Global Renewable Energy Market Report: Aligning with Sustainable Development Goals

Market Overview and Projections

Financial Growth and Contribution to SDG 8

The global renewable energy market was valued at USD 445.28 billion in 2023. Projections indicate a substantial expansion to USD 1,200 billion by 2035, with a Compound Annual Growth Rate (CAGR) of 8.61% from 2025 to 2035. This growth is a significant driver for SDG 8 (Decent Work and Economic Growth), creating opportunities for innovation, employment, and sustainable economic development by shifting global energy production and consumption patterns.

Key Drivers for Sustainable Energy Transition

Advancing SDG 7 (Affordable and Clean Energy)

The expansion of the renewable energy market is central to achieving SDG 7. The transition is fueled by a global commitment to provide clean, reliable, and sustainable alternatives to fossil fuels. Key drivers include:

• Supportive government policies such as tax credits, feed-in tariffs, and renewable portfolio standards that encourage investment in clean energy infrastructure.
• The declining costs of renewable technologies, particularly solar photovoltaic (PV) and wind turbines, making them economically competitive with conventional energy sources.
• Increasing demand for energy security and diversification away from volatile fossil fuel markets.

Supporting SDG 13 (Climate Action)

The urgent need to address climate change and reduce greenhouse gas emissions is a primary catalyst for the market. By replacing fossil fuels with sources like solar, wind, hydropower, and geothermal energy, the sector directly contributes to the targets of SDG 13, mitigating the impacts of climate change on a global scale.

Fostering SDG 9 (Industry, Innovation, and Infrastructure)

Technological advancements are accelerating the adoption of renewable energy and building resilient infrastructure, in line with SDG 9. Innovations include:

1. Advanced solar PV systems and large-scale offshore wind farms that enhance power generation capacity.
2. Next-generation energy storage solutions, such as lithium-ion and solid-state batteries, which address the intermittency of solar and wind power, ensuring a stable energy supply.
3. Smart grid systems and digital monitoring tools that optimize energy distribution and consumption, creating more efficient and sustainable infrastructure.

Regional Progress and Global Partnerships (SDG 17)

Different regions are contributing to the global energy transition, reflecting a collective effort consistent with SDG 17 (Partnerships for the Goals).

Regional Contributions

• North America: The United States and Canada are expanding renewable capacity through large-scale projects, supported by federal and state-level incentives that align with national climate commitments.
• Europe: Nations like Germany, the UK, and France are leading renewable deployment, driven by ambitious carbon neutrality targets and strong regulatory frameworks to achieve SDG 7 and SDG 13.
• Asia-Pacific: China and India are major drivers of growth, investing heavily in solar and wind to meet rising electricity demand and reduce urban pollution, contributing to SDG 11 (Sustainable Cities and Communities).
• Middle East & Africa: These regions are leveraging abundant solar resources to diversify their energy mix, reducing reliance on fossil fuels and promoting economic resilience.

Challenges to Achieving Universal Clean Energy Access

Despite significant progress, several challenges impede the universal achievement of SDG 7.

• The intermittent nature of solar and wind power requires substantial investment in energy storage and grid modernization, a key component of SDG 9.
• High initial installation costs, although decreasing, can remain a barrier to entry for developing regions.
• Regulatory uncertainties, land availability issues, and supply chain constraints can slow the pace of project development and implementation.

Future Outlook and Opportunities for Sustainable Development

The future outlook for the renewable energy market is promising, driven by global commitments to net-zero emissions. Emerging trends offer new opportunities to accelerate progress on the SDGs:

• Green Hydrogen Production: Offers a pathway to decarbonize hard-to-abate sectors, supporting SDG 9 and SDG 13.
• Floating Solar Farms and Offshore Wind: Expand the potential for renewable energy generation without competing for land resources.
• Corporate Power Purchase Agreements (PPAs): Increasing private sector investment is accelerating the adoption of renewable energy across various industries, promoting SDG 12 (Responsible Consumption and Production).

Conclusion: A Pathway to a Sustainable Future

The renewable energy market is fundamental to the global effort to combat climate change and ensure sustainable, inclusive economic growth. Through continued policy support, technological innovation, and international investment, renewable energy sources are positioned to dominate the future global energy landscape. The market’s growth is a critical enabler for achieving SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), while also making significant contributions to a broader range of Sustainable Development Goals, thereby shaping a cleaner, more resilient, and equitable future for all.

Analysis of Sustainable Development Goals in the Article

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

• SDG 7: Affordable and Clean Energy

  The article’s primary focus is the renewable energy market, which includes solar, wind, hydropower, biomass, and geothermal energy. This directly aligns with the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all.

• SDG 8: Decent Work and Economic Growth

  The text states that the shift to renewable energy is “creating opportunities for innovation, employment, and economic growth,” linking the energy transition to sustainable economic development.

• SDG 9: Industry, Innovation, and Infrastructure

  The article emphasizes the role of “technological advancements,” “innovations in renewable energy technologies,” “clean energy infrastructure,” and “grid modernization” as key drivers of the market, which are central themes of SDG 9.

• SDG 11: Sustainable Cities and Communities

  The article mentions that major investments in solar and wind energy in China and India are driven by the need to “reduce pollution levels,” which contributes to making cities and human settlements more sustainable and improving air quality.

• SDG 13: Climate Action

  The entire premise of the article is based on the global effort to “combat climate change” and “reduce greenhouse gas emissions” by transitioning from fossil fuels to renewable energy sources. This is the core objective of SDG 13.

• SDG 17: Partnerships for the Goals

  The article highlights the importance of collaboration between different sectors, mentioning “supportive government policies,” “private sector investments,” and “Corporate power purchase agreements (PPAs)” as crucial for accelerating the adoption of renewable energy.

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

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The article is entirely about the growth of the renewable energy market, detailing its expansion and projected increase in value, which directly supports this target.

2. 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 text discusses global market growth, regional investments (North America, Europe, Asia-Pacific), and technological advancements like advanced solar PV and battery storage, reflecting increased investment and access to clean energy technology.

3. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…

   The article connects the renewable energy sector’s growth with “innovation, employment, and economic growth,” which aligns with achieving productivity through technological upgrading in the energy sector.

4. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies and industrial processes.

   The discussion of “clean energy infrastructure,” “grid modernization,” and the adoption of technologies like solar PV and wind turbines directly relates to upgrading infrastructure to be more sustainable.

5. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality…

   The article notes that a key driver for renewable energy investment in China and India is the goal to “reduce pollution levels,” which directly addresses the aim of improving urban air quality.

6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   The article identifies “supportive government policies, incentives such as tax credits, feed-in tariffs, and renewable portfolio standards” as key drivers for the market, showing the integration of climate action into national policies.

7. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…

   The mention of government incentives, “Corporate power purchase agreements (PPAs),” and “private sector investments” illustrates the multi-stakeholder partnerships driving the renewable energy transition.

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

• Implied Indicator for Target 7.2 (related to Indicator 7.2.1): The article’s focus on the growth and adoption of solar, wind, hydropower, and other renewables implies progress toward increasing the “Renewable energy share in the total final energy consumption.”
• Indicator for Target 7.a (related to Indicator 7.a.1): The article provides specific financial figures, stating the market was “valued at 445.28 USD Billion in 2023 and is projected to grow to 1,200 USD Billion by 2035.” This serves as a direct measure of “International financial flows… in support of… renewable energy production.”
• Implied Indicator for Target 9.4 (related to Indicator 9.4.1): The overarching theme of replacing fossil fuels to “reduce greenhouse gas emissions” implies a focus on reducing “CO2 emission per unit of value added.”
• Implied Indicator for Target 13.2 (related to Indicator 13.2.1): The mention of “supportive government policies, incentives such as tax credits, feed-in tariffs, and renewable portfolio standards” acts as a qualitative indicator for the “number of countries that have… an integrated policy/strategy/plan” for climate action.
• Implied Indicator for Target 17.17 (related to Indicator 17.17.1): The reference to “Corporate power purchase agreements (PPAs) and private sector investments” can be measured by the “Amount of United States dollars committed to public-private… partnerships.”

4. Summary Table of SDGs, Targets, and Indicators

Source: openpr.com