One of the most important issues facing humanity is the global energy transition. Long-term sustainability depends on shifting from fossil fuels to cleaner, renewable energy sources. The 2022 COP27 in Sharm El Sheikh, Egypt, marked a significant turning point in global attempts to speed-up the energy transition. Global leaders convened at the summit to reach a consensus on policies and initiatives to cut carbon emissions, increase the use of renewable energy, and make sure that all countries, particularly developing ones, are part of the transition to a more environmentally friendly future.
As a central theme of the climate discussions, energy transition planning at COP27 covered a broad array of strategic approaches. This blog will dig into the key strategies discussed during COP27, explore their implications on a global scale, and examine case studies of countries and regions leading the charge in the transition to renewable energy. Additionally, it will focus on the shift from 2025 to 2035, outlining the expected trajectory of key metrics, with statistical analysis and examples drawn from the most progressive countries and initiatives worldwide.
Energy transition is the shifting from fossil fuels, like coal, oil, and natural gas, to a system where renewable energy sources such as wind, solar, hydropower, and geothermal energy are used. This transition also includes changes in how energy is produced, transmitted, and consumed.
The goal of the global energy transition is twofold:
Mitigating Climate Change: By reducing the usage of carbon-intensive energy sources, global greenhouse gas (GHG) emissions are reduced, thus slowing the pace of global warming.
Ensuring Energy Access for All: Decentralized clean energy solutions can be made available to those in isolated or impoverished areas.
The energy transition is important, but it has its difficulties. Financial limitations continue to be a major obstacle, especially in the Global South, where there is restricted access to funding for renewable energy initiatives. The seamless integration of renewable energy sources is also hampered by technological obstacles such as grid dependability and energy storage. Political and economic issues, such as national interests in exporting fossil fuels and geopolitical instability, can potentially slow down or stop the energy transition.
In order to overcome the obstacles to the energy transition, COP27 tried addressing these problems by developing frameworks that highlight the significance of financial flows, technological innovation, and international cooperation. For example, for reducing the risk for investors in developing countries, the energy transition financing system needs to be changed to incorporate green bonds and climate investment instruments.
Adopting renewable energy globally was one of COP27's main goals. The market for renewable energy is expanding quickly; By 2030, 60–70% of the world's electricity output should come from renewable sources like solar, wind, and hydropower, according to COP27 targets. This is a substantial increase from the 35% share in 2020.
Case Study: Denmark's Green Energy Leadership
Denmark, long regarded as a leader in the global energy transition, is an excellent example of successful renewable energy deployment. The country committed to achieving 70% emissions reduction by 2030 (from 1990 levels) and carbon neutrality by 2050. By 2021, Denmark had already achieved 50% of its electricity consumption from wind. Denmark’s strategy emphasizes significant investment in wind power and the creation of a national offshore wind power grid, enabling both Denmark and neighboring countries to tap into this renewable energy resource.
Denmark has shown that scaling up renewables requires not only financial investment but also a comprehensive infrastructure upgrade, with a focus on grid integration, storage solutions, and public-private partnerships. The North Sea Wind Power Hub, for example, is a mega project aimed at producing up to 10 GW of offshore wind energy by 2030, contributing significantly to Europe’s green energy supply.
COP27 underscored the importance of decarbonizing sectors beyond energy. This includes industries such as transportation, heavy industry, and agriculture, which are significant sources of carbon emissions. The conference placed considerable emphasis on green hydrogen and carbon capture, utilization, and storage (CCUS) technologies to reduce emissions.
Example: The European Union’s Hydrogen Strategy
The European Union (EU) has developed a comprehensive Hydrogen Strategy, recognizing green hydrogen as a crucial enabler of decarbonization. By 2030, the EU aims to produce up to 10 million tons of green hydrogen annually, a vital piece of their overall strategy to achieve net-zero emissions by 2050. Green hydrogen is produced using renewable electricity to electrolyze water, resulting in hydrogen gas that emits no carbon when burned. The EU’s strategy includes the establishment of hydrogen hubs across the continent, connecting production, storage, and transport facilities.
Another pivotal strategy under COP27 is the growing support for CCUS technologies. According to the International Energy Agency (IEA), CCUS could capture up to 7.6 billion tons of CO2 by 2030, helping industries decarbonize without compromising their output. The Carbon Clean Solutions startup in the UK is already demonstrating this technology in industrial settings, such as cement manufacturing.
A key concern at COP27 was ensuring that the global energy transition does not leave vulnerable populations behind. Energy access remains a pressing issue in many regions, particularly in sub-Saharan Africa and South Asia. Over 770 million people worldwide still lack access to electricity, with the majority living in rural or isolated areas. COP27 emphasized that renewable energy solutions must be affordable, scalable, and accessible to all.
Case Study: India’s Solar Initiative
India is one of the fastest-growing renewable energy markets in the world. With over 1.3 billion people, India faces both significant energy demand and the challenge of providing electricity to remote areas. The Indian government has committed to expanding its solar capacity to 500 GW by 2030, with a focus on decentralized solar systems that can provide electricity to villages and off-grid communities. India’s Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya scheme) has successfully brought electricity to over 28 million households, demonstrating how affordable solar power can support rural electrification and enhance energy access.
Furthermore, international cooperation has been critical. The International Solar Alliance (ISA), a coalition of solar-rich countries formed in 2015, has been instrumental in advancing solar energy deployment in developing nations, facilitating technology transfer and financing solutions.
Financing the global energy transition remains one of the most significant challenges. While developed countries have pledged to mobilize $100 billion per year in climate financing to support developing nations, the actual financing required for the energy transition may exceed $4 trillion annually.
Example: The Green Climate Fund
The Green Climate Fund (GCF), established at COP16, has played a crucial role in supporting low-carbon and climate-resilient projects, particularly in developing nations. Since its inception, the GCF has invested in renewable energy projects across Africa, Asia, and Latin America, funding solar installations, wind farms, and energy storage solutions. For instance, the Kenya Wind Power Project, funded by the GCF, has helped Kenya harness wind energy, contributing to the country’s goal of generating 50% of its energy from renewables by 2030.
COP27 saw increased commitments to public-private partnerships, innovative financing vehicles, and green bonds to close the financing gap. By diversifying funding mechanisms, global stakeholders aim to channel capital toward transformative projects that reduce emissions, enhance energy access, and drive economic growth in emerging markets.
Clear, supportive policies are essential for ensuring that energy transition goals are met. At COP27, participants discussed how governments can foster an environment conducive to renewable energy deployment through supportive policies, tax incentives, and regulatory frameworks.
Case Study: Germany’s Energiewende
Germany’s Energiewende (energy transition) is one of the most ambitious and comprehensive national energy policies in the world. The policy aims to reduce GHG emissions by 80-95% by 2050, increase the share of renewable energy in electricity consumption to 80% by 2050, and phase out coal by 2038. Germany’s approach includes a combination of feed-in tariffs, subsidies, and market incentives, encouraging private investment in renewable energy and making green technologies affordable.
The country’s success is largely due to robust government support for renewables and the progressive restructuring of its energy market, which allows for decentralized power generation. Germany’s Feed-in Tariff (FiT) program, which guarantees renewable energy producers a fixed payment for each kilowatt-hour of energy generated, has spurred the growth of solar and wind energy.
Technological innovation is central to achieving global energy transition goals. At COP27, discussions revolved around fostering innovations in energy storage, smart grids, and next-generation clean technologies.
Example: Tesla’s Role in Energy Storage
One of the most notable innovations in energy storage comes from Tesla, which has been a pioneer in developing large-scale battery storage systems. Tesla’s Megapack is a utility-scale battery storage solution that can store up to 3.9 MWh of electricity, enabling grids to balance intermittent renewable generation like solar and wind. In California, Tesla’s Hornsdale Power Reserve, the world’s largest lithium-ion battery installation, has demonstrated how large-scale energy storage can stabilize the grid while supporting renewable energy integration.
As we look toward the future, the energy transition will undergo a monumental transformation between 2025 and 2035. The next decade promises significant changes across the energy landscape—shifts in renewable energy deployment, advances in energy storage, scaling green hydrogen, financial mechanisms, and the reconfiguration of global energy markets.
This transition is crucial as global nations and industries work towards achieving net-zero emissions and meeting the ambitious targets outlined in international climate agreements, such as the Paris Agreement. By 2035, the energy system will look drastically different, with cleaner, more reliable energy systems and better integration of renewable sources. But what does this shift look like in terms of key metrics like renewable energy share, energy storage capacity, emission reductions, and investment levels? Below, we’ll explore how the energy transition will unfold between 2025 and 2035, examining major technological advancements, policy drivers, and regional dynamics.
| Metric | Values (2025 to 2035) |
|---|---|
| Global Renewable Energy Share | 30 to 35% in 2025 → 60 to 70% in 2035 |
| Global Energy Storage Capacity | 200 GW in 2025 → 1,000 GW in 2035 |
| Green Hydrogen Production | 3 million tons annually in 2025 → 30 million tons annually in 2035 |
| Energy Access in Developing Countries | 85% of population has access in 2025 → 95% of population has access in 2035 |
| Global Emission Reduction | 10% reduction from 2020 levels in 2025 → 50% reduction from 2020 levels in 2035 |
| Annual Clean Energy Investment | USD 500 billion annually in 2025 → USD 2 trillion annually in 2035 |
By 2025, renewable energy will already account for a substantial portion of global energy generation, but by 2035, this share is expected to soar. Current trends indicate that renewables (solar, wind, hydropower, and biomass) are gaining ground rapidly, driven by technological improvements, economies of scale, and supportive policy frameworks.
The 2025 Landscape
As of 2025, renewable energy is expected to provide 30 to 35% of global electricity. The adoption of solar and wind power will continue to lead the way, with onshore wind energy and solar photovoltaic (PV) being the most cost-competitive sources in many regions. In fact, according to the International Renewable Energy Agency (IRENA), the global cost of solar and wind energy has fallen by 70 to 80% since 2010. Additionally, the integration of offshore wind farms is expanding rapidly, especially in regions like Europe and parts of Asia.
The 2035 Vision
Looking to 2035, renewable energy share is projected to increase to 60 to 70% of global electricity generation. The shift will be driven by:
A key example of this shift is China’s ambitious commitment to increasing its renewable energy capacity. As the world's largest producer of renewable energy, China has already made substantial progress in increasing its renewable power share, with a target of generating 50% of its electricity from renewables by 2030. By 2035, China's renewable capacity is expected to reach unprecedented levels, solidifying its role as a global leader in the energy transition.
Additionally, India is expected to see remarkable growth in renewable energy during this period, with a focus on solar power. The country has set an aggressive target of 500 GW of renewable energy by 2030, with solar energy expected to contribute a significant portion. By 2035, India’s renewable energy share could exceed 60%, especially as the cost of solar energy continues to plummet.
As renewable energy generation scales up, the need for energy storage solutions becomes more pressing. While renewable energy sources like wind and solar are intermittent, advancements in energy storage technology will help stabilize the grid and ensure reliable energy delivery.
The 2025 Landscape
By 2025, global energy storage capacity is expected to reach 200 GW, largely driven by advancements in lithium-ion batteries, which are widely used for grid-scale storage. However, storage systems are still limited by costs and capacity, particularly for long-duration storage solutions.
In the early stages, much of the storage capacity will be dedicated to daily load shifting and providing backup power during peak demand periods. For example, Tesla’s Megapack, which has the capacity to store 3.9 MWh of energy, will be pivotal in ensuring that renewable energy can be dispatched when needed. In regions like California and Australia, Tesla and other companies are investing in large-scale storage systems that can provide energy to millions of households.
The 2035 Vision
By 2035, energy storage will be an integral part of the global energy system, with total storage capacity reaching 1,000 GW. The increase in energy storage capacity will be driven by:
One prominent example of long-duration storage scaling is Australia’s Snowy 2.0 project. This pumped hydro storage project is set to be one of the largest in the world, with a capacity of 2,000 MW and 350,000 MWh of storage. By 2035, such projects will be common across regions with high renewable penetration, providing critical storage capabilities for the grid.
Green hydrogen has emerged as a promising technology for decarbonizing hard-to-abate sectors such as heavy industry and long-haul transportation. Green hydrogen is produced using renewable energy to electrolyze water, producing hydrogen without any carbon emissions.
The 2025 Landscape
By 2025, green hydrogen production is still in its early stages, with a global production capacity of around 3 million tons per year. However, significant investments are being made, with countries like Germany and Australia launching large-scale green hydrogen projects. The European Union has set a target of producing 10 million tons of green hydrogen annually by 2030, and Germany’s H2 Global initiative aims to make the country a key global exporter of green hydrogen.
Currently, the high cost of electrolyzers and the limited infrastructure for hydrogen transportation remain barriers to mass adoption. However, the decline in renewable energy prices, coupled with the expansion of hydrogen infrastructure, will make green hydrogen more competitive.
The 2035 Vision
By 2035, green hydrogen production is expected to skyrocket to 30 million tons per year globally. Several factors will drive this increase:
Case Study: Australia’s Hydrogen Strategy
Australia is positioning itself as a major player in the global green hydrogen market. The Australian Hydrogen Strategy aims to develop a hydrogen export market worth USD 10 billion by 2040. As of 2035, Australia will likely be a significant exporter of green hydrogen, particularly to Asian markets like Japan and South Korea. The country’s vast renewable resources, particularly in solar and wind, make it an ideal candidate for green hydrogen production, with several large-scale projects already in development.
Global emissions must fall rapidly in order to meet the Paris Agreement’s goal of limiting global warming to 1.5°C. Between 2025 and 2035, nations will need to reduce emissions by at least 40 to 50% from 2020 levels to stay on track.
The 2025 Landscape
By 2025, global emissions are expected to see a modest reduction of around 10% from 2020 levels. This will be driven by the scaling of renewable energy, the increasing electrification of sectors like transport, and the implementation of carbon pricing mechanisms. Carbon capture, utilization, and storage (CCUS) technologies will also begin to play a more prominent role in reducing industrial emissions.
However, the gap between current emission levels and the necessary reductions to meet the Paris Agreement remains substantial. Many countries are still heavily reliant on fossil fuels, and their energy systems require substantial overhaul to meet the 2030 and 2050 climate targets.
The 2035 Vision
By 2035, global emissions reductions should reach 50% below 2020 levels. This will be made possible by:
Case Study: Norway’s Carbon Neutrality Effort
Norway has already made significant progress in reducing its carbon footprint. The country has pledged to be carbon neutral by 2050 and is leading the way with policies that encourage the adoption of electric vehicles and renewable energy. By 2035, Norway is expected to have reduced its emissions by over 50%, primarily through the electrification of its transport sector, the decarbonization of heavy industry, and its growing renewable energy capacity.
The global energy transition, which gained significant momentum through the discussions and commitments made at COP27, is advancing at an accelerating pace. This transition represents a pivotal shift away from fossil fuels towards renewable energy sources, with a clear focus on decarbonization, equitable energy access, innovative financing, and supportive policies. The success of this transition hinges on several core strategies that can guide nations towards a sustainable and carbon-neutral future. These strategies are not just about reducing emissions but also about fostering economic growth, ensuring fairness, and building resilience against climate change.
Countries like Denmark, India, and Germany serve as excellent examples of how these strategies can be effectively implemented. Denmark, for example, has long been a pioneer in renewable energy, with wind power playing a central role in its energy mix. Denmark has committed to producing 50% of its electricity from wind by 2030 and aims to be carbon-neutral by 2050. This ambitious goal is being supported by strong governmental policies, including subsidies for wind energy, as well as substantial investments in research and development to drive technological advancements. Denmark's success demonstrates the critical role of political will in achieving ambitious decarbonization targets.
India, with its vast and diverse energy landscape, offers a different yet equally powerful example. India has emerged as one of the world's leading countries in terms of renewable energy expansion. The country aims to have 500 GW of non-fossil fuel capacity by 2030, focusing heavily on solar and wind energy. India’s commitment to the energy transition is backed by large-scale solar projects like the Rewa Ultra Mega Solar Park and innovative financing mechanisms that make clean energy more accessible. Through initiatives like the International Solar Alliance (ISA), India is not only making strides toward its own renewable energy goals but is also fostering international cooperation and knowledge-sharing in the global energy transition.
Germany is another notable example, having integrated renewable energy deeply into its energy system through its "Energiewende" (energy transition) strategy. With a strong emphasis on wind, solar, and biomass energy, Germany has made significant strides in reducing its greenhouse gas emissions and increasing the share of renewables in its energy mix. However, Germany's approach also highlights the challenges of transitioning to a green economy, particularly with regard to grid stability and the need for energy storage solutions. Germany’s experience emphasizes the importance of a diversified energy approach, innovation in energy storage technologies, and ensuring that the transition remains socially and economically inclusive, especially for workers in traditional energy sectors.
At the global level, COP27 has provided a critical platform for fostering collaboration among countries, international organizations, and the private sector to ensure that the energy transition is both effective and equitable. The commitments made at COP27, such as the pledge to accelerate the deployment of renewable energy and increase financing for climate change mitigation and adaptation in developing countries, signal a collective determination to meet the Paris Agreement targets. However, for these ambitions to be realized, it is essential that countries work together to address the complexities of energy access, financing, and technology transfer, especially in developing nations.
As the world looks ahead to the decade between 2025 and 2035, it is clear that the energy transition will bring transformative changes. Renewable energy is poised to become the dominant force in the global energy market. The technological advancements in solar, wind, and energy storage are expected to make renewable energy more affordable, reliable, and scalable, with costs continuing to decline. This period promises a shift towards decentralized energy systems, where communities and individuals will have more control over their energy production and consumption. The rise of clean energy technologies also has the potential to create new industries and jobs, further driving economic growth.
Moreover, the energy transition is not only an environmental imperative but also an opportunity to drive economic growth, improve public health, and create a more equitable society. By shifting away from polluting fossil fuels, air quality can improve, reducing respiratory and cardiovascular diseases. The transition to clean energy also offers the chance to address energy poverty by providing affordable and sustainable energy access to underserved populations around the world.
In conclusion, COP27 has laid the foundation for a greener, more resilient, and inclusive future. The energy transition is not merely a challenge-it is an opportunity to reshape the global economy, improve social equity, and address the pressing issue of climate change. With the right combination of political will, technological innovation, international cooperation, and bold financing, the world can build a sustainable energy system that serves both people and the planet. The shift from 2025 to 2035 will undoubtedly be a defining decade in the global effort towards a cleaner, more equitable energy future.
