UN Says Global Renewable Energy Has Reached a Tipping Point as Lower Costs

The global transition to renewable energy has crossed a “positive tipping point,” with solar and wind power becoming increasingly affordable and widely adopted, according to two new reports released this week.

A joint report titled Seizing the Moment of Opportunity, compiled by multiple United Nations agencies and published on Tuesday, revealed that 74% of the global increase in electricity generation in 2024 came from renewable sources, including solar, wind, and other green technologies. Additionally, 92.5% of all new power capacity added to the grid last year was renewable.

Electric vehicle (EV) adoption has surged as well. In 2015, EV sales stood at 500,000 units. By 2024, that number had soared to more than 17 million.

A separate energy cost analysis by the International Renewable Energy Agency (IRENA) found that in 2024, the three cheapest forms of electricity worldwide were onshore wind, solar photovoltaic panels, and new hydropower. The report noted that globally, solar energy is now 41% cheaper and wind energy is 53% cheaper than the lowest-cost fossil fuel alternatives.

UN Secretary-General António Guterres, speaking at UN headquarters in New York, said:

“The fossil fuel age is flailing and failing. We are in the dawn of a new energy era – an era where cheap, clean, abundant energy powers a world rich in economic opportunity.”

Guterres highlighted that $2 trillion was invested in renewable energy in 2024—$800 billion more than what was directed toward fossil fuels.

Despite this momentum, the reports also emphasized a major imbalance in government subsidies. In 2023, fossil fuels received $620 billion in subsidies, nearly nine times the $70 billion allocated to renewables.

The UN cautioned, however, that the energy transition is not progressing fast enough. Global fossil fuel production continues to rise due to increasing energy demand—driven by growth in developing economies, expanding artificial intelligence infrastructure, and the need for more cooling in a warming climate.

Guterres warned that countries persisting with fossil fuels are heading down a harmful path:

“Countries that cling to fossil fuels are not protecting their economies—they are sabotaging them. They are driving up costs, reducing competitiveness, and locking in stranded assets.”

The growth in renewables is concentrated in countries like China, where one-tenth of the economy is now linked to green energy, as well as in India and Brazil.

In contrast, Africa accounted for less than 2% of all new renewable energy capacity installed last year, despite its significant need for electrification.

Adelle Thomas, a Bahamian climate scientist with the Natural Resources Defense Council, commented to the Associated Press:

“The Global South must be empowered to generate its own electricity without adding to already unsustainable levels of debt.”

Guterres also urged major tech companies to transition their data centers to 100% renewable energy by 2030:

“A typical AI data center consumes as much electricity as 100,000 homes. By 2030, data centers could require as much electricity as all of Japan does today.”

He concluded:

“The future is being built in the cloud. It must be powered by the sun, the wind, and the promise of a better world.”