The UN secretary general, António Guterres, has declared that the world is on the brink of a climate breakthrough, with fossil fuels 'running out of road' as renewable energy becomes cheaper than ever. Speaking in New York, he said the 'sun is rising on a clean energy age' and urged countries to redirect support towards low-carbon energy sources.
According to a report from the International Renewable Energy Agency (Irena), more than nine in ten renewable power projects globally are now cheaper than fossil fuel alternatives. Solar power is about 41% cheaper than the lowest-cost fossil fuel, while onshore wind is less than half the price. Investment in renewables reached $2 trillion last year, $800 billion more than fossil fuel investment, a 70% increase over the past decade.
Guterres emphasised that energy security and consumer costs are best served by renewables. 'There are no price spikes for sunlight. No embargos on wind,' he said, warning that fossil fuels leave economies vulnerable to price shocks and geopolitical turmoil. However, rising energy demand—driven by cooling needs and data centres for AI—poses a risk if met by fossil fuels, potentially making it impossible to limit global warming to 1.5°C.
The UN chief called on tech companies to commit to 100% low-carbon electricity by 2030 and urged nations to use upcoming national climate plans to boost clean energy and cut fossil fuel subsidies. Irena's director general, Francesco La Camera, noted that renewable cost-competitiveness is 'today's reality' but warned that geopolitical tensions, trade tariffs, and material supply constraints could slow progress.
Despite the positive outlook, challenges remain. Investments in electricity grids are lagging, with only 60 cents spent on grids for every dollar on generation. Critical mineral supplies and infrastructure need attention. Guterres's speech marked a shift from his previous dire warnings, focusing instead on the economic and security benefits of the clean energy transition.
