Jakarta – To accelerate the clean energy transition, United Nations (UN) Secretary-General Antonio Guterres called for increased lending capacity from Multilateral Development Banks and strengthened concessional financing. This was delivered at the opening of the 15th General Assembly Session of the International Renewable Energy Agency (IRENA) in Abu Dhabi, United Arab Emirates, on Sunday, January 12.
Guterres said in his speech that financial constraints are a major barrier to the energy transition, especially in developing countries. He said, increasing the lending capacity of multilateral development banks can be an effective solution to overcome these limitations.
Guterres highlighted the imbalance in clean energy investment. Since 2016, developing countries have only received 20% of the total global investment in clean energy. He sees this as a major challenge that needs to be addressed immediately to achieve the target of an equitable energy transition.
He said developing countries, including Indonesia, face considerable challenges in shifting from fossil fuels to renewable energy. Guterres said we must create innovative financial flows to accelerate this transition.
He also emphasised the importance of shifting fossil fuel subsidies to the clean energy sector. “Shifting fossil fuel subsidies to renewable energy investments is crucial to ensure an equitable transition,” Guterres added.
Focus on renewable energy
This session of the IRENA General Assembly focused on tripling renewable energy capacity by 2030, increasing the ambition of Nationally Determined Contributions (NDCs), and supporting developing countries in the energy transition. IRENA Director-General Francesco La Camera emphasised that renewable energy must be a top priority amid geopolitical changes and technological advances.
La Camera said renewable energy development is the most effective way to maintain climate stability and achieve sustainable development goals. In this era of transformation, we must harness new technologies, including artificial intelligence, to drive an accelerated energy transition.
Geopolitical conflicts and global weather extremes have exacerbated dependence on fossil fuels. Amid this situation, Guterres called on every country to incorporate energy transition plans into their national climate action. (Hartatik)
