Assessment of Progress Towards Sustainable Development Goals 7 and 13

Climate Action (SDG 13) Targets at Risk

A decade after the Paris Agreement, efforts to achieve the targets outlined in SDG 13 (Climate Action) are in jeopardy. The primary goal to limit the global average temperature increase is at risk of failure.

• According to NASA, 2024 was the warmest year since record-keeping began in 1880.
• The Global Carbon Project estimated that global CO₂ emissions from fossil fuels were on track to reach 37.4 billion tonnes in 2024, an increase from the previous year.
• The past decade has been the warmest on record, indicating insufficient progress in limiting greenhouse gas (GHG) emissions.

Progress in Affordable and Clean Energy (SDG 7)

Despite significant challenges, there has been notable progress in advancing SDG 7 (Affordable and Clean Energy), particularly in developed nations.

• Developed countries are deploying renewable and low-carbon technologies at a record pace and pursuing energy efficiency policies.
• In the US, the second-largest GHG emitter, CO₂ emissions dropped by a quarter in the three decades to 2022, even as power generation increased.
• Analysts suggest that emissions in China may have peaked in 2023 due to a surge in electricity from wind, solar, and nuclear sources.
• The UK’s electricity sector is nearing its decarbonization goal for 2030, a scenario considered “unthinkable” two decades ago.

Key Challenges in the Global Energy Transition

Surging Electricity Demand and its Impact on SDG 7

A primary obstacle to achieving clean energy goals is an unexpected surge in global power demand, which complicates the transition from fossil fuels.

1. Global electricity demand increased by 4.3% in 2024, well above the average annual rate of the preceding decade.
2. Key drivers include increased demand for cooling, industrial consumption, electrification of transport, and the growth of data centres.
3. Fossil fuels still account for 60% of electricity generation, making the sector responsible for 36% of energy-related emissions and hindering progress on SDG 13.

The Role of Artificial Intelligence in Energy Consumption

The rapid build-out of Artificial Intelligence (AI) infrastructure presents a new and significant challenge to energy sustainability goals.

• AI data centres require a constant and substantial electricity source, often supplied by existing fossil fuel-reliant grids.
• In 2024, data centres were estimated to consume 3% of total electricity in Europe, with consumption as high as 20% in Ireland.
• A lack of transparency from technology companies regarding AI energy consumption makes it difficult to assess the full environmental impact and align development with SDG 9 (Industry, Innovation, and Infrastructure).

Technological Innovations and Infrastructure for Sustainable Development (SDG 9)

Enhancing Energy Efficiency (Target 7.3)

Improving energy efficiency is a critical component of reducing emissions and achieving SDG Target 7.3. Technology offers potential solutions.

• The Rocky Mountain Institute reports that almost two-thirds of all primary energy in the fossil fuel system is wasted before it performs any work.
• AI can be utilized to create more efficient energy systems, such as smart grids that predict consumption patterns and manage congestion, directly supporting SDG 9 and SDG 11 (Sustainable Cities and Communities).
• AI can also reduce emissions in buildings, which are a significant source of GHGs, by optimizing designs and energy use.

The Resurgence of Nuclear Power

As electricity demand outstrips the supply from other reliable sources, nuclear power is experiencing a global resurgence as an emissions-free energy source, contributing to SDG 7.

• Technology companies are entering agreements with nuclear developers to power AI data centres while meeting internal emissions reduction targets.
• The US administration has set a goal of quadrupling nuclear capacity by 2050.
• The industry is expanding rapidly in Asia, particularly in China, and is growing again in Europe.
• Significant challenges remain, including vulnerability to cost overruns and construction delays, particularly in Western nations.

Stalled Progress in the Hydrogen Economy

Hydrogen has long been proposed as a zero-emission fuel for decarbonizing hard-to-abate sectors, but its development has stalled.

• The production of “green hydrogen” via electrolysis is emissions-free but costs more than double the amount of hydrogen produced from natural gas.
• Challenges related to infrastructure, storage, and the high cost of electrolysers have led to the collapse of major projects in 2025.
• Analysts suggest that government-led initiatives are required to underwrite risk and create a market for this clean fuel.

Carbon Capture and Grid Modernization

Technological solutions such as carbon capture and infrastructure upgrades are essential for a successful energy transition.

• Carbon Capture: While considered a fundamental element of decarbonization, a 2025 study found that the risks of captured carbon leaking back into the atmosphere make it a less certain solution for achieving SDG 13.
• Grid Interconnectivity and Storage: Modernized and interconnected grids are critical for integrating variable renewable energy sources. Under-investment has revealed weaknesses in existing systems. Improved battery storage offers a solution for smoothing out generation to match demand.

Financing and Partnerships for the Goals (SDG 17)

The Green Finance Gap

Achieving the energy transition requires a massive scaling up of investment, yet the green finance market remains underdeveloped.

1. The global green finance market reached $8 trillion in 2024, a small fraction of the capital needed.
2. The Energy Transitions Commission estimates that $3.5 trillion in average annual capital investment is required until 2050 to build a net-zero economy.
3. To attract more capital, green banks need clearer mandates, supportive government policies, and risk-hedging tools to encourage risk-averse investors.

Public-Private Partnerships and Shifting Commitments

Collaboration between public and private sectors is vital for financing the transition, yet recent trends show a retreat from voluntary climate commitments.

• The International Renewable Energy Agency has called active private sector engagement “vital” for providing low-cost capital. Public funds can help de-risk projects to encourage this involvement.
• In 2025, several major financial institutions, including Barclays, HSBC, and JPMorgan, exited the Net-Zero Banking Alliance, undermining coordinated progress toward SDG 17 (Partnerships for the Goals).
• A 2024 analysis found that European banks’ climate commitments had little impact on their lending practices, suggesting that voluntary alliances are insufficient without stronger government regulation.

Global Outlook and Regional Strategies for SDG Implementation

Varying National Approaches

The energy transition is a global challenge, but strategies for achieving it vary significantly by region, offering different models for success.

• China: The country has driven massive increases in clean energy generation and electric vehicle uptake and is a leader in green finance, offering a potential roadmap for other nations.
• Europe: The carbon border pricing mechanism is incentivizing manufacturing countries to adopt cleaner production methods to maintain access to the European market.
• Pakistan: In 2024, it became the largest importer of Chinese solar equipment, driven by bottom-up demand from individuals seeking to decouple from an inefficient grid.

Policy Recommendations for Accelerating Progress

To accelerate the transition and achieve global climate and energy goals, a combination of supportive and restrictive policies is necessary.

• Governments must make it more difficult to continue using fossil fuels, including by withdrawing subsidies and implementing reforms to dismantle existing fossil fuel infrastructure.
• While the US administration’s reversal of climate-friendly policies is a setback, it may redirect global infrastructure funds to other regions like Asia and the EU.
• Despite non-linear progress, the global trajectory continues to move toward carbon neutrality, driven by the massive growth and falling costs of clean energy technologies.

Analysis of Sustainable Development Goals in the Article

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

1. SDG 7: Affordable and Clean Energy
   • The article’s central theme is the global energy transition. It extensively discusses the shift from fossil fuels (coal, oil, natural gas) to cleaner sources like renewables (solar, wind), nuclear power, and emerging technologies like green hydrogen. It also highlights challenges in meeting rising electricity demand with clean energy.
2. SDG 13: Climate Action
   • This goal is directly addressed from the first paragraph, which discusses the failure to meet the Paris Agreement’s temperature goals, rising global temperatures, and the increase in greenhouse gas (GHG) and CO₂ emissions, which are the primary drivers of climate change.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The article covers the need for infrastructure upgrades, such as modernizing electricity grids to handle renewable energy and building interconnectors. It also focuses on innovation in energy technologies, including small modular reactors (SMRs), carbon capture, hydrogen electrolyzers, and AI-driven smart grids. The role of data centers as new, energy-intensive infrastructure is also a key topic.
4. SDG 12: Responsible Consumption and Production
   • The article touches on this goal by discussing the inefficiency of the current energy system, where “almost two-thirds of all primary energy in the fossil fuel system is wasted.” It also addresses surging global electricity demand driven by increased consumption for cooling, data centers, and economic growth, highlighting the need for more sustainable consumption patterns.
5. SDG 17: Partnerships for the Goals
   • The financing section explicitly discusses the need for public-private partnerships to fund the energy transition. It mentions international collaborations like the COP28 targets, financial alliances such as the Net-Zero Banking Alliance, and the role of international investment and green finance in achieving climate goals.

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

1. Under 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 directly relates to this by stating that the share of renewables in the electricity sector is set to grow from 30% to 46% by 2030, but notes this is still below the target of tripling renewables capacity set at COP28.
   • Target 7.3: “By 2030, double the global rate of improvement in energy efficiency.” The article highlights the importance of energy efficiency, noting that two-thirds of fossil fuel energy is wasted and that AI can help improve efficiency in buildings and grids.
   • 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.” This is reflected in discussions about developing new technologies like SMRs and green hydrogen, the need for investment in grid infrastructure, and international financing challenges.
2. Under SDG 13 (Climate Action):
   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The article provides examples of this, such as China’s long-term plan for the hydrogen industry, the US administration’s goal to quadruple nuclear capacity, and Europe’s carbon border pricing mechanism, all of which are national or regional strategies to address climate change.
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…” This is evident in the discussion of retrofitting pollution controls in the US, the need to modernize aging electricity grids in Europe, and the development and adoption of technologies like electric vehicles, nuclear power, and AI for smart grids.
4. Under SDG 12 (Responsible Consumption and Production):
   • Target 12.c: “Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption…” The article implicitly supports this target when it quotes an expert saying, “withdrawing support from fossil fuels is possibly even more important than promoting renewables.”
5. Under SDG 17 (Partnerships for the Goals):
   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The article directly addresses this by citing the need for “closer public-private collaboration” and giving the example of the Connecticut Green Bank, which “uses a combination of ratepayer funds and private capital” for green projects.

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

1. For SDG 7 (Affordable and Clean Energy):
   • Indicator for Target 7.2 (Renewable energy share): The article states the share of renewables in the electricity sector is projected to rise from 30% in 2022 to 46% by 2030. It also mentions the COP28 goal to triple renewable generation capacity.
   • Indicator for Target 7.3 (Energy efficiency): The article provides a metric for inefficiency, stating that “almost two-thirds of all primary energy in the fossil fuel system is wasted.” It also mentions that fossil fuel power plants are only “30 to 40 per cent” efficient in converting source fuel to electricity.
2. For SDG 13 (Climate Action):
   • Indicator for climate impact: The global average temperature in 2024 was “1.28C higher than the average from 1950 to 1980.” This directly measures progress (or lack thereof) against the Paris Agreement goal of staying below 1.5C or 2C.
   • Indicator for emissions: The world was on track to produce “37.4bn tonnes of CO₂ emissions from the use of fossil fuels” in 2024, an increase of 0.8% from 2023. This is a direct measure of greenhouse gas emissions.
3. For SDG 9 (Industry, Innovation, and Infrastructure):
   • Indicator for clean technology adoption: The article notes that in the US, “CO₂ emissions drop by a quarter in the three decades to 2022 even as power generation has risen,” indicating successful retrofitting and a shift to renewables. The “rise in sales of electric vehicles” is another mentioned indicator.
   • Indicator for infrastructure investment: The article points to a lack of progress by stating that “40 per cent of [Europe’s grid] is more than 40 years old,” indicating under-investment in modern infrastructure.
4. For SDG 17 (Partnerships for the Goals):
   • Indicator for financial flows: The article quantifies the scale of green finance, stating the market reached “$8tn in 2024.” It contrasts this with the need, citing an estimate that “$3.5tn in average annual capital investment would be needed up to 2050.”
   • Indicator for partnership stability: The withdrawal of major banks from the Net-Zero Banking Alliance, accounting for “nearly 40 per cent of the alliance’s total assets,” serves as a negative indicator for the strength of these voluntary partnerships.

4. Table of SDGs, Targets, and Indicators

Source: ft.com