Renewables markets have shown resilience during the covid-19 crisis, says the IEA. In sharp contrast to all other fuels, renewables used for generating electricity will grow by almost 7% across 2020. Global energy demand is set to decline 5% but long-term contracts, priority grid access and installation of new plants have underpinned strong growth in renewables. From January to October 2020, auctioned renewable capacity was 15% higher than a year earlier, a new record. Additionally, shares of publicly listed renewable equipment manufacturers and project developers outperformed most major stock market indices and the overall energy sector. 

The number of ‘Green’ banks is multiplying and they have invested over $24 billion in low-carbon technologies ranging from rooftop solar to vehicle electrification and energy efficiency, according to the Rocky Mountain Institute, the Green Finance Institute, and the Natural Resources Defence Council. They are often the first to invest in new technologies and geographies and have thus attracted more than $2 of private investment, on average, for every $1 of their capital invested in a project. The report analysed green banks in 36 countries. An additional 25 countries are exploring setting up a green bank.

Korea’s Green New Deal and net-zero by 2050 goal can accelerate the energy transition and position the East Asian nation at the forefront of digitalisation, artificial intelligence, and low-carbon industry complexes. However, efforts on renewable energy need to be stepped up if the country is to meet its 2030 and 2040 targets (of a 20% share and 30-35%), warns the IEA in a new policy review. The electricity market needs to be opened for competition and be independently regulated, while efforts to address transport emissions—via fuel economy standards—push the country to the lead globally.