COP28's Ambitious Renewables Plan Faces Challenges and Industry Support

Over 100 countries at the COP28 climate summit have agreed to triple global renewable energy capacity by 2030, but there is little detail on how this ambitious goal will be achieved. The renewable energy industry is already facing challenges such as supply shortages, labor shortages, rising project costs, and local opposition to energy projects. Additionally, developers face delays in connecting to the grid, and the construction of new transmission lines can take a decade or more. Financing the growth of renewables is also a significant challenge, as investment needs to more than double to over $1.2 trillion annually by 2030. Infrastructure investors have tightened their purse strings due to higher interest rates, making it harder to finance projects. More government support and discussions on grid delivery, permitting reform, and auctions are needed to overcome these barriers and achieve the renewable energy targets.