

“The energy transition has been hobbled by a backdrop of geopolitical tensions, supply chain disruption, economic volatility and rising costs,” the IEA reports.

Challenges and Opportunities Ahead

Despite these challenges, the progress made remains insufficient compared to the necessary pathways to achieve net-zero emissions. April 2025 was recorded as the second warmest month ever, with global emissions reaching unprecedented levels, despite over $2 trillion invested in clean energy in 2024. Furthermore, energy security has not seen significant improvements, highlighting vulnerabilities in global energy systems.

The announcement comes as the world grapples with the dual challenges of climate change and energy security. As nations push forward with their renewable energy agendas, the interplay between geopolitical shifts and technological advancements will be crucial in determining the pace and success of the global energy transition.

Looking ahead, experts emphasize the need for robust international cooperation and policy frameworks that can withstand political fluctuations. As the world moves closer to 2030, the urgency of these efforts becomes increasingly apparent, with the potential to reshape both the energy landscape and the global economy.