Public Financial Support for Renewable Power Generation and Integration in the G20 Countries
G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year. Advanced G20 economies and China accounted for 95% of this support. Where disaggregated data was available, support was directed mostly to solar and wind. Public financial support may need to double to around USD 336 billion per year to achieve the pledge made at the 28th UN Climate Change Conference (COP 28) to triple renewable energy capacity by 2030.
-
G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year.
-
In the G20, advanced economies and China accounted for 95% of government financial support to renewable power.
-
Public financial support may need to double to around USD 336 billion per year to achieve the COP 28 pledge to triple renewable energy capacity by 2030. This would still be lower than current G20 fossil fuel subsidies (USD 535 billion in 2023).
Government spending and other forms of actual support to renewable energy is a blind spot at the international level. To help address the knowledge gap, we developed an inventory of public financial support for renewable energy generation and integration by G20 governments, which dominate renewable deployment. G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year. Advanced G20 economies and China accounted for 95% of renewable power support. Where disaggregated data was available, support was directed mostly to solar and wind, but almost half of the support targeted multiple technologies or did not specify.
Assuming current investment and support patterns remain consistent to 2030, we estimate that public support may need to double to around USD 336 billion per year to achieve the pledge made at the 28th UN Climate Change Conference (COP 28) to triple renewable energy capacity by 2030. This would still be lower than current G20 fossil fuel subsidies (USD 535 billion in 2023). Lower income countries are at risk of getting left behind in the clean energy transition and will need grants and concessional finance to catch up. The benefits of increasing support to renewable power extend beyond achieving climate goals: increased energy access and less air pollution, price volatility, and geopolitical risk relative to fossil fuels.
You might also be interested in
Unlocking Clean Power for All
This report uses tipping point theory to advise where public funding can be strategically directed to catalyze renewable energy deployment in developing and emerging economies.
G20 Governments are Spending Three Times as Much on Fossil Fuels as Renewables
G20 governments are spending three times as much on fossil fuels as renewables, research by the International Institute for Sustainable Development shows.
The Next Generation of National Climate Plans Must Phase Out Fossil Fuels
On the sidelines of the UN General Assembly, IISD is calling on governments to deliver ambitious, specific, and actionable national climate plans for the coming decade.
Border Carbon Adjustment Mechanisms and Impacts on Vietnam
This report consolidates, analyzes, and presents views and perspectives of stakeholders from Vietnam on border carbon adjustment (BCA) schemes to contribute to the global debate on BCA good practices.