The Renewable Revolution: How Clean Energy Is Reshaping the Global Economy

This article draws on the 2024 Renewables Global Status Report from REN21, with a focus on the Economic and Social Value Creation section. The report offers compelling evidence of renewable energy’s growing impact across access, equity, economic development, and climate resilience. For a full exploration, the complete report is available at www.ren21.net.

Key Global Findings

• 7% of global GDP growth in 2023 was linked to renewable energy expansion.

• The sector employed 16.2 million people worldwide, up from 13.7 million in 2022.

• 685 million people lacked access to electricity in 2022—10 million more than in 2021.

• 2.1 billion people lacked access to clean cooking technologies.

Energy Access and Affordability

Renewables play a critical role in expanding modern energy access, especially in underserved areas:

• In 2022, 48 million people gained electricity access via 21,500 mini-grids backed by $29 billion in investment.

• Looking ahead, 29,400 additional mini-grids are planned, expected to connect another 35 million people.

• 99% of new mini-grids will be solar-powered; 95% will be deployed in Africa and South Asia.

Energy Poverty in Developed Economies

Energy poverty remains a concern even in high-income regions:

• In 2023, 10.6% of Europeans could not adequately heat their homes.

• By mid-2024, 48 million Europeans were unable to fully pay their energy bills.

Governments are responding with policy incentives, subsidies, and promotion of technologies like solar PV and heat pumps to ease the burden on vulnerable households.

Renewable Energy Investment Trends

From 2018 to 2023, private sector capital dominated investment:

• 75% of funding came from private entities, households, and commercial financiers.

• 24% was from public finance; development finance institutions contributed only 1%.

• Government spending accounted for 37% of the total.

• Household investment in clean energy doubled from 9% in 2015 to 18% in 2023.

However, fossil fuels remain heavily financed:

Public Policy and Fiscal Tools

REN21 stresses the importance of fiscal policy in accelerating the energy transition:

• $100 billion, or half of global carbon revenues in 2023, went to climate and nature-based solutions.

• Tax incentives and rebates were introduced in several countries to support adoption of solar panels, EVs, and heat pumps.

• New business models—community ownership, peer-to-peer trading, pay-as-you-go systems, results-based financing, and financial aggregation—are helping scale distributed energy.

Despite progress, fossil fuel subsidies still outpace renewable support by a factor of 10.

Economic Development and Local Manufacturing

Renewables offer strong potential for local economic growth:

• China remained the global manufacturing leader, though its investment share fell from 85% (2022) to 75% (2023).

• Other Asian nations—Malaysia, Thailand, and others—increased their share to 16%.

• In the U.S., the Inflation Reduction Act led to the announcement or construction of 100 new clean energy manufacturing sites by mid-2024, with 52 more planned.

• The EU’s Net-Zero Industry Act targets 40% domestic production of clean energy technologies by 2030.

• New manufacturing initiatives were also announced in Brazil, Estonia, Hungary, Japan, Morocco, and others.

Employment Growth in Renewables

The renewable energy sector added 2.5 million jobs in one year, reaching 16.2 million total jobs in 2023:

• 47% of jobs were in China.

• Solar PV led with 7.1 million jobs, followed by biofuels and hydropower.

• From 2019 to 2022, renewable energy jobs grew 15%, while fossil fuel sector jobs grew just 4%.

Climate Adaptation and Resilience

Renewables enhance resilience as well as support mitigation:

• During climate disasters, decentralized renewable systems can power healthcare, water, and emergency communication infrastructure.

• They support agricultural adaptation through irrigation, solar-powered desalination, and cooling technologies.

• Such systems help remote communities become more self-reliant and less exposed to grid disruptions.

Conclusion

The 2024 REN21 report confirms that renewable energy is far more than a decarbonization tool—it is a driver of economic inclusion, resilience, and equity. However, persistent imbalances in investment, access, and policy remain major obstacles. Scaling renewables equitably requires stronger financial alignment, reallocation of fossil fuel subsidies, and continued policy innovation. The technologies exist. The models work. What’s needed now is unified, coordinated action at all levels.