Key takeaways

  • Earth day which takes place on 22 April is focusing on renewable energy
  • Renewable energy can play a key role in tackling climate change
  • Renewable energy is at a pivotal point
  • Renewable energy capacity is expected to triple
  • An investment of $4.5tn is needed annually2
  • The energy transition to renewable energy may tackle climate change, improve health and create jobs

Climate change is one of the biggest challenges our world faces. Turning to renewable energy could help ease part of the challenge.

Earth Day which will take place on 22 April, will focus on the theme of our power, our planet while encouraging people to focus on renewable energy in an attempt to triple global clean energy by 20301. 

Fossil fuels are responsible for more than 75% of global greenhouse gas emissions2.  Renewable energy allows us to move away from fossil fuels and thus limit emissions. 

In order to limit global temperature rising to 1.5°C the generation of renewable energy will need to triple to 11,000GW3. And that the International Renewable Energy Agency (IRENA) estimate that solar PV and wind power will make up approximately 90% of this3.

Limiting temperature rise to 1.5°C

It is imperative that 43% of global emissions are cut by 2030 when compared to 2019 levels in order to enable global warming to be limited to 1.5°C4. 

During COP28 it was agreed to move away from fossil fuels and towards sustainable energy sources3. COP28 mandated that renewable energy capacity be tripled while also ensuring that energy efficiency improvements are doubled by 20304. 

Renewable energy in 2025

Renewable energy is at a pivotal point as it is expected to be the largest electricity source4. Moreover, for the first time in a century coal is expected to drop below 33%5. This offers economies the opportunity to align their climate strategies with their national energy and development strategies4. 

According to the International Energy Agency (IEA) the increase in new renewable energy capacity is expected to triple between 2024 and 2030 compared to the period between 2017 and 20237. Of the new renewable energy capacity installed by 2030 60% of it is expected to be in China7. 

Global renewable energy electricity generation rose 10% year on year in 2024, hydropower generation grew 4% and solar PV generation grew by 30% in 20246. Solar PV is anticipated to account for 80% of global renewable capacity growth and this is being driven through installation by companies and households as well as new solar power plants. Similarly, wind power is expected to double the rate of expansion between 2024 and 20307. 

Despite these efforts it still isn’t enough. The IEA are forecasting global renewable capacity will fall short of being tripled at just 2.7 times its 2022 levels in 20307. This is where government plans coupled with financing projects are important. 

Supporting the goal of tripling renewable energy capacity

Investing in clean energy projects will enable companies to phase out fossil fuels alongside clean energy projects2. Furthermore clean energy projects in emerging and developing economies is essential. According to the UN an annual investment of in renewable energy of $4.5tn is needed. Supporting the transition to and growth of renewable energy may help to protect our environment, improve health and create jobs2. 

Sources

1https://www.earthday.org/
2https://www.un.org/en/climatechange/raising-ambition/renewable-energy#:~:text=The%20upfront%20cost%20can%20be,trillion%20per%20year%20by%202030 
3https://www.irena.org/Digital-Report/Tripling-renewable-power-and-doubling-energy-efficiency-by-2030  
4https://unfccc.int/cop28/5-key-takeaways#end-of-fossil-fuels 
5https://press.un.org/en/2025/sgsm22524.doc.htm#:~:text=All%20countries%20have%20committed%20to,triple%20renewables%20capacity%20by%202030
6https://iea.blob.core.windows.net/assets/0f028d5f-26b1-47ca-ad2a-5ca3103d070a/Electricity2025.pdf
7https://www.iea.org/news/massive-global-growth-of-renewables-to-2030-is-set-to-match-entire-power-capacity-of-major-economies-today-moving-world-closer-to-tripling-goal 

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 22 April 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 

Date of first use: 22 April 2025
Doc ID: 4415174