While the removal of subsidies often risks social unrest, the project demonstrated how effective stakeholder engagement and visible benefits, like cleaner, more reliable transportation, can foster public acceptance. Uruguay deployed 150 electric buses for public transportation in major cities. Adopting innovative financing mechanismsWhile public finance is essential for advancing infrastructure projects, particularly those that may not be commercially viable on their own, innovative financial mechanisms are necessary to stimulate private sector investment. Creating an enabling environmentThe energy transition in emerging markets and developing economies (excluding China), which currently attract just one-fifth of global clean energy investments, is constrained by systemic barriers that require strong, coordinated action. These measures not only reduce energy consumption and costs but also strengthen energy security by lowering reliance on energy imports and minimizing strain on energy systems. Innovation and funding for research and development are required to ensure that these sectors are also on a path to decarbonization.
Another benefit of the energy transition is its potential to reduce the health and environmental impacts of the energy industry. Since the late 2010s, the renewable energy transition has also been driven by the rapidly falling cost of both solar and wind power. To meet the goals of the 2015 Paris Agreement on climate change, emissions must be reduced as soon as possible and reach net-zero by mid-century. Over three-quarters of the https://www.antenna-re.info/a-quick-history-of-7/ world’s energy needs are met by burning fossil fuels, but this usage emits greenhouse gases.
Many of these countries have articulated renewable energy targets in their NDCs, but translating these into actionable investments demands greater policy coherence. Creating a stable enabling environment with policy de-risking is central to attracting clean energy investments in these markets and economies. A just and inclusive transition is a powerful catalyst for creating green jobs, adapting education systems, building inclusive and effective institutions and advancing social, environmental and economic justice. It is important that countries act to mitigate these unintended impacts, for example, in regions with concentrated industrialization and on vulnerable populations. While this represents some progress, it falls well short of what is needed to avoid the most catastrophic impacts of climate change. Electric motorbikes help reduce emissions in the tourism sector in Viet Nam.
However, beyond being a technological shift, this transition is a transformative process that prioritizes equity, inclusion and human development. At its core, the sustainable energy transition seeks to transform the global energy system to combat climate change while fostering sustainable development. A new report from the World Meteorological Organization (WMO) warns that global temperatures will likely continue rising, with an 80 per cent chance that at least one year between now and 2029 will be even hotter. As countries grapple with energy price shocks, supply disruptions and the growing impacts of climate change, energy security has become a pressing concern. Citing the loss of more than 400 trees at Kew during the 2022 drought and the growing risks facing many of its species, he said the fate of nature and humanity are inseparable.
The energy policy of China is connected to its industrial policy, where the goals of China’s industrial production dictate its energy demand management. China is also the world’s largest renewable energy producer, and the largest producer of hydroelectricity, solar power and wind power in the world. China is currently the world’s largest emitter of greenhouse gases, and coal in China is a major cause of global warming. The People’s Republic of China is both the world’s largest energy consumer and the largest industrial country. The use of oil and natural gas also had considerable growth, followed by hydropower and renewable energy.
Recognition justice in the energy context focuses on acknowledging the rights and needs of groups that have been historically marginalised or excluded from energy decision-making. In Samsø, Denmark, a diversified ownership model for wind turbines was implemented, where at-cost shares were reserved for residents. In the German village of Feldheim the village was transformed into an energy self-sufficient settlement through community-owned electricity and heating grids supplied by local renewable energy. Procedural justice requires active involvement in legal and decision-making processes, emphasising access to information and the ability of individuals to participate in meaningful consultation.
However, rural economic development, creation of jobs, investment opportunities, and lower electricity costs stand as possible benefits. With energy demand rising across emerging markets and developing economies, these regions represent a major opportunity for clean energy investment. Yet even with this significant growth in renewable and other zero-emission capacity, the world is still burning, and increasing its use of, fossil fuels.
This ensures that financial benefits are gained by the local community, rather than solely for external investors. In the energy context, distributive justice relates to the allocation of the benefits https://clojure-android.info/the-art-of-mastering-20/ and burdens of the energy sector. Local residents and developers engaged in a step-by-step consultation process that included periodic village meetings and the use of “translators” to explain technical information in accessible terms.
India, for example, saw strong growth, with total energy investment reaching a record $150 billion in 2025, including $101 billion for clean energy. For the past 10 years, global spending on clean energy has been higher than investments in fossil fuels. The biggest challenge now is meeting this growing demand with clean energy while taking fossil fuels offline. This initiative not only supported institutional capacity-building and scalable models for sustainable mobility but also leveraged Uruguay’s remarkable 98 percent renewable energy mix to maximize environmental and economic benefits, aligning seamlessly with its NDC. UNDP’s work also includes providing technical support and capacity building to governments, businesses, and communities, ensuring they have the tools and knowledge to adopt and sustain clean energy systems effectively.
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