Why is renewable energy important?

Key benefits of renewable energy for people and the planet

With a lower use of water and land, less air and water pollution, reduced wildlife and habitat loss, and far fewer greenhouse gas emissions renewables seem like the clear choice for energy. Additionally, renewables hold benefits for societies, such as improved energy access, job creation in local communities, strengthened energy security, and opportunities for community ownership and empowerment. 

Building a shared understanding of both renewable energy’s sustainability and its transformative potential is key to accelerate the urgent shift to a renewable-based energy system and to maximise benefits for economies and societies.  Explore some of these benefits below.  

• Renewable energy emits little to no greenhouse gases and air pollutants, offering significant health benefits.

Fossil fuel-based road transport, industrial activity, and power generation (as well as the open burning of waste in many cities) are the greatest sources of air pollution and greenhouse gases globally. In many developing countries, the use of charcoal and wood for heating and cooking also contributes to poor indoor air quality. According to studies by the World Health Organisation, the presence of particles and other air pollutants in urban skies are responsible for huge health impacts, millions of premature deaths, and staggering economic costs.  

Renewable energy sources produce significantly lower emissions throughout their entire lifecycle compared to fossil fuels. During their operation, they have minimal to no impact on both air quality and greenhouse gases. Replacing the current fossil fuel-based energy system with a renewables-based system is the most urgent and efficient way to tackle harmful emissions and air pollution.  

• With its lower and steadier prices, renewable energy contributes to keeping energy affordable and reliable.  

In many parts of the world, renewable energy technologies (particularly wind and solar) are already more cost-effective than fossil fuels. The levelised cost of electricity (LCOE) for renewable technologies continues to decline rapidly.  In 2023, the global weighted average LCOE from newly commissioned renewable projects fell across most technologies, including solar PV (down 12%), hydropower (7%), offshore wind (7%), onshore wind (3%) and concentrating solar power (CSP; 4%). At the same time, heavy subsidies from governments and financial institutions create the false impression that fossil fuels are cheap and abundant. 

Unpredictable energy markets and geopolitical uncertainty have moved energy security and infrastructure resilience to the forefront of many national energy strategies. Geopolitical strife and upheavals often come with increasing energy prices and reduced access to resources, threatening the security of energy supply. Since renewable energy can be produced locally and thereby reduces the need for energy imports, it is less affected by geopolitical crises, price spikes, or sudden disruptions in the supply chain. The deployment of renewables can therefore benefit households and businesses by reducing energy bills, especially in the face of high energy prices, and enhance national and regional energy security.  

• Renewable energy fosters economic development, creates jobs and helps tackle gender inequality, benefiting local communities.

Renewable energy deployment reached an all-time high in 2023 and renewables and enabling technologies accounted for 7% of the growth in global GDP that year. Opportunities for local economic development and job creation exist along all stages of the renewables value chain, from materials extraction and processing, to equipment manufacturing, project development, project operation, and energy distribution and use. 

Employment in the renewable energy sector reached a new record of 16.2 million direct and indirect jobs in 2023, an increase from 13.7 million in 2022. The employment potential from renewables far exceeds expected job losses in the fossil fuel industry, while an estimated 70% of jobs in the oil and gas industry overlap with the skills needed for the energy transition.  

Renewables can also play a key role in reducing gender inequality, for instance by creating jobs and entrepreneurial opportunities for women. On a global scale, the renewable industry has a higher share of female employed, with 32% of the workforce being women in 2021, compared to 22% in the oil and gas industry.  

• Renewables are decentralised and democratise how energy is produced and consumed.    

Renewable energy allows for decentralised deployment and local ownership. In contrast to centralised, dispatchable fossil-fuelled power plants, renewables can be deployed locally and have led to a diverse ownership structure, as seen in Germany, where private individuals owned around 30% of the total renewable energy capacity in 2019. 

The transition to renewable energy also promotes a more participatory approach to energy governance, supported by the increasing number of citizen-led initiatives and energy communities. Energy communities are citizen-driven groups that collectively organise and own renewable energy projects. They have gained increasing attention due to their social and economic benefits, that beyond their environmental ones, ranging from creating local jobs and social cohesion to increasing energy literacy, improving efficiency, reducing energy costs and tackling energy poverty. The number of energy communities is growing: for example, the European association of citizen energy co-operatives, REScoop.eu, consisted of 2,500 European energy co-operatives in 2023, encompassing 2 million citizens. 

Renewables further provide opportunities for inclusion through their potential for decentralised energy supply, enabling increased electricity access, economic opportunities and empowerment in remote areas far from the main power grid, which is the case for numerous Indigenous communities. In 2022, an estimated 48 million people were connected to 21,500 mini-grids (85% renewables-powered). 

• Renewables support not only climate change mitigation, but also adaptation and resilience.  

Renewables are not only reducing emissions but also have the potential to contribute to adaptation to climate change and resilience.  

While the benefits of renewables to mitigate climate change are widely known, the adaptation potential of renewables is scarcely discussed. As of mid-2024, only 50 countries recognised renewables as an adaptation measure in their NDCs. 

Renewables can support climate adaptation and resilience in various ways: they can power essential services, like early-warning systems and healthcare facilities, during extreme weather events, and provide renewables-powered cooling solutions and irrigation systems as temperatures rise.    

Yet, 86% of renewable energy finance went to climate change mitigation in 2022, while only 1% went to adaptation globally. Finance and policy alignment are hence crucial.  

*It is important to note that all energy sources affect our environment, and renewable energy is no exception. While each renewable energy source has its own specificities and trade-offs, advantages over the devastating impacts of fossil fuels are undeniable. 

Where can renewable energy be used?

Renewable power and heat can be used in all sectors: buildings, industry, agriculture and transport.  By demand sector, the share of renewables in total final energy consumption ranged from as high as 16.8% in industry to as low as 3.9% in transport in 2021 (latest data available). These disparities reflect not only the differing characteristics of sectors, but also a lack of integrated policies aimed at increasing the renewable energy share both within and across sectors. 

Renewables can foster thermal comfort in buildings (heating and cooling).Examples for the use of renewable energy in buildings are solar thermal water heaters, biomass boilers, heat pumps, and natural cooling. Reducing the energy demand of buildings and industry is key to transitioning to a renewables-based energy system.  

Industrial and agricultural heating and cooling processes, such as food processing and pulp and paper, can also be run on renewable energy. Hydrogen produced with renewable electricity can meet the needs of high-intensive industrial processes in the iron and steel and chemical industries. 

In transport, renewable energy can be used in the form of sustainable biofuels, high-percentage biofuel blends and drop-in biofuels. Renewable electricity can power the world’s growing fleet of electric vehicles. Car batteries can be used to store electricity for later use. Renewable electricity also can be used to produce electro-fuels, such as hydrogen to fuel long-haul transport, aviation, and shipping. A focus on reducing overall fuel demand in the transport sector is critical and can be accomplished through policies that promote energy efficiency and conservation.  

Worldwide, renewables already supplied around 30% of electricity in 2023. Yet, outside of electricity, good news is harder to come by. Uses of electricity (e.g., lighting and appliances) only represent 23% of the world’s energy needs. Urgent action is needed to ramp up the far lower shares of renewables in heat and fuels, which collectively provide three-quarters of energy supply.  

Tools and resources

• Renewables Global Status Report (GSR) 

The Renewables Global Status Report (GSR) stands alone as the world’s only crowd-sourced account of renewable energy. It dives into policies, markets, and beyond, offering the most current global narrative on renewable energy. 

Since 2005, the GSR has partnered with numerous contributors to highlight ongoing advancements and emerging trends that define the future of renewables. This annual report is a collaborative endeavor involving hundreds of experts who contribute data, review chapters, and co-author the findings.  

• Global Futures Report (GFR) 

The Global Futures Report: Renewables for Sustainable Transport (GFR) delves into strategies for rapidly expanding renewable energy adoption in transportation, a sector that consumes 30% of the world’s energy. REN21’s reports serve as frameworks for discussing the future of renewable energy, pinpointing opportunities, barriers, and paths forward. Specifically focusing on transport, this report aims to highlight crucial areas of divergence among stakeholders, guiding strategic conversations rather than providing definitive conclusions.  

• Renewable Energy and Sustainability Report (RESR)  

REN21’s Renewable Energy and Sustainability Report (RESR) serves as a comprehensive reference that assesses both the advantages and potential drawbacks of deploying renewable energy. It draws on a wide array of existing solutions and best practices globally to maximise the benefits of renewables while minimising their negative impacts. Establishing these benchmarks is crucial for guiding a sustainable shift towards renewable energy and fostering the trust and support needed from society. 

• Renewables in Cities Global Status Report (REC) 

There are plenty of cities in the world that already source 100 percent of their electricity from renewables. Now, they are taking steps to expand their ambitions to get rid of fossil fuels in heating, cooling, transport and industry. This report is an annual stocktaking of how city action can directly support the transition to renewable energy. It aims at making data available, more standardised, easier to evaluate and to compare.