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In 2025, the world added a record 693 gigawatts of renewable power capacity, marking a 15.5% year-over-year increase. This equates to more than half of the US's total electricity generation capacity in the same year. However, to meet an international agreement to reach 11.2 terawatts by 2030, countries must double this capacity annually and add 1,204 GW each year.

In 2024, nearly 200 countries committed to tripling renewable capacity by 2030 to combat climate change. According to IRENA, avoiding nearly half a trillion US dollars in fossil fuel costs, the global energy transition is becoming increasingly economically advantageous due to the ongoing volatility in fossil fuel prices affecting households, businesses, and national budgets.

Despite these encouraging developments, the progress towards tripling renewable energy and doubling energy efficiency is not rapid enough. Workers install solar panels on rooftops in Havana, Cuba, as the city faces an energy crisis exacerbated by fuel shortages. According to the IRENA report, the cost of capital is the primary factor differentiating regions, with installed capacity seeing a rise due to cheaper solar and onshore wind technologies.

However, higher financing costs due to local debt markets, currency fluctuations, and policy risks can offset these savings.

Global investment in renewable installations fell for the second consecutive year to $625 billion. To achieve the world's targets, countries will need to collectively invest up to $1 trillion annually between 2026 and 2030, as emphasized by the International Renewable Energy Agency.