“Unlocking the Potential: How Developing Countries are Leading the Charge in Green Industrialization”

In a recent report published by energy think-tank RMI, it has been revealed that developing countries in the Global South are outpacing the Global North in the deployment of renewable energy sources such as solar and wind. The report highlights the rapid growth of clean energy projects in regions like Latin America, Africa, South Asia, and Southeast Asia, where per-capita energy demand is significantly lower than in developed countries.

The Global South, despite having limited fossil fuel reserves per capita, is rich in renewable resources, with 70% of the world’s renewable potential. This abundance of clean energy sources, combined with the decreasing costs of clean technologies and the rapid expansion of Chinese cleantech, has created a strong incentive for these countries to transition to renewable energy.

According to the International Energy Agency (IEA), capital expenditure on electricity generation in the Global South is increasingly being directed towards clean energy projects, with a projected surge in solar and wind capacity by 60% this year alone. Solar and wind power generation in these regions has been growing at an average annual rate of 23%, now accounting for 9% of electricity generation.

Countries in the Global South, from Brazil to Morocco, Bangladesh to Egypt, and Namibia to Vietnam, are leading the way in solar and wind adoption and electrification rates, surpassing their wealthier counterparts in the Global North. This shift towards clean technology not only accelerates economic development but also reduces the economic burden of fossil fuel imports, freeing up resources for other investments.

As the world gears up for COP29, there is a growing recognition of the need to accelerate the transition to renewable energy. The report emphasizes the importance of changing the narrative around cleantech, aligning national policies with the economic benefits of clean energy, and increasing investments in the Global South to achieve ambitious development and climate goals.

Mission 2025, a global coalition of real economy leaders, is calling for increased financing from development banks and developed countries to triple renewables by 2030, particularly in lower-income countries. The time is now to seize the opportunity presented by clean energy technologies and create a more sustainable and equitable world for all.