Transitioning Away from Fossil Fuels to Renewables: A Multifaceted Approach and Related Challenges

This paper aims to provide an assessment of the current global outlook in the transition from fossil fuels to renewables. This subject is especially important, given the significant economic and environmental impacts associated with continued reliance on fossil fuels, the global commitments under the Paris Agreement to limit the temperature increase, and the growing demand for clean, sustainable energy sources to support sustainable growth. While global renewable capacity more than doubled in the last ten years, the share of renewable sources in total energy consumption remains stable at 17 percent, indicating the multidimensionality of the transition from fossil fuels to renewables. This increase in renewable energy capacity fell short of the stronger rise in global energy consumption, also highlighting the need for an assessment of the outlook. This study proposes a multifaceted approach for a smooth energy transition. The facets addressed in this paper are: technology, innovation and R&D, investment and financing, energy efficiency measures, domestic policy support, and international cooperation and collective effort. Additionally, the challenges related to each facet of transition are presented. Among the facets discussed, this paper proposes that renewable energy technologies and energy efficiency practices are at the heart of the transition, due to the potential synergies. Furthermore, there is a need for an integrated approach that considers technological, economic, and other aspects of the transition in a unified manner. Last but not least, international collective effort for low-carbon transition should not be overlooked.