A recent congressional report brings some good news! Energy Compacts, a collaborative initiative promoted by almost 30 UN and international organizations, have collected 209 commitments since 2021. Whether or not they cause an inevitable energy transition to a more accessible, efficient, renewable global energy system, we don’t know. These important findings underscore the need for sustained investment in our energy solutions. These homegrown solutions are indispensable for solving our net-zero emissions goal by 2050.
Energy Compacts focus on the urgent energy needs of an estimated 660 million people who today live without electricity. Further, they are aimed at more than two billion people who are still using dirty fuels for cooking and heating. The urgency for investment is highlighted by the report’s estimation that over $4 trillion in annual investments is necessary to meet these energy demands effectively.
Significant Achievements Since 2021
The report shares impressive progress resulting from Energy Compacts such as extending electricity access to 285 million people. This program has increased the usability of more than 10,400 health centers. Yet these facilities could not be more in need of reliable energy supplies.
For instance, Energy Compacts have unlocked market potential and created conducive regulatory frameworks for the deployment of over 2.8 million electric vehicles. They have funded the development of over 336,000 charging stations worldwide. These advancements showcase the potential of collaborative efforts between governments and the private sector to drive progress in renewable energy.
Their promises have now been fiscalized. Energy Compacts have driven $284 billion of fiscal mobilization. Much of this total is due to private-sector investments in renewable power generation. We are committed to advancing renewable energy and expanding access to electricity and clean cooking solutions. That fierce determination is on track to increase total pledged finance and investment through Energy Compacts to a stunning $1.6 trillion.
Noteworthy Examples: Indonesia and Nepal
Indonesia and Nepal serve as stellar examples of how the Energy Compacts approach can achieve impactful outcomes. Both nations have taken innovative approaches to meet their pressing energy needs and have reaped the rewards of working together across borders.
The new Indonesian government has been making a strong pitch to attract renewable energy investments. At the same time, Nepal remains committed to increasing access to clean cooking technologies. These initiatives serve as models for other nations aiming to leverage the support of Energy Compacts to meet their energy needs.
The Path Forward
The need for action couldn’t be more urgent. The legacy building report counters with the argument that the decisions we make today will determine the prosperity, equity, and security of future generations.
“Choices made today will determine not only whether we achieve our climate and development goals, but also how future generations experience prosperity, equity, and security.” – UN-Energy leaders, including UN Development Programme acting administrator Haoliang Xu, UN special representative Damilola Ogunbiyi, and UN under-secretary general Li Junhua.