Disproportionate investments in energy transition favour developed countries

The 120 developing nations only secured 15% of the total investments in renewables.

Energy transition-related investments reached a record high of over $2t in 2023 but the investments are heavily skewed towards developed countries, according to the International Renewable Energy Agency (IRENA).

IRENA said emerging and developing markets accounted only for just over half of the global investments, with the 120 developing nations attracting only 15% of the total.

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For example, Sub-Saharan Africa only secured less than 1.5% of the total investment even if it has the highest share of energy-deprived populations.

“Despite considerable renewable potential, developing countries have received disproportionately low levels of investment,” it said.

IRENA also noted that fossil fuel received $1.3t of subsidies in 202 which is equal to the annual investment needed to triple renewable energy generation capacity by 2030.