UNCTAD says renewable energy transition requires over $1 trillion yearly by 2030

UNCTAD says renewable energy transition requires over $1 trillion yearly by 2030

The United Nations Conference on Trade and Development (UNCTAD) has said the global transition to renewable energy will require more than $1 trillion in annual investments by 2030, warning that developing economies may struggle to meet climate and energy targets without stronger foreign direct investment inflows and wider access to clean technologies.

The disclosure was contained in a new UNCTAD report titled “Energy Transition Investment and the Transfer of Knowledge and Skills: Implications for Investment Treaty Design,” which examined the financing requirements for the global clean energy transition and the growing role of private capital in renewable energy development.

According to the report, the scale of investment needed to transform the global energy system remains enormous as countries accelerate efforts to reduce fossil fuel dependence and achieve net-zero emission targets.

UNCTAD noted that renewable energy financing is increasingly being driven by private capital, with developing economies expected to rely heavily on foreign investment to meet their transition goals.

The organisation stressed that countries would require not only financing but also access to advanced technologies, technical expertise and skilled labour to deploy and manage clean energy infrastructure effectively.

UNCTAD warned that developing economies across Africa, Asia and Latin America continue to face significant barriers to renewable energy investment despite growing global demand for clean energy solutions.

Nigeria has recently intensified efforts to strengthen its climate finance and renewable energy strategy as part of broader economic diversification and sustainability goals.