Basic energy access lags behind renewable energy opportunities, a new report shows

A new report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank and the World Health Organization (WHO), published today, reveals that the world is not on track to meet the goal of sustainable (SDG) 7 for energy until 2030.

This year marks the halfway point for achieving the Sustainable Development Goals by 2030. SDG 7 is to ensure access to affordable, reliable, sustainable and modern energy. The goal includes achieving universal access to electricity and clean cooking, doubling historical levels of efficiency improvements, and significantly increasing the share of renewable energy sources in the global energy mix. Achieving this goal will have a profound impact on people’s health and well-being, help protect them from environmental and social risks such as air pollution, and expand access to primary health care and services.

2023 edition Monitoring SDG 7: Energy Progress Report warns that the current efforts are not enough to achieve the sustainable development goal 7 on time. Some progress has been made in certain elements of the SDG 7 agenda – for example, an increased rate of use of renewable energy sources in the energy sector – but progress is insufficient to achieve the targets set in the SDGs.

The global energy crisis is expected to boost the deployment of renewable energy sources and improve energy efficiency with several government policies indicating increased investment. However, IRENA estimates show that international public financial flows of support for clean energy in low- and middle-income countries have been declining since before the COVID-19 pandemic, and funding is limited to a small number of countries. In order to meet the goals of SDG 7 and to ensure that people fully benefit from the socio-economic gains of the transition to sustainable energy, it is necessary to structurally reform international public finance and define new opportunities to unlock investment.

The report also finds that mounting debt and rising energy prices worsen the prospects for achieving universal access to clean cooking and electricity. Current projections estimate that 1.9 billion people will be without clean cooking and 660 million without access to electricity in 2030 if we do not take further steps and continue current efforts.

These deficiencies will negatively affect the health of our most vulnerable population and accelerate climate change. According to the WHO, 3.2 million people die each year from diseases caused by the use of polluting fuels and technologies, which increase exposure to toxic levels of indoor air pollution.

Key findings of the report

• In 2010, 84% of the world’s population had access to electricity. This increased to 91% in 2021, meaning more than a billion people gained access in that period. However, the pace of access growth slowed in 2019-2021 compared to previous years. Efforts to electrify rural areas have contributed to this progress, but a large gap remains within urban areas.
• In 2021, 567 million people in sub-Saharan Africa did not have access to electricity, accounting for more than 80% of the world’s population without access. The access deficit in the region remained almost the same as in 2010.
• The world is still not on track to achieve universal access to clean cooking by 2030. Up to 2.3 billion people still use polluting fuels and cooking technologies, mostly in sub-Saharan Africa and Asia. The use of traditional biomass also means that households spend up to 40 hours a week collecting firewood and cooking, preventing women from finding work or participating in local decision-making bodies, and children from going to school.
• According to WHO estimates for 2019, 3.2 million premature deaths each year can be attributed to household air pollution caused by the use of polluting fuels and cooking technologies.
• The use of renewable electricity in global consumption rose from 26.3% in 2019 to 28.2% in 2020, the largest one-year increase since the start of tracking progress on the Sustainable Development Goals.
• Efforts to increase the share of renewables in heating and transport, which account for more than three-quarters of global energy consumption, remain outside the target of reaching 1.5^onC climate goals.
• Energy intensity – a measure of how much energy the global economy uses per dollar of GDP – improved from 2010 to 2020 by 1.8% per year. That’s more than the 1.2% improvement seen in previous decades.
• However, the rate of improvement in energy intensity has slowed in recent years, falling to 0.6% in 2020. This makes it the worst year for improvement in energy intensity since the global financial crisis, although mainly due to pandemic-related restrictions, which may only indicate a temporary stoppage. Annual improvements by 2030 must now average 3.4% to meet SDG target 7.3.
• International public financial flows of clean energy support to developing countries are $10.8 billion in 2021, 35% less than the 2010-2019 average and only about 40% of the 2017 peak of $26.4 billion. In 2021, 19 countries received 80% of the commitments.

The report will be presented to top decision-makers at a special launch event on 11 July 2023 at the High-Level Political Forum (HLPF) on Sustainable Development, ahead of the second Sustainable Development Summit in September 2023 in New York. The authors call on the international community and policy makers to preserve the gains made towards achieving Sustainable Development Goal 7, to advance structural reforms and maintain a strategic focus on vulnerable countries that need the most support.

Read

“The energy crisis caused by the Russian invasion of Ukraine continues to have a profound impact on people around the world. High energy prices have hit the most vulnerable hard, especially those in developing economies. Although the transition to clean energy is moving faster than many think, much work remains to ensure sustainable, safe and affordable access to modern energy services for the billions of people who live without it. Successful energy transitions rely on effective policies and technological innovation combined with the mobilization of large-scale investment capital. The international community must use all these tools to achieve the goals of sustainable development by the end of this decade.”

Fatih Birol, executive director of the International Energy Agency

“Price-competitive renewable energy has once again shown remarkable resilience, but the world’s poorest are still largely unable to fully reap its benefits. In order to achieve SDG7 without compromising climate goals, we need to make a systemic change in the way international cooperation works. It is critical that multilateral financial institutions channel financial flows more equitably around the world to support the development of renewable energy sources and the associated development of physical infrastructure.”

Francesco La Camera, Director General of the International Renewable Energy Agency

“Despite progress towards the sustainable energy targets at the midpoint of the 2030 Agenda, Goal 7 appears to be more difficult to achieve than it was in 2015 and increased action is needed if we are to ensure access to affordable, reliable, sustainable and modern energy for all by 2030. Access electricity and clean cooking still show large regional differences and should be at the heart of action to ensure that no one is left behind. Investments must reach least developed countries and sub-Saharan Africa to ensure more equitable progress towards Goal 7.”

Stefan Schweinfest, United Nations Statistics Division

“Despite the recent slowdown in the global pace of electrification, the number of people without electricity has almost halved over the past decade, from 1.1 billion in 2010 to 675 million in 2021. Nevertheless, additional efforts and measures are urgently needed to ensure that the poorest and the hardest to reach people are not left behind. To achieve universal access by 2030, the development community must increase clean energy investment and political support.”

Guangzhe Chen, World Bank Vice President for Infrastructure

“We must protect the next generation by acting now. Investing in clean and renewable solutions to support universal energy access is how we can make a real difference. Clean cooking technologies in homes and reliable electricity in healthcare facilities can play a key role in protecting the health of our most vulnerable populations.”

Dr Tedros Adhanom Ghebreyesus, Director-General WHO, World Health Organization

About the report

This report is published by the SDG 7 custodian agencies, the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank and the World Health Organization (WHO) and aims to provide the international community a global dashboard to record progress in energy access, energy efficiency, renewable energy and international cooperation to advance SDG 7.

This is the ninth edition of this report, formerly known as the Global Monitoring Framework (GTF). This year’s edition was chaired by the World Health Organization (WHO).

The report can be download here

Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).