How To Boost Renewable Energy in the Developing World – Time Magazine

Report on Global Energy Transition and Sustainable Development Goals

Investment Disparities and the Impact on SDG 7

The global transition to carbon neutrality is critically dependent on the participation of developing countries. However, a significant investment gap is impeding progress towards Sustainable Development Goal 7 (Affordable and Clean Energy). This disparity also exacerbates global inequalities, working against SDG 10 (Reduced Inequalities).

• In 2024, only 2% of the $807 billion invested globally in renewables reached the least developed countries.
• Public sector finance is insufficient to meet the investment needs for a global energy transition.
• Private capital, which constitutes over 75% of renewable energy investments, is deterred from developing economies due to higher perceived risks and unpredictable returns.

Strategic Energy Planning as a Catalyst for Sustainable Development

Strategic and collaborative energy planning is essential for de-risking investments and building the investor confidence needed to mobilize private finance. This approach directly supports SDG 17 (Partnerships for the Goals) by fostering public-private collaboration. When planning is integrated with financial strategies, it transforms the energy transition into a strategic investment in long-term socio-economic development, aligning with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Case Study: Brazil’s Integrated Approach to Renewable Energy

Brazil provides a successful model for aligning energy policy with financial mechanisms to achieve sustainable development objectives. The country has successfully attracted private capital, scaled up renewable energy, and strengthened domestic supply chains.

1. Integrated Planning and Finance: Early and coordinated engagement with development finance institutions, such as the Brazilian National Development Bank (BNDES), ensured coherence between policy goals and financial instruments, a key tenet of SDG 17.
2. Stable Regulatory Environment: A stable framework, regular renewable energy auctions, and clearly defined institutional roles created a predictable environment for investors.
3. Data-Driven Decision Making: The use of robust planning tools, including the National Energy Balance and the Ten-Year Energy Expansion Plan, enabled effective long-term scenario analysis.
4. Achieved Outcomes: As a result, Brazil has achieved one of the world’s cleanest energy mixes, with approximately 90% of its electricity from renewable sources, representing a significant accomplishment for SDG 7.

Challenges and Capacity Gaps in Developing Nations

Many developing countries face significant barriers to implementing such integrated planning, hindering their progress on the SDGs.

• Institutional Capacity: A lack of resources and institutional capacity prevents the full utilization of energy planning tools.
• Fragmented Processes: Planning is often fragmented across agencies and disconnected from broader national development strategies.
• Data and Expertise Gaps: Limited access to data, modeling tools, and technical expertise impedes the creation of implementable pathways for achieving energy and climate goals.
• Disconnected Financial Planning: Financial actors are often engaged too late in the process, creating a gap between theoretical plans and practical implementation.

Global Partnerships and Future Outlook for Climate Action (SDG 13 & 17)

To address these challenges, Brazil and the International Renewable Energy Agency (IRENA) have launched the Global Coalition for Energy Planning (GCEP). This initiative exemplifies SDG 17 by aiming to support countries in developing robust, investment-ready energy plans tailored to national contexts.

Achieving the global commitment made at COP28 to triple renewable power capacity by 2030 is fundamental to advancing SDG 13 (Climate Action). Success requires moving beyond targets and aspirations to concrete implementation. This involves developing credible, investment-ready plans that not only focus on power generation but also on the necessary grid and infrastructure upgrades, a core component of SDG 9. Bridging the gap between ambition and action is essential to turn global climate commitments into real-world progress.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article addresses several interconnected Sustainable Development Goals (SDGs), primarily focusing on the global energy transition, climate action, and the financial and institutional partnerships required to achieve these goals, especially in developing countries.

1. SDG 7: Affordable and Clean Energy

   This is the central theme of the article. The text revolves around the global effort to scale up renewable energy to achieve carbon neutrality. It discusses the investment in renewables, the need to increase renewable power capacity, and the importance of clean energy mixes.

   • Evidence from the article: The article explicitly discusses the goal to “triple renewable power capacity by 2030,” the investment of “$807 billion invested in renewables globally,” and Brazil’s success in having “one of the cleanest energy mixes in the world, with around 90% of its electricity…coming from renewable sources.”

2. SDG 13: Climate Action

   The article frames the energy transition as a critical component of global climate action. It directly references international climate agreements and national commitments aimed at reducing greenhouse gas emissions.

   • Evidence from the article: The text mentions the need to “keep the Paris Agreement alive,” the outcomes of “COP28,” the submission of “Nationally Determined Contributions (NDCs),” and the overarching goal of “carbon neutrality.”

3. SDG 17: Partnerships for the Goals

   A major focus of the article is the financial and institutional gap between developed and developing countries. It highlights the need for international cooperation, public-private partnerships, and capacity-building to mobilize the necessary resources for the energy transition.

   • Evidence from the article: The article points out that “only 2% of the $807 billion invested in renewables globally reached the least developed countries.” It also describes the launch of the “Global Coalition for Energy Planning (GCEP)” by Brazil and the International Renewable Energy Agency (IRENA) as a partnership to “support countries in developing robust, investment-ready energy plans.”

4. SDG 9: Industry, Innovation, and Infrastructure

   The article acknowledges that achieving renewable energy targets requires more than just power generation; it necessitates significant investment in supportive infrastructure.

   • Evidence from the article: The text states that realizing targets “means investing not only in renewable power generation, but also in the grids and infrastructure that can enable its deployment at scale.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article’s core discussion is about scaling up renewables, citing the global agreement to “triple renewable power capacity by 2030” and highlighting Brazil’s achievement of having “around 90% of its electricity” from renewable sources.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article directly addresses the disparity in investment, noting that developing countries receive far less than the developed world, and discusses the GCEP initiative aimed at helping developing countries “attract private capital to boost renewable energy growth.”
   • Target 7.b: By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries. The article mentions the need for investment in “grids and infrastructure” to enable the large-scale deployment of renewables, a key challenge for developing nations.

2. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article champions “energy planning that incorporates implementable financial strategies” as a way to achieve climate goals. It cites Brazil’s use of tools like the “Ten-Year Energy Expansion Plan” and “Long-term Energy Strategy” as examples of integrating climate-friendly energy policies into national planning. The submission of “Nationally Determined Contributions (NDCs)” is another direct example of this target in action.

3. SDG 17: Partnerships for the Goals

   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The article highlights the insufficiency of public funds and the challenge of “attracting private investment” in developing economies. It notes that “only 2% of the $807 billion invested in renewables globally reached the least developed countries,” underscoring the need to mobilize more capital.
   • Target 17.9: Enhance international support for implementing effective and targeted capacity-building in developing countries. The article points out that “many developing countries lack the institutional capacity and resources to fully utilize energy planning tools.” The GCEP initiative is presented as a solution to “co-develop tailored solutions that reflect national contexts, capabilities, and priorities,” which is a form of targeted capacity-building.
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships. The formation of the “Global Coalition for Energy Planning (GCEP)” by Brazil’s government and IRENA is a clear example of a multi-stakeholder partnership designed to “mobilize and share knowledge, expertise…and financial resources.”

4. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development. The article’s call to invest in “grids and infrastructure” to support renewable energy deployment directly aligns with this target, as a modern grid is essential for a sustainable energy system.
   • Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support. The article’s main argument is that developing countries need support to attract investment for their energy transition, which includes the necessary infrastructure. The GCEP is an example of a mechanism to provide such technical support.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress.

1. Indicators for SDG 7

   • Indicator 7.2.1 (Renewable energy share): The article provides specific figures for Brazil (“90% of its electricity and half of its total energy supply coming from renewable sources”) and a global target (“triple renewable power capacity by 2030”), which are direct measures of this indicator.
   • Indicator 7.a.1 (International financial flows): The article provides concrete financial data that serves as an indicator of investment flows. It states that “$807 billion invested in renewables globally” and that “only 2%” of this reached the least developed countries. It also notes that “more than 75% of renewable energy investments coming from private sources.” These figures can be used to track financial flows to developing countries for clean energy.

2. Indicators for SDG 13

   • Indicator 13.2.1 (Number of countries with nationally determined contributions): The article explicitly mentions the submission of “Nationally Determined Contributions (NDCs)” for COP30. The existence, submission, and ambition level of these NDCs are key indicators for measuring the integration of climate action into national planning.
   • Existence of national planning tools: The article implies that the development and use of strategic documents like Brazil’s “National Energy Balance” and “Ten-Year Energy Expansion Plan” are qualitative indicators of a country’s capacity for long-term, data-driven energy and climate planning.

3. Indicators for SDG 17

   • Volume of private investment mobilized: The article emphasizes the need to attract private capital. The amount of private investment successfully mobilized for renewable energy projects in developing countries as a result of initiatives like GCEP would be a direct indicator of progress.
   • Establishment of multi-stakeholder partnerships: The creation of the “Global Coalition for Energy Planning (GCEP)” itself serves as a qualitative indicator of progress towards building partnerships for the goals.

4. SDGs, Targets, and Indicators Table

Source: time.com