GT Voice: Era of electricity shortfalls calls for free trade in green energy – Global Times

Global Energy Outlook 2025: A Report on Aligning Electricity Expansion with Sustainable Development Goals

Introduction: The Dual Challenge to Global Development

The International Energy Agency’s (IEA) World Energy Outlook 2025 report highlights a critical tension at the core of global economic and sustainable development. The findings reveal a dual challenge that directly impacts the achievement of the Sustainable Development Goals (SDGs). This report analyzes the imperative to expand electricity access in line with SDG 7 (Affordable and Clean Energy) and SDG 8 (Decent Work and Economic Growth), while simultaneously accelerating decarbonization efforts to meet the targets of SDG 13 (Climate Action).

• Approximately 730 million people remain without access to electricity, a significant barrier to economic inclusion and poverty reduction.
• Concurrently, intensifying climate risks, evidenced by 2024 being the first year global temperatures exceeded 1.5 degrees Celsius above pre-industrial levels, demand a rapid transition away from fossil fuels.

Evolving Electricity Demand and its Impact on SDG 9

Global electricity demand is undergoing a structural transformation, presenting new challenges and opportunities for SDG 9 (Industry, Innovation, and Infrastructure). The report identifies two parallel trends driving up global electricity consumption:

1. Developing Regions: Persistent energy access deficits continue to hinder development and require significant expansion of electricity supply.
2. Advanced Economies: A rapid increase in demand is being driven by the expansion of energy-intensive digital infrastructure, particularly data centers and Artificial Intelligence (AI), which are foundational to modern technological progress.

This interdependence underscores the need for a reliable, low-cost, and increasingly green electricity supply. The long-term stability and efficiency of advanced technological sectors like AI are contingent upon a well-established renewable power base, linking industrial innovation directly to sustainable energy infrastructure.

Barriers to Progress: Trade Protectionism and SDG 17

The global transition to renewable energy is being impeded by geopolitical and trade-related challenges, undermining the principles of SDG 17 (Partnerships for the Goals). Trade protectionist measures in some regions are creating significant constraints on international cooperation.

Key Impacts of Trade Barriers:

• Restricted Flows: Geopolitical considerations and protectionist policies create barriers that affect the cross-border movement of green energy equipment, investment, and technical expertise.
• Hindered Development: These measures constrain the growth of renewable energy industries by limiting competition and increasing costs.
• Undermined Infrastructure: By restricting the affordable and reliable expansion of green power, such barriers threaten the energy foundation required for critical infrastructure, including AI systems.

Recommendations for Aligning Energy Policy with the SDGs

To meet rising global electricity demand while advancing decarbonization, a more open, efficient, and cooperative global environment is essential. The central challenge is not one of “overcapacity” in the renewable sector, but rather insufficient capacity to meet global needs. Achieving synergy between economic growth and climate objectives requires coordinated global efforts.

1. Prioritize Capacity Expansion: Global policy must focus on overcoming the insufficient capacity of renewable energy to meet the dual goals of universal access (SDG 7) and climate action (SDG 13).
2. Promote Open Trade and Investment: In alignment with SDG 17, facilitating free trade and cross-border investment is critical to promoting competition, supporting technological innovation, and reducing the cost of renewable energy.
3. Foster a Supportive Business Environment: Developed countries, in particular, should provide a supportive and competitive environment for the renewable energy sector to ensure the stability and affordability of electricity that underpins advanced industries (SDG 9).

1. Addressed Sustainable Development Goals (SDGs)

The article addresses several interconnected SDGs:

• SDG 7 (Affordable and Clean Energy): This is the central theme of the article. It directly discusses the challenge of providing electricity to the 730 million people who lack access, while simultaneously promoting a shift towards renewable energy sources like wind and solar to meet rising global demand.
• SDG 13 (Climate Action): The article explicitly links energy production to the climate crisis. It highlights that 2024 was the hottest year on record, with global temperatures exceeding the 1.5 degrees Celsius threshold, and stresses the “imperative to decarbonize power generation” to mitigate climate risks.
• SDG 9 (Industry, Innovation and Infrastructure): The text emphasizes the critical role of a reliable and green electricity supply for modern infrastructure. It points to the “breakneck demand growth from data centers and AI” and notes that a “well-established renewable power base” is essential for the stability and efficiency of advanced technological industries.
• SDG 8 (Decent Work and Economic Growth): The article frames electricity as a “cornerstone of economic development” and essential for “economic inclusion.” By addressing the lack of electricity access, it touches upon the foundational requirements for sustainable economic growth and progress in developing regions.
• SDG 17 (Partnerships for the Goals): The article critiques “trade protectionist measures” and “geopolitical considerations” that create barriers to the global development of renewable energy. It calls for enhanced “international cooperation,” “free trade,” and “cross-border investment” to create an open and efficient global business environment for clean energy.

2. Specific SDG Targets Identified

Based on the article’s content, the following specific targets can be identified:

1. Under SDG 7 (Affordable and Clean Energy):

   • Target 7.1: “By 2030, ensure universal access to affordable, reliable and modern energy services.” This target is directly addressed by the article’s opening statement that “about 730 million people still live without electricity,” highlighting the persistent gap in universal energy access.
   • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article supports this target by discussing the need for an “accelerated shift toward low-carbon power generation” and noting that the “share of renewable energy – led by wind and solar power – continues to grow steadily.”

2. Under SDG 13 (Climate Action):

   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The article implies this target by arguing that the “expansion of electricity supply… can no longer be pursued in isolation from the imperative to decarbonize power generation,” which requires integrating climate goals into energy policy.

3. Under SDG 9 (Industry, Innovation and Infrastructure):

   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies…” The article connects to this target by discussing the need for “green electricity” to power energy-intensive infrastructure like “data centers and AI systems,” making these advanced industries more sustainable.

4. Under SDG 17 (Partnerships for the Goals):

   • Target 17.10: “Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system…” The article directly relates to this by criticizing “trade protectionist measures” that hinder the renewable energy sector and calling for “facilitating free trade and cross-border investment” to create a more open global market.

3. Indicators Mentioned or Implied

The article mentions or implies several indicators that can be used to measure progress:

1. Indicator 7.1.1: Proportion of population with access to electricity. The article provides a direct, though global, measure for this indicator by stating, “about 730 million people still live without electricity.” This figure is a key metric for tracking progress towards universal access.
2. Indicator 7.2.1: Renewable energy share in the total final energy consumption. This is implied when the article mentions that “the share of renewable energy – led by wind and solar power – continues to grow steadily.” Measuring this share is crucial to assessing the transition to clean energy.
3. Indicator 13.1.1: Number of countries with national and local disaster risk reduction strategies. While not explicitly stated, the article’s reference to intensifying “climate risks” and the fact that “global temperatures exceeded 1.5 degrees Celsius above pre-industrial levels” implies the need for strategies to address these climate-related hazards, which this indicator measures.
4. Indicator 17.10.1: Worldwide weighted tariff-average. This indicator is implied through the discussion of “trade protectionist measures” and “trade barriers that increase costs.” These policies are often implemented through tariffs, which this indicator tracks to measure the openness of the global trading system.

4. Summary Table of SDGs, Targets, and Indicators

Source: globaltimes.cn