Energy transition, still disparities in the economic development of countries

IRENA, in its socio-economic analysis of the World Energy Transitions Outlook, emphasizes economic prosperity and the importance of progressive policies for COP28 in Abu Dhabi. The report indicates that advanced policies are crucial to maximize the socio-economic benefits of the energy transition.

The Outlook predicts an annual GDP increase of 1.5% by 2050, with the creation of 40 million jobs in the energy sector, 18 million of which will be in renewable energy.

Energy transition: a holistic approach and greater equity

In the first volume of the 2023 Outlook, a pathway to the 1.5°C target was outlined, highlighting the importance of electrification and energy efficiency. Today's report focuses on the socio-economic impacts of the 1.5°C scenario, providing data for policies aimed at maximizing the benefits of the transition.

Francesco La Camera, Director General of IRENA, underscores the need to address inequalities and promote structural changes. The analysis reveals disparities in economic development between regions. Asia is expected to hold 55% of renewable energy jobs by 2050, Europe 14%, and the Americas 13%.

Per capita GDP in Africa is expected to double, but resource-rich economies will see faster growth, exacerbating inequalities. Emerging economies like India and China foresee significant growth. Economic factors differ between G20 countries and developing countries, with socially induced payments dominating GDP differences.

IRENA calls for a holistic approach to the energy transition, integrating international collaboration, equity, and systemic changes.