Three reasons why the world is falling behind on its renewable energy targets
A new analysis has found deployment of renewable energy is falling behind what's needed to reach global targets as investors hesitate to commit capital.
While there's still support for renewables across major regions like Europe and the US, the near-term pipeline is at risk, with many projects yet to reach final investment decision.
The McKinsey report determined that there were three key issues threatening the necessary deployment of capital.
The report found that many renewable technologies were not yet cost-competitive for consumers.
And several technologies seen as crucial to the energy transition are not scaled up to a point that inspires investor confidence.
That means a number of projects are failing to reach final investment decision (FID), while other long-term projects - like offshore wind - will only come online after 2030.
And these threatened renewable pipelines are already behind where they need to be to meet 2030 targets.
These shortfalls vary by both technology and region, but even the most stable of technologies – solar PV and onshore and offshore wind – are yet to get on track with 2030 targets.
To meet its target of 30 million electric vehicles by 2030, the EU needs to add almost twice as many as it currently has on the road over the next five years.
Newer tech like CCUS (carbon capture utilisation & storage), green and blue hydrogen, and sustainable fuels, are largely untested at scale and have the lowest levels of financial commitment.