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UN Energy Compacts have mobilized $69 billion in clean energy finance – Report



The United Nations Energy Compact, launched in 2021, has mobilized $69 billion in clean energy finance, as per the 2023 Annual Progress Report released on Friday, September 15, 2023, by the United Nations.

This amount represents a 50% increase from the 2022 survey, directly linked to specific actions and further leveraged by an additional $105 billion.

A total of 49 proponents provided data on these vital clean finance metrics. The private sector, contributing significantly, represents over 80% of the reported amount in the 2023 survey.

While challenges exist in categorizing investments by benefactor type, a significant portion supports establishing new renewable power generation, emphasizing the need to enhance energy accessibility.

The UN report stresses a pressing global necessity to rapidly boost energy finance, targeting an average annual deployment of $2.3 to $4.7 trillion.

The Energy Compact has provided 129 million people with electricity. According to the report, electricity access through Energy Compacts must reach 66 million people each year.

A part of the report stated that the efforts of proponents in delivering upgraded and novel electricity connections have collectively expanded electricity access for a staggering 129 million individuals since the inception of the Energy Compacts in 2021.

This marks an extraordinary 21-fold surge compared to the 6.2 million individuals reported just last year.

This enhanced electricity access positively impacted an estimated 142 million people, with an additional 82 million individuals gaining access to decarbonized electricity.

The report noted that 26 proponents contributed data and reported against this metric, underscoring the widespread and transformative impact of their initiatives.

The report stated that collectively, advocates have significantly improved access to clean cooking for 22 million people since the inception of the Energy Compacts.

This signifies a remarkable 50% increase compared to the numbers reported in last year’s report, with contributions from 13 proponents who reported against this metric.

An additional 46,000 people gained access to clean cooking solutions through strategic leveraging of actions, further emphasizing the positive impact of concerted efforts in this critical area.

According to the report, the combined installed capacity of renewable energy saw an impressive doubling, surging from 89 GW to 181 GW during the period spanning 2021 to 2023.

This substantial growth was tracked through reporting from 55 proponents, making it the most reported action taken toward achieving SDG7 among the Energy Compact proponents.

This progress was a global endeavour, encompassing all regions and driven by the concerted efforts of both Member States and the private sector.

Moreover, the proponents played a crucial role in leveraging an additional 25 GW of renewable energy capacity.

In line with this trajectory of bolstering renewable energy capacity, a notable 9 proponents reported the installation of infrastructure to produce 451,000 metric tons per annum of green hydrogen.

Additionally, they contributed by establishing 173,060 units of electric vehicle charging infrastructure, further solidifying the commitment to sustainable energy sources and technologies.

Together, those supporting the Energy Compact initiative have effectively conserved nearly 15,000 gigawatt-hours (GWh) through various energy efficiency enhancements.

This marks an impressive six-fold increase compared to the data from the 2022 survey.

The substantial progress in this domain is evidenced by reports from 23 proponents who contributed to this metric.

The advancement in energy efficiency is attributable to diverse energy-saving strategies and practices.

These encompass retrofitting electronics, upgrading cooling systems, implementing smart city concepts, refining manufacturing processes, effectively managing demand on the consumer side, as well as utilizing digital analytics and artificial intelligence solutions.