Investment Rating - The report indicates a strong positive outlook for the renewable energy sector, highlighting significant growth and potential for future investments [13][15]. Core Insights - By the end of 2024, renewable energy sources accounted for 46% of global installed power capacity, with a record addition of 585 gigawatts (GW) in 2024, marking a 15.1% increase [14][15]. - Solar power was the leading contributor, with over 452 GW added, representing more than three-quarters of the total renewable additions [15]. - The report emphasizes the need for accelerated growth to meet the target of tripling installed renewable power capacity to 11 terawatts (TW) by 2030, requiring annual additions exceeding 1,120 GW [17][18]. Summary by Sections Total Capacity - The global renewable energy capacity reached 4,448,051 megawatts (MW) by the end of 2024, showing a consistent upward trend from previous years [64]. Renewable Energy Breakdown - Hydropower, wind energy, and solar energy are the primary contributors to the renewable capacity, with significant growth observed in solar photovoltaic installations [19][15]. Regional Insights - Major contributors to new renewable capacity in 2024 included China, the United States, and the European Union, which collectively accounted for 489 GW (83.6%) of the total new installations [16]. - In contrast, Africa's contribution was minimal, with only 4.2 GW (0.7%) added, highlighting disparities in renewable energy deployment [16]. Future Outlook - The report calls for a much faster pace of growth in renewable energy installations to achieve a sustainable energy future and meet global climate goals [18].

Investment Rating - The report does not explicitly provide an investment rating for the sustainable aviation fuels (SAF) industry in Southeast Asia Core Insights - The SAF industry in Southeast Asia is still in its infancy, with a current global production capacity of less than 1% of global aviation fuel usage, highlighting the need for significant investment and policy support to scale production [45] - The uneven distribution of feedstock resources among Southeast Asian countries presents challenges for self-reliance in SAF supply, with resource-rich countries like Indonesia positioned as key exporters [25][79] - The development of SAF is influenced by various factors, including feedstock availability, technological readiness, and government policies, which vary significantly across the region [76][101] Summary by Sections Feedstock and Land Resources - The potential for energy crops on under-utilised low-carbon land in Southeast Asia is significant, with estimates suggesting that allocating 9% of such land could yield up to 18.4 million tonnes per year of SAF, nearly meeting the region's projected demand [17] - Countries like Indonesia and Myanmar show the most potential for SAF production from energy crops, while others may struggle to meet demand using only domestic residues and wastes [4][17] Production Pathways - The report focuses on three main SAF production pathways: HEFA, FT, and ATJ, with HEFA expected to be the most widely used due to its established technology and lower capital expenditure [27][41] - The minimum jet fuel selling price (MJSP) for SAF varies across Southeast Asia, with HEFA ranging from USD 1.6 to 2.1 per litre, significantly higher than the fossil-based Jet A-1 price of USD 0.6 per litre [69][39] Policy Development - Several Southeast Asian countries, including Singapore, Malaysia, and Indonesia, have initiated SAF roadmaps or blueprints, with Singapore being the first to establish a mandate for SAF use [76][44] - The report emphasizes the need for harmonization of policies across different ministries in countries like Malaysia to accelerate SAF development and align targets [85] International Trade and Investment - International investments play a crucial role in the SAF sector, with partnerships like that of Prime Infrastructure Capital and WasteFuel Global in the Philippines highlighting the importance of foreign capital for scaling production [95] - The report suggests that a coordinated regional framework for SAF production and trade could help balance competition and foster sustainability across Southeast Asia [100][96]

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - Renewable hydrogen and its derivatives, such as ammonia, methanol, and e-kerosene, are projected to play crucial roles in the energy transition, particularly in hard-to-abate sectors, accounting for approximately 14% of final energy consumption by 2050 [15][22][24]. - The development of international markets for renewable hydrogen and its derivatives is essential for enhancing competitiveness and reducing costs by facilitating production in regions with abundant renewable resources [16][18]. - Significant infrastructure investments, including pipelines and shipping facilities, are necessary to support the transport of these commodities from producers to consumers [17][68]. Summary by Sections Executive Summary - Renewable hydrogen and its derivatives are expected to be vital in decarbonizing hard-to-abate sectors, with their use projected to account for around 14% of final energy consumption by 2050 [15][22]. - Cost variations in renewable hydrogen production will depend on geographic conditions, creating opportunities for both exporting and importing countries [16]. Introduction - The report emphasizes the importance of renewable hydrogen in sectors that cannot be easily electrified, such as chemical manufacturing and heavy-duty transport [22][23]. - Current hydrogen production is primarily fossil-fuel-based, contributing significantly to emissions, necessitating a transition to renewable sources [23]. Market Overviews - Global hydrogen production is around 95 million tonnes per year, with a significant portion derived from fossil fuels, leading to approximately 1.3 gigatonnes of CO2 emissions annually [36]. - The ammonia market is projected to reach 688 million tonnes by 2050, driven by renewable ammonia applications in agriculture and maritime fuels [46]. - Methanol production is currently dominated by fossil fuels, with global imports valued at USD 12.1 billion in 2023, while renewable methanol production remains in its infancy [58]. - Kerosene trade is substantial, with global imports exceeding USD 500 billion in 2023, highlighting its importance as a jet fuel [66]. Enablers - The report categorizes enablers into physical, institutional, and social measures necessary for scaling up international markets for renewable hydrogen and its derivatives [30]. - Physical enablers include the deployment of infrastructure for production, storage, and distribution of renewable hydrogen and its derivatives [31][68]. - Institutional enablers focus on policy measures such as tariffs, taxation, and carbon pricing to support market development [32]. - Social enablers emphasize community engagement and job creation associated with the development of these markets [33].

Investment Rating - The report emphasizes the urgent need for increased investment in renewable energy and energy efficiency to meet global climate targets, specifically highlighting a requirement of USD 4.3 trillion annually until 2030 and USD 5 trillion per year until 2050 [52]. Core Insights - The report outlines the imperative to triple renewable power capacity and double energy efficiency improvements by 2030, as established during COP28 [29][51]. - In 2023, global renewable capacity additions reached 473 gigawatts (GW), driven primarily by solar photovoltaic (PV) and wind power technologies [29][61]. - Despite progress, the current pace of deployment is insufficient to meet the 2030 targets, indicating a potential shortfall of 1.5 terawatts (TW) or 13.5% below the tripling goal if the 14% increase in installed capacity continues [35][63]. Summary by Sections Executive Summary - The UAE Consensus from COP28 calls for a transition away from fossil fuels and emphasizes the need for ambitious climate action to meet the Paris Agreement goals [29][52]. - The report highlights that 130 countries signed the Global Renewable Energy and Energy Efficiency Pledge, indicating a collective commitment to renewable energy [29]. Progress Toward Tripling Renewable Capacity by 2030 - Africa added approximately 2.7 GW of new renewable capacity in 2023, totaling over 62.1 GW, but only 43% of African countries made progress [30]. - Asia and the Pacific saw a significant increase of 339 GW in renewable power capacity, with China being the largest contributor [31]. - Europe added around 70 GW of renewable power capacity, reaching a total of 785.8 GW in 2023 [32]. - Latin America and the Caribbean recorded a rise of 24 GW, totaling 308.2 GW in renewable power capacity [32]. - Small island developing states (SIDS) increased their cumulative renewable power capacity to 8.7 GW in 2023 [33]. Ambitions and Directions Towards 2030 and Beyond - The report stresses the need for countries to enhance their Nationally Determined Contributions (NDCs) to align with the more ambitious energy transition targets [36]. - IRENA's engagement with 101 countries aims to support the enhancement and implementation of NDCs, focusing on the energy sector [37][39].

Investment Rating - The report emphasizes the urgent need for a course correction in the global energy transition to meet the 1.5°C climate goal, indicating a critical investment environment for renewable energy and efficiency improvements [9][12]. Core Insights - The global energy transition is currently off track, with fossil fuels still dominating the energy mix in major economies, making it increasingly unlikely to meet the Paris Agreement goals [40][41]. - Significant investments are required to triple renewable power capacity to over 11,000 gigawatts by 2030, necessitating a total of USD 31.5 trillion in investments from 2024 to 2030 [12][72]. - The report highlights the need for international collaboration to ensure a just and equitable energy transition, particularly in the global South, where investment is critically needed [14][20]. Summary by Sections Chapter 1: Achieving the 1.5°C Scenario and Net-Zero Emissions by 2050 - The report outlines a framework for aligning energy and climate strategies, emphasizing the need for systemic transformation to achieve net-zero CO2 emissions by mid-century [6][7]. - It identifies a significant gap between high-level political commitments and actual national plans, with current targets set to deliver only half of the required growth in renewable power by 2030 [41][42]. Chapter 2: Progress Towards 2030 Milestones - The report notes that while renewable power capacity grew by 473 gigawatts in 2023, deployment must increase to an average of 1,044 gigawatts annually to meet the tripling target by 2030 [53][54]. - It stresses the importance of expanding renewable energy beyond leading markets and scaling up technologies other than solar PV [54]. Chapter 3: Overcoming Key Barriers - Structural and systemic barriers must be addressed to facilitate the energy transition, including modernizing infrastructure and establishing regulatory frameworks suitable for renewable energy [10][60]. - The report highlights the need for effective energy planning to attract private capital and reduce investment risks [18][76]. Chapter 4: Overcoming Finance and Investment Barriers - Global investments in renewable capacity reached USD 570 billion in 2023, but remain concentrated in a few countries, necessitating a dramatic increase in financing to meet energy transition goals [71][72]. - Annual investments must rise from USD 1.29 trillion in 2023 to USD 4.5 trillion each year from 2024 to 2030 to meet the renewable energy and efficiency goals [72][73]. Chapter 5: Furthering Economic and Social Development - The report emphasizes the socio-economic impacts of the energy transition, advocating for international collaboration to enhance welfare outcomes [20][43]. - It calls for a focus on public financing and policy measures to de-risk investments in high-risk environments, particularly in developing countries [75][77].

Investment Rating - The report does not explicitly provide an investment rating for the green hydrogen industry Core Insights - The urgency for decarbonization across all sectors by 2050 necessitates the use of hydrogen, particularly in hard-to-abate sectors, with green and blue hydrogen production needing to reach 125 million tonnes per year by 2030 and 523 million tonnes by 2050 [60][61] - A robust Quality Infrastructure (QI) is essential for the sustainable development of the green hydrogen sector, ensuring quality, safety, and sustainability of products and services [60][62] - The report outlines a roadmap consisting of five steps for countries to develop their QI to support the green hydrogen sector, focusing on assessing potential, developing national strategies, and creating action plans [63][64] Summary by Sections 1. Introduction - The transition to clean energy requires innovative approaches to prevent greenhouse gas emissions, with green hydrogen being crucial for achieving net-zero emissions in hard-to-abate sectors [79][80] 2. Developments in the Global Hydrogen Market - By 2050, green hydrogen could account for 14% of the world's final energy consumption, necessitating a production increase to 125 million tonnes by 2030 and 523 million tonnes by 2050 [102] - The cost of renewable hydrogen production is driven by renewable electricity costs and the cost of electrolysis plants, with significant potential for cost reductions through economies of scale [104] 3. Quality Infrastructure: Creating the Basis for Sustainable Development - Quality infrastructure includes metrology, standardization, accreditation, and conformity assessment, which are essential for ensuring safety and sustainability in the hydrogen sector [120][121] - The national QI system must be coherent and functional, integrating various components to support the development of quality services [133] 4. Quality Infrastructure Services for Green Hydrogen - The report provides an overview of quality infrastructure services along the green hydrogen value chain, emphasizing the need for standardization, metrology, and testing [19][20] - A checklist of services for each quality infrastructure pillar is included to guide policymakers and industry stakeholders [72] 5. Quality Infrastructure Roadmap for Green Hydrogen - The roadmap consists of five steps: assessing potential, developing a national hydrogen strategy, assessing the national QI system, evaluating service offerings and demand, and creating a development action plan [63][64] - The application of the roadmap was piloted in Tunisia, highlighting the importance of national strategies in developing a robust QI ecosystem [93]

Investment Rating - The report does not explicitly provide an investment rating for the green hydrogen industry Core Insights - Green hydrogen is essential for decarbonizing hard-to-abate sectors and requires policy support for its deployment and development [14][15] - Auctions are emerging as a competitive public procurement tool to promote green hydrogen production, offering long-term revenue certainty and enabling price discovery [16][17] - The report emphasizes the need for tailored auction designs to avoid negative repercussions such as reduced competition and project realization [17][18] Summary by Sections Executive Summary - Green hydrogen will significantly contribute to decarbonizing hard-to-abate sectors, but its development necessitates policy support [14] - Auctions can be a viable mechanism for promoting green hydrogen production while minimizing public expenditure [16] Section 2: Green Hydrogen - Status, Barriers, and Support Instruments - Hydrogen production is currently dominated by fossil fuels, with only 0.7% of global production being green or blue hydrogen [48] - Major barriers to green hydrogen uptake include technological, economic, institutional, and social challenges [54][56] - The production costs of green hydrogen are estimated to be three to six times higher than grey hydrogen, necessitating competitive procurement mechanisms to enhance cost-competitiveness [57][58] Section 3: Auctions to Support Green Hydrogen Development - Different types of auctions can be employed, including supply-side, demand-side, double-sided, and joint auctions [18][19][20] - Supply-side auctions focus on scaling up electrolyser capacity and green hydrogen production, while demand-side auctions incentivize hydrogen imports [19][20] - The design of auctions should align with national green hydrogen strategies to achieve defined policy objectives [22][23] Section 4: Design Elements of Auctions - Auction designs should consider various factors, including technology neutrality, local content requirements, and environmental sustainability [24][30] - Addressing challenges related to system integration and hydrogen transport is crucial for successful auction implementation [28][60] - Auctions should be part of a broader policy mix to ensure effective coordination and attract private investment [32][33]

Investment Rating - The report does not explicitly provide an investment rating for the decentralised solar PV sector Core Insights - Decentralised solar PV systems are crucial for providing clean, reliable, and affordable energy to underserved communities, particularly in sub-Saharan Africa, where 685 million people lacked access to electricity in 2022, an increase of 10 million from 2021 [15][23] - The sector employed approximately 307,000 people in 2023 across Ethiopia, India, Kenya, Nigeria, and Uganda, with women making up 40% of the global solar PV workforce [16][52] - The report emphasizes the need for gender inclusion in the decentralised renewable energy sector to harness women's potential as agents of change and to drive socio-economic development [21][22] Summary by Sections Introduction - The report highlights the role of decentralised renewable energy (DRE) technologies, particularly solar PV, in achieving Sustainable Development Goal 7 (SDG 7) by providing energy access to remote communities [23][24] Decentralised Solar PV: Jobs, Skills, and the Role of Women in the Workforce - Employment in the DRE sector has significantly increased, with the renewable energy sector reaching 16.2 million jobs globally in 2023, an 18% increase from 2022 [33] - The decentralised solar PV sector is labour-intensive, creating local jobs and business opportunities, especially in rural areas [34][55] Women in the Decentralised Solar PV Workforce - Women hold 38% of jobs in Africa's solar PV sector, with participation rates varying by country: 41% in Kenya, 37% in Ethiopia, 35% in Nigeria, and 28% in Uganda [58][61] - The report identifies barriers to women's participation, including societal constraints, lack of access to education, and gendered workplace barriers [20][67] Women and Entrepreneurship in the Decentralised Solar PV Sector - Decentralised solar PV systems are transforming the entrepreneurial landscape, enabling women to establish businesses that were previously constrained by limited energy access [69][70] - Successful female-led initiatives in the DRE sector demonstrate the potential for women's entrepreneurship to drive sustainable energy access and foster inclusive development [72][74]

Investment Rating - The report does not explicitly provide an investment rating for the renewable energy sector Core Insights - The renewable energy sector employed 16.2 million people globally in 2023, a significant increase from 13.7 million in 2022, with China accounting for 7.4 million jobs, or 46% of the total [18][19] - The report emphasizes the importance of a skilled workforce for the energy transition, highlighting the need for education and training to support job creation and ensure a just transition [9][34] - The report identifies that the global renewable electricity capacity reached 3,865 GW in 2023, marking a 14% increase from 2022, with solar PV leading the growth [23][30] Summary by Sections Chapter 1: Renewable Energy Employment Worldwide and by Technology - Solar photovoltaic (PV) jobs reached 7.1 million in 2023, representing 44% of the global renewable energy workforce, with China dominating the sector [18][52] - Wind power employed 1.5 million people in 2023, with China leading at 745,000 jobs [19][59] - Hydropower jobs totaled 2.3 million in 2023, reflecting a 4% decrease from the previous year due to slower capacity additions [18][62] - Liquid biofuels accounted for 2.8 million jobs, primarily in the agricultural supply chain, with Brazil having the largest number of jobs at 994,000 [18][65] Chapter 2: Renewable Energy Jobs in Selected Countries - China, Brazil, the United States, and India are highlighted as key countries in renewable energy job creation, with China leading significantly [18][36] - The report provides insights into the employment landscape in these countries, emphasizing the need for policies that support job growth in the renewable sector [36] Chapter 3: Skills for a Just Energy Transition - Skills development is identified as a crucial enabler for a just transition, with a focus on enhancing education and training for new entrants and reskilling existing workers [9][34] - The report stresses the importance of diversity in the workforce, advocating for opportunities for women, youth, and marginalized groups [9][20] Chapter 4: The Importance of a People- and Planet-Centered Energy Transition - The report concludes with observations on balancing economic, environmental, and social sustainability in the energy transition [10][34] - It highlights the need for international collaboration to ensure that socio-economic benefits, such as job creation, are widely shared [35][36]

Investment Rating - The report emphasizes the need for substantial investments in renewable energy, estimating that USD 150 trillion is required to finance the energy transition compatible with the 1.5°C pathway by 2050 [17][39]. Core Insights - The report highlights Brazil's success in attracting private investment and deploying renewable energy, showcasing a well-established energy planning and finance strategy [19][21]. - It underscores the importance of collaboration between development banks and energy planning institutions to de-risk clean energy projects and enhance investment opportunities [19][24]. - The report advocates for innovative financing mechanisms, such as blended finance and green bonds, to attract private capital to emerging markets and developing economies (EMDEs) [24][66]. Summary by Sections Key Messages - The scale, pace, and distribution of investment required for the global energy transition are substantial yet achievable with strong engagement from the private sector [24]. - Investment opportunities are expected to rise in EMDEs, where the challenge of meeting rapid energy demand growth in a low greenhouse gas emission future remains significant [24]. - Public sector efforts should focus on widening financing approaches and exploring innovative instruments to scale up renewable energy investments in EMDEs [24]. Introduction - Renewable energy investments have seen positive trends due to cost reductions and policy incentives, contributing to GDP growth and job creation [26][27]. - The transition to renewable energy is becoming increasingly attractive as fossil fuel investments face uncertainty due to climate strategies and green recovery plans [27][28]. The Global Context of Financing Renewable Energy - Significant investments are required to support the shift towards renewable energy, with a focus on addressing the investment shortfall in decentralized projects and less attractive markets [66][69]. - The reliance on debt financing supported by power purchase agreements (PPAs) is increasing, while equity financing remains crucial for less mature technologies [66][69]. The Brazilian Case - Brazil's energy planning and regulatory reforms have facilitated the integration of renewable energy sources, with power auctions playing a pivotal role in developing renewable capacity [42][43]. - The Brazilian Development Bank (BNDES) has been instrumental in providing long-term financial conditions and reducing uncertainties for investors [44][45]. Lessons Learned from the Brazilian Experience - Effective energy planning and collaboration between financial institutions and energy planners are crucial for promoting renewable energy [55][56]. - The importance of creating a conducive environment for renewable energy projects through strategic alignment and innovation is emphasized [57][58].