RENEWABLES 2023 GLOBAL STATUS REPORT

ENERGY DEMAND

MODUL OVE2023 MODUL OVERVIEWPOLICY

C O L L E C T I O N

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REN2 1 MEMBERS

INDUSTRY ASSOCIATIONS

Africa Minigrids Developers Association
(AMDA)
Alliance for Rural Electrification (ARE)
American Council on Renewable Energy
(ACORE)
Associação Lusófona de Energias
Renováveis (ALER)
Associação Portuguesa de Energias
Renováveis ((APREN)
Chinese Renewable Energy Industries
Association (CREIA)
Clean Energy Council (CEC)
Euroheat & Power (EHP)
European Heat Pump Association
(EHPA)
European Renewable Energies
Federation (EREF)
Global Off-Grid Lighting Association
(GOGLA)
Global Solar Council (GSC)
Global Wind Energy Council (GWEC)
Indian Renewable Energy Federation
(IREF)
International Geothermal Association
(IGA)
International Hydropower Association
(IHA)
RE100/Climate Group
RES4Africa Foundation
SolarPower Europe (SPE)
Union International de Transport
Publique (UITP)
World Bioenergy Association (WBA)
World Wind Energy Association (WWEA)

SCIENCE AND ACADEMIA

AEE – Institute for Sustainable
Technologies (AEE-INTEC)
Council on Energy, Environment and
Water (CEEW)
Fundación Bariloche (FB)
International Institute for Applied
Systems Analysis (IIASA)
International Solar Energy Society
(ISES)
National Renewable Energy Laboratory
(NREL)
National Research University Higher
School of Economics Russia (HSE)
South African National Energy
Development Institute (SANEDI)
The Energy and Resources Institute
(TERI)
University of Technology – Institute for
Sustainable Futures (UTS)
World Resources Institute (WRI)

INTER-GOVERNMENTAL ORGANISATIONS

Asia Pacific Energy Research Center
(APERC)
Asian Development Bank (ADB)
ECOWAS Centre for Renewable
Energy and Energy Efficiency
(ECREEE)
Electric Power Council of the
Commonwealth of Independent
States (EPC)
European Commission (EC)
Global Environment Facility (GEF)
International Energy Agency (IEA)
International Renewable Energy
Agency (IRENA)
Islamic Development Bank (IsDB)
Organización Latinoamericana de
Energía (OLADE)
Regional Center for Renewable
Energy and Energy Efficiency
(RCREEE)
United Nations Development
Programme (UNDP)
United Nations Environment
Programme (UNEP)
United Nations Industrial
Development Organization (UNIDO)
World Bank (WB)

GOVERNMENTS

Afghanistan
Australia
Austria
Brazil
Denmark
Dominican Republic
Germany
India
Mexico
Norway
Republic of Korea
South Africa
South Australia
Spain
United Arab Emirates
United States of America

PRESIDENT

Arthouros Zervos

NGOS

Association Africaine pour
l'Electrification Rurale (Club-ER)
CDP
CLASP
Clean Cooking Alliance (CCA)
Climate Action Network International
(CAN-I)
Coalition de Ciudades Capitales de las
Americas (CC35)
Energy Cities
European Youth Energy Network
(EYEN)
Fundación Renovables (FER)
Global Forum on Sustainable Energy
(GFSE)
Global Women’s Network for the
Energy Transition (GWNET)
Greenpeace International
ICLEI – Local Governments for
Sustainability
Institute for Sustainable Energy Policies
(ISEP)
International Electrotechnical
Commission (IEC)
Jeune Volontaires pour l'Environne
ment (JVE)
Mali Folkecenter (MFC)
Power for All
Renewable Energy and Energy
Efficiency Partnership (REEEP)
Renewable Energy Institute (REI)
Renewables Grid Initiative (RGI)
SLOCAT Partnership on Sustainable,
Low Carbon Transport
Solar Cookers International (SCI)
Sustainable Energy for All (SEforAll)
The Global 100% Renewable Energy
Platform (Global 100%RE)
World Council for Renewable Energy
(WCRE)
World Future Council (WFC)
World Wide Fund for Nature (WWF)

MEMBERS AT LARGE

Michael Eckhart David Hales Kirsty Hamilton Peter Rae Arthouros Zervos

EXECUTIVE DIRECTOR

Rana Adib REN21

FOREWORD

A lot has changed in a decade.

The past ten years have brought significant shifts in the renewable energy landscape. Renewables, once an emerging trend, have become a global necessity. Decision makers are finally acknowledging that a world fully energised by renewables is not only desirable but essential to bringing about prosperous economies, sustainable societies and equitable human development.

This report presents the first modules of the eight-piece Renewables 2023 Global Status Report (GSR) Collection. The Energy Demand modules on Buildings, Industry, Transport and Agriculture are a testament to the crucial role that energy-consuming sectors play in driving the transition to renewable energy. They underscore the importance of looking beyond the supply side and installed capacities, and recognising that accelerating the demand for renewables across these four sectors is critical. Without substantive progress on the demand side, it will be impossible to achieve the structural transformations needed to shift to a renewables-based energy system, economy and society.

With this report, REN21 continues to play a pivotal role in shaping the transition to sustainable energy sources and in bridging the gap between (renewable) energy supply and demand. The findings presented in the GSR Energy Demand modules represent an important step forward in understanding the full potential of renewables in meeting the world's energy needs, as well as the persisting barriers.

Renewables are the only energy sources compatible with the vision to “leave no one behind”. Demand sectors are steadily discovering that clean, affordable, secure and accessible energy is key to leveraging for impact. For the first time, the world is using renewable energy solutions to overcome multiple global challenges simultaneously: economic instability, unprecedented energy crises, threats to peace and democracy, and the devastating socio-economic consequences of a global pandemic. We need to harness the political momentum to accelerate this transition.

We must build on each other to ensure that renewables are never left out from sustainable development conversations.
We must make 2023 the year of renewables.

REN21, in its role as knowledge broker for the renewable energy sector, is ambitiously spearheading this global wave of change. Our goal is to amplify the voices of the multi-stakeholder community that we proudly represent. The GSR Energy Demand modules represent a collective effort of hundreds of collaborators who have worked meticulously to paint an accurate picture of renewables today.

I extend heartfelt thanks to the REN21 team, authors, special advisors and contributors who have brought their knowledge, time and dedication to producing this report. Your insights, passion and commitment have been instrumental in making the GSR Energy Demand modules a reality. I am confident that this report will serve as a valuable resource for policy makers, industry leaders and other stakeholders to inform decision making and drive the transition to a sustainable future for all a future powered by renewable energy.

Sincerely,

Rana Adib

Executive Director, REN21

Foreword . 03
Acknowledgements 08
RENEWABLES IN ENERGY DEMAND:
GLOBAL TRENDS 10

BUILDINGS IN FOCUS

Module Overview 17
Policy 20
Investment 24
Market Developments 25
Challenges and Opportunities 27

POLICY INDUSTRY IN FOCUS

Module Overview 29
Policy 31
Investment 32
Market Developments 32
Challenges and Opportunities 37T D

TRANSPORT IN FOCUS

Module Overview 39
Policy 41
Investment 44
Market Developments . 46
Challenges and Opportunities 49

AGRICULTURE IN FOCUS

Module Overview 51
Policy . 53
Investment 54
Market Developments . 55
Challenges and OpportunitiesELOPMENTS 57

GLOBAL STATUS REPORT 2023 COLLECTION Renewables in ENERGY DEMAND

FIGURES

Figure 1. Renewables in Energy Demand 10
Figure 2. Number of Countries with Renewable
Energy Regulatory Policies, by Demand
Sector, 2012–2022 15
Figure 3. Renewable Share of Total Final Energy
Consumption in Buildings,
2010, 2019 and 2020 . 18
Figure 4. Energy Consumption in Buildings by
Major Country/Region, 2020 18
Figure 5. Energy Consumption for Heating in Buildings,
by Source, 2011 and 2021 19
Figure 6. Regulatory Policies in Buildings,
by Building Type, as of End-2022 22
Figure 7. Renewable Share of Total Final Energy
Consumption in Industry,
2010, 2019 and 2020 . 30
Figure 8. Renewable Energy Share and Electrification
Rates in Selected Industry Sub-Sectors, 2020 . 33
Figure 9. Renewable Share of Total Final Energy
Consumption in Transport,
2010, 2019 and 2020 40
Figure 10. National and Sub-National Renewable Biofuel
Mandates and Targets, as of End-2022 . . 41
Figure 11. Targets for Renewable Power and
Electric Vehicles, as of End-2022 42
Figure 12. Investment in Electric Vehicles,
by Major Country, 2018-2022 45
Figure 13. Renewables in Transport by Region,
2010-2019 46
Figure 14. Renewable Share of Total Final Energy
Consumption in Agriculture,
2010, 2019 and 2020 52
Figure 15. National and Sub-National Renewable Energy
Targets and Fiscal/Financial Policies in the
Agriculture Sector, as of End-2022 . . . . . 53

REPORT CITATION

REN21. 2023.
Renewables 2023 Global Status Report collection, Renewables in Energy Demand
(Paris: REN21 Secretariat).
ISBN 978-3-948393-07-6

SNAPSHOTS

Europe 21
China 23
South Africa 34
Pakistan 36
US - China 44
Spain 48
India . 56
Endnotes . 58
Photo Credits and ImpressumPOLICY 73

LINKS TO MICROSITE

Energy Units and Conversion Factors
R Data Collection and Validation
R Methodological NotesMARK
R Glossary
R List of Abbreviations

Reference Tables can be accessed through theCHALLENGES AND OPP GSR 2023 Energy Demand Data Pack at R http://www.ren21.net/gsr2023-data-pack.

DISCLAIMER:

REN21 releases issue papers and reports to emphasise the importance of renewable energy and to generate discussion on issues central to the promotion of renewable energy. While REN21 papers and reports have benefited from the considerations and input from the REN21 community, they do not necessarily represent a consensus among network participants on any given point. Although the information given in this report is the best available to the authors at the time, REN21 and its participants cannot be held liable for its accuracy and correctness.

The designations employed and the presentation of material in the maps in this report do not imply the expression of any opinion whatsoever concerning the legal status of any region, country, territory, city or area or of its authorities, and is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers or boundaries and to the name of any territory, city or area.

Comments and questions are welcome and can be sent to gsr@ren21.net.

RENEWABLE ENERGY POLICY NETWORK FOR THE 21st CENTURY

REN21 is the only global community of actors from science, governments, NGOs and industry working collectively to drive the rapid uptake of renewables – now!

REN21 works to build knowledge, shape dialogue and debate, and communicate these results to inform decision makers to strategically drive the deep transformations needed to make renewables the norm. We do this in close co-operation with the community, providing a platform for these stakeholders to engage and collaborate. REN21 also connects with non-energy players to grow the energy discourse, given the economic and social significance of energy.

The most successful organisms, such as an octopus, have a decentralised intelligence and "sensing" function. This increases responsiveness to a changing environment. REN21 incarnates this approach.

Our more than 4,000 community members guide our co-operative work. They reflect the vast array of backgrounds and perspectives in society. As REN21’s eyes and ears, they collect information, share intelligence and make the renewable voice heard.

REN21 takes all this information to better understand the current thinking around renewables and change norms. Our publications are probably the world’s most comprehensive crowd-sourced reports on renewables. Each is a truly collaborative process of co-authoring, data collection and peer reviewing.

CROWD-SOURCED DATA AND KNOWLEDGE

REN21's data and knowledge collection method is built on a global multi-stakeholder community of experts. It is validated in a collaborative and transparent open peer-review process. It is made openly available to develop a shared language that shapes the sectoral, regional and global debate on the energy transition.

For more information, see the Methodological Notes section on data collection and validation.

RENEWABLES GLOBAL STATUS REPORT 2023 COLLECTION

Since 2005, REN21's Renewables Global Status Report (GSR) has spotlighted ongoing developments and emerging trends that shape the future of renewables. It is a collaborative effort involving hundreds of experts.

This year’s edition (18th) has evolved in design and structure to reflect the fundamental changes in the global energy landscape. The new structure is in the form of a collection of five publications. In addition to presenting the trends in renewable energy supply, it also dives into the energy demand sectors, with dedicated modules on buildings, industry, transport and agriculture. It includes a publication on energy systems and infrastructure with renewables, as well as a publication on renewables for economic and social value creation, acknowledging the key role that energy plays across economies and societies. Collectively these five publications offer readers a systemic global overview of the current uptake of renewables.

This new structure makes the GSR a key tool in expanding the renewable energy discussion into key sectors and ecosystems, developing a shared language and driving a stronger integration of supply, demand, infrastructure, market and investment.

ACKNOWLEDGEMENTS

REN21 DATA AND KNOWLEDGE TEAM

Jad Baba Tomaž Cigut Yuko Komazawa Nathalie Ledanois Hend Yaqoob

SPECIAL ADVISORS
Adam Brown
Janet L. Sawin

CHAPTER AUTHORS

Hind Couzin Lydia El Bouazzati Duncan Gibb Fanny Joubert Paloma Ruiz Kristin Seyboth

RESEARCH AND PROJECT SUPPORT(REN21 SECRETARIAT)

Thomas André Fayrouz Atrakouti Talia Contreras Ana Díaz Vidal Stefanie Gicquel Vibhushree Hamirwasia Chigozie Nweke-Eze Jonas Reolon Kremer Borana Resulaj Andrea Wainer Laura E. Williamson

COMMUNICATIONS SUPPORT (REN21 SECRETARIAT)

Yasmine Abd-El-Aziz Elizabeth Canavan Mariela Lopez Hidalgo Hala Kilani Shiyao Zhang

EDITING, DESIGN AND LAYOUT

Lisa Mastny (Editor) weeks.de Werbeagentur GmbH (Design)

PRODUCTION

Note: Some individuals have contributed in more than one way to this report. To avoid listing contributors multiple times, they have been added to the group where they provided the most information. In most cases, the lead topical contributors also participated in the Global Status Report (GSR) review and validation process.

LEAD TOPICAL CONTRIBUTORS

AGRICULTURE

Pauline Hecker, Irini Maltsoglou, Manas Puri (Food and Agriculture Organization of the United Nations – FAO)

BUILDINGS

Femke de Jong (European Climate Foundation); Chiara Delmastro (International Energy Agency – IEA); Adrien Hiel (Energy Cities); Takeshi Miyamori, Ji-Soo Yoon (Organisation for Economic Co-operation and Development)

INDUSTRY

Tareq Emtairah, Nurzat Myrsalieva (United Nations Industrial Development Organization); Tomas Kåberger (Renewable Energy Institute)

INVESTMENT

Elizabeth Holley, Jordy Lee (Colorado School of Mines); Munira Raji (University of Plymouth)

POLICY

Valerie Bennett (Ontario Energy Board); Richard Carlson (Pollution Probe); Julia Levin (Environmental Defense)

TRANSPORT

Stefan Bakker (Netherlands Institute for Transport Policy Analysis); Cornie Huizenga (Climate and Environment Service Group, Shanghai); Emilie Martin (Wuppertal Institute); Nikola Medimorec, Karl Peet (SLOCAT Partnership on Sustainable Low Carbon Transport); Leonardo Paoli, Per Anders Widell (IEA); Marion Vieweg (Current Future)

PEER REVIEWERS AND OTHER CONTRIBUTORS

Mussa Abbasi Mussa (Ministry of Energy, Tanzania); Mohammed Abdalghafoor (United Nations Framework Convention on Climate Change); Abdenour Achour (Chalmers University of Technology); Damilola Adeyanju (Enel Foundation); Sanchit Saran Agarwal (The Energy and Resources Institute); Shakir Ali (Mehran UET); Akram Almohamadi (Regional Center for Renewable Energy and Energy Efficiency – RCREEE); Sami Alnabulsi (Beta-Blockers); Mohammad Alnajideen (Cardiff University); Patrick Atouda Beyala (SOAS University of London); Ricardo Baitelo (Instituto de Energia e Meio Ambiente – IEMA); Padmasai Lakshmi Bhamidipati (United Nations Environment Programme Copenhagen Climate Centre); Faiz Bhutta (ETRC contributor); Udochukwu Bola Akuru (Tshwane University of Technology); Wemogar Elijah Borweh (University of Liberia); Elina Bosch (Becquerel Institute); Bernardo Carrillo; Myriam Castanié (REScoop.eu); Sammy Jamar Chemengich (CLASP); David Clark (Kinetic Energy Generation Systems); Lanvin Concessao (World Resources Institute); Penelope Crossley (University of Sydney); Ashish Dhankhar (Deutsche Gesellschaft für Internationale Zusammenarbeit – GIZ); Pedro Dias (Solar Heat Europe); Norbert Edomah (Pan-Atlantic University); Ahmed Elsayed (Egyptian Electricity Holding Company); Georgy Ermolenko (CIS Electric Power Council); Manuel José Espinosa (The Phoenix Group); Chioma Ewurum (Renewable Energy Association of Nigeria); André Ferreira (IEMA); Mindy Fox (Solar Cookers International);

Eduardo Garcia (Energy-W); Rosa Garcia (Sustainable Energy for All – SEforALL); Genice Grande-Acosta (Institute of Renewable Energy, National Autonomous University of Mexico); Jenny Gregory (RACE for 2030 Cooperative Research Centres); Füsun Haklıdır (Istanbul Bilgi University); Ian Hamilton (University College London); Fihiima Mohamed Hassan (Energy specialist); Frank Haugwitz (Asia Europe Clean Energy (Solar) Advisory Co. Ltd.); Rainer Hinrichs-Rahlwes (European Renewable Energies Federation); Catharina Horn (NOW GmbH); Abdulwahab Ibrahim (University of Ilorin, Nigeria); Neeraj Joshi (IPC GmBH); József Kádár (Arava Institute for Environmental Studies); Maisarah Kadir (International Renewable Energy Agency); Brian Kawuma (Power for All); Mohamedahmed Khalifa (Khartoum Refinery Company Ltd); Nazar I. Khan (Jamia Millia Islamia); Shigeki Kobayashi (Transport Institute of Central Japan); Bharadwaj Kummamuru (World Bioenergy Association); Youness Lebtar (Mohamed the First University); Luca Lorenzoni (IEA); Detlef Loy (Loy Energy Consulting); Juan Roberto Lozano-Maya (National Energy Control Center – CENACE); Jaideep Malaviya (Malaviya Solar Energy Consultancy); Vincent Martinez (Architecture 2030); Gonçalo Martins (Portuguese Association of Renewable Energy – APREN); Leopoldo Mico (Solar Heat Europe / European Solar Thermal Industry Federation); Nyasha Milanzi (Ashesi University); Emi Mizuno (SEforALL); Lawal Mohammed (Energy Commission of Nigeria); Antonio

Supported by:

Federal Ministry for Economic Affairs and Climate Action

on the basis of a decision by the German Bundestag
Federal Ministry for Economic Cooperation and Development

Moreno-Munoz (University of Cordoba); Sabatha Mthwecu (Solar Rais); Chuck Chuan Ng (Xiamen University Malaysia); Diana Caroline Njama (Climate Tracker); Jesse Nyokabi (Quaise Energy Africa); Marisa Olano(IDAE); Vinicius Oliveira (IEMA); Ismail Owoseni (Innov8systems Venture); Giorgia Pasqualetto (SEforALL); Lebeau Pemha Thina (International Association for Partnership and Emergence); Tran Phuong Dong (Transportation Sustainability Research Center); Joana Portugal Pereira (Federal University of Rio de Janeiro); Pallav Purohit (International Institute for Applied Systems Analysis); Shayan Razaghy (Circuit Energy Inc.); Ari Reeves (CLASP); Yasemin Erboy Ruff (CLASP); Khalid Salmi (RCREEE); Heba Sharaf (Cairo University); Urooj Sheikh (Halcrow Pakistan); Irene Skoula (C40); Emilio Soberón Bravo (SFA Oxford / University of Edinburgh); Dosse Sossouga (Amis des Etrangers au Togo); William W. Steiner (Hawaii Oil Seed Producers); Satrio Swandiko Prillianto (GIZ); Jin Tanaka (UNISC International); Yael Taranto (SHURA Energy Transition Center); Hannibal Tesfahunegn (Power for All); Costas Travasaros (Prime Laser Technology); Ulric Trotz (former Caribbean Climate Change Centre); Galyna Trypolska (SO Institute for Economics and Forecasting, Ukraine National Academy of Sciences); Loannis Tsipouridis (RED PRO Consultants); Prachi Ugle (ESDW 2021); Peter Yang (Case Western Reserve University); Xia Zuzhang (FAO)

This report was commissioned by REN21 and produced in collaboration with a global network of research partners. Financing was provided by the German Federal Ministry for Economic Cooperation and Development (BMZ), the German Federal Ministry for Economic Affaires and Climate Action (BMWK) and the UN Environment Programme. A large share of the research for this report was conducted on a voluntary basis.

FIGURE 1. RENEWABLES IN ENERGY DEMARENEWABLES IN ENERGY DEMANDRENEWABLES IN ENERGY DEMAND

Total Final Energy Consumption and Total Modern Renewable Energy Consumption, by Sector, 2020 Consumption and Total Modern Renewable Energy Consumption, by Sector, 2020

Total renewable Renewa energy demand grew

per year on average between 2010 and 2020

As of 2022, As 94countries3 counhad r had either a renewable energy had reneor po policy or target in energy t at least one or p demand sectories

As of 2022, 3 countries had renewable energy targets, or policies in all fes wable our demand transth sectors

Agriculture and transport have the fastest yearly growth rates of renewable energy adoption re and ort have with more thant havetest yearly

Electricity and Renewable Electricity Shares of TFEC by Sector, 2010 and 2020 %policy or target in

RENEWABLES IN ENERGY DEMAND: GLOBAL TRENDS

Energy Crisis and Inflation

Starting in October 2021, the world experienced the impacts of a severe global energy crisis. 2 Rapid economic rebound following the slowing of the COVID-19 pandemic led to tighter markets, and the energy crisis was further exacerbated in February 2022 after the Russian Federation’s invasion of Ukraine. 3 Throughout 2022, energy prices in Europe and elsewhere skyrocketed to their highest levels since 2008. 4 The International Energy Agency estimates that higher fossil fuel prices accounted for 90% of the increase in electricity prices in 2022, and that fossil gas prices alone accounted for more than half this rise.5

The rise in energy prices had strong inflationary impacts on all energy-consuming sectors – in some cases pushing families into poverty, forcing factories to cut production and slowing economic growth across sectors. 6 Because energy fuels all economic activity, it can affect the prices of goods from food to

clothing to smartphones.7 High inflation became a global phenomenon during 2022, even if the effects were less visible in some parts of the world, such as Asia.8

energy Energy prices

reached their highest levels since 2008, impacting all energyconsuming sectors.

In many countries, governments sought alternative fossil fuel ansport 30%sources to restore disruptions to the energy supply or opted to heavily subsidise fossil fuels to shield consumers from price hikes; despite this, the uptake of renewables increased in all demand sectors. 9 Overall, 2022 was a year marked by energy crisis resulting in high inflation globally, but it also was a year of accelerated deployment of renewables as different sectors found renewable energy sources to be reliable, stable and affordable.

In direct response to rising inflation and energy costs, two major policy packages were introduced during the year: the European Commission’s REPowerEU plan and the Inflation Reduction Act (IRA) in the United States. 10 Both packages aim to stimulate economic growth via subsidy packages that target, among others, renewable energy production and use while boosting local industry.

The REPowerEU plan was designed to curtail the effects of energy market disruption caused by the war in Ukraine. 11 It tackles energy savings in all end-use sectors as well as diversification of the energy supply, while aiming to increase the production of renewable energy to 45% from the current 40%; the plan also includes an obligation to install rooftop solar on every public building by 2025. 12 The plan commits a total investment of USD 222 billion during 2023-2027 to phase out fossil fuel imports, including phasing out fossil gas in industrial and domestic uses and, over the long term, expanding renewable hydrogen in the steel industry. 13

The IRA allocates USD 370 billion in new spending and tax credits and addresses all main energy demand sectors. 14 In buildings and transport, it provides tax credits for electric vehicles, energyefficient appliances, rooftop solar, geothermal heating and home batteries, and for the industry and agriculture sectors it provides tax incentives for private investment in renewables.15 Also in 2022, China published its 14th Five-Year Plan, and the country is expected to contribute nearly half of all new renewable power capacity additions globally during 2022- 2027. 16 In early 2023, India announced one of the world’s most comprehensive plans for renewable hydrogen, including a USD 2.3 billion subsidy programme aimed at benefiting from cheap renewable energy prices to produce renewable hydrogen for industry and transport.17

Renewable energy

is the forefront of policy responses to the twin crises of rising energy costs and inflation.

Policy Trends

On the climate policy side, climate commitments expanded in 2022 and have targeted more ambitious efforts to decarbonise energy use in the end-use sectors, with progress varying across sectors and regions. During the year, 10 countries revised upwards their Nationally Determined Contributions (NDCs) towards reducing emissions under the Paris Agreement.18 However, of the 193 countries that have signed the agreement and submitted NDCs, only 25 have set targets for net-zero emissions. 19

Climate policies need to translate into concrete enabling policies and mandates in all sectors. On the demand side, around 80 new renewable energy policies (mostly in the form of fiscal/ financial incentives) were announced in 2022, while regulatory policy announcements stagnated, bringing the total to 454 policies across sectors. 20 These announcements were made in 49 countries, with more than half of the countries in Europe, 8 in Latin America and the Caribbean, 7 in Asia, 4 in Africa, 2 in Oceania and only 1 each in North America and in the Middle East and North Africa.21 This amounts to a total of 94 countries that had either policies or targets in at least one end-use sector by year's end (p see Figure 1); however, only 3 countries (Spain, Portugal and Türkiye) had targets or policies in all four end-use sectors. 22

In the buildingsi sector (commercial, residential and public facilities), 52 countries had policies supporting the uptake of renewables as of the end of 2022. 23 Such policies include incentives for the installation of renewable technologies (such as rooftop solar, solar water heaters, biomass boilers and geothermal heat pumps) as well as mandates and targets banning the use of fossil fuels for heating in new and existing buildings. Policies were mostly in the form of fiscal/financial policies (45 countries), followed by regulatory policies (21 countries), although 14 countries had both regulatory and fiscal/ financial policies for renewables in buildings. 24 (p See Figure 2.)

In the industry sector, no new policies for renewables have been announced since 2019. By the end of 2022, 19 countries had policies that incentivise or mandate the use of renewables in industry. 25 Nine countries had renewable energy mandates enforcing the installation of renewables in specific industry subsectors, 12 countries had fiscal/financial incentives, and 2 countries (Spain and Türkiye) had both.26

A major policy announcement in 2022 was the European Union’s (EU) Carbon Border Adjustment Agreement (CBAM), which includes a carbon tax on imports to EU member countries. 27 The aim is to impose carbon taxes starting in 2026 on imports related to electricity, hydrogen, steel, cement, fertilisers and aluminium.28 The CBAM will likely have adverse effects on Europe’s trade partners and is expected to speed decarbonisation of the industrial sector globally. 29

In transport, despite having the lowest share of renewable energy across demand sectors, 61 countries had renewable energy mandates or enabling policies as of the end of 2022.30 Most of these were biofuel blending mandates (56 countries) and either electric vehicle targets or 100% bans on internal combustion engine vehicles (23 countries). 31 Only five countries – Chile, Denmark, New Zealand, Sweden and the United Kingdom – had both 100% renewable energy targets and 100% bans on internal combustion engine vehicles. 32 Meanwhile, 10 countries were pushed to reduce or suspend their biofuel blending mandates in 2022, mostly in Europe but also in Latin America and the Caribbean.33

In the agriculture sector, 14 countries had targets and policies for renewables as of the end of 2022, with 7 of these countries announcing them during the year. 34 All of the policies comprised either investments, subsidies, grants or tax deductions, mostly for solar-powered irrigation and agrivoltaics. No new or existing regulatory policies for renewables in agriculture were observed. 35

Market Developments and Trends

The risk of supply disruptions, as well as high fossil fuel price volatility, prompted more energy consumers worldwide to adopt on-site renewable energy systems and to switch to electrified technologies across the end-use sectors.36

In the buildings sector, 2022 was a record year for heat pumps, with installations increasing a record 10% over 2021. 37 This was most notable in Europe, with 38% growth in 2022, as households increasingly sought out efficient and reliable alternatives to fossil fuel heating. 38 Rooftop solar also became more affordable and attractive to end-users following the increases in fossil fuel prices. 39 (p See Snapshot: Europe, in the Buildings module.)

Across Europe, energy-intensive industries were hit hardest by the energy crisis, with some industries cutting production and others considering relocation to reduce energy costs and boost security. 40 These same concerns drove a 21% increase in the number of corporate power purchase agreements (PPAs) in 2022, to surpass the installed capacity of utility PPAs by a record six times. 41 Renewable-powered industrial parks also became more attractive, as they allow hedging from energy price volatility and the risks of supply disruption. 42 (p See Snapshot: South Africa, in the Industry module.)

Renewable energy shares in all demand sectors saw record growth in 2022 as energy users looked for affordable and secure energy sources.

In the transport sector, energy costs increased for vehicle owners, freight operators and public transport services. 43 In Europe, the energy bills for most public transport operators doubled in 2022.44 However, a few operators that had signed PPAs in previous years benefited from the stabilising effect that these agreements had on energy costs. 45

As the electrification of road transport continued, 2022 was another record year for spending on electric vehicles and associated charging infrastructure, with investment in these areas rising 54%. 46 Most of this growth was in Asia, with India doubling its electric vehicle spending during the year.47 Asia is home to 93 of the world’s 100 most polluted cities and 6 of the top 10 countries most affected by climate risks, making electric vehicles an appealing option.48 Several Asian countries have adopted bans on vehicles with internal combustion engines, including the Republic of Korea (target year 2025), India (2030), China and Japan (2035) and the Philippines (a new ban in 2022 with a target of 2040). 49

In agriculture, the trend has been towards self-reliance and additional income generation, with agrivoltaics, geothermal and bioenergy taking growing shares of the sector’s total final energy consumption. 50 In Africa, Asia, and the Caribbean, decentralised renewables have become a go-to solution in agriculture to boost energy access, reduce fuel costs and save energy. 51 Advancements range from technological developments in fishing vessels, gear and operations to the use of renewables in food production and for affordable cooling and refrigeration. 52 (p See Snapshot: India, in the Agriculture module.) Solar water pumps have helped farmers boost productivity, with the Asia-Pacific region dominating this market.53

Electrification and Other Trends

Renewable energy shares increased in all four demand sectors in 2020, to reach 16.8% of energy consumption in industry, 15.5% each in buildings and agriculture, and 4.1% in transport. 54 However, overall energy use in these sectors has risen as well, with this growth still largely met by fossil fuels. 55 (p See Figure 1.) While total final energy consumption grew 16% overall during 2010-2020, it grew 18% in the transport sector, followed by agriculture (16%), industry (9%) and buildings (8%). 56

At the same time, the rising share of electricity in the total final energy consumption of end-use sectors has enabled the higher integration of renewables. 57 (p See Figure 1.) The electrification of end-uses grew from a 15.3% share in 2010 to 17.7% in 2020. 58 Agriculture is the most electrified sector, at 26.7%, followed by industry (25.3%) and buildings (23.6%), with transport trailing well behind (only 1.4%). However, total electricity demand is still outpacing renewable electricity supply. In the last decade (2010-2020), 60% of the increase in electricity demand was met by modern renewables. 59

The rising intensity and frequency of heatwaves presents additional challenges to rapid electrification. 60 Both India and China suffered significant heatwaves in the summer of 2022 that led to spikes in electricity demand, resulting in weeks-long blackouts and forcing some industries to cut production. 61 Cooling is set to become a top driver of electricity demand in the coming years, especially in light of more-frequent heatwaves and rising household incomes in emerging economies.62 Three countries – Barbados, Cambodia and Nigeria – published National Cooling Action Plans in 2022, bringing to 14 the total number of countries with such plans.63

Number of Countries with Renewable Energy Regulatory Policies and Mandates, by Demand Sector, 2012- 2022

Note: Poland announced a plan for a Social Contract for the Mining Industry in 2022, setting out a specific timetable for discontinuing hard coal mining at each production unit by the end of 2049. This policy is not in force yet and is included in the figure. The figure does not show all policy types in use. In many cases, countries have enacted additional fiscal incentives or public finance mechanisms to support renewables. A country is considered to have a policy (and is counted a single time) when it has at least one national-level policy in place. Policies for renewables in buildings apply for power, heating and cooling, or transport (for example, installing solar panels on parking structures or vehicle charging infrastructure in new buildings). Other policies for buildings include mandates for water heating or renewable energy technology installation. Building types for which policies apply are residential, commercial and public facilities. Fossil fuel bans in buildings are excluded from this figure. Policies for renewables in transport include biofuel mandates (biodiesel, ethanol, undspecified and advanced biofuels) for road transport, aviation, rail and shipping. For more information, see Reference Tables R1-R4 in the GSR 2023 Data Pack.

Source: See endnote 23 for this module.

BUILDINGS IN FOCUS

Module Overview | Policy | Investment | Market Developments | Challenges & Opportunities

MODULE OVERVIEW

Energy use in buildings accounted for around 30% of global final energy consumption in 2021, or around 132 exajoules (EJ). 1 As such, buildings contribute greatly to greenhouse gas emissions. Burning fossil fuels directlyi for heat in buildings – including fossil gas in boilers, and oil and coal in furnaces – generated 8% of energy-related carbon dioxide (CO2) emissions in 2021. 2 Meanwhile, indirectly producing the electricity and heat used to provide hot water and thermal comfort, and to power appliances MARKET DEVELOPMENTSand other devices in buildings, contributed 19% of emissions. 3 Together, these direct and indirect emissions grew 2% between 2019 and 2021. 4 Energy use in buildings also results in local air pollution, with the residential sector releasing more than a third of all emissions of particulate matter 2.5.5

CHALLENGES AND OPPORTUNITIESThe use of renewable electricity in buildings is provided mainly through the power grid, but a growing number of buildings are powered using on-site systems, including rooftop solar photovoltaics (PV). Renewable heat for space and water heating and for cooking can be provided by on-site renewable energy systems such as solar thermal or by district energy networks or renewable electricity.

Around 75% of the final energy consumed in buildings, and the associated emissions, are related to space and water heating. 6 The remaining 25% is electricity used to power appliances, lighting and other electricity-based services (excluding heating and cooling). 7

In 2021, the demand for space cooling increased 6.5% over 2020 levels, representing the largest growth in demand among end-uses. 8 Electricity use grew from 30% of the total energy use in buildings in 2011 to 35% in 2021.9

In 2020, renewables provided around

15.5 % of the energy used in buildings.

Modern renewables provided around 15.5% of

the energy used in the world’s buildings in 2020, up from 11.1% in 2010. 10 (p See Figure 3.) However, the share of renewables in buildings has grown more slowly than the renewable energy share overall. For example, the share of renewables in total electricity generation worldwide increased at an annual rate of 0.8% between 2010 and 2021 (rising from 19.5% to 28.2%), yet the share of renewables used in buildings increased only 0.4% annually. 11

Energy consumption in buildings varies greatly around the world, including among the top ten energy-consuming countries. 12 (p See Figure 4.) In 2021, energy consumption in buildings rebounded above 2019 levels, following a drop in 2020 related to COVID-19 restrictions. 13 The countries with the highest renewable shares in buildings in 2021 were Brazil (where

FIGURE 3. Renewable Share of Total Final Energy Consumption in Buildings, 2010, 2019 and 2020

FIGURE 4. Energy Consumption in Buildings by Major Country/Region, 2020 bioenergy is used for heating and cooking, and hydropower supplies large shares of electricity) and Canada (which relies heavily on electricity for heating and also has a high share of hydropower). 14 France, Italy and Germany also had above-average renewable shares in buildings, due mainly to reliance on biomass for heat and, to a lesser extent, on (renewable) electricity. 15 The lowest shares of renewables in buildings (less than 5% each) in the top ten consuming countries were in India, the Russian Federation and the Republic of Korea.16

Energy Consumption in Buildings (EJ)

Source: IEA. See endnote 12 for this module.

Not all buildings or occupants have reliable access to energy. As of 2020, around 733 million people worldwide still lacked access to electricity, mainly in Sub-Saharan Africa and Southeast Asia. 17 Meanwhile, around 2.4 billion people were without access to clean fuels or modern cooking technologies. 18 To provide heat or cook meals, many households in developing and emerging countries continue to burn wood, charcoal or processed oil in simple, inefficient devices, contributing to indoor air pollution. In the wake of the COVID-19 pandemic and the recent rise in energy prices, the number of people without access to energy has likely increased, leading residents in countries such as Brazil to resort to fuelwood instead of cleaner-burning alternatives for heating and cooking. 19

In general, increasing the uptake of renewables for heating and cooling applications in buildings is more challenging than deploying renewables for electricity. 20 In 2021, fossil fuels contributed nearly two-thirds of the energy used to heat buildings, a share only slightly lower than in 2011. 21 (p See Figure 5.) A key barrier to the expansion of renewables has been the rise in the direct use of fossil gas for heating, which grew 17% from 2011 to 2021, due largely to its affordability and to a supply boom in the United States; by 2021, fossil gas contributed more than 40% of the total energy used to heat buildings globally. 22

The direct use of modern bioenergy to heat buildings – for example, through solid biomass pellets or briquettes, or gaseous fuels such as biogas and biomethane – is the largest end-use of renewables in buildings. Heat from bioenergy also can be produced centrally – such as at a combined heat-and-power plant – and distributed through a district heating network. The use of bioenergy for heating remained relatively stable during 2011- 2021, although it was expected to increase in 2022 because of a fossil gas shortfall. 23 Modern bioenergy accounts for slightly less than half (42%) of the total energy consumption for heating and cooling that is derived from modern renewable sources.24

Electricity is supplying a growing share of heat in the world’s buildings, estimated at 14% of total heating needs in 2021.25 As renewables contribute a larger share of the world’s electricity overall, the contribution of renewable electric heating has risen in turn. When electricity is used to power heat pumps (for either heating or cooling), these devices harness ambient energy – typically from the outside air, but also from ground and water sources. Global use of ambient energy from heat pumps grew 26% between 2011 and 2021, providing around 4% of heating in buildings in 2021. 26

Solar and geothermal heat supply a small but rising share of buildings’ heating needs. Overall, district heating meets 7% of heating needs in buildings, with renewables contributing a growing share of district heat. 27 Total heat consumption from district systems increased 12% between 2011 and 2021, while the renewable share of heat in district systems grew 68%.28

Improving the energy efficiency of building envelopes can help renewables meet a higher share of heating loads. More rapid progress can be made if each unit of heat from renewable energy does not need to directly replace the same unit of heat from fossil fuels. Despite efforts to improve efficiency, energy demand in buildings has continued to rise – up 4% in 2021 following the pandemic-related slowdown, and up 2% overall between 2019 and 2021.29

苏 FIGURE 5. Energy Consumption for Heating in Buildings, by Source, 2011 and 2021

Source: See endnote 21 for this module.

Investment in energy efficiencyi grew 15% in 2021 to USD 211 billion, suggesting that consumers may be turning their attention towards reducing energy demand. 30 Governments have sought to legislate improved efficiency as well. (p See Investment section.) By 2021, more than 80% of the final energy use from air conditioners occurred in countries that had adopted minimum energy performance standards, up from two-thirds in 2010.31

As more households and businesses turned to renewables in 2022, a key driver was favourable economics. High fossil fuel prices, spurred in part by the Russian invasion of Ukraine (p see Snapshot: Europe), made technologies such as rooftop solar PV and heat pumps more cost effective. 32 In 2022, record demand for renewables saved the European Union (EU) billions of euros in fossil gas imports that likely would have driven household energy prices even higher. 33 The overall declines in the costs of solar and wind power – notwithstanding slight increases in 2022 due to higher commodity prices – have further driven investment in renewable power plants (now the least-cost option in many countries) and in household renewable energy solutions. 34

Government policy also was a key driver of renewables in buildings in 2022. Government targets and regulation, as well as growing policy support to reduce energy costs, have bolstered consumer interest in renewables, particularly distributed solar PV. 35 Concerns about climate change and local air pollution have similarly encouraged consumers to adopt renewable technologies.

Spurred by these drivers, more countries have sought to increase the uptake of renewables in heating and cooling for buildings. In 2021, Chile and the United Kingdom released national heating strategies, and in 2022 Ireland released a national heat study targeting a net zero heating sector and laying out the options available to reach it. 36 The Netherlands also announced plans to phase out fossil gas from its heating supply. 37 In an effort to include equity considerations in policy design, some measures seek to ensure that low-income households benefit the most from revised heating policies and avoid bearing the cost burden, particularly during times of high energy prices. 38

POLICY

Policy action to boost the uptake of renewable heating and cooling in buildings typically takes the form of either national target-setting – such as pursuing a defined share of renewable INVESTMENT heating and cooling by a certain date – or specific support policies, such as financial incentives or regulatory policies. By the end of 2022, 80 national and sub-national jurisdictions had in place renewable energy regulatory (43 jurisdictions) or fiscal/financial MARKET DEVELOPMENTS (57 jurisdictions) policies for buildings. 19 jurisdictions had both.

Globally, only a few overarching targets exist for the use of renewables in buildings, and/or for renewables to supply a rising share of heating and cooling needs. The EU’s Renewable Energy CHALLENGES AND OPPORTUNITIES Directive sets an indicative target for Member States to increase the share of renewables in heating and cooling (of which buildings is a large share) by 1.1% annually by 2030, or 1.3% when waste heat is involved. 39 In late 2022, the European Parliament suggested raising this share to 2.5%.40

An increasing number of countries have technology-based targets for renewables in buildings. In addition to the EU’s regional heat pump target, several individual European countries, such as Germany, Ireland, and the United Kingdom, have announced national targets for annual heat pump installations that are up to 10 times greater than the annual installations completed in 2021. 41 In April 2022, China’s Building Energy Efficiency and Green Building Development Plan entered into force, targeting more than 50 gigawatts (GW) of solar PV on buildings and geothermal heat coverage of 100 million square metres. 42

The spread of net zero emission pledges around the world has the potential to accelerate the uptake of renewables in buildings. However, recent pledges have not necessarily been transformed into actionable policy, nor have they resulted in a decrease in fossil fuel investment in the countries making them. 43

Many countries have provided financial incentives for renewables in buildings. The most common form of support is subsidies, but incentives also include tax credits, rebates and loans. During 2022, 17 national and sub-national jurisdictions – mainly in Europe but also in Australia, India, Japan and the United States – introduced new financial support policies for renewables in buildings, bringing the total number of countries and sub-national jurisdictions offering such support to 57.44

In Europe, France removed financial support for fossil gas boilers and increased its funding for renewable heating solutions by EUR 1,000 (USD 1,067) per application. 45 Germany earmarked EUR 3 billion (USD 3.2 billion) to expand its district heating and cooling sector and transition it to renewables, funding up to 40% of the cost of new grids that rely on at least 75% renewable energy. 46 Spain made available around EUR 660 million (USD 705 million) for installing renewable heating and cooling systems and energy storage systems in residential buildings, as well as EUR 100 million (USD 107 million) for renewable district heating and cooling networks – Spain’s first explicit subsidy for that technology. 47

Strategies to Phase Out Russian Fossil Gas in European Buildings via Renewables

The Russian Federation’s invasion of Ukraine in early 2022 and the coinciding European energy crisis turned the region’s attention to the role of fossil gas. The EU has depended

heavily on Russian gas imports, which supplied around 40% of regional gas demand in 2021 (155 out of the 389 billion cubic metres consumed). These imports dropped dramatically in 2022: in July and August, the EU imported nearly 70% less Russian gas than during the same period in 2021.

Fossil gas contributes nearly 40% of the energy used for space heating in European buildings and accounts for around 33% of the region’s total energy use. In response to the events in Ukraine, in May 2022 the European Commission announced the REPowerEU plan to “rapidly reduce our dependence on Russian fossil fuels by fastforwarding the clean transition”. The plan targets reducing the EU’s fossil gas use by 124 billion cubic metres by 2030.

To achieve this goal, REPowerEU recommends increasing the EU-wide renewable energy target to 45% of total final energy consumption by 2030 (up from 38%) and boosting the energy savings target to 13% (up from 9%). It also includes measures that could further swap fossil gas demand in buildings for renewables: doubling the deployment rate of heat pumps, doubling the deployment of solar PV (more than 320 GW, by 2025) and proposing a solar rooftop obligation for some types of buildings. Although REPowerEU is not law, it has fed into ongoing negotiations between the European Parliament and Council updating some key directives.

Another key policy plank for phasing out fossil gas is the Energy Performance in Buildings Directive (EPBD), the EU’s main lever for renovating and decarbonising buildings. The policies proposed in the EPBD are intended to double the annual renovation rate of buildings. However, there are concerns that the proposed changes to the EPBD may fall short of the depth and rate required to reach the EU’s 2030 climate targets.

Source: See endnote 32 for this module.

The United Kingdom launched a programme that provides GBP 450 million (USD 543 million), or up to GBP 5,000 (USD 6,029) per installation, to replace fossil heating systems with heat pumps. 48 Denmark also increased its available subsidies for heat pumps and solar thermal. 49 The European Bank for Reconstruction and Development provided EUR 65 million (USD 69 million) to build solar district heating systems in Pristina, Kosovo.50

In the United States, the Inflation Reduction Act of 2022 allocated USD 4.5 billion in rebates for electric appliances (including heat pumps), USD 4.3 billion for home energy efficiency rebates and a 30% investment tax credit for purchases of ground-source heat pumps and of residential and commercial solar. 51 Uttar Pradesh, India announced rebates to farmers and citizens of up to 100% for distributed solar deployment.52

In some cases, the financial incentives vary based on household income, providing extra benefits for low-income homeowners. Within the US Inflation Reduction Act, the High Efficiency Electric Home Rebate Act offers point-of-sale rebates for electrification projects – including purchases of heat pumps – and lowincome households can be reimbursed for 100% of the project costs (up to USD 14,000).53 In Poland, subsidies for renewable heating solutions vary based on household income.54 France’s MaPrimeRénov programme provides funding for renewable heat installations and energy efficiency measures, with amounts increasing for lower-income households.55

Regulations can have a great impact on how renewable energy is used in buildings. Regulatory policies include those that mandate clean technology deployment, restrict the use of fossil fuels, and set standards for building performance or mandatory electrification. At least 21 national (and 22 sub-national) jurisdictions had such regulations by the end of 2022. 56 (p See Figure 6.)

China introduced its first binding national energy efficiency standard that promotes the use of renewables in buildings, aiming for an 8% share by 2025 – up from around 4% in 2020, excluding biomass. 57 (p See Snapshot: China.) The country’s 2022 Work Plan on Energy Saving and Environment Protection in Government and Public Buildings requires installing heat pumps to meet the heating needs of 2 million square metres of public and government buildings. 58

FIGURE 6. Regulatory Policies in Buildings, by Building Type, as of End-2022

Notes: In 2021, 67 countries had mandatory building energy codes at the national level. This number has not been updated in 2022. Policies also exist for Industrial buildings. By the end of 2022, nine countries (China, Indonesia, Japan, Morocco, New Zealand, Philippines, the Slovak Republic, Spain and Türkiye) had regulatory policies for industrial buildings. For more information, see the Industry in Focus module. Source: See endnote 56 for this module.

Decarbonising Buildings With Renewables

Energy use in buildings is responsible for 21% of China’s energy-related CO2 emissions. Indirect emissions from the burning of fossil fuels to produce electricity and heat make up most of this, but on-site fuel combustion is responsible for around 600 megatonnes of CO2 emissions per year, or around 6% of China’s energy-related emissions.

China faces various challenges in decarbonising its buildings, including a lack of public awareness and of a sufficient workforce to install and maintain renewable heating and cooling technologies. Additionally, China’s Renewable Energy Law does not recognise the ambient heat provided by heat pumps as a “renewable” resource. Energy tariffs also do not encourage electrification, as coal and gas retain an economic advantage.

As China’s population has urbanised, great differences remain between rural and urban areas. In rural areas, coalfired stoves supply around 42% of heating in households. In urban settings, however, district energy networks supply more than 85% of space heating. These are based largely on fossil fuels, with around 72% of district heating alone provided by coal, in the form of coal boilers and combined heat-and-power plants.

In 2017, China launched a campaign to phase out coal and gas in its predominantly rural northern provinces. The goal was to use “clean sources” to supply 70% of the region’s heating needs by 2021 (a share of 65% was achieved by 2020, based on the latest data available) and to install heat pumps to cover 500 million square metres. China provided up to CNY 1 billion (USD 140 million) to each of 62 pilot cities to replace coal boilers with cleaner alternatives, and some jurisdictions, such as Beijing, set mandatory solar thermal ordinances.

Going forward, China’s 14th Five-Year Building Energy Efficiency and Green Building Development Plan aims to rapidly increase the deployment of renewables in buildings. As the country’s first binding national energy efficiency standard, the plan applies to all new buildings. It targets at least 350 million square metres of energy-saving renovation and stipulates that on-site renewables provide 8% of the energy demand in urban buildings. The law provides a strong incentive for electrification, especially of new buildings, by requiring that the share of electricity in buildings’ energy demand should exceed 55% by 2025. China also plans to install 50 GW of solar PV on all new public buildings and factories by 2025 and to install heat pumps for 2 million square metres of public and government buildings.

Germany’s coalition agreement laid out an obligation, expected to apply in January 2024, that all new heating systems must run on 65% renewable energy, effectively ruling out the use of standalone oil furnaces and gas boilers. 59 The Netherlands, which in 2018 prohibited the connection of new buildings to the gas grid, announced additional measures in 2022 to make heat pumps mandatory for all new buildings as of 2022 and to ban all fossil heating by 2026.60

As of February 2023, at least 100 US jurisdictions (covering 11 states) had introduced binding ordinances for zero-emission buildings. 61 Although most measures target new construction, some also include renovations and equipment replacement, as in cities in California, Utah and Washington state.62 Overall, around 31 million people in the United States live in a jurisdiction with a building electrification policy. 63 California has banned the sale of fossil gas heating systems by 2030, and a programme in New York state provides more than USD 500 million for electrifying space and water heating. 64 However, backlash to such measures has resulted in more than 20 US states – covering around 30% of the country’s gas demand in buildings – prohibiting efforts to ban fossil gas use. 65

Obligations to install rooftop solar PV on buildings also have proliferated. The REPowerEU proposal includes an obligation to install rooftop solar on every public building by 2025. 66 In 2022, the US state of California introduced a solar-plus-storage mandate that all new buildings that are required to install solar must also have a battery storage system. 67 The state also rolled out a new community solar subscription model. 68 However, California has struggled to reform its net metering policies, after dropping a proposal to charge owners of rooftop PV a monthly fee. 69 Likewise, Nova Scotia, Canada scrapped a plan to charge a monthly fee to building owners who sell solar electricity back to the grid. 70

Building energy codes are another regulatory lever to increase the penetration of renewables. By reducing the energy intensity of buildings, such codes can enable higher shares of renewable energy use. Additionally, building energy codes increasingly mandate the deployment of renewables. However, as of 2022 only 80 countries had building energy codes (up from 79 in 2021), most of which were voluntary. 71 As of late 2022, only 40% of countries had mandatory building energy codes. 72 China’s new buildings law, which includes the country’s first binding national energy efficiency standard, sets new construction standards for green buildings that apply to all new buildings; it also targets at least 250 million square metres of energy-saving renovation. 73

South Africa has mandated that all new buildings be designed and constructed to be net zero energy by 2030; Kenya has a similar mandate for 2035 and Nigeria for 2050. 74 India’s 2022 energy conservation act applies its mandatory building energy code to residential buildings. 75 Japan initiated a programme that gradually increases mandatory performance standards for buildings. 76 In the United States, the California Building Energy Code, updated in 2022, includes requirements to install demand response technologies for heating systems to enable their automated control.77

INVESTMENT

Data on investment in renewables specifically in the buildings sector are limited, both for power and for heat. However, assuming that the buildings sector consumed around half of all power generated worldwide in 2022, then roughly USD 244.8 billion of the global new investment in renewable power capacity that year would have gone to buildings. 78

Influenced in large part by the Russian Federation’s invasion of CHALLENGES AND OPPORTUNITIES Ukraine and by the transition away from Russian gas, European investment in heat pumps rose sharply in 2022, particularly in Austria, Finland, Germany, Italy, the Netherlands and Poland. 79 Globally, heat pump investments increased 9.6% during the year, to USD 64.3 billion, with the strongest market growth in Europe, Japan and the United States. 80 Many US consumers were drawn to heat pumps to alleviate higher utility bills related to inflation. 81

Investments also occurred in renewable-fed district heating systems for buildings. In Groningen, the Netherlands, a “special purpose vehicle” comprising the project developer, an investor and a turnkey provider of the solar field invested EUR 23 million (USD 25 million) in the world’s fourth largest solar district heating plant.82 In Markham, Canada, a CAD 270 million (USD 199 million) investment was dedicated to expanding the city’s low-carbon district energy system.83 Germany announced a EUR 3 billion (USD 3.2 billion) programme to finance the construction of heating networks supplied by at least 75% renewable or waste heat, as well as the decarbonisation of existing networks, to further reduce CO2 emissions and the country’s dependence on Russian energy. 84

Although markets for solar thermal technologies (including solar water and space heating in buildings) remained broadly stable during 2021-2022, rising inflation and interest rates affected investments in some regions. 85 In Europe, some energy utilities and energy-intensive industries faced higher energy costs, which led many companies to put on hold new investment decisions.86

Investment in energy efficiency in buildings surged in 2021 but was expected to slow in 2022 due to higher construction, material and financing costs as well as lower spending in emerging and developing markets. 87 European countries, the United States and China have dominated energy efficiency investment in recent years, reflecting the recovery of construction investment in Western Europe and ongoing construction growth in China, Germany and the United States. 88 Energy efficiency investment

in Southeast Asia and Africa has struggled due to pandemic-related disruptions to construction as well as limited public programmes for investment.89

As of late 2022, only 40% of countries had mandatory building energy codes.

MARKET DEVELOPMENTS

Markets for renewable energy technologies in buildings have been on the upswing, due largely to favourable economics, supportive CHALLENGES AND OPPORTUNITIESgovernment policy and the need to address climate change. The use of on-site and community-generated renewable electricity, as well as markets for renewable heating and cooling technologies (especially heat pumps), grew strongly during 2021 and 2022.

Distributed solar PV supplied electricity to around 25 million households worldwide in 2021. 90 Distributed solar accounted for nearly half of the global solar market that year, its highest share since 2012.91 (Centralised solar PV generation overtook distributed generation in 2015 and has since accounted for the majority of PV installations worldwide, at 56%, a share that has remained roughly stable.92) Of the estimated 78 GW of distributed solar PV installed in 2021, around 60% was residential and 40% commercial. 93

Europe had the highest regional share of distributed solar PV in 2021, but China, with its overall market lead, was the world’s top installer. 94 China also was one of the few top markets to install more distributed solar PV (29 GW) than centralised solar PV (26 GW), joined by Germany (3.75 GW versus 2 GW), Australia (3.2 GW versus 1.7 GW) and Japan (3.6 GW versus 3.0 GW). 95 Countries that installed more utility-scale plants than distributed capacity included the United States (20 GW centralised versus 6.6 GW distributed) and India (11.6 GW versus 2 GW).96 Rooftop solar also picked up in nascent markets such as Israel and Jordan. 97

Global technology companies have launched several projects to use waste heat from data centres for district heating and other purposes. For example, the waste heat from an Amazon data centre in Dublin (Ireland) is heating local homes and offices; Microsoft launched a similar project in Helsinki (Finland) in early 2022; and an Interxion data centre aims to provide heat to a hospital in Vienna (Austria).98

Heating for space and water is the largest energy use in buildings and the one most heavily based on fossil fuels. In 2022, markets for many renewable heating and cooling technologies grew in response to the energy crisis.

The use of bioenergy to provide heating services is the largest renewable energy end-use in buildings. Much of this comes from the traditional use of biomassi , which increased from 24.3 EJ in 2019 to 24.5 EJ in 2021.99 Europe consumes more than threequarters of the world’s biomass pellets, many of them imported from the United States and Canada. 100 Sales of biomass stoves surged in Europe during 2022, notably in Germany, and wood pellets in Europe and the United States faced a supply crunch as more households turned to biomass heat. 101 China also is an emerging market for biomass heat.102

Solar heat provided around 10.5% of modern renewable heating consumption in 2021.103 In 2021, the global market for solar collectors grew 3% to reach a cumulative 522 gigawatts-thermal, continuing its rebound from a 2019 low. 104 China’s solar heat market, the world’s largest, grew modestly during 2021, and strong growth also occurred in Brazil, Greece, India, Italy, Poland and the United States. 105 In Africa, a solar thermal project in Namibia provides water heating to at least 58 social housing residences, and southern African countries such as Botswana, Lesotho, Namibia, South Africa and Zimbabwe have published roadmaps on the potential to increase solar thermal uptake.106 The European solar thermal industry struggled in 2022 due to the aftershocks of the COVID-19 pandemic and the war in Ukraine.107

Solar heat increasingly provides space heating through largescale installations and district heating networks. In 2021, 44 new large-scale solar heat systems came online – mainly in China and Europe but also in Mexico (3 systems) – and growth continued in 2022 with the start of construction of a solar district heating plant in the Netherlands, among other projects. 108 The use of hybrid solar PV-thermal (PVT) panels grew 13% in 2021, with more than 6,000 systems brought online for a total capacity of 751 megawatts-thermal (MWth).109

i The traditional use of biomass includes the burning of woody biomass or charcoal, as well as dung and other agricultural residues, in simple and inefficient devices to provide energy for residential cooking and heating in developing and emerging economies.

Wood pellets in Europe and the United States faced a
supply crunch in 2022 as more
households turned to
biomass heat.

Direct use of geothermal heat also provides space and water heating services. Around 39% of geothermal direct use is for space heating. 110 In total, the global installed geothermal heating capacity grew around 9% annually from 2014 to 2019. 111 The world leaders in geothermal direct use for heating and cooling are China, the United States, Sweden, Türkiye and Japan; on a per capita basis, the leaders are Iceland, Sweden, Finland and Norway. 112

During 2022, China launched geothermal heating services covering millions of households in more than 60 cities and counties.113 In the United States, construction started on New York City’s largest district heating and cooling system; work progressed on projects in Massachusetts and Texas; and the Department of Energy announced a USD 13 million fund to develop geothermal district heat. 114 In total, the United States has 23 geothermal district heating systems, with the first installed in 1892.115 Canada allotted CAD 1.3 million (USD 960,000) to develop geothermal heat projects in Nova Scotia. 116

In Europe, 13 new geothermal district heating and cooling projects were brought online in 2021, providing more than 154 MWth of new capacity. 117 Three-quarters of this growth was in France, Poland and Iceland. 118 During 2022, more than 20 projects were in development, including in these three countries. 119 The first geothermal district heating plant in Vienna (Austria) also was given the green light. 120

Policies that support building electrification continued to boost markets for electric heat technologies, notably electric heat pumps. Heat pump markets set growth records in many countries in 2022, including in the EU and the United States. 121 Year-on-year growth over the first half of the year exceeded 10% in six countries: Italy (up 114%), the Netherlands (100%), Poland (96%), Finland (80%), Germany (25%) and Norway (11%). 122 The US market grew 7.3% in the first half of 2022 compared to the same period in 2021.123

Influenced by the war in Ukraine and by REPowerEU, several heat pump manufacturers announced or made significant investments in production facilities during the year. Viessmann plans to spend EUR 1 billion (USD 1,067 million) over three years; Daikin announced a EUR 1.2 billion (USD 1,281 million) investment in heat pump manufacturing to 2025 in Europe, aiming to triple its manufacturing capacity; and Bosch, Panasonic and many other manufacturers made similar announcements. 124

District heating networks met a rising share of heating demand in buildings in 2022. The use of renewable energy in district heating grew from 0.4 EJ in 2011 to 0.6 EJ in 2021. 125 Overall, the share of renewables in district heating systems grew from 4.1% to an estimated 5.6% during the decade. 126 Most district heating activity is in Europe, although much of this entails converting existing networks to renewable sources (biomass, solar and geothermal heat, and large-scale heat pumps), rather than building new networks.127 More projects are integrating waste heat into district networks, such as in the Netherlands and Sweden. 128 In a novel example in Finland, ambient heat from the Baltic Sea is fed into a district heat network to heat homes in place of coal and fossil gas. 129

Markets for cooling technologies are changing quickly. Globally, 1.2 billion people are at risk due to lack of access to cooling, and demand for air conditioning and other cooling services has been the fastest growing energy use in buildings. 130 The average efficiency of cooling appliances has been increasing, helping to mitigate the growth in electricity demand from cooling. 131 However, the most efficient models have not necessarily had the highest uptake. 132 Examples of renewable cooling applications in 2022 included the drilling of the first wells for a geothermal cooling system in India and plans for geothermal cooling in Bali, Indonesia.133

CHALLENGES

R Because many heating systems are standalone units (e.g., individual fossil gas boilers or oil furnaces), replacing them would require significant investment, time and workforce, especially in the case of multi-dwelling housing such as large apartment buildings.

R Implementing renewable-based district heating systems requires high upfront investment, which is often not feasible for residents without government support and incentives.

R The number of engineers and installers

currently available to replace household energy systems with new systems is insufficient to meet the workforce levels needed to achieve climate goals.

RModern “clean cooking” still depends largely on the use of traditional bioenergy and fossil gas fuels, and applications of electrified technologies are limited mostly to developed countries.

RIncumbent fossil fuel companies continue to invest heavily in public relations campaigns designed to slow the transition to renewables in buildings.

OPPORTUNITIES

R The use of renewables in buildings would help reduce heating and other energy costs – especially for low-income households – and limit the vulnerability of households to fossil fuel price swings.

R Greater electrification of buildings would contribute to demand response and system flexibility, helping to achieve higher levels of renewable energy integration.

R In regions with high levels of new construction, designing efficient and renewable heating systems (and buildings) would help to avoid costly renovations or upgrades at a later stage.

R In regions with high shares of existing building stock, there is an opportunity to greatly improve the efficiency of these buildings and to lower energy bills for consumers.

R Leapfrogging via renewables is a way to provide energy access to those currently without access to modern energy sources.

R New business models (such as heat-as-aservice) provide an opportunity for consumers to avoid upfront expenses associated with changing their heating systems.

Industry had 16.8 %the highest share of renewables in final energy use in 2020, at 16.8% of industry TFECModern biomass 8.2% represented of industry TFEC in 2020Pulp & paper and food & tobacco had the 32highest shares of modern renewables in 2020

ountH2 es had

for renewabSeven

countries had industry roadmaps or recovery plans for renewable hydrogen by end-2022

policies by end-19 2022countries had renewable energy mandates or fiscal/financial policies for industry by end-2022

Note: TFEC = Total final energy consumption.

INDUSTRY IN FOCUS

Module Overview

Investment

Policy

Market Developments

Challenges & Opportunities

MODULE OVERVIEW

Industrial enterprises generate around a quarter of the world’s gross domestic product and employment. 1 Industry is also the largest energy-consuming sector, accounting for 33% of global total final energy consumption in 2021.2 Despite the impacts of the COVID-19 pandemic, energy use in industry grew 9% between 2010 and 2020, due mainly to rising demand for industrial goods, particularly in energy-intensive sectors.3 Two key industries – iron and steel and chemicals – together accounted for nearly a third (32%) of industrial MARKET DEVELOPMENTSenergy demand in 2020, while food and tobacco, pulp and paper, and mining consumed around 5% each. 4 Industrial activity produced around 9.4 gigatonnes of carbon dioxide (CO2) in 2021, or roughly a quarter of global emissions. 5 Around 70% of emissions came from three sectors: cement and concrete, iron and steel, and chemicals CHALLand petrochemicals.6

Since 2010, the energy mix of the industry sector has remained relatively stable, with a heavy reliance on fossil fuels. However, the share of fossil fuel use fell from 87% in 2010 to 83% in 2020, (p see Figure 7) due mainly to the ongoing electrification of industrial heat coupled with renewable electricity use, which grew 80% during the decade. 7 The direct use of renewables for process heat accounted for less than 9% of industrial energy use in 2020, with modern bioenergy supplying most of this (8%) followed by solar and geothermal heat (less than 0.1%). 8 Bioenergy use is most common in biomass-based industries that generate energy from their own waste: for example, in the pulp and paper industry 43% of the total final energy consumption in 2021 was bioenergy (mainly black liquor from pulping). 9

Following the Russian Federation’s invasion of Ukraine in early 2022, energy prices in Europe and elsewhere skyrocketed. 10 In this context, companies have increased their interest in energy efficiency and the use of renewables as a way to cut energy costs

In 2020, the direct use of renewables for process heat accounted for

less than 9% of industrial energy use.

and increase the security of supply. 11 In developing countries and for industries located in remote areas, such as mining, the need for secure, reliable and affordable energy is a key driver of the uptake of renewables.

FIGURE 7. Renewable Share of Total Final Energy Consumption in Industry, 2010, 2019 and 2020

Note: Modern bioenergy includes heat supplied by district energy networks.
Source: See endnote 7 for this module.

More companies are announcing net zero commitmentsi, both to maintain a positive corporate image and in response to rising pressure from regulators, such as through the European Union (EU) Taxonomy, the United Kingdom’s mandatory climate disclosures and the US Biden administration’s comprehensive climate plan.12 Although most companies still lack concrete and credible action strategies, some industrial firms have committed to shifting to 100% renewables and to reducing the energy demand of their production processes via heat recovery and materials recycling. 13

In the cement sector, solutions have included reducing the clinkerto-cement ratioii and using waste as an alternative fueliii; other industries are using heat pumps to capture and reuse waste heat. 14 In 2022, the French manufacturer Saint Gobain was able to produce the world’s first zero-carbon glass by using biogas and 100% recycled glass.15 Renewable hydrogen, created using renewable electricity, also advanced during 2021-2022 and is considered key to decarbonising energy-intensive sectors. 16

Policies related to industry typically have not included renewable energy requirements, reflecting the very diverse energy needs of industrial sectors (for heating, electricity, etc.); however, someINVESTMENT progress has been made on energy efficiency and energy management. Policies supporting renewable heat often mention industrial uses, and many carbon pricing mechanisms encourage the use of renewables in large industry sectors. RenewableMARKET DEVELOPMENTS hydrogen also has gained policy attention. Other factors driving industrial policies and regulations related to renewables include the ongoing energy crisis, concerns about energy security, growing net zero commitments by countries and companies, and the emergence of the hydrogen economy. 17 However, a lack of robust national-level data has hindered the mapping of energy needs in the industry sector and the design of effective policies on renewables.

In 2022, no new jurisdictions adopted regulatory policies for renewables in industry, and only one country, Poland, announced plans for a new renewable energy mandate for industry, for the mining sector. 18 In addition, the EU’s REPowerEU plan (yet to be approved as of the time of writing) set a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of hydrogen imports by 2030 for heavy industries, and also includes a target for renewable energy use in industry. 19 This brings the total number of countries with road maps that include hydrogen in the industry sector to 10, five of which (Australia, Brazil, South Africa, Spain and Sweden) are for renewable hydrogen. 20

The REPowerEU plan also mentions the electrification of industrial processes and the use of alternative bio-based or renewable inputs, along with energy efficiency, waste valorisation and circular use of materials. 21 In addition, it aims to expand the EU’s manufacturing capacity for clean energy technology, including through industrial alliances such as the Solar industrial Alliance to push the solar panel manufacturing sector, and the Biomethane Industrial Partnership.22

Financial incentives remain the most common policy support for promoting the use renewables in industry, with 12 countries having such policies by the end of 2022. Overall, no new policies for renewables in industry have been announced since 2019. As of the end of 2022, a total of 19 countries had renewable energy mandates and/or fiscal/financial policies for industry; only 9 countries had renewable energy mandates that enforce the installation of renewables, and 2 countries (Spain and Türkiye) had both regulatory and fiscal/financial incentives.23

The most common financing framework for renewables in the

industry sector is direct contracting through power purchase agreements (PPAs) or environmental attribute certificates. However, national utilities have been reluctant to support industry’s transition to independent electricity sources, and in countries where the grid is

The Inflation Reduction Act is a key US policy for industry that allots USD 370 billion to energy and climate change.

unreliable, fossil fuel back-up systems remain the norm.24 The lack of enabling policies for renewable energy captive markets has pushed the private sector to be innovative with business models, such as lease-to-own solar parks. 25

The momentum towards net zero carbon emissions continues to drive policies. As of November 2022, a total of 140 countries, representing 90% of global emissions, had committed to net zero pathways; this was up from 130 countries representing 70% of emissions in May 2021.26 As governments and industries look to renewables as a potential solution for mitigating emissions, countries have begun bridging the silos between renewable energy policies and industry policies.

A key US policy advancement in the industry sector in 2022 was the adoption of the Inflation Reduction Act, which allots USD 370 billion (out of a total USD 433 billion) to energy and climate change, putting the United States on track to reach its 2050 emission reduction target. 27 The law highlights domestic manufacturing of both renewable energy technologies and electric vehicles and infrastructure. 28 For energy-intensive industries such as steel and cement, two aspects of the law are noteworthy: 1) clean electricity tax credits are technology-neutral and include energy storage and green hydrogen starting in 2025, and 2) the credits will be in place for at least a decade, giving industrial users ample time and confidence to develop renewable supply options for their own energy needs. 29

South Africa’s Just Energy Transition Investment Plan 2023-2027 mentions decarbonising the industry sector through increased investment in renewable power.30 It also highlights renewable hydrogen as a way to decarbonise hard-to-abate sectors (such as transport, petrochemicals, iron and steel, and cement) as well as the automotive industry and Special Development Zones (industrial parks). 31

During the United Nations climate talks in Egypt in November 2022, several policy announcements supported the uptake of renewables in industry; for example, India introduced a mandatory green hydrogen purchase obligation for industrial users. 32 The previous month, at the Group of Twenty (G20) meetings in Indonesia, the International Renewable Energy Agency and industry leaders established the Alliance for Industry Decarbonization to encourage wider industry adoption of renewables. 33

In the area of renewable hydrogen, Egypt announced a new National Hydrogen Strategy in 2022 that includes building the infrastructure to support industrial users of both conventional and renewable hydrogen. 34 Also during the year, South Africa published its Hydrogen Society Roadmap, which focuses on renewable hydrogen, including large projects aimed at industrial users, such as the Boegoebaai Green Hydrogen development in the Northern Cape. 35 However, most industry leaders globally continue to consider both fossil-based and renewable hydrogen in the push towards net zero emissions.36

So far, only a few policies have focused on the use of land for industrial renewable energy projects. This includes, for example, developing industrial clusters where diverse industries share energy generation processes; industrial parks or special economic zones; and industry community renewable energy. 37 Chile launched a plan in 2022 to facilitate renewable hydrogen concessions on public lands to meet the needs of the mining industry. 38

Although no comprehensive datasets cover investment in renewables in the industry sector, several examples exist of key industrial investments in solar thermal, geothermal heat and renewable hydrogen technologies.

The chemical manufacturing, mining, and pulp and paper industries, in particular, have invested in solar industrial heat. 39 Projects over the past decade included a solar-powered steam boiler for chemicalCHALLENGES AND OPPORTUNITIES evaporation and distillation in Tianjin, China; a solar thermal project to dry pigments in Vellore, India; and the use of a solar thermal collector to heat water for cleaning processes in Maharashtra, India. 40 In the mining industry, the Hellenic Copper Mine in Cyprus invested in a solar thermal system to heat a process medium, and a mine in Durango, Mexico invested in a system to heat make-up water. 41 In Kingsey Falls, Canada, a concentrating solar power plant was built to provide hot water for industrial processes in the pulp and paper industry. 42

In Germany, recent investments have supported the expansion of geothermal heat for paper drying in the pulp and paper industry, with support from the EU and the state of North Rhine Westphalia.43 In New Zealand, an AUD 15 million (USD 10.2 million) investment, funded in part by the Government Investment in Decarbonising Industry Fund, aims to establish the world’s first tissue machine running a fully geothermal steam drying process. 44

Since 2020, a surge of announcements have been made reporting investment in net zero technologies in the steel industry, some of which include the use of renewables. 45 Investing in decarbonised steel neither lowers costs nor increases product quality, so the primary motivation often is the opportunity to capture incipient markets for “green steel” and to avoid stranded assets in anticipation of more stringent climate policies. 46 In 2021, the Swedish company H2 Green Steel allocated an initial USD 3 billion for a plant that will use renewable hydrogen for steel production starting in 2024. 47 In addition, the new Financing Steel Decarbonization instrument aims to mobilise private finance for low-carbon technologies to decarbonise steel, including through renewables and renewable hydrogen. 48

Although many industries, such as the pulp and paper and cement industries, use biomass to generate heat, few specific data are available on industrial investments in biomass projects.49

Eco-industrial parks are becoming more attractive for investors as they offer better cost competitiveness and risk resiliency.

Most of the energy used in industry (around 75%) is for process heat, with the rest going to electrical operations (such as cooling and powering motors) and non-process activities (such as lighting). 50

A key trend is electrification via renewables, which is generally easier to achieve for industrial processes that require low- or medium-temperature heat (below 400 degrees Celsius, °C). Renewable electrification occurs mainly in the food and beverage, transport equipment, machinery, and pulp and paper industries, although it has great potential in chemicals, pharmaceuticals and textiles, notably through the installation of heat pumps. 51 Industries with higher temperature requirements for process heat – such as cement, chemicals, and iron and steel – are harder to electrify; however, the use of electric arc furnaces in steelmaking now represents around 25% of global production.52

In parallel, many industries that already use high shares of electricity in their operations are switching to renewable electricity supply. Steel and cement companies, driven by net zero commitments, are increasingly using PPAs to procure renewable power for their operations.53 In 2022, the steel manufacturer ArcelorMittal invested in wind and solar plants in Argentina and India, and German steelmakers such as the GMH Group and Salzgitter signed PPAs with renewable providers to power their electric arc furnaces.54 Cement manufacturers that signed renewable PPAs included Cemex in Spain, Suez Cement in Egypt, Opterra in Germany and Lafarge in Hungary.55 In the chemical sector, the global manufacturer BASF committed to PPAs at various European and US locations. 56 In addition, mining companies have developed decentralised renewable energy projects in Australia, Madagascar and Mali that provide reliable and affordable energy for both mine sites and local communities.57

Globally, the number of eco-industrial parks has grown rapidly, with the aim of creating resource-efficient industrial parks that are more competitive, risk-resilient and attractive for investment.58 By integrating processes within a cluster – such as generating low-cost renewable power and heat on-site – industries can share energy and material streams. 59 Vietnam’s Decree 35 relies on policies and incentives to boost the eco-transition of local industrial parks to attract global manufacturers.60 In 2022, four industrial clusters in Belgium, the Netherlands and the US states of Ohio and Texas joined the World Economic Forum’s “Transitioning Industrial Clusters Towards Net Zero” initiative.61 Eco-industrial parks also are being developed in Colombia, Egypt, Indonesia, Peru, South Africa, Ukraine and Vietnam, with support from the United Nations Industrial Development Organization (UNIDO). 62 (p See Snapshot: South Africa.)

Because of a lack of financing, the adoption of renewable electricity by small and medium-sized industries represents a largely untapped solution area for low-carbon industrialisation, particularly in developing countries. 63 (p See Snapshot: Pakistan.) However, in some countries smaller-scale businesses have been able to access co-financing for energy efficiency and self-consumption of renewables. Chile expanded its pilot programme “Put your energy to your SME” in 2021, and France’s new climate action loan supports the energy transition of small and medium-sized businesses.64

In general, the uptake of renewables and electrification in industry varies greatly depending on the specific sub-sector and on the processes and technologies being used. 65 (p See Figure 8.)

FIGURE 8. Renewable Energy Share and Electrification Rates in Selected Industry Sub-Sectors, 2020

Source: See endnote 65 for this module.

Clustering Development to Meet Energy Demand and Decarbonisation Commitments

Mpumalanga province in eastern South Africa is using a cluster development model to

encourage the growth of renewable energy manufacturing. The regional economy depends heavily on coal exploitation, accounting for around 80% of South Africa’s coal production and hosting most of the country’s coalfired power plants and coal mining activities. Mpumalanga also is rich in wind and solar resourcesi , with a combined grid capacity of 6,520 megawatts (MW). These assets make the province an ideal location for large-scale renewable energy projects that take advantage of former coal mining sites and the existing transmission infrastructure.

In May 2022, the Mpumalanga Department of Economic Development and Tourism, in collaboration with GreenCape, UKPACT and Germany’s technical co-operation agency GIZ, launched the Mpumalanga Green Cluster Agency, an independent entity that seeks to overcome investment barriers and unlock new economic opportunities, including in renewables.  The Green Cluster aligns with recent policies and legislation aimed at decarbonising South Africa’s economy, such as the national Renewable Energy Masterplan, which envisions opportunities to develop renewable manufacturing value in key regions like Mpumalanga.

In July 2022, South Africa removed the 100 MW cap on self-generation of electricity without a licence. As a result, energy-intensive users such as industrial and mining companies can now generate or buy electricity from independent power producers on a larger scale. Mining companies already have committed to developing 4 gigawatts (GW) of renewables nationally, and as of July they had registered 73 self-generation projects totalling 295 MW.  In Mpumalanga, the market is expected to grow to around 2 GW by 2030.

Additionally, South Africa’s state-owned utility Eskom is set to decommission up to 11 GW of coal-fired generation by 2030. This presents an opportunity to re-purpose and re-power coal plants and adjacent land. Eskom issued tenders in April 2022 to lease land for renewable energy projects, and in June the utility announced that it had selected 18 companies to lease 4,000 hectares to develop renewable projects totalling 1.8 GW.

The use of modern solid bioenergy in industry increased 46% between 2011 and 2021, rising from 8.2 exajoules (EJ) to 12.0 EJ. 66 However, the share of this bioenergy use relative to total final energy consumption increased by only 15%. 67 Driven by net zero commitments, various pulp and paper companies adopted bioenergy during 2022. For example, South Africa’s Sappi replaced coal boilers with biomass, Finno-Swedish Stora Enso announced the replacement of fuel oil with renewable pitch oil, and Finland’s Metsä invested in biomass electricity generation to help achieve its 2030 fossil-free energy target. 68

Examples of biogas use in industry are found mainly in the food sector, where several leading manufacturers operate anaerobic digestion facilities to generate heat and electricity for factories. 69 In 2022, Danone (France) committed to increase its use of biogas (as well as solar and biomass) as part of its decarbonisation plan, and in 2021 both Unilever (UK) and Starbucks (US) joined the US Biogas Alliance. 70

The use of biomass as an industry feedstock remains limited. In 2021, global production of biomass-based plastic accounted for less than 1% of global plastic production. 71 Bio-based chemicals such as methanoli could be used as key substitutes for oil in decarbonising the chemical industry. 72

Solar thermal can be an efficient means of providing zerocarbon heat and a cost-effective alternative to the electrification of heat. Although solar thermal has been used mainly for lowtemperature applications, new designs serve applications with temperature requirements of up to 400°C.73 However, high initial capital costs and low deployment rates have limited uptake, even in sectors with significant technical and economic potential, such as textiles and food.74 As of 2022, there were an estimated 136 solar heat projects in industry, most of them in the food and beverage sector, including large-scale projects at malting plants in Croatia, France and Spain.75 A recent technical development is the commercialisation of a versatile solar hot water solution capable of generating high operating temperatures, including for industrial heating processes. 76

High-temperature geothermal energy can be used to generate electricity or a combination of heat and power. 77 Direct geothermal use accounted for only 1.6% of the total thermal energy use in industry in 2019, mainly in mining and food manufacturing. 78 Barriers to wider application include resource availability and high upfront costs.79 The International Geothermal Association has sought to scale direct industrial applications in the agri-food sector in South America and the Caribbean.80 In Europe, the oil, gas and chemicals company OMV started two geothermal projects in 2022: one in Austria using heat as a direct carrier and one in Germany for electricity generation. 81 In the United States, a research programme aims to replace diesel fuel with geothermal to power mining operations, particularly in remote areas.82 Meanwhile, start-ups in the United Kingdom are developing technologies to extract lithium using geothermal waters, to replace the energy-intensive extraction practice of heating seawater brine to high temperatures; two pilot sites were expected by spring 2023.83

Heat pumps are an energy-efficient alternative to traditional heating and cooling systems and a key technology for electrifying industry. 84 The growing focus on efficiency, combined with the recent rise in fossil gas prices (especially in Europe), could drive market uptake among the three main industrial users of heat pumps: the pulp and paper, food and beverage, and chemicals sectors. 85 However, technical barriers and high initial costs continue to impede more generalised use.86

As of 2022, commercial trials of heat pumps operating at 160°C were ongoing, with prototypes also available for heat pumps to achieve 200°C.87 In the context of the EU-funded PUSH2HEAT project, launched in October 2022, technologies for processes of 90°C to 160°C will be demonstrated at four industrial sites in the food, paper and chemicals sub-sectors, with the aim of increasing the deployment of heat pump technologies for heat upgrade. 88 On the demand side, interest is rising in heat pumps that have additional performance and energy-saving features, such as re-using low-temperature waste heat (for example, from refrigeration processes). 89

Renewable hydrogen is being discussed mainly in the context of decarbonising energy-intensive processes, in particular in petrochemicals and steelmaking. Despite growing momentum for renewable hydrogen, applications remain limited due to high production costs and the need for related infrastructure.90 In 2022, two Important Projects of Common European Interest were approved in the context of REPowerEU, aiming to integrate green hydrogen into industrial steel, cement and glass processes. 91 Producing high-value-added products such as renewable ammonia (or steel) for domestic production or for export to the EU is seen as a way to sustainably industrialise countries and boost renewable hydrogen uptake in Africa, particularly in South Africa and other members of the Africa Green Hydrogen Alliance (Egypt, Kenya, Mauritania, Morocco and Namibia).92

Making Progress in Decarbonising Industry with Renewables

Pakistan, which experienced devastating floods in 2022, faces an urgent need to decarbonise its industry sector and mitigate the risks of climate change. The country aims to halve its emissions by 2030 while also expanding energy access. A quarter of the population, mainly in rural areas, still lacks access to electricity. In 2022, several renewable energy initiatives were undertaken to promote economic development while developing local industry. For example, the Nationally Appropriate Mitigation Actions (NAMA) facility provided funding and advisory support to help small and medium-sized businesses invest in energy efficiency and renewables in the textile industry, which is Pakistan’s largest industrial employer and contributes around 6% of national greenhouse gas emissions. In the sugar industry, the EU supported a programme to help sugar mills produce their own electricity from sugarcane bagasse and feed surplus power to the grid.

In addition, UNIDO has provided small businesses and micro-enterprises in Pakistan with interest-free loans to procure and install renewables. Under this scheme, the country added 1.3 MW of solar photovoltaics (PV) in 2022, generating 1,825 megawatt-hours of electricity per year. The solar power enabled businesses to improve their productivity and increase incomes 25% on average, while reducing their vulnerability to power outages and eliminating more than 827 tonnes of CO2 emissions annually. In addition, the UK government, through the Climate Finance Accelerator, announced a programme to install 150 MW of distributed solar PV at commercial and industrial sites under a pay-as-you-go model.

Source: See endnote 63 for this chapter.

Steelmaking using renewable hydrogen has experienced strong momentum globally, with more than 70 projects under development and 10 new projects announced in 2022.93 Major European manufacturers such as ArcelorMittal and ThyssenKrupp have developed at least 19 pilot and large- scale projects in Europe, including in France, Germany, the Netherlands, Spain and Sweden. 94 In China, which produces over half the world’s steel, hydrogen-based projects are being developed in Hebei, Guangdong and Inner Mongolia. 95 Tangshan city announced a plan in 2022 to become a hydrogen productionMODULE OVERVIEW MOD hub and to support local steelmakers in using hydrogenbased direct-reduced iron (DRI).96 Most of the hydrogen will be produced using coke oven gas, but solar power plants will also be built to produce renewable hydrogen. 97 Overall, however,POLICY POLI hydrogen-run DRI plants remain limited. 98 A key factor impeding the conversion to DRI plants in Asia is the relatively young age of the conventional equipment in steel plants, which makes it INVESTMENT financially difficult to justify their conversion.99

The production of ammonia – a key product in the fertiliser and chemical industries – using renewable hydrogen is still in the early stages of development and commercialisation, and further efforts are needed to improve its cost efficiency and scalability. 100 Around 54 projects exist currently, notably in Australia, Mauritania and Oman, although projects also have been announced in Latin America, particularly in Chile, which is rich in wind and solar energy. 101 The first renewable hydrogenbased ammonia plant became operational in 2021 in Spain, while the first gigawatt-scale renewable ammonia plant is being E OVERVIEW built in Saudi Arabia and set to begin operations in 2025.102 In 2022, the Zero Carbon Certification Scheme pre-certified Yara International’s green ammonia plant in Western Australia in recognition of the company’s commitment to using energy from on-site solar PV.103

CHALLENGES AND OPPORTUNITIES

for the Uptake of Renewables in Industry

CHALLENGES

R Although several renewable heat technologies for low-to-medium temperature processes are on the market, fossil fuel-based heating technologies generally remain more cost effective, hindering the adoption of renewable solutions.

R Renewable technologies for decarbonising high-temperature industrial processes remain limited, and further technological development is needed.

R Many industry sectors are capital intensive, with long-lived capital assets. Switching to renewable technologies is expensive due to the long lifetimes of industrial equipment and plants.

Tailoring policy to the needs and characteristics of different industries is challenging, as the heterogeneity among sub-sectors, including in energy use and intensity, impedes having a comprehensive policy.

OPPORTUNITIES

R The potential for using industrial heat pumps in low-temperature heat applications is high; this has the advantage of both reducing costs through energy efficiency and providing lowcarbon energy.

R Renewable hydrogen can be used in many energy-intensive industries, where it is challenging to use 100% renewable technologies.

R Small and medium-sized businesses have significant untapped potential for uptake of renewables, while simultaneously increasing their competitiveness through cost savings and improved sustainability practices.

R Investments in decarbonised steel, which may include the use of renewables, are driven by the wish to capture opportunities in incipient green steel markets and to avoid stranded assets in anticipation of more stringent climate policies.

6 countries and sub-national jurisdictions announced or up dated renewable targets for transport in 2022

Road In 2022, total transportinvestment in electric transport was equivalent to 80% of the total investment in renewable energy

11Transport is the Maritime transfastest growing energy-consuming sector, at an average rate of

2 % per year

10 countries and sub-national jurisdictions reduced or suspended their biofuel blending mandates in 2022

Investment in electric vehicles and charging infrastructure was up 54%

TRANSPORT IN FOCUS

Module Overview | Policy | Investment | Market Developments | Challenges & Opportunities

MODULE OVERVIEW

Over the past century, global economic growth has been tightly linked with the transport sector, coinciding with the surge and expansion of globalisation. Modern transport has enabled exponential growth in the connections between producers and INVESTMENTconsumers, and between people and opportunities. In 2021, the transport sector contributed an estimated 7% of the global gross domestic product – some USD 6.8 trillion – and employed 5.6% of the workforce, or 193 million people. 1

The transport sector consumed 113.4 exajoules (EJ) of energy in 2021, representing around a third of the total energy demand for end-uses. 2 Transport energy demand increased 7.8% during the year but was still 6.6% below pre-pandemic levels. 3 This was CHALLENGES AND OPPORTUNITIESdue mostly to a 7.7% decline in transport-related oil consumption between 2019 and 2021, even as demand rose for electricity, biofuels and fossil gas. 4

Road transport consumed the vast majority of transport-related energy (nearly 78%) in 2021, followed by marine transport (11%) and aviation (8%), whereas rail transport consumed far less (3%). 5 Energy use in road transport is dominated by passenger travel, primarily in light-duty vehicles. Passenger aviation represented nearly 7% of the transport sector’s total energy consumption in 2021, five times more than air transport for freight. 6 In the railway sector, however, freight transport consumed four times more energy than passenger rail. 7

Transport has the lowest penetration of renewable energy among the main end-use sectors (buildings, industry and agriculture).

The transport sector
contributes
USD 6.8 trillion of global GDP and
employs 5.6% of the
workforce.

FIGURE 9. Renewable Share of Total Final Energy Consumption in Transport, 2010, 2019 and 2020

Source: See endnote 8 for this module.

In 2020, the transport sector continued to rely heavily on fossil fuels, dominated by oil (90%) and also including fossil gas (nearly 5%). 8 (p See Figure 9.) Renewables accounted for only 4.1% of the sector’s total energy consumption, comprising 3.6% biofuels and 0.4% renewable electricity. 9

Although the demand for biofuels in transport fell in 2020, due mainly to the COVID-19 pandemic, it increased again in 2021 (by 7.8%) to surpass pre-pandemic levels by 2.5%. 10 The use of renewable electricity in transport also grew, rising 7.1% in 2021 and exceeding pre-pandemic levels by 11.9%. 11

Transport continues to contribute greatly to greenhouse gas emissions. 12 Between 2009 and the start of the COVID-19 pandemic (2019), emissions from aviation and road transport were growing at average annual rates of around 4% and 2%, respectively. 13 By 2021, emissions from road transport nearly resumed their 2019 level, while aviation emissions were still 31.7% below the pre-pandemic peak. 14

Overall, the transport sector released 7.7 gigatonnes (Gt) of carbon dioxide (CO2) emissions in 2021, or around 20% of the global total. 15 Transport-related emissions were up 7.8% relative to 2020 but still 7.2 percentage points below pre-pandemic levels. 16 Road transport alone released more than three-quarters of transport emissions in 2021 (76.6%, or 5.9 Gt of CO2), followed by marine transport (11%) and aviation (9.2%). 17

Passenger road transport, aviation and trucks are the leastefficient modes of transport, using around 2,000 kilojoules of energy per passenger-kilometre or tonne-kilometre carried.18 During 2000-2019, the energy intensity of freight road transport increased 11%, indicating reduced efficiency, whereas the energy intensity of cars and airplanes declined, reflecting improvements in efficiency. 19

A common lens for addressing efficiency in transport is the “avoid-shift-improve” framework, which focuses on boosting the efficiency of: 1) the transport sector as a whole (by “avoiding” traveling where possible), 2) individual trips (by “shifting” transport modes) and 3) vehicles (by “improving” technologies). 20 For example, as the demand for energy grows, public policy and land management strategies can help reduce the need for motorised transport, especially in urban areas. 21 In addition, incentives and investments can shift users towards less energy-intensive modes such as cycling, walking and rail. 22 Finally, improving vehicle technologies and increasing the share of renewables is critical to reducing both energy use and emissions, thus enabling large efficiency gains.

Policies to encourage the use of renewable energy in the transport sector include targets, incentives and mandates aimed at increasing the use of biofuels and at boosting vehicleINVESTMENT electrification through the integration of renewables. The global momentum towards net zero emission pathways also has driven policy change in the transport sector, although with a stronger focus on decarbonisation than on the penetration of renewables.23MARKET DEVELOPMENTS

During 2022, no new national targets for renewable energy shares were adopted in the transport sector, however, a few countries revised their targets. Two countries raised their targets for the share of renewables in transport by 2030: CHALLENGES AND OPPORTUNITIES Portugal from 20% to 29%, and the Netherlands from 14% to 28%. 24 In contrast, Italy revised its target downward from 22% to 16%. 25 At the city level, Curitiba (Brazil) set a target to power 100% of passenger transport with renewables by 2050. 26 In the United States, King County (Washington state) committed to achieving a zero-emission public transport fleet by 2040. 27

Road Transport

The global energy crisis resulting from the war in Ukraine, as well as high fuel prices at the pump, have motivated policy makers to enact more low-carbon policies for road transport. 28 Although biofuels have been a key focus for decades, the number of new biofuel policies has flattened in recent years. Meanwhile, policies targeting the electrification of road transport have received growing interest. However, incentives for electric vehicles do not necessarily lead to greater renewable energy uptake unless they are aligned specifically with efforts to increase renewables in the electricity mix.

Biofuel blending mandates remain the most common policy for advancing renewable fuels in transport. As of the end of 2022, a total of 56 countries and 30 sub-national jurisdictions had in place biofuel blending mandates (p see Figure 10); this was down from 65 countries in 2021, due to temporary suspensions of mandates in some countries.29

Some countries updated their policies. Four countries – Argentina, India, Indonesia and the Republic of Korea – increased their biofuel mandates or targets in 2022. To reduce reliance on oil imports, India amended its national biofuel policy by increasing the ethanol blend in petrol to 20% by 2025-2026 (five years ahead of schedule) and allowing for additional feedstocks in biofuel production. 30 The Republic of Korea raised its biofuel blend mandate for road transport from 3% to 3.5%, and in the United States the Environmental Protection Agency proposed updating the national renewable fuel policy to mandate higher volumes.31

During 2022, 10 national and sub-national jurisdictions either temporarily reduced their biofuel blending mandates (Brazil, Colombia, Finland, Mexico and Thailand) or suspended them (Czech Republic, Latvia, Peru, Zimbabwe and the US state of

New Mexico).32 In some cases, countries scaled back their mandates

4 countries

because of rising prices for vegetable oil. Brazil’s National Energy Policy Council opted to extend the existing mandate of 10% for a longer time period, rather than increasing it. 33

Momentum for the electrification of vehicles is growing, with support policies ranging from tax incentives and stimulus packages to specific targets for electric vehicles. By the end of 2022, a total of 23 national and 17 sub-national jurisdictions had 100% bans on internal combustion engine vehicles. 34 (p See Figure 11.)

Early in the year, Thailand rolled out a set of exemptions or reductions of import duty and excise tax, as well as conditional subsidies, for imported electric vehicles; these measures build on the target set in 2021 to produce domestically 250,000 electric vehicles, 3,000 electric public buses, and 53,000 electric motorcycles by 2025, and 1.2 million electric vehicles by 2036. 35 In the Philippines, the Electric Vehicle Industry Development Act entered into law, offering fiscal incentives for the manufacture of electric vehicles. 36 The US Environmental Protection Agency amended its renewable fuel policy to include, for the first time, a pathway for electric vehicle manufacturers.37

As support for COVID-19 stimulus packages continued in 2022, some countries provided ongoing incentives for electric vehicle purchases. France and Germany, among others, now offer consumers an environmental bonus for buying an electric vehicle, often financed through a tax collected on the sale of internal combustion engine vehicles. 38 A few countries revised down their vehicle electrification targets. For example, Germany adjusted its initial target of having 15 million exclusively battery electric vehicles on the road by 2030, so that it also includes plug-in hybrids.39

Source: See endnote 34 for this module.

Policies for charging infrastructure also gained attention during the year. The US Department of Transportation proposed standards for a National Electric Vehicle Charging Network that includes using renewable electricity for charging. 40 In France, new legislation makes it mandatory for parking lots that have 80 spots or more to install solar photovoltaic (PV) systems for electric vehicle charging within three to five years. 41

Hydrogen production for road transport is seen as suitable for use in heavy-duty vehicles that drive long distances. India launched a Green Hydrogen and Green Ammonia Policy in February 2022 and also announced a National Hydrogen Mission, with specific mention of the transport sector.42

Bans on internal combustion engine vehicles provide indirect policy support for renewables. In 2022, 17 new and revised electric vehicle targets and policies were announced, covering 16 countries and 1 sub-national jurisdiction (the US state of Minnesota), with 6 of the countries (Canada, Chile, Chinese Taipei, Mexico, New Zealand and the Philippines) announcing 100% bans on internal combustion engine vehicles by a specified year. 43 Chile and New Zealand also have targets for 100% renewable power (across all sectors). 44 The European Union (EU) approved a ban on the sale of all new petrol and diesel cars from 2035.45

Aviation, Rail and Shipping

Despite growing efforts to incorporate renewables into aviation, rail and shipping – such as by using biofuels in aviation and developing electric and hydrogen-powered trains – policies supporting these initiatives remain nascent and face significant challenges. The use of renewables also has been limited by the heavy reliance on fossil fuels in these sectors. In some cases, policies have impeded the development of low-carbon alternatives: for example, the EU continues to provide tax exemptions for kerosene fuel used in aviation.46

In 2022, there was growing emphasis on policies supporting sustainable aviation fuel, or SAF, defined as fuels produced from sustainable feedstocks that have similar properties to conventional aviation fuel. With more countries and airlines committing to net zero emissions, SAF is increasingly seen as the way forward for decarbonising aviation. 47

The EU and the United States have led the way in SAF policies. In December 2022, the EU's the ReFuelEU Aviation package of legislative proposals includes a blending mandate for aviation fuel suppliers starting in 2025. 48 The United States adopted legislation in August that includes a two-year blender tax credit and a two-year production tax credit for SAF, along with a grant programme of USD 290 million. 49 Subsequently, the US Department of Energy issued the SAF grand challenge roadmap, which details the country’s strategy to reach its SAF targets. 50

Denmark announced plans to make all domestic flights fossil fuel-free by 2030 and is considering a range of technological options to achieve this, including synthetic paraffin, battery-electric and fuel cell-electric aircraft. 51 In a similar push to reduce emissions, France banned all short-haul flights if there is an existing rail alternative of less than 2.5 hours’ duration.52 Concurrently, the French national railway company signed a 25-year power purchase agreement (PPA) to secure enough solar PV power to cover 3.6% of its annual energy use; this brings to seven the total number of solar PPAs the company has signed in recent years. 53 The rail company is aiming for a 40-50% renewable energy mix by 2026. 54

In the shipping sector, several green shipping corridors – where zero-emission solutions are in place along key maritime trade routes – were announced in 2022. These include the Los Angeles-Long Beach-Singapore Green and Digital Shipping Corridor, the Republic of Korea-US Green Corridor, the Rotterdam-Singapore Green Corridor and, notably, the Shanghai-Los Angeles corridor. 55 (p See Snapshot: US-China.) These are among several worldwide initiatives and commitments made in the shipping industry following the signing of the Clydebank Declaration (on the establishment of green shipping corridors) at the United Nations climate conference in Glasgow, Scotland in 2021.56

World's First Trans-Pacific Green Shipping Corridor Between Los Angeles and Shanghai

In 2022, the Port of Los Angeles in the United States and the Port of Shanghai in

China announced a strategic partnership to create a green transport corridor to reduce

emissions from one of the world’s busiest container shipping routes. The alliance aims to phase

in low-carbon fuels in order to achieve zero-carbon container ships by 2030. It was facilitated by the C40 Cities Climate Leadership Group and involves authorities from both cities as well as industry partners, including shipping companies and a network of cargo owners.

This alliance represents a step forward in promoting long-term decarbonisation solutions for shipping. The shipping sector is responsible for up to 3% of global greenhouse gas emissions, and emissions from the sector are expected to double by 2050. In 2020, an estimated 21% of the total of 31.2 million containers moved by ship across the Pacific Ocean travelled along the Trans-Pacific corridor. Introducing low- and zero-carbon fuel ships on this busy transport route can potentially reduce a large share of the sector’s emissions.

In addition to phasing in low- and ultra-low-carbon fuel ships in the 2020s and operating the first zero-carbon container ships by 2030, the Los Angeles and Shanghai Green Shipping Corridor Association aims to develop best management practices to improve the efficiency of all ships that use the corridor and to reduce emissions from the port operations supply chain to improve air quality.

Source: See endnote 55 for this module.

INVESTMENT

Global investment in biofuelsi reached an all-time high in 2021 then fell slightly in 2022, to USD 5.84 billion. 57 Biofuel investment has been hampered by rising prices and declining demand, dueMARKET DEVELOPMENTS in part to disruptions related to the COVID-19 pandemic, rising energy efficiency, surging electric vehicle sales, behavioural change and suspensions in biofuel mandates.58 However, investor interest has increased in Brazil, a leading biofuel-producing country, due to higher ethanol prices and the possibility of merging or acquiring struggling smaller companies to harness the country’s idle capacity. 59

A growing number of refineries that produce renewable diesel, also known as hydrotreated vegetable oil or HVO, received investment in recent years, particularly in the US states of California and Oregon.60 In 2022, Phillips 66 announced a USD 850 million investment to convert its crude oil refinery in Rodeo, California to one that processes renewable diesel, biofuels and SAF.61 Two state-level policies – the California Low Carbon Fuel Standard and Oregon’s Clean Fuel Program – have fuelled this US growth.62 Also in 2022, Brazil Biofuels announced a BRL 2.2 billion (USD 410 million) investment in a biorefinery that will use palm oil harvested in the Amazon regioni to produce HVO, with support from the Banco Nacional de Desenbvolvimento Economico e Social (BNDES). 63

Global investment in electric vehicles and related charging infrastructure surged 53.6% in 2022 to reach USD 466.1 billion. The largest investment was in China, totaling USD 234 billion, followed by the United States with USD 57 billion.64 (p See Figure 12.) This rapid growth reflects a mix of policy support for electrification in core auto markets, improvements in battery technologies, the expansion of charging infrastructure and new compelling vehicle models from automakers.65 The investment surge occurred despite a sharp increase in the prices of electric vehicle batteries due to higher raw material and component costs and soaring inflation.66

Investment in SAF, although in the early stages, also attracted growing attention, driven by net zero commitments and related policy support for the aviation industry. Neste, one of the world’s largest SAF producers, issued its first seven-year green bond in 2021, allocating EUR 16 million (USD 17 million) for a refinery in

Rotterdam (Netherlands) and EUR 278 million (USD 297 million) for one in Singapore. 67 In 2022, Saudi Arabia’s Alfanar Group announced that it would invest USD 1.3 billion in a project in Teesside (United Kingdom) that would eventually produce 180 million litres

Investment in biofuels

fell slightly in 2022 to USD 5.84 billion, after reaching an all-time high in 2021.

of SAF. 68 Airlines also are investing in more novel technologies and feedstocksii, either on their own or as a part of an airline alliance.69

Finance for electric aircraft is also on the rise, although it is comparatively nascent. In 2021, United Airlines announced the purchase of 100 electric planes. 70 In 2022, Air Canada announced the purchase of 30 electric aircraft, plus a USD 5 million equity stake in the manufacturer Heart Aerospace.71

In the rail sector, investments in renewables have focused mainly on electric-based systems. In 2022, the Austrian Federal Railway (ÖBB) announced a EUR 1 billion (USD 1.07 billion) investment in hydropower, wind power and solar PV projects to supplement its existing renewable energy systems. 72

Although some efforts are under way to push renewable options in the shipping sector (for example, wind-powered vessels), investment has been hampered by the lock-in of investment in existing, fossil fuel-based shipping fleets. 73

i This project conforms with the Brazilian law stating that palm oil can only be cultivated in areas that were deforested before 2007; however, environmentalists have criticised the investment and describe oil palm as a proven predatory crop that leads to enormous biodiversity loss. See endnote 63 for this module. ii Gasification Fischer-Tropsch and other processes that use biomass, landfill waste and ethanol-to-jet are emerging as alternatives.

MARKET DEVELOPMENTS

The transport sector moves an estimated 60 trillion passengerkilometres of people and nearly 150 trillion tonne-kilometres of CHALLENGES AND OPPORTUNITIESfreight annually. 74 These volumes are expected to more than double by 2050. 75 Asia (in particular China) is the main driver of transport demand for both passengers and freight, followed by North America and Europe. 76 Transport demand in sub-Saharan Africa is expected to increase sharply, with passenger-kilometres rising from around 2 trillion in 2015 to 10 trillion in 2050, and freight tonne-kilometres rising from around 1 trillion in 2015 to more than 3 trillion in 2050.77

Transport accounted for around 29% of global energy use in 2020, and in most countries it is either the first or second largest energy-consuming sector.78 The Asia-Pacific region and North America together accounted for more than half of all transport energy use in 2022. 79 The United States consumed an estimated 23.3 EJ, followed by China (15.2 EJ) and India (4.4 EJ). 80 The Asia-Pacific region experienced the highest average annual growth in transport energy demand between 2011 and 2019, at 4.7%, driven largely by India and China (where growth exceeded 6%).81 Africa and Latin America and the Caribbean had the lowest demand, although Africa witnessed the second highest growth, at 3.7%.82

The Asia-Pacific region also has the fastest growing use of renewables in transport, with demand increasing 13.9% annually on average between 2010 and 2019. 83 (p See Figure 13.) In 2019, the leading countries in Asia were Indonesia (around 0.17 EJ of renewables) and China (around 0.12 EJ). 84 The United States, the largest consumer of renewables for transport, represented around 40% of global demand, or 1.6 EJ. 85 The second largest consumer was Brazil, with 0.9 EJ, while in Europe, three countries – France, Germany and Spain – together accounted for 44% of the regional consumption.86

Road transport contributes nearly a fifth of global CO2 emissions, with automobiles, vans and two- and three-wheelers together accounting for 68% of that share. 87 By using existing data on the production, sale and use of these light-duty vehicles, it is possible to approximate the evolution of energy use in transport and the overall targets to be pursued.

Globally, nearly 60 million new cars were sold in 2022. 88 The Asia-Pacific region led the market with a 61% share, followed by Europe at 25%. 89 By country, China sold the largest share of new cars worldwide (38%, or more than 21 million) in 2021 (latest data available), followed by Japan, the United States, India and Germany, at between 4% and 6% each.90

The highest rates of vehicle ownership are in the United States, New Zealand, Canada, Australia, Japan and European countries, at between 600 and 900 vehicles per 1,000 inhabitants, suggesting that as countries develop, vehicle ownership worldwide will only

FIGURE 13. Renewables in Transport, by Region, 2010-2019

Source: See endnote 83 for this module.

Asia-Pacific has the fastest growing use of renewables in transport, with a 13.9 % annual increase between 2010 and 2019.

continue to rise. 91 This points to the need to target more policy and investment at delivering accessible, good-quality public transport infrastructure and services to help decouple economic growth and vehicle ownership and reduce emissions.

Biofuels account for around 90% of the renewable energy use in transport, with average annual growth of 5% between 2010 and 2020. 92 Biofuel consumption fell 4% in 2020 but is expected to grow significantly in the coming decade (potentially four-fold, by some estimates). 93 Much of this rise will likely be driven by blending mandates and regulations that increase the share of biofuels in blends.

Transport fuels produced from advanced biomass feedstocks provide a short-term option towards decarbonising aviation and maritime transport as well as heavy-duty trucks and public buses.94 (p See Snapshot: Spain.) The EU’s ReFuelEU Aviation initiative proposes raising the required share of SAF used in flights departing from the EU to 2% in 2025 and 63% in 2050, which could accelerate changes globally. 95 More ambitious targets could be set in the future, following successful test flights in 2022 of commercial aircraft running entirely on SAF, resulting in life-cycle emission reductions of 80%.96

Renewable electricity accounts for 10% of the renewable energy used in transport, with average annual growth of 7% between 2010 and 2020. 97 Overall electricity demand in the sector grew at an average rate of 3.6% per year. 98 In 2020, despite the slowdown in electricity use in transport (down 3% compared to 2019), the demand for renewable electricity in the sector grew 5.4%.99

Electric cars accounted for 15-18% of all new automobiles sold in 2022, reflecting the steep sales growth in recent years. 100 China alone registered around half of the estimated 10 million electric vehicles sold globally in 2022. 101 In just a five-year period, electric car sales grew 10-fold in China and 18-fold in the Republic of Korea. 102 In Europe, around 17% of all automobile sales were electric in 2022, with this share reaching 86% in Norway. 103 In Germany, the electric car fleet grew nearly 30-fold between 2016 and 2021, at an average annual rate of 109%. 104

Although electric vehicle sales have focused mainly on light-duty passenger vehicles, annual sales of electric buses are projected to triple by 2025, and electric trucks to grow 13-fold, to reach a combined 468,000 units. 105 By the end of 2022, the number of electric two- and three-wheelers exceeded an estimated 250 million worldwide, dominated by the Asian market; China alone has around 195 million electric two-wheelers, while in India nearly 40% of three-wheelers are electric. 106 These increases are driven mostly by battery electric vehicles, whereas plug-in hybrids have shown only modest growth.107

Concerns about costs, range, prolonged charging times and a lack of dense charging networks have all hampered greater adoption of electric vehicles. 108 This is especially true for electric trucks, which are crucial to cutting transport emissions because trucks are the least-efficient transport mode in energy use per tonne-kilometre. 109 In the medium term, promising advancements include greater government investment in charging networks, as well as technology innovations that point to much faster charging times. 110 Prototype vehicle-integrated solar PV modules are being tested to improve electric vehicle ranges by 800 kilometres per year and electric trucks ranges by 10,000 kilometres per year. 111

In another industry development, the European ISO 15118-20 standard for vehicle-to-grid technology was published in 2022, supporting communication between electric vehicle batteries and the power grid. Such communication will enable efficiency gains in charging operations as well as the use of electric vehicles as distributed energy sources that supply power to the electricity grid, contributing to grid stability. 112

In 2021, the stock of hydrogen-powered fuel cell electric vehicles was still very small, at 51,600 units, with 82% of these being automobiles and the rest being trucks and buses.113 Although fuel cell electric vehicles are less efficient than battery electric vehicles, they are a plausible option for cutting emissions from heavy road transport in the medium term.114 Advancements in fuel cell technology have enabled ranges of up to 1,500 kilometres and faster tank fill-up, and efforts are progressing to green the production of hydrogen and make it more efficient. 115 China has led the way, with buses and trucks comprising most of its hydrogen fleet, and a network of 146 charging stations in 2021.116

Globally, however, less than 1% of the hydrogen that is currently supplied across sectors is low-emission – produced mainly from bioenergy and from fossil fuels using carbon capture, utilisation and storage technology. 117 To meet future demand, the hydrogen obtained from these two sources, and especially zero-emission hydrogen, must increase significantly, alongside efforts to produce renewable hydrogen through electrolysis. This will require adding up to an estimated 700 gigawatts of electrolyser capacity by 2030. 118 If achievable, the shift to renewable hydrogen could play an important role in reducing emissions in maritime transport and aviation in the coming decade. 119

Transitioning from Polluting Compressed Fossil Gas to Biogas

In 2022, Madrid City Council in Spain announced a project to power city buses with biomethane generated by the Valdemingómez Technology Park, one of the largest waste

treatment plants in Europe. Since the 2000s, Madrid Municipal Transport Company (EMT) has used compressed natural gas (CNG) buses to replace its diesel units. Although CNG improves urban air quality by reducing nitrogen oxide pollutants, it does not reduce CO2 emissions. The use of biomethane, a biofuel obtained from organic waste transformed through anaerobic digestion processes, contributes to reduced emissions while performing similarly to fossil gas.

During 2023, the Valdemingómez Technology Park will supply at least 6 gigawatt-hours (GWh) of biomethane to a fleet of 20 CNG buses for the C1 circular line, one of the network’s busiest. In 2021, the C1 line covered more than 1 million kilometres and transported around 4.4 million passengers. The Park was recently renovated to increase its biomethane production capacity to 180 GWh per year, equivalent to the fossil gas consumption of 20,000 Spanish homes or 500 EMT buses. The plant’s waste treatment services represent an estimated reduction of more than 43,500 tonnes of CO2-equivalent emissions annually.

The initiative is made possible through an agreement between EMT and the Valdemingómez Technology Park, with the participation of private groups such as PreZero (the company in charge of the biogas treatment plant at the Park) and the trading company Axpo. The project has secured EUR 285,000 (USD 305,000) in grant financing from the Madrid Business Forum, a public-private platform for business development. The initiative is part of the Madrid City Council’s Circular Mobility Project and EMT’s Strategic Plan, and is also aligned with the Madrid 360 Environmental Sustainability Strategy, which aims to reduce the city’s emissions through programmes such as sustainable mobility.

Source: See endnote 94 for this module.

CHALLENGES

Current renewable energy production is not keeping pace with the rapid growth in energy demand for transport, especially in emerging regions.

Despite the sharp rise in electric vehicle sales worldwide, most of the electricity used to power battery electric vehicles and to produce hydrogen for fuel cell vehicles still comes from fossil fuels.

The increased use of battery electric vehicles remains tainted by concerns about human rights abuses and the sustainability of mining for raw materials, while interest in crop-based biofuels is marred by the potential competition with other land uses. 120

R Solutions are still lacking to substantially decarbonise the long-haul truck, aviation and maritime transport industries.

Fuel subsidies remain one of the biggest barriers to the uptake of renewables in transport, and ongoing tax exemptions for kerosene are hindering the development of alternative fuels in aviation.

OPPORTUNITIES

R The rising price of oil and its intrinsic volatility – along with government efforts to boost energy independence – can encourage a dramatic increase in renewable energy generation.

R Rising fossil fuel prices and declining prices for electric alternatives could further incentivise consumers to shift to electric vehicles.

R Because the electric vehicle market is increasingly consumer-driven and less dependent on regulation, these vehicles could be a financially viable option in countries where public sector support is limited or non-existent. 121

R Concerns about the sustainability of mining and hydrogen production for electrified transport could incentivise industry and government to increase recycling and develop circularitybased business models. 122

R Broader acknowledgement of developing countries’ limited resources to address climate change is driving international organisations and donors to increase funding for energy transition projects, including potentially renewables-based transport projects. 123

Most of the electricity used to power electric vehicles and to produce hydrogen fuel cells still comes from fossil fuels.

14 countries had renewable
energy targets
or policies
for agriculture in 2022
By end-2022,
around 15 countries
were using
geothermal
greenhouse
heating to grow
vegetables, fruits
and flowers By end-202 Th e EU
launched a tender in 2022 for the
incorporation of renewables in
agriculture and
forestry

The use of biogas in agriculture doubled during 2010-20, while the use of liquid biofuels grew 9.4 timesThe use of biogas

countries had financial incentives for the use of renewables for irrigation as of end-2022

AGRICULTURE IN FOCUS

Module Overview | Policy | Investment | Market Developments | Challenges & Opportunities

Agriculture, forestry, fisheries and aquaculturei contributed around 4.3% of the world’s gross domestic product in 2021. 1 The agriculture sectorii employed just over a quarter (26.6%) of the total global working population that year. 2 The highest shares of agricultural employment were in Africa (51.8%) and South Asia (41.5%), followed by Southeast Asia and the Pacific (27.8%), North Africa (23.7%), East Asia (22.2%) and Central and West Asia (20%). 3 Employment in agriculture was below 15% in each of the remaining world regions: MARKET DEVELOPMENTSLatin America and the Caribbean (14.5%), the Arab States (9.5%), Eastern Europe (8.2%), Northern, Southern and Western Europe (3.1%) and North America (1.6%).4

In 2020, agriculture and forestry accounted for around 3% of the world’s total final energy consumption, and fisheries represented around 0.07%. 5 Of the total energy use in agriculture, around 73.3% was in the form of heat. 6 Meanwhile, fishing is one of the world’s most energy-intensive food production methods, relying almost entirely on fossil fuels. 7 In 2022, the annual fuel consumption of the European Union’s (EU) fishing fleet alone was nearly 2 billion litres. 8

Energy use in agriculture, fisheries and aquaculture contributed around 1 gigatonne of carbon dioxide (CO2)-equivalent emissions in 2020, including direct emissions from burning fossil fuels and indirect emissions from electricity generation. 9 Nearly 94% of these total emissions were CO2, and nearly half were from electricity use.10 Emissions from these sectors have increased over the past two decades. 11

The share of renewable energy used in the agriculture sector grew from 10.2% in 2010 to 15.4% in 2020. 12 (p See Figure 14.) Of the renewable share in 2020, 59% was renewable electricity, 7% was solar thermal and geothermal heat, and 34% was modern bioenergy. 13 The use of modern bioenergy in agriculture has remained nearly flat, rising from 5.2% in 2010 to 5.4% in 2020.14 Within the bioenergy segment, the share of solid biofuels fell sharply, from 94.3% to 78.7%, while the share of biogas increased from 4.06% to nearly 8% and the share of liquid biofuels surged from 1.6% to 13.4%. 15 Overall, the renewable electricity share in agriculture increased from 4.7% to 9.0% of the sector’s total final energy consumption, and the use of solar and geothermal heat rose from 0.2% to 1%. 16

Key drivers of technological developments in the agriculture and fishery sectors have included the desires to reduce fuel costs and save energy, as well as to increase access to energy for farmers and fishers.17 In the fisheries sector, technological developments in vessels, gear and operations – such as the use of LED lighting for night fishing – have brought cost savings to fishers in Asia, Southern Africa and the Caribbean, among other places.18 Additional key topics of discussion in 2022 included the need to decouple food production from fossil fuels and the need to scale up investment in renewables in the agri-food sector to reach lastmile farmers and support their energy transition. 19

In rural areas, the lack of access to a reliable power grid has driven farmers to embrace renewable alternatives. 20 Off-grid renewable cooling technologies have helped reduce massive post-harvest losses of agricultural products, allowing farmers to expand their market reach and gain power in price negotiations, as they are less constrained by time. 21 Renewable technologies also allow rural populations to adopt time-saving revenue-generating solutions, such as small-scale solar milling in place of large-scale diesel-powered mills. 22 Through the use of geothermal heating for greenhouses – for example, in Iceland – farmers can grow produce locally, helping to avoid domestic reliance on costly imports.23

These drivers, many of them economic, have led farmers, fishers, multilateral organisations and donors to take greater interest in energy efficiency and renewable energy technologies for agriculture and to support their deployment across the globe.

The agriculture
sector contributes to
USD 4.2 trillion of global GDP
and employs
26% of the workforce.

Source: See endnote 12 for this module.

Agricultural and renewable energy policies often operate in silos and can sometimes be in conflict.24 Policies related to renewables in agriculture target a wide range of technologies, includingINVESTMENT renewable electricity generation for agricultural processes, solar water pumping, renewable fuels to run agricultural equipment, renewable heat for food processing and solar thermal energy to heat greenhouses. Net zero pathways and the push for decarbonisation have driven how policies are designed in the agrienergy space, along with energy efficiency measures, especially in food processing and the cold chain. 25 Water availability also is essential in the design of evidence-based policies (policies based on and informed by rigorously established evidence for the agriwater-food nexus).26

Overall, policies aimed at the uptake of renewables in agriculture have increased.27 In some cases, governments have used renewable energy mandates and targets to require that a certain share of energy used in the sector be generated from renewables. In 2022, India announced a target for zero diesel use in agriculture by 2024, with the goal of replacing diesel generators for pumping and food processing, as well as other diesel uses, with renewables. 28 As of the end of 2022, four countries – Bangladesh, India, the Republic of Korea and Zambia – had targets for renewables in agriculture.29

The most popular policies for renewables in the agriculture sector are financial incentives such as subsidies and tax credits, in addition to funding programmes. By the end of 2022, a total of

25 national and sub-national jurisdictions had renewable energy policies for agriculture, led by efforts in the United States, India and Bangladesh.30 (p See Figure 15.) This total included 14 national and 2 sub-national jurisdictions (the US states of Massachusetts and Missouri) with fiscal and financial policies for the use of renewables in agriculture, as well as 7 national and 2 sub-national jurisdictions (the Indian states of Maharashtra and Punjab) with other related enabling policies and programmes. 31

India has been a leader in the development of renewable energy policies tailored to the agricultural sector. The government’s PM-KUSUM scheme, launched in 2019 and extended to March 2026, has encouraged farmers to switch from fossil fuel-based irrigation systems to grid-connected solar pumps by offering a performance-based incentive for exporting pump-generated electricity to the grid.32 In November 2022, India also announced that it would extend its National Bioenergy Programme to 2026 and include a biogas programme, a waste-to-energy programme that covers industrial waste, and a biomass programme to support co-generation in industries and the manufacturing of briquettes and pellets. 33 In addition, India released a draft framework for distributed renewable energy applications, including addressing the energy needs of the agri-food chain.34

Greece revised its grid distribution to allocate up to 30% of its grid availability to net metering for farmers.35 Türkiye revised its 2019- 2023 strategic plan to ease the rules for small-scale solar systems, including exempting solar irrigation projects from a permitting requirement for systems under 125 square metres. 36 In Nigeria, the Rural Electrification Agency’s Energising Agriculture Program promotes renewables for irrigation and also links mini-grids and agricultural production.37

The debate over competing land uses for agriculture and solar generation has eased as countries increasingly develop regulatory frameworks for agrivoltaicsi . 38 In 2022, Italy launched a USD 1.5 billion scheme for agrivoltaics using funding from the EU Recovery and Resilience Facility. 39 Both Italy and France also released new standards for agrivoltaics, and an Italian court ruled that regional authorities could not deny permits to solar projects on agricultural land without considering the potential for agrivoltaics. 40 The United States allocated a USD 8 million grant for the development of agrivoltaics.41

Germany has modified its regulations to encompass agrivoltaics and the use of renewables in agriculture. 42 In January 2022, it passed amendments to no longer exclude agrivoltaics from EU subsidies, given that at least 85% of the land area used for agrivoltaics can be cultivated. 43 Amendments to the German Renewable Energy Source Act also recognise dual land-use solar projects, including agrivoltaics and floating photovoltaics (PV), and support the construction of solar sites to restore degraded moorlands used for agriculture. 44 Starting in 2022, innovation tenders under the Act included provisions for agrivoltaics.45

In contrast, the United Kingdom has backed down from agrivoltaics by planning to reclassify the majority of agricultural land so that solar energy development is no longer allowed, with the view that such activity impedes food production objectives. 46

INVESTMENT

In general, data on renewable energy investments in the agriculture sector are limited. This includes not only global investment data, but also local-level data on energy flows across agri-food value chains, as well as granular data on spending for farms and nonfarm enterprises. 47

For small and medium-sized actors in agri-food chains, affordability is a significant barrier to the uptake of renewables CHALLENGES AND OPPORTUNITIES due to the capital-intensive structure of most renewable energy investments and to the seasonality of farmer incomes. 48 A variety of programmes provide financing for renewable installations in the agriculture sector. 49 In 2022, the impact investment fund Acumen launched the five-year, USD 25 million Powering Livelihoods Using Solar (PEII+) initiative to provide micro-entrepreneurs and smallholder farmers in India and Africa with solar-powered appliances such as mills and irrigation pumps. 50 PEG Africa, a pay-as-you-go operator in Côte d’Ivoire, Ghana, Mali, and Senegal, also offers financing for solar pumps.51 In Romania, the National Rural Development Programme, launched in 2021, offers funding to support biomass fuels and the use of renewables in agricultural processing. 52

In the United Kingdom, programmes that provide dedicated funding for renewables in agriculture include the Renewable Energy Investment Scheme, the Countryside Productivity Scheme, the Renewable Heat Incentive and the Energy Crops Scheme. 53 In the United States, the Renewable Energy for America Program offers renewable energy grants of between USD 2,500 and USD 1 million, as well as loans to agricultural producers and rural small businesses for investments in renewables.54

Farmers and agricultural suppliers are investing in solar thermal and other renewable energy projects, in part to alleviate the effects of rising fossil fuel prices and supply shocks. 55 In Guanajuato, Mexico, a MXN 9.5 million (USD 0.5 million) parabolic trough

Greece

revised its grid distribution to allocate up to 30% of its grid availability to net metering for farmers.

solar system began providing steam for food processing in 2021 through an innovative financing model in which the client pays monthly per tonne of steam used, thereby avoiding the upfront cost of the system. 56 In Argentina, where fossil gas prices are highly subsidised, multinational corporations motivated by strict CO2 reduction targets are providing around USD 10 million in financing to support four concentrating solar heat projects, to be used mainly for drying cereals. 57

In Europe, solar technologies supply heat to the agricultural production value chain. In 2021, a EUR 6 million (USD 6.4 million) solar heat plant was inaugurated in France to provide renewable heat for the drying of grains to produce malt. 58 In Croatia, EUR 7.5 million (USD 8 million) was invested in an industrial solar heat system to pre-heat air used for drying malt, with more than half of the funding coming from the European Commission’s Innovation Fund. 59 In Spain, solar technology providers offer heat purchase agreements, which the global beer producer Heineken utilised at its site in Seville.60

Investments in agrivoltaics also have increased, building on demonstration projects started in 2004. 61 In New South Wales, Australia, the Clean Energy Finance Corporation provided AUD 5 million (USD 3.5 million) to finance a 350 megawatt (MW) solar PV park on cattle and sheep grazing land. 62

Investments in geothermal systems have supported diverse applications including greenhouse and soil heating, aquaculture, food drying and milk pasteurisation. 63 In Türkiye, during 2021- 2022, USD 10 million was invested in geothermal energy to support a drying facility and soil-less greenhouses in the west, and USD 190,000 was awarded to build geothermal greenhouses in the city of Eskisehir.64

MARKET DEVELOPMENTS

Globally, the agriculture, fisheries and aquaculture sectors have adopted a wide range of energy efficiency and renewable energy technologies, including solar PV and solar thermal, geothermal, hydropower and bioenergy.

Solar PV applications offer some of the most developed off-grid solutions for productive uses of energy, from both a technical and a business perspective. 65 Solar water pumps for irrigation have huge potential for smallholder operations, and most farmers that have adopted them report an increase in productivity. 66 In 2021, solar pumping capacity totalled 654 MW, led by India (588 MW) and Bangladesh (48 MW) followed by Rwanda (3.3 MW) and Yemen (2.3 MW). 67 In Niger, a project launched in October 2021 is helping farmers install a total of 4.6 MW of solar water pumping capacity to improve irrigation systems. 68

Development partners and donors have supported renewable cooling technologies for the cold chain to keep produce fresh, helping to reduce post-harvest losses and expand the market reach of farmers. 69 In Sub-Saharan Africa and South Asia, farmers in India, Kenya, Nigeria and Rwanda have started using large-scale, solar-powered cold rooms, which help make cooling more affordable. 70 (p See Snapshot: India.) Expanding access to solar water pumps and cold storage technologies could improve the livelihoods of around 22 million smallholder farmers across India and sub-Saharan Africa.71 The use of solar thermal for cooling, refrigeration and food drying in agriculture has remained limited.72

Electricity generated from agrivoltaics has been used to directly power irrigation pumps and refrigeration as well as processing equipment for agricultural products. 73 The global installed agrivoltaic power capacity surged from around 5 MW peak in 2012 to more than 14 GW peak in 2021, supported in part by national funding programmes in Japan (since 2013), China (since 2014), France (since 2017), the United States (since 2018) and most recently the Republic of Korea. 74 Pilot projects are ongoing to determine the optimal use of the electricity generated. 75

In fisheries and aquaculture, solar PV systems are being used to charge vessel motors, power aquaculture equipment (such as feeders, pumps, aerators and security lighting) and run processing, ice-making, refrigeration and cold storage appliances, including during transport and retail. 76 German and Vietnamese partners have developed an aquaculture photovoltaics (aqua-PV) project to install PV panels above shrimp farming ponds in Vietnam, using the electricity generated on-site to power the aquaculture systems.77 The aim is to assess the technical and economic feasibility of the concept after studies showed that aqua-PV nearly doubles land-use efficiency. 78 In Norway, two new commercial-scale floating solar PV projects are generating electricity to power fish farms off the coast.79

Geothermal energy allows farmers to grow crops in difficult environments and to increase food availability and yields through greenhouse and soil heating, food drying, sterilisation, refrigeration, milk pasteurisation and irrigation. 80 By the end of 2022, around

Food waste has been a major issue in India due to the lack of cold storage and food processing facilities. As of 2022, an estimated 40% of the food produced in the country

was wasted. Rural farmers often are forced to sell perishable items as quickly as possible before they become overripe. Extreme weather caused by climate change is putting farmers in an even more difficult situation.

A solar cold storage project implemented by the Science, Technology & Innovation Council in India’s Mizoram state has benefited farmers in the village of Kawnzar. The project uses solar PV and ice battery technology to convert water into ice within six hours. The cold storage allows farmers to stock up to 10 tonnes of food, enabling them to store their harvest for longer time periods instead of being forced to sell it cheaply or discard it. The USD 27,100 project, funded by India’s Department of Science & Technology, has helped increase the incomes of small-scale farmers while also supporting the adoption of renewables in the agriculture sector. The project falls in line with the country's target to install 500 gigawatts (GW) of renewable energy capacity by 2030.

Similar cold storage systems have been installed throughout India by different companies, including Ecozen, Inficold and Oorja Development Solutions. This activity is expected to scale up further, and solar energy also is being used in food processing such as drying perishable goods, thereby improving the lives of local farmers.

31 countries – including Iceland and the Netherlands as well as emerging economies such as Algeria and Tunisia – were using geothermal greenhouse heating to grow vegetables and fruits as well as flowers, houseplants and tree seedlings. 81 In addition, some 21 countries use geothermal energy to heat water in aquaculture ponds and to support fish drying. 82 In 2019, around 2% of the geothermal energy used globally was for aquaculture. 83

In agriculture and aquaculture, farmers use hydropower mainly at the micro scale as an alternative to diesel to power agroprocessing activities. 84 In Sierra Leone, a 250 kilowatt hydrobased mini-grid provides electricity to run a palm oil pressing plant, and in Nepal micro-hydropower plants power local mills,

replacing labour-intensive manual processing and allowing other income-generating activities. 85 Micro-hydropower systems also are used to provide clean electricity for aquaculture.86

Bioenergy accounts for 5.4% of the total energy consumption inMODULE OVERVIEW MOD agriculture, where it is used to produce heat and electricity for farm use, processing and storage. 87 Between 2010 and 2020, the use of biogas in agriculture doubled, while the use of liquid biofuels grew 9.4 times. 88 In Vietnam, thousands of biogas digesters transformPOLICY POLI livestock manure into biogas to power income-generating food production activities. 89 In Africa, farmers have adopted biogas digesters in Burkina Faso, Ethiopia, Kenya, Rwanda, Senegal, Tanzania and Uganda, among other countries.90

Improving the energy efficiency of food cold chains – including through the use of fridge insulation, efficient compressors and better controllers – has helped reduce energy use. 91 Additionally, some companies have developed and introduced models for “cooling-as-a-service”. 92 In Africa, a project launched in The Gambia in 2022 aims to provide vulnerable fishing communities with fuel-efficient biomass ovens for fish smoking, to help reduce air pollution and its health impacts among fishers. 93 In some fisheries, intermediate fuel oilsi are being substituted for marine diesel oil to reduce fuel costs.94

21 countries

use geothermal energy to heat water in aquaculture ponds and to support fish drying.

i These fuel oils are classified and named according to their viscosity and typically reduce fuel consumption costs. The most common oils used for inboard fishing vessel engines are IFO 180 and IFO 380. See endnote 94 for this module.

CHALLENGES AND OPPORTUNITIESCHALLENGES AND OPPORTUNITIES

for the Uptake of Renewables in Agriculture

CHALLENGES

R The lack of robust data on energy uses in agriculture and fisheries, especially for smallscale actors, makes it difficult to track progress in renewable energy adoption and to understand the policy gaps that need to be filled. 95

R The seasonal nature of agricultural income, coupled with the capital-intensive structure of most renewable energy investments, makes affordability a challenge for small and medium-sized actors in agri-food chains. 96

R Agricultural policies and energy policies tend to operate in silos, and policy frameworks and incentives to encourage the adoption of renewables in agriculture remain limited and insufficient.

OPPORTUNITIES

R Farmers can increase their incomes by adding value through the use of renewable technologies in their production processes.

R The use of renewables offers the opportunity to reduce reliance on fossil fuels and protect farmers from price volatility and supply shocks.

R Opportunities exist to improve co-ordination among government ministries and other stakeholders in setting policies and collecting data.

ENDNOTES - RENEWABLES IN ENERGY DEMAND: GLOBAL TRENDS

IEA, “World Energy Balances 2020: Extended Energy Balances”, August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21); REN21 Policy Database. See GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack.

2 International Energy Agency (IEA), “Global Energy Crisis,” https:// www.iea.org/topics/global-energy-crisis, accessed March 8, 2023. 3 Ibid.

4 R. Rapier, “The Year in Energy Prices,” Forbes, December 31, 2022, https://www.forbes.com/sites/rrapier/2022/12/31/ the-year-in-energy-prices.

5 IEA, “World Energy Outlook 2022,” October 2022, https://iea. blob.core.windows.net/assets/830fe099-5530-48f2-a7c1- 11f35d510983/WorldEnergyOutlook2022.pdf.

7 World Economic Forum, “Inflation: How Are Rising Food and Energy Prices Affecting the Economy?” September 7, 2022, https://www.weforum.org/agenda/2022/09/ inflation-rising-food-energy-prices-economy.

8 V. Romei and A. Smith, “Global Inflation Tracker: See How Your Country Compares on Rising Prices,” March 6, 2022, https:// www.ft.com/content/088d3368-bb8b-4ff3-9df7-a7680d4d81b2.

9 European Commission, “Diversification of Gas Supply Sources and Routes,” https://energy.ec.europa.eu/topics/energy-security/diversification-gas-supply-sources-and-routes_en, accessed March 8, 2023; IEA, “Fossil Fuels Consumption Subsidies 2022,” February 2023, https://www.iea.org/reports/ fossil-fuels-consumption-subsidies-2022.

10 European Commission, “REPowerEU: Affordable, Secure and Sustainable Energy for Europe,” https://commission.europa.eu/ strategy-and-policy/priorities-2019-2024/european-green-deal/ repowereu-affordable-secure-and-sustainable-energy-europe_ en, accessed March 1, 2023, McKinsey, “The Inflation Reduction Act: Here’s What’s in It,” October 24, 2022, https://www. mckinsey.com/industries/public-and-social-sector/our-insights/ the-inflation-reduction-act-heres-whats-in-it.

11 European Commission, op. cit. note 10.

14 Senate Democrats, “Summary: The Inflation Reduction Act of 2022,” https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf, accessed March 20, 2023.

17 Government of India, Ministry of New and Renewable Energy, “National Green Hydrogen Mission,” January 2023, https://mnre. gov.in/img/documents/uploads/file_f-1673581748609.pdf.

18 Climate Watch, “NDC Enhancement Tracker,” https://www.climatewatchdata.org/2020-ndctracker, accessed October 3, 2022.

22 IEA, op. cit. note 1; REN21 Policy Database, op. cit. note 1.

REN21 Policy Database, op. cit. note 1.

REN21 Policy Database. See Reference Table R2 in the GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack. lbid.

European Commission, “Carbon Border Adjustment Mechanism,” December 13, 2022, https://taxation-customs.ec.europa.eu/ green-taxation-0/carbon-border-adjustment-mechanism_en.

REN21 Policy Database. See Reference Tables R3a and R3b in the GSR 2023 Data Pack, available at www.ren21.net/ gsr2023-data-pack.

REN21 Policy Database. See Figure 11 data table in the GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack.

33 REN21 Policy Database. See Reference Table R3a in the GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack.

34 REN21 Policy Database. See Reference Table R4 in the GSR 2023 Data Pack, available at www.ren21.net/gsr2023-data-pack. 35 lbid.

36 IEA, “Renewable Power’s Growth Is Being Turbocharged as Countries Seek to Strengthen Energy Security,” December 6, 2022, https://www.iea.org/news/renewable-power-s-growth-isbeing-turbocharged-as-countries-seek-to-strengthen-energysecurity.

37 BloombergNEF, “Energy Transition Investment Trends 2023,” January 2023, https://about.bnef.com/ energy-transition-investment.

38 K. Abnett, “Heat Pump Sales in Europe Jump to Record High,” Reuters, February 20, 2023, https://www.reuters.com/business/ energy/heat-pump-sales-europe-jump-record-high-2023-02-20.

39 J. Psaropoulos, “Is Ukraine War Speeding Europe’s Transition to Renewable Energy?” Al Jazeera, November 6, 2022, https://www. aljazeera.com/news/2022/11/6/is-ukraine-war-speeding-europes-transition-to-renewableenergy; IEA, “Executive Director Rebuts Three Myths About Today’s Global Energy Crisis,” September 7, 2022, https://www.iea.org/news/executive-director-rebuts-three-myths-about-today-s-global-energy-crisis.

40 Bloomberg, “Steel Plants Across Europe Cut Production as Power Prices Soar,” March 9, 2022, https://www.bloomberg.com/ news/articles/2022-03-09/spanish-steel-production-curbedas-power-costs-soar-to-a-record; E. Albert et al., “Europe’s Energy Crisis Risks Forcing Factories Across the Continent to Relocate or Close Down,” Le Monde, October 12, 2022, https:// www.lemonde.fr/en/europe/article/2022/10/12/europe-s-energycrisis-risks-forcing-factories-across-the-continent-to-relocateshut-down_6000015_143.html; M. Burton, “Europe Loses Another Smelter as Energy Crisis Leaves Deep Scars,” Bloomberg, March 9, 2023, https://www.bloomberg.com/news/articles/2023-03-09/ speira-to-shut-down-german-aluminum-smelter-on-energycosts.

41 Pexapark, “European Market Outlook 2023,” January 2023, https://storage.pardot.com/891233/1675852816rjodUGY4/ European_PPA_Market_Outlook_2023_V9.pdf.

42 Global Eco-Industrial Parks Programme (GEIPP),“Business Opportunities. Resource Efficient and Cleaner Production (RECP),” May 2021, https://open.unido.org/api/documents/22033480/download/GEIPP-Factsheet%20IPs%204%20 Final.pdf.

43 W. Beguerie, “2022 Review of Road Freight Transport in Europe," Upply, December 6, 2022, https://market-insights.upply.com/ en/2022-review-of-road-freight-transport-in-europe.

44 International Association of Public Transport (UITP), “UITP Europe Statement Support Local Public Transport in the Energy Crisis,” October 2022, https://cms.uitp.org/wp/wp-content/ uploads/2022/10/UITP-Europe-Statement-on-the-Energy-Crisis-2.pdf.

46 BloombergNEF, op. cit. note 37.

48 IQair, “Air Quality and Pollution City Ranking,” February 28, 2023, https://www.iqair.com/world-air-quality-ranking.; D. Eckstein, V. Künzel and L. Schäfer, “Global Climate Risk Index 2021,” German Watch, January 21, 2021, https://reliefweb.int/report/world/ global-climate-risk-index-2021.

49 REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

50 IEA, op. cit. note 1.

51 D. Mohapatra et al., “Decentralised Renewable Energy Innovations to Boost Agri-Sector Productivity & Address Global Food System Challenges,” Alliance for Rural Electrification, January 2021, https://www.ruralelec.org/publications/decentralised-renewable-energy-innovations-boost-agri-sector-productivity-address.

52 R. Van Anrooy et al., “Review of the Techno-Economic Performance of the Main Global Fishing Fleets,” Food and Agriculture Organization of the United Nations (FAO), 2021, https://www.fao.org/3/cb4900en/cb4900en.pdf; International Renewable Energy Agency and FAO, “Renewable Energy and Agri-Food Systems: Advancing Energy and Food Security Towards Sustainable Development Goals,” 2021, http://www.fao. org/3/cb7433en/cb7433en.pdf.

53 Energy Sector Management Assistance Program, “Off-Grid Solar Market Trends Report 2022: Outlook,” October 17, 2022, https://esmap.org/ Off-Grid_Solar_Market_Trends_Report_2022_Outlook.

54 IEA, op. cit. note 1.

World Economic Forum, “Here’s How This Year’s Heatwaves Are Impacting the World, and How We Can Prepare for the Future,” July 22, 2022, https://www.weforum.org/agenda/2022/07/ heat-waves-climate-change-europe-northern-hemisphere.

“Explained: Why India Is Facing Longest Power Cuts in 6 Years,” Times of India, April 30, 2022, https://timesofindia.indiatimes. com/india/explained-why-india-is-facing-longest-power-cutsin-6-years/articleshow/91198487.cms; Bloomberg, “China’s Factories Still Struggling as Power Cuts Curb Output,” August 31, 2022, https://www.bloomberg.com/news/articles/2022-08-31/ china-factory-activity-falls-again-as-power-outages-curb-output; S-L. Tan, “China Is Facing Another Power Crunch. But This Time It’s Likely to Be Different,” CNBC, August 23, 2022, https:// epthinktank.eu/2023/01/12/how-will-increasing-fuel-prices-impact-transport-ten-issues-to-watch-in-2023.

IEA, “The Future of Cooling,” May 2018, https://www.iea.org/ reports/the-future-of-cooling.

Sustainable Energy for All, “Chilling Prospects 2022,” May 17, 2022, https://www.seforall.org/system/files/2022-07/ seforall-chilling-prospects-2022.pdf; United Nations Economic and Social Commission for Asia and the Pacific, “Cambodia Announces Its National Cooling Action Plan,” November 17, 2022, https://www.unescap.org/news/cambodia-announces-its-national-cooling-action-plan; Cool Coalition, “On World Ozone Day 2022, Barbados and Nigeria Release National Cooling Actions Plans,” September 16, 2022, https://coolcoalition.org/on-worldozone-day-2022-barbados-and-nigeria-release-national-coolingactions-plans.

ENDNOTES - BUILDINGS IN FOCUS

International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/ data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).

2 Ibid.

3 Ibid.

4 Ibid.

5 Organisation for Economic Co-operation and Development (OECD), “Decarbonising Buildings in Cities and Regions,” June 2022, https://read.oecd-ilibrary.org/urban-rural-and-regional-development/ decarbonising-buildings-in-cities-and-regions_a48ce566-en.

6 IEA, op. cit. note 1.

7 Ibid.

8 IEA, “Buildings – Analysis,” September 2022, https://www.iea. org/reports/buildings.

9 9 Ibid.

10 Figure 3 from IEA, op. cit. note 1.

11 Ibid.

12 Figure 4 from Ibid.

13 IEA, op. cit. note 1.

14 Ibid.

15 Ibid.

IEA et al., “Tracking SDG 7: The Energy Progress Report 2022,” 2022, https://trackingsdg7.esmap.org/data/files/download-documents/sdg7-report2022-full_report.pdf; L. Cozzi et al., “For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022 – Analysis,” IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-indecades-the-number-of-people-without-access-to-electricity-isset-to-increase-in-2022.

18 IEA et al., op. cit. note 17.

19 Cozzi et al., op. cit. note 17; Empresa de Pesquisa Energética, “Brazilian Energy Balance – Year 2021,” 2022, https://www. epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/ PublicacoesArquivos/publicacao-675/topico-638/BEN2022.pdf.

20 See Box 2 in “Global Overview” in REN21, “Renewables 2022 Global Status Report,” 2022, www.ren21.net/gsr-2022.

21 Figure 5 from IEA, “Heating – Analysis,” 2022, https://www.iea. org/reports/heating.

22 IEA, op. cit. note 1.

23 IEA, “Renewables 2022 – Analysis,” 2022, https://www.iea.org/ reports/renewables-2022.

24 IEA, op. cit. note 1.

25 IEA, op. cit. note 21.

26 IEA, “Heat Pumps – Analysis,” 2022, https://www.iea.org/reports/ heat-pumps; IEA, op. cit. note 1.

27 IEA, op. cit. note 1.

28 IEA, op. cit. note 1; IEA, op. cit. note 21.

29 IEA, “Energy Efficiency 2022 – Analysis,” 2022, https://www.iea. org/reports/energy-efficiency-2022.

30 IEA, op. cit. note 1; B. Naran, R. Padmanabhi and P. Rosane, “Tracking Incremental Energy Efficiency Investments in Certified Green Buildings,” Climate Policy Initiative, December 16, 2021, https://www.climatepolicyinitiative.org/publication/ incremental-investments-in-energy-efficiency-in-green-buildings.
31 Ibid.

32 J. Psaropoulos, “Is Ukraine War Speeding Europe’s Transition to Renewable Energy?” Al Jazeera, November 6, 2022, https:// www.aljazeera.com/news/2022/11/6/is-ukraine-war-speeding-europes-transition-to-renewable-energy; IEA, “Executive Director Rebuts Three Myths About Today’s Global Energy Crisis,” September 7, 2022, https://www.iea.org/news/executive-director-rebuts-three-myths-about-today-s-global-energy-crisis. Snapshot: Europe based on the following sources: Eurostat, “Energy Balance Visualisation Tool,” https://ec.europa. eu/eurostat/cache/infographs/energy_balances/enbal.html,

accessed November 14, 2022; IEA, “A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas – Analysis,” March 2022, https://www.iea.org/reports/a-10-point-plan-toreduce-the-european-unions-reliance-on-russian-natural-gas; G. Zachmann, G. Sgaravatti and B. McWilliams, “European Natural Gas Imports,” Bruegel, https://www.bruegel.org/dataset/ european-natural-gas-imports, accessed November 14, 2022; European Commission, “REPowerEU: Joint European Action for More Affordable, Secure and Sustainable Energy,” May 18, 2022, https://eur-lex.europa.eu/resource.html?uri=cellar:fc930f14-d 7ae-11ec-a95f-01aa75ed71a1.0001.02/DOC_1&format=PDF; B. Claeys, J. Rosenow and M. Anderson, “Is REPowerEU the Right Energy Policy Recipe to Move Away from Russian Gas?” Euractiv, June 27, 2022, https://www.euractiv.com/section/energy/ opinion/is-repowereu-the-right-energy-policy-recipe-to-moveaway-from-russian-gas; Odyssee-Mure, “EU Heating Energy | Heating Energy Consumption by Energy Source,” https://www. odyssee-mure.eu/publications/efficiency-by-sector/households/ heating-energy-consumption-by-energy-sources.html, accessed November 14, 2022; D. Gibb et al., “Turning Off the Gas: Stronger and Coherent EU Policy to Accelerate the Fossil Gas Phaseout,” Regulatory Assistance Project, October 18, 2022, https://www. raponline.org/knowledge-center/turning-off-gas-stronger-coherent-eu-policy-accelerate-fossil-gas-phaseout; Buildings Performance Institute of Europe, “EPBD Recast: New Provisions Need Sharpening to Hit Climate Targets,” January 20, 2022, https://www.bpie.eu/publication/epbd-recast-new-provisionsneed-sharpening-to-hit-climate-targets.

Ember, “EU’s Record Growth in Wind and Solar Avoids €11bn in Gas Costs During War,” October 18, 2022, https://ember-climate. org/press-releases/eus-record-growth-in-wind-and-solaravoids-e11bn-in-gas-costs-during-war.

34 IEA, op. cit. note 23; BloombergNEF, “Energy Transition Factbook 2022,” September 2022, https://assets.bbhub.io/professional/ sites/24/BloombergNEF-CEM-2022-Factbook.pdf.

35 IEA, op. cit. note 23.

36 Bnamericas, “Ministry of Energy Launches National Heat and Cold Strategy,” June 24, 2021, https://www.bnamericas.com/en/ news/ministry-of-energy-launches-national-heat-and-cold-strategy; Government of the UK, “Heat and Buildings Strategy,” October 29, 2021, https://www.gov.uk/government/publications/ heat-and-buildings-strategy; Sustainable Energy Authority of Ireland, “National Heat Study,” https://www.seai.ie/data-andinsights/national-heat-study, accessed October 29, 2022.

37 N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www. euractiv.com/section/energy-environment/news/netherlands-toban-fossil-heating-by-2026-make-heat-pumps-mandatory.

38 L. Sunderland and D. Gibb, “Taking the Burn Out of Heating for Low-Income Households,” Regulatory Assistance Project, December 1, 2022, https://www.raponline.org/knowledge-center/ taking-burn-out-of-heating-low-income-households.

39 D. Gibb, S. Thomas and J. Rosenow, “Metrics Matter: Efficient Renewable Heating and Cooling in the Renewable Energy Directive,” Regulatory Assistance Project, September 6, 2022, https://www.raponline.org/knowledge-center/metrics-matter-efficient-renewable-heating-cooling-renewable-energy-directive.

40 European Parliament, “Renewable Energy Directive – Amendments Adopted in Sept 2022,” September 14, 2022, https://www.europarl.europa.eu/doceo/document/ TA-9-2022-0317_EN.pdf.

41 R. Lowes et al., “A Policy Toolkit for Global Mass Heat Pump Deployment,” Regulatory Assistance Project, November 14, 2022, https://www.raponline.org/knowledge-center/ policy-toolkit-global-mass-heat-pump-deployment.

42 Chinese Ministry of Housing and Urban-Rural Development, “14th Five-Year’ Building Energy Efficiency and Green Building Development Plan,” 2021, www.mohurd.gov.cn/gongkai/ fdzdgknr/zfhcxjsbwj/202203/20220311_765109.html.

43 IEA, “World Energy Outlook 2022,” October 2022, https://www. iea.org/reports/world-energy-outlook-2022.

44 REN21 Policy Database. See Reference Table R1 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

G. De Clercq, “France Ends Gas Heaters Subsidies, Boosts Heat Pumps in Bid to Cut Russia Reliance,” Reuters, March 16, 2022, https://www.reuters.com/world/europe/france-endsgas-heaters-subsidies-boosts-heat-pumps-bid-cut-russia-reliance-2022-03-16.

B. Epp, “Fund of EUR 3 Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/ fund-of-eur-3-billion-for-decarbonising-german-district-heating.

Ministerio para la Transición Ecológica y el Reto Demográfico, “Real Decreto 477/2021, de 29 de junio, por el que se aprueba la concesión directa a las comunidades autónomas y a las ciudades de ceuta y melilla de ayudas para la ejecución de diversos programas de incentivos ligados al autoconsumo y al almacenamiento, con fuentes de energía renovable, así como a la implantación de sistemas térmicos renovables en el sector residencial, en el marco del plan de recuperación, transformación y resiliencia,” 2021, https://www.boe.es/eli/ es/rd/2021/06/29/477; A. Rosell, “More Than EUR 1 Billion of Incentives Available in Spain,” Solar Thermal World, October 12, 2022, https://solarthermalworld.org/news/ more-than-eur-1-billion-of-incentives-available-in-spain.

Government of the UK, “Ditching Costly Gas and Oil Is Cheaper Thanks to Heat Pump Scheme,” May 23, 2022, https://www.gov. uk/government/news/ditching-costly-gas-and-oil-is-cheaperthanks-to-heat-pump-scheme.

E. Hougaard, “Energistyrelsen åbner for ansøgninger til tilskudsordning for etablering af eldrevne varmepumper og solvarmeanlæg til produktion af fjernvarme,” Energistyrelsen, July 12, 2022, https://ens.dk/presse/energistyrelsen-aabner-ansoegninger-til-tilskudsordning-etablering-af-eldrevne-varmepumper-og.

B. Epp, “EUR 65 Million Provided for Solar District Heating in Kosovo,” Solar Thermal World, July 7, 2022, https://solarthermalworld.org/news/ eur-65-million-provided-for-solar-district-heating-in-kosovo.

cking, “What the ‘Inflation Reduction Act of 2022’ Means for Solar,” Solar Energy International, August 22, 2022, https://www.solarenergy.org/ what-the-inflation-reduction-act-of-2022-means-for-solar.

United News of India, “UP Targets to Generate 22k MW Solar Energy in Next 5 Yrs,” November 16, 2022, http://www.uniindia. com/\~/up-targets-to-generate-22k-mw-solar-energy-in-next-5- yrs/Business Economy/news/2861956.htm.

R. Desmornes, “The Inflation Reduction Act ‘Pumps Up’ Heat Pumps,” HVAC Solutions, November 4,2022, https://www. hvac.com/resources/inflation-reduction-act-heat-pumprebates; Rewiring America, “High-Efficiency Electric Home Rebate Act,” 2022, https://www.rewiringamerica.org/policy/ high-efficiency-electric-home-rebate-act.

4 D. Gibb and M. Morawiecka, “Cleaning Up Heat: The Changing Economics for Heat Pumps in Poland,” Regulatory Assistance Project, November 7, 2022, https://www.raponline.org/knowledge-center/cleaning-up-heat-the-changing-economics-forheat-pumps-in-poland.

Bercy Infos, “MaPrimeRénov’: la prime pour la rénovation énergétique,” December 30, 2022, https://www.economie.gouv.fr/ particuliers/prime-renovation-energetique.

57 J. Cheng, “Importance of Energy Standards in Supporting Affordable Growth of the High Efficiency Heat Pump Market in China,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, 27 October, 2022, https://www.iea.org/events/ the-8th-iea-tsinghua-joint-workshop-making-buildings-zerocarbon-ready-by-2030-near-term-solutions-for-heating-systems. Snapshot: China based on the following sources: Energy Foundation China, “Synthesis Report 2022 on China’s Carbon Neutrality: Electrification in China’s Carbon Neutrality Pathways,” 13 November, 2022, https://www.efchina.org/Reports-en/ report-lceg-20221104-en; IEA, “Clean Winter Heating Plan in Northern China (2017-2021) – Policies,” May 17,2021, https:// www.iea.org/policies/7906-clean-winter-heating-plan-innorthern-china-2017-2021; 65% from Energy Foundation China, “Research on the Control Strategy of Scattered Coal Pollution in the ‘14th Five-Year Plan’ Period,” November 9, 2021, https://

www.efchina.org/Attachments/Report/report-cemp-20220305- 7/%E6%89%A7%E8%A1%8C%E6%91%98%E8%A6%81- %E5%8D%81%E5%9B%9B%E4%BA%94-%E5%9B%BD%E 5%AE%B6%E6%95%A3%E7%85%A4%E6%B1%A1%E6%9 F%93%E6%8E%A7%E5%88%B6%E7%AD%96%E7%95%A 5%E7%A0%94%E7%A9%B6.pdf (using Google Translate); B. Epp, “China: Beijing Mandates Solar Hot Water Systems,” Solar Thermal World, March 23, 2012, https://solarthermalworld.org/ news/china-beijing-mandates-solar-hot-water-systems; Chinese Ministry of Housing and Urban-Rural Development, “‘14th Five-Year’ Building Energy Efficiency and Green Building Development Plan,” 2022, https://www.ndrc.gov.cn/xwdt/tzgg/202206/ P020220602315650388122.pdf; C. Farand, “China’s Ambitious Rooftop Solar Pilot Helps Drive ‘Blistering’ Capacity Growth,” Climate Home News, July 14, 2022, https://www.climatechangenews.com/2022/07/14/chinas-ambitious-rooftop-solar-pilot-helps-drive-blistering-capacity-growth; Government of China, “’The 14th Five-Year Plan’ Building Energy Conservation and Green Building Development Plan’ was issued to complete the energy-saving renovation of existing buildings with an area of more than 350 million square meters by 2025,” March 22, 2022, http://www.gov.cn/xinwen/2022-03/22/content_5680355.htm.

58 Energy Foundation China, op. cit. note 57.

59 D. Gibb and A. Jahn, “‘Game On’ for Germany’s Heat Pump Transformation,” Regulatory Assistance Project, July 20, 2022, https://www.raponline.org/blog/ game-on-germany-heat-pump-transformation.

60 N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www. euractiv.com/section/energy-environment/news/netherlands-toban-fossil-heating-by-2026-make-heat-pumps-mandatory.

61 Data as of 9 February 2023, from Building Decarbonization Coalition, “Zero Emissions Building Ordinances,” 2022, https:// www.buildingdecarb.org/zeb-ordinances.html.

62 Ibid.

63 L. Louis-Prescott and R. Golden, “How Local Governments and Communities Are Taking Action to Get Fossil Fuels Out of Buildings,” RMI, August 9, 2022, https://rmi.org/ taking-action-to-get-fossil-fuels-out-of-buildings.

64 E. Pontecorvo, “California’s 2030 Ban on Gas Heaters Opens a New Front in the War on Fossil Fuels,” Grist, September 26, 2022, https://grist.org/buildings/californias-2030-ban-on-gas-heatersopens-a-new-front-in-the-war-on-fossil-fuels; New York State Public Service Commission, “PSC Breathes New Life into Popular Con Edison Clean Heat Program,” November 8, 2022, https:// ar.dps.ny.gov/system/files/documents/2022/10/psc-breathesnew-life-into-popular-con-edison-clean-heat-program.pdf.

65 T. DiChristopher and A. Duquiatan, “States That Outlaw Gas Bans Account for 31% of US Residential/Commercial Gas Use,” S&P Global Commodity Insights, June 9, 2022, https://www.spglobal. com/marketintelligence/en/news-insights/latest-news-headlines/states-that-outlaw-gas-bans-account-for-31-of-us-residential-commercial-gas-use-70749584.

66 European Commission, op. cit. note 32.

67 E. Christensen, “California’s New Building Energy Efficiency Standards, Mandating Solar + Storage, Are Set to Go into Effect on January 1, 2023,” August 1, 2022, https://www.energytoolbase. com/newsroom/blog/californias-new-building-energy-efficiency-standards-mandating-solar-storage.

68 J. Spector, “California Is Finally Unlocking Community Solar for the Masses,” Canary Media, September 8, 2022, https://www.canarymedia.com/articles/solar/ california-is-finally-unlocking-community-solar-for-the-masses.

69 J. John, “New California Rooftop-Solar Plan Drops ‘Solar Tax,’ But Fears Remain,” Canary Media, November 10, 2022, https://www. canarymedia.com/articles/solar/new-california-rooftop-solarplan-drops-solar-tax-but-fears-remain.

70 CTV News, “N.S. Government Kills Electric Utility’s Bid to Impose ‘Net-Metering’ Charge on Solar,” Atlantic, February 2, 2022, https://atlantic.ctvnews.ca/n-s-government-kills-electric-utilitys-bid-to-impose-net-metering-charge-on-solar-1.5764723.

72 Global Alliance for Buildings and Construction, “2022 Global Status Report for Buildings and Construction,” 2022, http://globalabc.org/our-work/tracking-progress-global-status-report.

73 Chinese Ministry of Housing and Urban-Rural Development, op. cit. note 57.

74 Global Alliance for Buildings and Construction, op. cit. note 72.

75 D. Rajeev, “Energy Conservation Bill 2022: Implications and Next Steps,” The Economic Times, December 28, 2022, https:// economictimes.indiatimes.com/industry/renewables/energy-conservation-bill-2022-implications-and-next-steps/articleshow/96562493.cms.

76 T. Sawachi, “Context for Building Heating Systems and How Their Energy Efficiencies Are Evaluated in a Building Energy Code of Japan,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, October 2022, https://iea.blob.core.windows.net/ assets/9820c21f-47dc-431d-8b11-28b99dfab44c/ Session1Presentation4TakaoSawachiContextforbuilding heatingsystemsinJapan.pdf.

78 Based on USD 489.6 billion global new investment in renewable power capacity in 2022 (not including hydropower projects larger than 50 MW), from BloombergNEF, “Energy Transition Investment Trends 2023,” 2023, https://about.bnef.com/energy-transition-investment; 50% from M. Santamouris and K. Vasilakopoulou, “Present and Future Energy Consumption of Buildings: Challenges and Opportunities Towards Decarbonisation,” E-Prime – Advances in Electrical Engineering, Electronics and Energy, Vol. 1 (January 1, 2021): 100002, https://doi.org/10.1016/j. prime.2021.100002.

79 K. Mathiesen et al., “Putin’s War Accelerates the EU’s Fossil Fuel Detox,” Politico, October 12, 2022, https://www.politico.eu/article/ vladimir-putin-war-ukraine-accelerates-eu-fossil-fuel-detox.

80 BloombergNEF, op. cit. note 78; IEA, “World Energy Investment 2022,” 2022, https://iea.blob.core.windows.net/assets/b0beda65- 8a1d-46ae-87a2-f95947ec2714/WorldEnergyInvestment2022.pdf.

81 IEA, op. cit. note 80.

82 B. Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-districtheating-plant-in-the-netherlands-with-outstanding-features.

83 International District Energy Association, “Canada Infrastructure Bank, CIBC and Markham District Energy Close \$270 Million District Energy Infrastructure Investment,” November 25, 2022, https://www.districtenergy.org/blogs/district-energy/2022/11/25/ canada-infrastructure-bank-cibc-and-markham-distri.

84 B. Epp, “Fund of EUR 3 Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-fordecarbonising-german-district-heating; A. Walstad, “Germany Ploughs €3bn into Phasing out District Heating Gas,” Gas Outlook, August 18, 2022, https://gasoutlook.com/analysis/ germany-ploughs-e3bn-into-phasing-out-district-heating-gas.

85 IEA, op. cit. note 80; Solar Heat Europe, “Solar Heat Market Report 2021,” December 2022, http://solarheateurope.eu/ wp-content/uploads/2022/12/Solar_Heat_Market_Report-2021. pdf.

86 Solar Heat Europe, op. cit. note 85.

87 IEA, “Energy Efficiency 2022,” 2022, https://iea.blob.core. windows.net/assets/7741739e-8e7f-4afa-a77f-49dadd51cb52/ EnergyEfficiency2022.pdf.

88 IEA, op. cit. note 80.

90 IEA, “Approximately 100 Million Households Rely on Rooftop Solar PV by 2030 – Analysis,” September 2022, https://www.iea. org/reports/approximately-100-million-households-rely-on-rooftop-solar-pv-by-2030.

91 IEA, “Solar PV – Analysis,” September 2022, https://www.iea.org/ reports/solar-pv.

93 IEA Photovoltaic Power Systems Programme (PVPS), “Trends in PV Applications 2022,” 2022, https://iea-pvps.org/trends_ reports/trends-2022; IEA, op. cit. note 91.

97 Ibid.

98 Fortum, “Fortum and Microsoft Announce World’s Largest Collaboration to Heat Homes, Services and Businesses with Sustainable Waste Heat from New Data Centre Region,” March 17, 2022, https://www.fortum.com/media/2022/03/fortum-and-microsoft-announce-worlds-largest-collaboration-heat-homes-services-and-businesses-sustainable-waste-heat-new-data-centre-region; IrishCentral, “Heat Created by Amazon Data Center in Dublin to Be Used in Local Housing,” September 22, 2021, https://www.irishcentral.com/news/amazon-data-center-dublin-heat-local-housing; World Economic Forum, “Your Data Could Warm You Up This Winter, Here’s How,” August 8, 2022, https://www.weforum.org/agenda/2022/08/sustainable-data-centre-heating; P. Judge, “Vienna Hospital to Get Waste Heat from Interxion Data Center,” Data Center Dynamics, April 27, 2022, https://www.datacenterdynamics.com/en/news/ vienna-hospital-to-get-waste-heat-from-interxion-data-center.

99 IEA, op. cit. note 1.

100 International Renewable Energy Agency (IRENA), “Bioenergy for the Transition: Ensuring Sustainability and Overcoming Barriers,” August 2022, https://www.irena.org/publications/2022/Aug/ Bioenergy-for-the-Transition.

101 N. Kurmayer, “As Winter Looms, Germans Increasingly Turn to Wood for Heating,” Euractiv, September 23, 2022, https:// www.euractiv.com/section/energy/news/as-winter-loomsgermans-increasingly-turn-to-wood-for-heating; Euronews, “Energy Crisis: Germans Turn to Wood Burning Stoves to Save on Gas,” November 11, 2022, https://www.euronews. com/green/2022/11/11/energy-crisis-in-germany-risingtrend-in-wood-burning-stoves-to-save-on-gas; H. Thompson, “Wood Pellet Shortages in France Cause Prices to Soar,” Connexionfrance, 15 September, 2022, https://www.connexionfrance.com/article/French-news/Wood-pellet-shortages-in-France-cause-prices-to-soar; D. Brooks, “Wood Pellets May Be Scarcer, and More Costly, This Winter,” NH Business Review, October 21, 2022, https://www.nhbr.com/wood-pellets-may-bescarcer-and-more-costly-this-winter; United Nations Economic Commission for Europe, “Wood Energy on the Rise in Europe,” November 4, 2022, https://unece.org/climate-change/press/ wood-energy-rise-europe.

102 IRENA, op. cit. note 100.

103 IEA, op. cit. note 21.

104 W. Weiss and M. Spörk-Dür, “Solar Heat Worldwide: Edition 2022,” May 2022, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2022.pdf.

105 Ibid.

106 B. Epp, “IEA SHC Solar Award Winner: Social Housing Project in Namibia,” Solar Thermal World, October 18, 2022, https:// solarthermalworld.org/news/iea-shc-solar-award-winner-socialhousing-project-in-namibia; Southern African Solar Thermal Demonstration and Training Initiative (SOLTRAIN), “Solar Thermal Roadmaps,” https://soltrain.org/assets/roadmaps, accessed November 20, 2022.

107 J. Meyer, “Strongly Downsized, But Crisis-Ridden Solar Collector Industry in Germany,” Solar Thermal World, August 2, 2022, https://solarthermalworld.org/news/strongly-downsized-but-crisis-ridden-solar-collector-industry-in-germany; J. Meyer, “Survey of German Solar Collector Industry: ‘Daily Struggle to Procure Materials,’” Solar Thermal World, August 4, 2022, https:// solarthermalworld.org/news/survey-of-german-solar-collector-industry-daily-struggle-to-procure-materials; E. Gerden, “Russian Solar Thermal Industry in Deep Crisis,” Solar Thermal World, September 18, 2022, https://solarthermalworld.org/news/ russian-solar-thermal-industry-in-deep-crisis.

108 Weiss and Spörk-Dür, op. cit. note 104; B.Epp, “37 MW solar district heating plant in the Netherlands with outstanding features,” Solar Thermal World, November 11, 2022, https:// solarthermalworld.org/news/37-mw-solar-district-heating-plantin-the-netherlands-with-outstanding-features.

109 Weiss and Spörk-Dür, op. cit. note 104.

110 J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 2021): 101915, https://www.sciencedirect.com/science/article/pii/ S0375650520302078.

111 Ibid.

112 Ibid.

113 C. Cariaga, “Sinopec Launches Expanded Geothermal Heating in China for Winter,” ThinkGeoEnergy, November 17, 2022, https://www.thinkgeoenergy.com/ sinopec-launches-expanded-geothermal-heating-for-winter.

114 Ibid.; D. Olick, “Largest-Ever Geothermal Grid Under This Texas Housing Development Is Saving Homeowners Serious Money,” CNBC, 2022, https://www.cnbc.com/2022/09/01/ geothermal-powered-housing-development-saves-homeowners-big-bucks.html; US Department of Energy, “Community Geothermal Heating and Cooling Design and Deployment,” July 12, 2022, https://www.energy.gov/eere/geothermal/articles/ community-geothermal-heating-and-cooling-design-and-deployment.

115 IEA Geothermal, “2021 Annual Report,” October 2022, https:// iea-gia.org/publications-2/annual-reports.

116 C. Cariaga, “Canada to Invest in Geothermal Projects in Nova Scotia,” ThinkGeoEnergy, November 10, 2022, https://www.thinkgeoenergy.com/ canada-to-invest-on-geothermal-projects-in-nova-scotia.

117 C. Cariaga, “EGEC Market Report 2021 Highlights Post-COVID Resurgence of Geothermal,” ThinkGeoEnergy, June 14, 2022, https://www.thinkgeoenergy.com/egec-market-report-2021-highlights-post-covid-resurgence-of-geothermal.

118 Ibid.

119 C. Cariaga, “Meudon, France Targets Geothermal District Heating by 2026,” ThinkGeoEnergy, November 7, 2022, https:// www.thinkgeoenergy.com/meudon-france-targets-geothermal-district-heating-by-2026; C. Cariaga, “Germany Aims for 100 New Geothermal Projects by 2030,” ThinkGeoEnergy, November 11, 2022, https://www.thinkgeoenergy.com/germanyaims-for-100-new-geothermal-projects-by-2030; C. Cariaga, “Geothermal Heating Plant in Torun, Poland Officially Opens,” ThinkGeoEnergy, October 13, 2022, https://www.thinkgeoenergy. com/geothermal-heating-plant-in-torun-poland-officially-opens.

120 C. Cariaga, “Wien Energie to Build First Geothermal Heating Plant in Vienna, Austria,” ThinkGeoEnergy, November 15, 2022, https:// www.thinkgeoenergy.com/wien-energie-to-build-first-geothermal-heating-plant-in-vienna-austria.

121 J. Rosenow et al., “Heating Up the Global Heat Pump Market,” Nature Energy (September 7, 2022): 1-4, https://doi.org/10.1038/ s41560-022-01104-8; IEA, op. cit. note 26.

122 Installatore Professionale, “Climatizzazione: incrementi a tre cifre per le pompe di calore idroniche nel primo semestre 2022,” July 29, 2022, https://www.installatoreprofessionale.it/news/905-climatizzazione-incrementi-a-tre-cifre-per-le-pompe-di-calore-idroniche-nel-primo-semestre-2022.html; M. Beerling, “Reactie Vereniging Warmtepompen op Gasmonitor 2022,” Vereniging Warmtepompen, September 5, 2022, https://warmte-pompen.nl/reactie-vereniging-warmtepompen-op-gasmonitor-2022; PORT PC, “Ponad dwukrotny wzrost sprzedaży powietrznych pomp ciepła w I poł. 2022 roku!,” Polska Organizacja Rozwoju Technologii Pomp Ciepła, August 17, 2022, https:// portpc.pl/ponad-dwukrotny-wzrost-sprzedazy-powietrznychpomp-ciepla-w-i-pol-2022-roku; J. Hirvonen, “Record High Sales Growth of 80% Recorded for Heat Pumps in the First Six Months of the Year in Finland,” SULPU, July 19, 2022, https://www.sulpu. fi/record-high-sales-growth-of-80-recorded-for-heat-pumpsin-the-first-six-months-of-the-year-in-finland; Bundesverband der DeutschenHeizungsindustrie, “Heizungsindustrie: Solider Markt in Dynamischem Umfeld,” August 12, 2022, https:// www.bdh-industrie.de/presse/pressemeldungen/artikel/ heizungsindustrie-solider-markt-in-dynamischem-umfeld; Norsk Varmepumpeforening, “Boligeiere har skjønt det- når kommer bedriftene? Varmepumpeforeningen,” 2022, https://www.novap. no/artikler/boligeiere-vil-spare-strom-hvor-blir-det-av-bedriftene.

123 Air Conditioning, Heating & Refrigeration Institute, “AHRI Releases June 2022 U.S. Heating and Cooling Equipment Shipment Data,” August 12, 2022, https://www.ahrinet.org/sites/ default/files/2022-09/June2022StatisticalRelease.pdf.

124 IEA, op. cit. note 21; T. Nowak, “LinkedIn Post on Heat Pump Manufacturer Announcements,” 2022, https://www. linkedin.com/posts/thomasnowakeu_conversation-activity-6970985100586950657-VNc1.

125 IEA, op. cit. note 21.

126 IEA, op. cit. note 1.

127 C. Delmastro, IEA, personal communication with REN21, October 25, 2022.

128 European Commission, “Innovative Waste Heat Recovery Experiment in Sweden,” https://cordis.europa.eu/article/ id/436169-innovative-waste-heat-recovery-experiment-in-sweden, accessed November 20, 2022; Delmastro, op. cit. note 127; J. Yoon, OECD, personal communication with REN21, November 15, 2022.

129 T. Gualtieri and K. Pohjanpalo, “How Cold Seawater Can Heat Helsinki’s Homes,” Bloomberg, October 18, 2022, https://www.bloomberg.com/news/articles/2022-10-18/ helsinki-utility-finds-a-surprising-heat-source-icy-seawater.

130 Sustainable Energy for All, “Chilling Prospects: Tracking Sustainable Cooling for All,” 2022, https://www.seforall.org/ chilling-prospects-2022; IEA, “Space Cooling – Analysis,” 2022, https://www.iea.org/reports/space-cooling.

131 IEA, op. cit. note 130.

132 Delmastro, op. cit. note 127.

133 K. Cromartie, “GEG Successfully Breaks Ground on Geothermal Cooling Project in India,” September 6, 2022, http://gegpower.is/ geg-successfully-breaks-ground-on-geothermal-cooling-projectin-india; A. Richter, “US Firm Plans Geothermal Deep Closed-Loop Cooling System in Bali, Indonesia,” ThinkGeoEnergy, March 19, 2022, https://www.thinkgeoenergy.com/us-firm-plans-geothermal-deep-closed-loop-cooling-system-in-bali-indonesia.

INDUSTRY IN FOCUS

eu-recovery-plan-provisional-agreement-reached-on-repowereu.

23 REN21 Policy Database, op. cit. note 20.

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2 International Energy Agency (IEA), World Energy Statistics Database, 2022, www.iea.org/statistics, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).

5 IEA, “Industry – Analysis,” September 2022, https://www.iea.org/ reports/industry.

7 IEA, op. cit. note 2. Figure 7 from idem.

9 International Renewable Energy Agency (IRENA), “Bioenergy for the Energy Transition: Ensuring Sustainability and Overcoming Barriers,” 2022, https://www.irena.org/-/media/Files/IRENA/ Agency/Publication/2022/Aug/IRENA_Bioenergy_for_the_ transition_2022.pdf; IEA, “Pulp and Paper,” September 2022, https://www.iea.org/reports/pulp-and-paper.

IEA, “World Energy Outlook 2022,” 2022, https://iea.blob.core. windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/ WorldEnergyOutlook2022.pdf.

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66 IEA, op. cit. note 2.

67 IEA, “Bioenergy Use by Sector and Share of Modern Bioenergy in Total Final Consumption in the Net Zero Scenario, 2010-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/ charts/bioenergy-use-by-sector-and-share-of-modernbioenergy-in-total-final-consumption-in-the-net-zeroscenario-2010-2030.

68 Sappi Global, “Co-creating a Shift from Coal to Renewables at Gratkorn Mill,” https://www.sappi.com/fr/decarbonisationat-gratkorn-mill-in-austria, accessed February 13, 2023; Sappi Global, “Transitioning to Bioenergy at Kirkniemi Mill,” https:// www.sappi.com/fr/transitioning-to-bioenergy-at-kirkniemimill, accessed February 13, 2023; Bioenergy International, “Stora Enso to Replace Heavy Fuel Oil at Enocell,” May 1, 2022, https://bioenergyinternational.com/stora-enso-to-replaceheavy-fuel-oil-at-enocell; Metsä Group, “Renewable energy fuels the majority of our mills,” https://www.metsagroup. com/metsafibre/sustainability/sustainability-targets-andprogress/#:\~:text=Our%20goal%20is%20, accessed February 13, 2023; Afry, “Shift toward Biomass Based Electricity at Metsä Board Husum, Sweden,” https://afry.com/en/project/shifttoward-biomass-based-electricity-metsa-board-husum-sweden, accessed February 13, 2023.

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71 IRENA, op. cit. note 9.

IRENA, “Innovation Outlook: Renewable Methanol,” January 2021, https://www.irena.org/publications/2021/Jan/ Innovation-Outlook-Renewable-Methanol.

KeepItGreen, “How Manufacturers Are Developing and Using Renewable Energy,” Smart Cities Dive, https:// www.smartcitiesdive.com/ex/sustainablecitiescollective/ how-manufacturers-are-developing-and-using-renewableenergy/1175001, accessed December 15, 2022.

74 Ibid.

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78 J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 1, 2021): 101915, https://doi.org/10.1016/j.geothermics.2020.101915.

79 BloombergNEF and WBCSD, op. cit. note 50.

80 International Geothermal Association, “Webinar: Scaling-up Geothermal Direct Use for Industrial Applications in Latin America,” August 8, 2021, https://www.lovegeothermal.org/ webinar-scaling-up-geothermal-direct-use-for-industrialapplications-in-latin-america; International Geothermal Association, “Call for Geothermal Direct Use Projects in Latin America and Caribbean,” November 22, 2022, https://www. lovegeothermal.org/call-for-geothermal-direct-use-projects-inlatin-america-and-caribbean.

81 OMV, “OMV Starts Two Geothermal Projects,” October 3, 2022, https://www.omv.com/en/ news/221003-omv-starts-two-geothermal-projects.

82 A. Levine et al., “Mining G.O.L.D. (Geothermal Opportunities Leveraged Through Data): Exploring Synergies Between the Geothermal and Mining Industries,” US National Renewable Energy Laboratory, 2022, https://www.nrel.gov/docs/ fy22osti/81946.pdf.

83 Cornish Lithium Plc, “Direct Lithium Extraction,” https:// cornishlithium.com/projects/lithium-in-geothermal-waters/ direct-lithium-extraction, accessed December 23, 2022; Jelena Temunovic, “Cornish Lithium Set for a Momentous 2023 Following Significant Progress in 2022,” Cornish Lithium Plc, December 20, 2022, https://cornishlithium.com/companyannouncements/cornish-lithium-set-for-a-momentous-2023- following-significant-progress-in-2022.

84 IEA, op. cit. note 51; GEA, “Decarbonizing Industry, One Heat Pump Installation at a Time,” September 21, 2022, https://www. gea.com/en/stories/decarbonizing-industry-one-heat-pumpinstallation.jsp.

“Smart Integration of HP with Energy Storage and Solar Photo Voltaics,” HPT Magazine, Vol. 40, No. 3 (2022), https://issuu. com/hptmagazine/docs/hpt_magazine_no3_2022; Technavio, “Industrial Heat Pumps Market by End-User, Type and Geography – Forecast and Analysis 2023-2027,” December 2022, https:// www.technavio.com/report/industrial-heat-pumps-marketindustry-analysis; “Global Industrial Heat Pumps Market 2017- 2021: Industry Analysis and Forecasts by Technavio,” July 12, 2017, https://www.businesswire.com/news/home/20170712006252/ en/Global-Industrial-Heat-Pumps-Market-2017-2021-Industry-Analysis-and-Forecasts-by-Technavio; IEA, op. cit. note 51.

86 IEA, op. cit. note 51; Technavio, op. cit. note 85.

87 Bronswerk Heat Transfer, “Industry – Pulp & Paper,” https://www. bronswerk.com/industry-pulp-paper, accessed December 21, 2022; IEA, op. cit. note 51.

88 European Heat Pump Association, “PUSH2HEAT: Pushing Forward the Market Potential of Heat Upgrade Technologies,” November 4, 2022, https://www.ehpa.org/press_releases/ push2heat-pushing-forward-the-market-potential-of-heatupgrade-technologies.

89 WBCSD, “Industrial Heat Pumps: It’s Time to Go Electric,” September 2022, https://www.wbcsd.org/contentwbc/ download/14846/211001/1; GEA, op. cit. note 84; Bronswerk Heat Transfer, op. cit. note 87; Technavio, op. cit. note 85; gCaptain, “Climeon Launches New Waste Heat Recovery Technology,” September 13, 2022, https://gcaptain.com/ climeon-launches-new-waste-heat-recovery-technology.

90 IEA, op. cit. note 15; Vienna Energy Forum, op. cit. note 11.

91 European Commission, “State Aid: Commission Approves Up to €5.2 Billion of Public Support by Thirteen Member States for the Second Important Project of Common European Interest in the Hydrogen Value Chain,” September 21, 2022, https://ec.europa. eu/commission/presscorner/detail/en/ip_22_5676; European Commission, “Hydrogen,” https://energy.ec.europa.eu/topics/ energy-systems-integration/hydrogen_en, accessed December 13, 2022.

92 L. Gómez, “Natural Gas and Renewable Hydrogen in Africa and Cooperation Opportunities with the EU,” Global Forum on Sustainable Energy, https://www.gfse.at/fileadmin/user_upload/ gfse_policy_brief_gas_africa_v7_clean.pdf, accessed December 19, 2022; C. Owen-Burge, “Green Hydrogen Could Sustainably Industrialise Africa and Boost GDP by 6 to 12% in Six Key Countries – New Report,” Climate Champions, November 15, 2022, https://climatechampions.unfccc.int/unlocking-africasgreen-hydrogen-potential; G. Müller, “Green Hydrogen: The Energy Opportunity for Decarbonization and Developing Countries,” Industrial Analytics Platform, November 2022, https:// iap.unido.org/articles/green-hydrogen-energy-opportunitydecarbonization-and-developing-countries.

93 World Economic Forum, op. cit. note 11; Leadership Group for Industry Transition, “Green Steel Tracker,” https://www. industrytransition.org/green-steel-tracker, accessed December 22, 2022.

94 O.Wallach, Visual Capitalist,, “Green Steel: Decarbonising with Hydrogen-Fueled Production,” September 28, 2022, https://www.visualcapitalist.com/sp/ green-steel-decarbonising-with-hydrogen-fueled-production.

95 J. Zhang, “For Steel Sector, China’s Decarbonization Is a Costly Quest,” S&P Global, May 19, 2022, https://www. spglobal.com/commodityinsights/en/market-insights/blogs/ metals/051922-green-steel-china-decarbonization-dri.

96 World Economic Forum, op. cit. note 11; China Dialogue, “China’s Steel Capital to Turn Itself into a Hydrogen Hub,” July 7, 2022, https://chinadialogue.net/en/digest/ chinas-steel-capital-to-turn-itself-into-a-hydrogen-hub.

97 World Economic Forum, op. cit. note 11; China Dialogue, op. cit. note 96.

98 Zhang, op. cit. note 95.

99 E. Ng, “Asia’s Steel Industry Will Take Decades to Go Green, Says Mining Giant BHP,” South China Morning Post, December 1, 2022, https://www.scmp.com/business/article/3201543/green-steelstill-decades-away-asia-hydrogen-struggles-replace-coal-firedfurnaces-says-mining-giant.

100 IRENA, “Innovation Outlook: Renewable Ammonia,” 2022, https:// www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/ May/IRENA_Innovation_Outlook_Ammonia_2022.pdf; World Economic Forum, op. cit. note 11.

101 IRENA, op. cit. note 100; InvestChile, “Chile to Attract US\$1 Billion in Green Hydrogen Investments,” December 29, 2021, http://blog.investchile.gob.cl/ chile-attracts-us1-billion-green-hydrogen-investments.

102 IRENA, op. cit. note 100; Iberdrola Corporativa, “Iberdrola Builds the Largest Green Hydrogen Plant for Industrial Use in Europe,” https://www.iberdrola.com/about-us/what-we-do/ green-hydrogen/puertollano-green-hydrogen-plant, accessed December 23, 2022.

103 Bureau Veritas, “Yara Pre-Certification Announcement,” September 19, 2022, https://www.bureauveritas.com.au/ newsroom/yara-pre-certification-announcement.

32 REN21 Policy Database, op. cit. note 8.

ENDNOTES IN TRANSPORT

1 Global GDP from transport calculated by applying transport share of GDP to global GDP, from World Bank, “GDP (current US\$),” https:// data.worldbank.org/indicator/NY.GDP.MKTP.CD, accessed January 12, 2023. Transport share of GDP estimated using a sample of 94 countries, based on the following sources: Trading Economics, “GDP from Transport,” https://tradingeconomics.com/country-list/ gdp-from-transport, and “GDP,” https://tradingeconomics.com/ country-list/gdp, both accessed January 12, 2023; Government of Canada, “Transportation Enabling Economy Growth,” https://tc.canada.ca/en/corporate-services/transparency/corporate-management-reporting/transportation-canada-annual-reports/transportation-enabling-economy-growth, accessed January 12, 2023; Gambia Data Portal, “Gross Domestic Product of Gambia,” https://gambia. opendataforafrica.org/lmljwvg/gross-domestic-product-of-gambia?indicator=1000140-transport-storage-communication, accessed January 12, 2023. As the value for Spain included hostelry, to estimate it more accurately the figure corresponding to tourism activity during 2021 was discounted, based on INE, “Tourism Satellite Account of Spain. Year 2021,” https://www.ine.es/dyngs/INEbase/en/ operacion.htm?c=Estadistica_C&cid=1254736169169&menu=ulti-Datos&idp=1254735576863, accessed January 12, 2023. For Jamaica and Namibia, it was assumed that the values on Trading Economics were provided in local currency rather than US dollars. Global transport workforce calculated by applying transport share of workforce to global workforce, from World Bank, “Labor Force, Total,” https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?end=2 021&start=1990&view=chart, accessed January 12, 2023. Transport share of workforce estimated based on a sample of 53 countries, from International Labour Organization, “Indicator Catalogue,” https://ilostat.ilo.org/data, accessed January 12, 2023.

International Energy Agency (IEA), “World Energy Outlook 2022,” October 2022, https://iea.blob.core.windows.net/assets/830fe099- 5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf; growth estimates based on datasets in IEA, “World Energy Balances Highlights,” October 2022, https://www.iea.org/data-and-statistics/ data-product/world-energy-balances-highlights#data-sets, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).

3 IEA, “World Energy Balances,” op. cit. note 2.

8 Estimates based on IEA, “Energy Consumption in Transport by Fuel in the Net Zero Scenario, 2000-2030,” October 26, 2022, https:// www.iea.org/data-and-statistics/charts/energy-consumption-intransport-by-fuel-in-the-net-zero-scenario-2000-2030, and on REN21 Policy Database. See Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

9 Estimates based on IEA, op. cit. note 8, and on REN21 Policy Database, op. cit. note 8.

10 REN21 estimates the drop in biofuel demand at 4.4%, based on datasets in IEA, “World Energy Balances,” op. cit. note 2.

11 IEA, op. cit. note 8.

12 H. Ritchie and M. Roser, “Emissions by Sector,” Our World in Data, https://ourworldindata.org/emissions-by-sector, accessed January 3, 2023.

13 IEA, “Transport,” September 2022, https://www.iea.org/reports/ transport.

15 IEA, “Global CO2 Emissions from Transport by Sub-sector in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/ data-and-statistics/charts/global-co2-emissions-from-transportby-sub-sector-in-the-net-zero-scenario-2000-2030. Total value of CO emissions for 2021 from European Commission Joint Research Centre, “Global CO2 Emissions Rebound in 2021 After Temporary Reduction During COVID Lockdown,” October 14, 2022, https:// joint-research-centre.ec.europa.eu/jrc-news/global-co2-emissionsrebound-2021-after-temporary-reduction-during-covid19-lockdown-2022-10-14_en.

16 IEA, op. cit. note 15.

17 Ibid.

18 IEA, “Energy Efficiency Indicators Data Explorer,” December 2, 2022, https://www.iea.org/data-and-statistics/data-tools/ energy-efficiency-indicators-data-explorer.

20 Transformative Urban Mobility Initiative (TUMI), “Sustainable Urban Transport: Avoid Shift Improve (ASI),” March 2019, https://www. transformative-mobility.org/assets/publications/ASI_TUMI_SUTP_ iNUA_No-9_April-2019.pdf.

23 IEA, “Global EV Outlook 2022,” May 2022, https://www.iea.org/ reports/global-ev-outlook-2022.

24 M. Vitorino, “Portugal Sets New Goals for Renewable Energy Consumption,” Lexology, December 12, 2022, https://www. lexology.com/library/detail.aspx?g=fe7c9067-8562-475a-bcb9- 399b9a6fe73c; Dutch Emissions Authority, “Renewable Energy for Transport 2022-2030,” https://www.emissionsauthority.nl/topics/ general---renewable-energy-for-transport, accessed February 7, 2023.

25 European Renewable Ethanol, “Overview of Biofuels Policies and Markets Across the EU,” October 2022, https://www.epure.org/ wp-content/uploads/2022/10/221011-DEF-REP-Overview-of-biofuels-policies-and-markets-across-the-EU-October-2022.pdf.

26 TUMI, “Curitiba,” April 6, 2022, https://www.transformative-mobility. org/campaigns/curitiba.

27 King County, “Transitioning to a Zero-Emissions Fleet,” https:// kingcounty.gov/depts/transportation/metro/programs-projects/ innovation-technology/zero-emission-fleet.aspx, accessed February 14, 2023.

C. Isidore, “Why US Gas Prices Are at a Record, and Why They’ll Stay High for a Long Time,” CNN Business, June 6, 2022, https://www. cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html; IEA, “World Energy Outlook 2022,” op. cit. note 2.

29 Figure 10 from REN21 Policy Database, op. cit. note 8.

30 “Cabinet Amends Biofuels Policy, Advances Ethanol Blending Target to 2025-26,” Economic Times, May 18, 2022, https://economictimes. indiatimes.com/industry/renewables/cabinet-amends-biofuels-policy-advances-ethanol-blending-target-to-2025-26/articleshow/91637676.cms.

31 A. Parmar, “Viewpoint: Asian Biofuels Breaking Away from Europe,” Argus Media, December 15, 2022, https://www.argusmedia.com/en/ news/2400935-viewpoint-asian-biofuels-breaking-away-from-europe; S. Kelly and J. Renshaw, “U.S. EPA Proposes Revamp of Biofuel Program to Include Electric Vehicles,” Reuters, December 1, 2022, https://www.reuters.com/business/energy/us-epa-proposes-higher-biofuel-blending-volumes-ev-program-2022-12-01.

33 “Brazil to Keep 10% Biodiesel Mandate Until March – CNPE,” Reuters, November 22, 2022, https://www.reuters.com/business/energy/ brazil-keep-10-biodiesel-mandate-until-march-cnpe-2022-11-21.

34 Figure 11 from REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

35 J. Amir, “Thai Government Announces EV Roadmap,” S&P Global, March 16, 2020, https://www.spglobal.com/mobility/en/ research-analysis/thai-government-announces-ev-roadmap.html;

36 Baker Mckenzie, “Philippines: The Electric Vehicle Industry Development Act (EVIDA), Republic Act No. 11697, Lapses into Law,” May 10, 2022, https://insightplus.bakermckenzie.com/bm/tax/ philippines-the-electric-vehicle-industry-development-act-evida-republic-act-no-11697-lapses-into-law.

37 Kelly and Renshaw, op. cit. note 31.

38 REN21 Policy Database, op. cit. note 34.

39 “Germany Includes Plug-in Hybrids to Achieve Target of 15 Million EVs by 2030,” Power Technology, February 25, 2022, https://www. power-technology.com/comment/germany-target-15-million-evs.

40 The White House, “FACT SHEET: Biden-Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” June 9, 2022, https://www.whitehouse.gov/briefing-room/ statements-releases/2022/06/09/fact-sheet-biden-harris-administration-proposes-new-standards-for-national-electric-vehicle-charging-network.

41 G.Jacquot, “L’obligation de pose de panneaux photovoltaïques sur les grands parkings extérieurs adoptée au Sénat,” Public Senat, November 4, 2022, https://www.publicsenat.fr/article/ parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkingshttps://www.publicsenat.fr/article/ parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiquessur-les-grands-parkings.

Ministry of New & Renewable Energy of India, “India National Hydrogen Mission,” March 2022, https://static.pib.gov. in/WriteReadData/specificdocs/documents/2023/jan/ doc2023110150801.pdf.

43 REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

45 “EU Parliament Votes to Ban Sale of Petrol Car by 2035,” Le Monde, February 14, 2023, https://www.lemonde.fr/en/european-union/ article/2023/02/14/eu-parliament-votes-to-ban-petrol-carsales-by-2035_6015745_156.html.

46 Transport Environment, “Kerosene Taxation: How to Implement It in Europe Today,” June 2020, https://www.transportenvironment.org/ wp-content/uploads/2021/07/2020_06_Kerosene_taxation_briefing.pdf.

47 International Air Transport Association, “Fact Sheet: EU and US Policy Approaches to Advance SAF Production,” 2021, https://www. iata.org/contentassets/d13875e9ed784f75bac90f000760e998/factsheet---us-and-eu-saf-policies.pdf.

48 European Council, “ETS Aviation: Council and Parliament Strike Provisional Deal to Reduce Flight Emissions,” December 7, 2022, https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliament-strike-provisional-deal-to-reduce-flight-emissions.

49 D. Shepardson, “U.S. Outlines Roadmap to Boost Sustainable Aviation Fuel,” Reuters, September 23, 2022, https://www.reuters. com/business/energy/us-outlines-roadmap-boost-sustainable-aviation-fuel-use-2022-09-23.

50 US Department of Energy, “SAF Grand Challenge Roadmap – Flight Plan for Sustainable Aviation Fuel,” September 2022, https://www. energy.gov/sites/default/files/2022-09/beto-saf-gc-roadmap-report-sept-2022.pdf.

51 D. Larsen, “Denmark Aims for Fossil-Fuel Free Inland Flights by 2030,” Electrive, January 4, 2022, https://www.electrive.com/2022/01/04/ denmark-aims-for-fossil-fuel-free-inland-flights-by-2030.

52 L. Limb, “It’s Official: France Bans Short Haul Domestic Flights in Favour of Train Travel,” euronews, December 5, 2022, https://www. euronews.com/green/2022/12/02/is-france-banning-private-jetseverything-we-know-from-a-week-of-green-transport-proposals.

53 SNCF, “Un contrat record pour faire rouler vos trains grâce au photovoltaïque,” https://www.sncf.com/fr/groupe/fournisseurs/ contrat-ppa-photovoltaique-sncf-energie-reden, accessed December 18, 2022.

55 P. Gururaja, “A Big First Step Toward Green Shipping Corridors,” ClimateWorks Foundation, February 2, 2022, https://www. climateworks.org/blog/green-shipping-corridors; Mission Innovation, “Green Shipping Corridor Route Tracker,” 2023, http:// mission-innovation.net/missions/shipping/green-shipping-corridors/route-tracker; C40 Cities, “Maritime and Port Authority of Singapore, Port of Los Angeles, Port of Long Beach and C40 Cities to Establish a Green and Digital Shipping Corridor,” November 7, 2022, https://www.c40.org/news/maritime-and-port-authority-ofsingapore-port-of-los-angeles-port-of-long-beach-and-c40-citiesto-establish-a-green-and-digital-shipping-corridor. Snapshot:

-green-and-digital-shipping-corridor. US-China based on C40 Cities, “Port of Los Angeles, Port of Shanghai, and C40 Cities Announce Partnership to Create World’s First Transpacific Green Shipping Corridor Between Ports in the United States and China,” January 28, 2022, https://www.c40.org/ news/la-shanghai-green-shipping-corridor.

UN Climate Change Conference UK 2021, “Clydebank Declaration for Green Shipping Corridors,” November 10, 2021, https://ukcop26. org/cop-26-clydebank-declaration-for-green-shipping-corridors.

BloombergNEF, “Energy Transition Investment Trends 2023,” January 2023, https://about.bnef.com/energy-transition-investment.

58 IEA, “Biofuels – Renewables 2021 – Analysis,” 2021, https://www. iea.org/reports/renewables-2021/biofuels?mode=transport&region=World&publication=2021&flow=Consumption&product=Ethanol. See also Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

59 M. Teixeira, “High Energy Prices Fuel Investor Interest in Brazil’s Idle Biofuel Capacity,” Reuters, June 8, 2022, https://www.reuters.com/ markets/commodities/high-energy-prices-fuel-investor-interest-brazils-idle-biofuel-capacity-2022-06-08.

60 S&P Global Commodity Insights, “Top Biofuels Market Trends in 2022 and Beyond,” 2022, https://www.spglobal.com/commodityinsights/en/ci/info/0322/top-biofuels-market-trends-2022-beyond. html; glpautogas.info, “HVO 100 Stations in USA, Map and Updated Listing,” https://www.glpautogas.info/en/hvo100-stations-unitedstates.html, accessed January 31, 2023.

61 Phillips 66, “Phillips 66 Makes Final Investment Decision to Convert San Francisco Refinery to a Renewable Fuels Facility,” May 11, 2022, https://investor.phillips66.com/financial-information/news-releases/ news-release-details/2022/Phillips-66-Makes-Final-Investment-Decision-to-Convert-San-Francisco-Refinery-to-a-Renewable-Fuels-Facility.

62 S&P Global Commodity Insights, op. cit. note 60; glpautogas.info, op. cit. note 60.

63 BloombergNEF, op. cit. note 57; M. Prestes, “Palm Oil for Biodiesel in the Amazon: Sustainable Fuel or Deforestation Risk?” Global Issues, May 4, 2022, https://www.globalissues.org/ news/2022/04/04/30517.

64 Figure 12 from BloombergNEF, op. cit. note 57.

65 BloombergNEF, “Electric Vehicle Outlook 2022,” 2022, https://about. bnef.com/electric-vehicle-outlook.

66 BloombergNEF, “Lithium-Ion Battery Pack Prices Rise for First Time to an Average of \$151/kWh,” December 6, 2022, https://about.bnef. com/blog/lithium-ion-battery-pack-prices-rise-for-first-time-to-anaverage-of-151-kwh.

67 Neste, “Green Finance Report 2021,” 2022, https://www.neste.com/ investors.

68 P. Tisheva, “Saudi Arabia’s Alfanar to Invest GBP 1bn in UK SAF Project,” Renewables Now, March 17, 2022, https://renewablesnow.com/news/ saudi-arabias-alfanar-to-invest-gbp-1bn-in-uk-saf-project-777358.

69 S&P Global Commodity Insights, op. cit. note 60.

70 I. Thomas, “United Airlines Is Aiming to Have Electric Planes Flying by 2030,” CNBC, October 10, 2022, https://www.cnbc. com/2022/10/06/united-airlines-is-aiming-to-have-electric-planesflying-by-2030.html.

71 “Air Canada to Buy 30 Electric Planes from Heart Aerospace,” Reuters, September 15, 2022, https://www.reuters.com/business/ aerospace-defense/air-canada-buy-30-electric-planes-heartaerospace-2022-09-15; W. Bellamy III, “Air Canada Signs Purchase Agreement for Heart’s Updated ES-30 Electric Aircraft,” Aviation Today, September 20, 2022, https://www.aviationtoday. com/2022/09/20/air-canada-signs-purchase-agreement-heartsupdated-es-30-electric-aircraft.

72 D. Burroughs, “ÖBB to Invest €1bn in Renewable Energy by 2030,” International Railway Journal, May 13, 2022, https://www.railjournal. com/financial/obb-to-invest-e1bn-in-renewable-energy-by-2030.

73 International Renewable Energy Agency, “Technology Brief: Renewable Energy Options for Shipping,” January 2015, https:// www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/ IRENA_Tech_Brief_RE_for-Shipping_2015.pdf.

74 International Transport Forum, “ITF Transport Outlook 2021,” May 17, https://www.oecd-ilibrary.org/transport/ itf-transport-outlook-2021_16826a30-en.

Estimates based on datasets in IEA, “World Energy Balances,” op. cit. note 2.

81 Ibid. Growth rates calculated using averages pre-COVID-19. 82 Ibid.

Figure 13 from Ibid. Growth rates calculated using averages pre-COVID-19.

Road transport’s share of emissions based on IEA, “Energy Statistics Data Browser,” https://www.iea.org/data-and-statistics/data-tools/ energy-statistics-data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource, August 18, 2022; global emissions from M. Crippa et al., “CO2 emissions of all world countries – 2022 Report,” European Commission Joint Research Centre, 2022, https://publications.jrc.ec.europa.eu/repository/handle/ JRC130363; shares of light vehicles based on 2019 values from IEA, op. cit. note 13, and on International Council for Clean Transportation, “Light Vehicles,” https://theicct.org/sector/light-vehicles, accessed December 15, 2022.

Estimates based on International Organization of Motor Vehicle Manufacturers (OICA), “Global Sales Statistics 2019-2021,” https:// www.oica.net/category/sales-statistics, accessed December 16, 2022, and on IEA, “As the Covid-19 Crisis Hammers the Auto Industry, Electric Cars Remain a Bright Spot,” May 18, 2020, https:// www.iea.org/commentaries/as-the-covid-19-crisis-hammers-theauto-industry-electric-cars-remain-a-bright-spot. Europe includes the Russian Federation and Türkiye.

89 IEA, op. cit. note 88.

European Automobile Manufacturers’ Association (ACEA), “Vehicles in Use Europe 2022,” January 2022, https://www.acea.auto/files/ ACEA-report-vehicles-in-use-europe-2022.pdf; Wikipedia, “List of Countries by Vehicles per Capita,” https://en.wikipedia.org/wiki/ List_of_countries_by_vehicles_per_capita, accessed January 10, 2022.

92 REN21 Policy Database, op. cit. note 8.

Estimates based on Ibid. and on IEA, op. cit. note 8; IEA, “Biofuels,” September 2022, https://www.iea.org/reports/biofuels.

Snapshot: Spain based on the following sources: Energías Renovables, “Bioenergía – Una veintena de autobuses urbanos de Madrid abandonan el gas natural y lo sustituyen por biometano de vertedero,” September 8, 2022, https://www.energias-renovables. com/bioenergia/los-autobuses-urbanos-de-madrid-abandonan-el-20220908; Foro de Empresas por Madrid, “Los autobuses madrileños se moverán con biometano,” August 9, 2022, https:// www.forodeempresaspormadrid.es/actualidad/foro/los-autobuses-madrilenos-se-moveran-con-biometano; NGV Journal, “Madrid Expands PTV Biogas Plant, Will Be Able to Supply 500 EMT Buses,” April 21, 2022, http://www.ngvjournal.com/s1-news/c4-stations/ madrid-expands-valdemingomez-biogas-plant-will-be-able-tosupply-500-buses; Ayuntamiento de Madrid, “Madrid utilizará el biometano de Valdemingómez para mover los autobuses de EMT,” July 9, 2022, https://www.madrid.es/portales/munimadrid/ es/Inicio/Actualidad/Noticias/Madrid-utilizara-el-biometano-de-Valdemingomez-para-mover-los-autobuses-de-EMT.

European Commission, “Mobility and Transport, Biofuels,” https:// transport.ec.europa.eu/transport-modes/air/environment/biofuels_en, accessed January 9, 2023; G. Squadrin, B. O’Kelly and S. Barthel, “Viewpoint: HVO, SAF Demand to Outstrip Supply in 2022,” Argus Media, December 22, 2021, https://www.argusmedia.com/ en/news/2285785-viewpoint-hvo-saf-demand-to-outstrip-supply-in-2022.

Airbus, “Airbus A330MRTT Completes First 100% SAF Test Flight on Both Engines,” November 18, 2022, https://www.airbus.com/en/ newsroom/press-releases/2022-11-airbus-a330mrtt-completes-first-100-saf-test-flight-on-both-engines; Neste, “First Flight in History with 100% Sustainable Aviation Fuel on a Regional Commercial Aircraft,” June 21, 2022, https://www.neste.com/releases-and-news/ renewable-solutions/first-flight-history-100-sustainable-aviation-fuel-regional-commercial-aircraft.

97 IEA, “World Energy Balances,” op. cit. note 2.

98 Ibid.

99 Ibid.

100 OICA, op. cit. note 88; IEA, “Electric Vehicles,” September 2022, https://www.iea.org/reports/electric-vehicles; IEA, “Global EV Data Explorer,” May 23, 2022, https://www.iea.org/data-and-statistics/ data-tools/global-ev-data-explorer.

101 Here “vehicles” refers to automobiles, trucks, vans and buses. Estimated based on IEA, “Global EV Data Explorer,” op. cit. note 100.

102 IEA, “Electric Vehicles,” op. cit. note 100.

103 Ibid.

104 Ibid.

105 IEA, “Global EV Data Explorer,” op. cit. note 100.

106 BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Near Term Outlook,” 2022, https://bnef.turtl.co/story/evo-2022/ page/3/2.

107 IEA, “Global EV Data Explorer,” op. cit. note 100.

108 IEA, op. cit. note 18.

109 Ibid.

110 J. Biba, “Will Charging an Electric Car Ever Be Quick and Easy?” Builtin, November 1, 2022, https://builtin.com/transportation-tech/ electric-vehicle-charging.

111 INES, “ITE INES.2S Mettre du solaire dans votre véhicule (électrique),” September 15, 2022, https://www.ines-solaire.org/ news/ite-ines.2s-mettre-du-solaire-dans-votre-vehicule-electrique; E. Bellini “Vehicle-integrated PV for Heavy-duty Trucks,” pv magazine, October 21, 2021, https://www.pv-magazine.com/2021/10/25/ vehicle-integrated-pv-for-heavy-duty-trucks.

112 International Organization for Standardization, “ISO 15118- 20:2022(en) Road vehicles — Vehicle to grid communication interface — Part 20: 2nd generation network layer and application layer requirements,” 2022, https://www.iso.org/obp/ui/#iso:std:iso:15118:-20:ed-1:v1:en; Virta, “Vehicle-to-Grid (V2G): Everything You Need to Know,” https://www.virta.global/vehicle-to-grid-v2g, accessed January 4, 2022.

113 IEA, “Fuel Cell Electric Vehicle Stock by Region and by Mode, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/ fuel-cell-electric-vehicle-stock-by-region-and-by-mode-2021.

114 US Department of Energy, “Hydrogen’s Role in Transportation,” February 25, 2022, https://www.energy.gov/eere/vehicles/articles/ hydrogens-role-transportation.

115 IEA, “Hydrogen,” September 2022, https://www.iea. org/reports/hydrogen; Hydrogen Central, “Quantron Hydrogen-Powered Truck Has a Range of 1500 Km,” September 27, 2022, https://hydrogen-central.com/ quantron-hydrogen-powered-truck-range-1500-km.

116 IEA, “Fuel Cell Electric Vehicle Stock and Hydrogen Refuelling Stations by Region, 2021,” October 26, 2022, https://www.iea.org/ data-and-statistics/charts/fuel-cell-electric-vehicle-stock-and-hydrogen-refuelling-stations-by-region-2021.

117 IEA, op. cit. note 115.

118 Ibid.

119 Ibid.

120 Business & Human Rights Resource Centre, “Human Rights in the Mineral Supply Chains of Electric Vehicles,” https://www. business-humanrights.org/en/from-us/briefings/transition-minerals-sector-case-studies/human-rights-in-the-mineral-supplychains-of-electric-vehicles, accessed March 8, 2023.

121 BloombergNEF, op. cit. note 106.

122 BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Batteries and Charging Infrastructure,” 2022, https://bnef.turtl.co/ story/evo-2022/page/6/2.

123 Green Climate Fund, “B.33/11 Launch of the Second Replenishment of the GCF,” August 9, 2022, https://www.greenclimate.fund/ decision/b33-11; United Nations Framework Convention on Climate Change, “COP27 Reaches Breakthrough Agreement on New ‘Loss and Damage’ Fund for Vulnerable Countries,” November 20, 2022, https://unfccc.int/news/cop27-reaches-breakthroughagreement-on-new-loss-and-damage-fund-for-vulnerablecountries; Rockefeller Foundation “Global Philanthropies Create New Multilateral Development Banks Challenge Fund to Increase Investment in Developing Countries,” December 10, 2022, https:// www.rockefellerfoundation.org/news/global-philanthropies-create-new-multilateral-development-banks-challenge-fund-to-increase-investment-in-developing-countries.

ENDNOTES - AGRICULTURE IN FOCUS

World Bank, “Agriculture, Forestry, and Fishing, Value Added (% of GDP),” https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS, accessed December 16, 2022.

2 International Labour Organisation (ILO), “Employment Rate in Agriculture, World,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/?chart=Z2VuZGVyPVsiVG90YWwiXSZ1bml0PSJSYXRlIiZzZWN0b3I9WyJBZ3JpY3VsdH-VyZSJdJnllYXJGcm9tPTIwMTAmaW5jb21lPVtdJmluZGljYXRvcj1bIm-VtcGxveW1lbnREaXN0cmlidXRpb24iXSZzdGF0dXM9W10mcm-VnaW9uPVsiV29ybGQiXSZjb3VudHJ5PVtdJndvcmtpbmdQb3Zlcn-R5PVtdJnllYXJUbz0yMDIzJnZpZXdGb3JtYXQ9IkNoYXJ0IiZhZ2U-9WyJBZ2UxNXBsdXMiXSZsYW5ndWFnZT0iZW4i, accessed December 16, 2022.

3 ILO, “Employment Rate in Agriculture, by Region,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/ wesodata/chart/J45qDX-tp, accessed December 16, 2022.

4 Ibid.

5 International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/ data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).

6 Based on IEA data, op. cit. note 5.

7 European Commission, Directorate-General for Maritime Affairs and Fisheries, “Energy Efficiency,” https://stecf.jrc.ec.europa.eu/ web/ee, accessed December 23, 2022.

European Commission, Directorate-General for Maritime Affairs and Fisheries, “2022 Annual Economic Report on the EU Fishing Fleet: The Sector Is Affected by High Fuel Prices in the Wake of the War in Ukraine,” October 11, 2022, https:// oceans-and-fisheries.ec.europa.eu/news/2022-annual-economic-report-eu-fishing-fleet-sector-affected-high-fuel-prices-wakewar-ukraine-2022-10-11_en.

Food and Agriculture Organization of the United Nations (FAO), “FAOSTAT,” https://www.fao.org/faostat/en/#data/GN, accessed January 10, 2023.

Ibid. The dimensionless conversion factors used are: GWP-CH4 = 21 and GWP-N2O = 310 (100-year time horizon global warming potential), from Intergovernmental Panel on Climate Change, “SAR Climate Change 1995: The Science of Climate Change,” 1995, Table 4, https://www.ipcc.ch/report/ar2/wg1.

11 Ibid.

12 Figure 14 from IEA data, op. cit. note 5.

13 Ibid.

14 Ibid.

15 Ibid.

16 Ibid.

17 International Renewable Energy Agency (IRENA) and FAO, “Renewable Energy for Agri-Food Systems: Towards the Sustainable Development Goals and the Paris Agreement,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf.

18 R. Van Anrooy et al., “Review of the Techno-Economic Performance of the Main Global Fishing Fleets,” FAO, 2021, https://www.fao.org/3/cb4900en/cb4900en.pdf.

19 IRENA, “Renewable Energy for Agri-Food Systems: How Cross-Sector Partnerships Are Driving Action and Investments,” November 12, 2022, https://www.irena.org/News/articles/2022/ Nov/Renewable-Energy-for-Agri-food-Systems.

20 IRENA and FAO, “Renewable Energy and Agri-Food Systems: Advancing Energy and Food Security Towards Sustainable Development Goals,” 2021, http://www.fao.org/3/cb7433en/ cb7433en.pdf.

22 Lighting Global, “Market Research on Productive Use Leveraging Solar Energy (PULSE),” September 23, 2019, https://www. lightingglobal.org/resource/pulse-market-opportunity.

23 IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https:// www.irena.org/publications/2019/Jan/ Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.

24 IRENA and FAO, op. cit. note 17.

25 European Environmental Bureau, “Beyond Net-Zero Emission in Agriculture: Creating an Enabling Climate Governance for Agriculture,” July 5, 2021, https://eeb.org/library/ beyond-net-zero-emission-in-agriculture.

26 IRENA and FAO, op. cit. note 17.

27 REN21 Policy Database. See Reference Table R4 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.

28 Mint, “Renewable Energy to Replace Diesel in Agriculture by 2024, Says Govt,” February 12, 2022, https://www.livemint.com/ news/india/renewable-energy-to-replace-diesel-in-agricultureby-2024-says-govt-11644592411948.html.

29 REN21 Policy Database, op. cit. note 27.

30 Figure 15 from Ibid.

31 Ibid.

32 Outlook, “Government Extends PM-KUSUM Scheme Till March 2026 as Covid Affects Implementation,” February 2, 2023, https:// www.outlookindia.com/business/government-extends-pm-kusum-scheme-till-march-2026-as-covid-affects-implementationnews-258895; N. Pasupalati et al., “Learnings for Tamil Nadu from Grid-Connected Agricultural Solar Photovoltaic Schemes in India,” World Resources Institute, February 15, 2022, https://www. wri.org/research/learnings-tamil-nadu-grid-connected-agricultural-solar-photovoltaic-schemes-india.

33 A. Kumar and D. Mohapatra, “Fuelling India’s Future with Bioenergy,” PwC, January 25, 2023, https://www.pwc.in/ research-and-insights-hub/fuelling-indias-future-with-bioenergy. html.

34 L. Concessao and H. Meenawat, “Distributed Renewable Energy Applications Have a New and Encouraging Framework; Applying It on Ground Is Crucial for Success,” ET EnergyWorld, May 9, 2022, https://energy.economictimes.indiatimes.com/ news/renewable/opinion-distributed-renewable-energy-applications-have-a-new-and-encouraging-framework-applying-it-on-ground-is-crucial-for-success/91434372; IRENA and FAO, op. cit. note 20.

35 Fraunhofer Institute for Solar Energy Systems (ISE), “Agrivoltaics: Opportunities for Agriculture and the Energy Transition,” April 2022, https://www.ise.fraunhofer.de/content/dam/ise/en/documents/publications/studies/APV-Guideline.pdf; H. Aposporis, “Greece Passes Renewables Law Targeting 15 GW in New Capacity by 2030,” Balkan Green Energy News, June 30, 2022, https://balkangreenenergynews.com/greece-passes-renewables-law-targeting-15-gw-in-new-capacity-by-2030.

36 A. Bhambhani, “Turkey Facilitates Solar for Irrigation Systems,” Taiyang News, August 3, 2022, https://taiyangnews.info/markets/ turkey-facilitates-solar-for-irrigation-systems.

37 Rockefeller Foundation, “REA Launches New Program to Boost GDP, Accelerate Renewable Energy and Unlock Agricultural Productivity in Nigeria,” March 31, 2022, https:// www.rockefellerfoundation.org/news/rea-launches-new-program-to-boost-gdp-accelerate-renewable-energy-and-unlock-agricultural-productivity-in-nigeria.

38 Fraunhofer ISE, “Agrivoltaics,” https://www.ise.fraunhofer.de/en/ key-topics/integrated-photovoltaics/agrivoltaics.html, accessed January 3, 2023. .

39 J. Jacobo, “Italy to Allocate US\$1.5 Billion for 375MW of Agrivoltaics,” PV Tech, August 29, 2022, https://www.pv-tech. org/italy-to-allocate-us1-5-billion-for-375mw-of-agrivoltaics.

40 Italian Ministry for Ecological Transition, “Guidelines for Agrivoltaics,” June 2022, https://www.mase.gov.it/sites/default/ files/archivio/allegati/PNRR/linee_guida_impianti_agrivoltaici. pdf; E. Bellini, “France Defines Standards for Agrivoltaics,” pv magazine, April 28, 2022, https://www.pv-magazine. com/2022/04/28/france-defines-standards-for-agrivoltaics; E. Bellini, “Historical Court Ruling for Agrivoltaics in Italy,” pv magazine, June 27, 2022, https://www.pv-magazine.com/2022/06/27/ historical-court-ruling-for-agrivoltaics-in-italy.

41 A. Fischer, “US Government Allocates \$8 Million to Support Agrivoltaics,” pv magazine, December 15, 2022, https://www.pv-magazine.com/2022/12/15/ us-government-allocates-8-million-to-support-agrivoltaics.

42 Fraunhofer ISE, op. cit. note 38; US National Renewable Energy Laboratory (NREL), “Agrivoltaics,” https://www.nrel.gov/solar/ market-research-analysis/agrivoltaics.html, accessed January 3, 2023; NREL, “Benefits of Agrivoltaics Across the Food-Energy-Water Nexus,” September 11, 2019, https://www.nrel.gov/news/ program/2019/benefits-of-agrivoltaics-across-the-food-energy-water-nexus.html.

43 Fraunhofer ISE, op. cit. note 35.

69 ESMAP, op. cit. note 66; IRENA and FAO, op. cit. note 20.

44 J. Dahm and N. Kurmayer, “Germany to Boost Renewables in Agriculture, Link Moorlands with Solar Panels,” Euractiv, February 11, 2022, https://www.euractiv.com/section/agriculture-food/ news/germany-to-boost-renewables-in-agriculture-link-moorlands-with-solar-panels.

45 Franhaufer ISE, op. cit. note 35.

46 H. Horton, “Ministers Hope to Ban Solar Projects from Most English Farms,” The Guardian (UK), October 10, 2022, https://www.theguardian.com/environment/2022/oct/10/ ministers-hope-to-ban-solar-projects-from-most-english-farms.

47 IRENA and FAO, op. cit. note 20.

48 Ibid.

50 Acumen, “Acumen Launches a \$25 Million Investment Initiative to Power Livelihoods with Clean Energy,” July 12, 2022, https:// acumen.org/blog/acumen-launches-a-25-million-investmentinitiative-to-power-livelihoods-with-clean-energy.

F. Agbejule, M. Mattern and J. Mensah, “Savings at the Pump: Financing Solar Irrigation to Support Rural Women,” CGAP, March 22, 2022, https://www.cgap.org/blog/ savings-pump-financing-solar-irrigation-to-support-rural-women.

52 Interreg Europe, “Romania: New Financing for Renewables in Agriculture,” April 15, 2021, https://projects2014-2020. interregeurope.eu/agrores/news/news-article/11786/ romania-new-financing-for-renewables-in-agriculture.

54 US Department of Agriculture, Rural Development, “Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants,” January 5, 2015, https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans.

55 IRENA, op. cit. note 19.

56 A. Rosell, “Zero CAPEX Solar Heat for Mexican Industry,” Solar Thermal World, March 18, 2022, https://solarthermalworld.org/ news/zero-capex-solar-heat-for-mexican-industry.

57 A. Rosell, “Solar Heat for Multinational Agribusinesses Under Way,” Solar Thermal World, November 10, 2022, https://solarthermalworld.org/news/ solar-heat-for-multinational-agribusinesses-under-way.

58 B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/ news/10-mw-solar-plant-heats-air-malting-plant-france.

59 B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/ innovation-fund-approves-eur-45-million-croatian-ship-plant.

60 A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/ news/heat-purchase-agreements-on-the-rise-in-spain.

61 S. Schindele et al., “Implementation of Agrophotovoltaics: Techno-Economic Analysis of the Price-Performance Ratio and Its Policy Implications,” Applied Energy, Vol. 265, 1 May 2020, p. 114737, https://www.sciencedirect.com/science/article/pii/ S030626192030249X.

62 Blind Creek Solar Farm, “About Blind Creek Solar Farm,” https://www.blindcreeksolarfarm.com.au/about-blindcreek-solar-farm, accessed February 12, 2023; Clean Energy Finance Corporation, “NSW Regenerative Agriculture Boosted with Solar and Storage,” July 2022, https:// www.cefc.com.au/where-we-invest/case-studies/ nsw-regenerative-agriculture-boosted-with-solar-and-storage.

63 M. Van Nguyen et al., “Uses of Geothermal Energy in Food and Agriculture: Opportunities for Developing Countries,” FAO, January 1, 2014, https://www.fao.org/publications/card/ fr/c/045ca001-4849-43b7-8dc6-e99635ddb5ea.

64 R. McRae, “\$10m Investment in Geothermal Direct Use in Balikesir, Sindirgi, Turkey,” ThinkGeoEnergy, December 8, 2021, https://www.thinkgeoenergy.com/10m-investment-in-geothermal-direct-use-in-balikesir-sindirgi-turkey; C. Cariaga, “Grant Awarded for Geothermal Greenhouse Installation in Eskisehir, Turkiye,” ThinkGeoEnergy, October 14, 2022, https://www. thinkgeoenergy.com/grant-awarded-for-geothermal-greenhouse-installation-in-eskisehir-turkiye.

65 US Department of Energy, Office of Scientific and Technical Information, “2013 Market Trends Report,” January 1, 2014, https:// www.osti.gov/servlets/purl/1220825.

66 Energy Sector Management Assistance Program (ESMAP), “Off-Grid Solar Market Trends Report 2022: Outlook,” October 17, 2022, https://esmap.org/ Off-Grid_Solar_Market_Trends_Report_2022_Outlook.

67 IRENA, “Off-Grid Renewable Energy Statistics 2022,” December 2022, https://www.irena.org/Publications/2022/Dec/ Off-grid-renewable-energy-statistics-2022.

68 Green Climate Fund, “Hydro-Agricultural Development with Smart Agriculture Practices Resilient to Climate Change in Niger,” October 7, 2021, https://www.greenclimate.fund/project/fp176.

70 Efficiency for Access, “Solar Appliance Technology Brief: Walk-in Cold Rooms,” July 2021, https://storage.googleapis. com/e4a-website-assets/EforA_Solar_Technology_Brief_ WalkInColdRooms_July-2021.pdf; ESMAP, op. cit. note 66. Snapshot: India based on the following sources: B. Moushumi, “Indian Farmers Turn to Solar-Powered Fridges to Reduce Food Waste,” Scroll.in, December 5, 2022, https://scroll.in/ article/1038916/indian-farmers-turn-to-solar-powered-fridgesto-reduce-food-waste; “Food Wastage in India: A Concern,” Eastern Mirror, October 25, 2022, https://easternmirrornagaland.com/food-wastage-in-india-a-concern; F. Birol and A. Kant, “India’s Clean Energy Transition Is Rapidly Underway, Benefiting the Entire World,” IEA, January 10, 2022, https:// www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world; H. Lalramenga, “Deputy CM Hmalaknain Khawzawlah Solar Cold Storage Bun Dt. 21.12.2021,” DC Khawzawl, December 22, 2021, https://dckhawzawl.mizoram.gov.in/post/ deputy-cm-hmalaknain-khawzawlah-solar-cold-storage-bun.

71 ESMAP, op. cit. note 66.

72 Based on IEA data, op. cit. note 5.

73 Fraunhofer ISE, op. cit. note 35.

74 Fraunhofer ISE, op. cit. note 38.

75 Fraunhofer ISE, op. cit. note 35.

76 FAO, “The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation,” 2022, http://www.fao.org/3/ cc0461en/cc0461en.pdf.

77 CLIENT II, “SHRIMPS – Solar-Aquaculture Habitats as Resource-Efficient and Integrated Multilayer Production Systems,” https:// www.bmbf-client.de/en/projects/shrimps, accessed January 4, 2023.

78 Ibid.

79 B. Santos, “Floating Solar Tech for Aquaculture,” pv magazine, January 4, 2023, https://www.pv-magazine.com/2023/01/04/ floating-solar-tech-for-aquaculture.

80 IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https:// www.irena.org/publications/2019/Jan/ Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.

81 Ibid.

82 Ibid; FAO, op. cit. note 76.

83 IRENA, op. cit. note 80.

84 IRENA and FAO, op. cit. note 20.

85 Ibid.

86 FAO, op. cit. note 76.

87 Based on IEA data, op. cit. note 5.

88 Ibid.

89 IRENA and FAO, op. cit. note 20.

90 Ibid.

91 Ibid.

92 Ibid.

93 Green Climate Fund, “Climate Resilient Fishery Initiative for Livelihood Improvement in the Gambia (PROREFISH Gambia),” July 20, 2022, https://www.greenclimate.fund/project/fp188.

94 R. Van Anrooy et al., op. cit. note 18.

C. Carletto, “Better Data, Higher Impact: Improving Agricultural Data Systems for Societal Change,” European Review of Agricultural Economics, Vol. 48, No. 4, September 2021, 719-740, https://doi.org/10.1093/erae/jbab030.

96 D. Mohapatra et al., “Decentralised Renewable Energy Innovations to Boost Agri-Sector Productivity & Address Global Food System Challenges,” Alliance for Rural Electrification, January 2021, https://www.ruralelec.org/publications/decentralised-renewable-energy-innovations-boost-agri-sector-productivity-address.

PHOTO CREDITS

page 11 © Hadrian / The European Parliament building in Strasbourg
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BUILDINGS IN FOCUS

POLICY

Strategies to Phase Out Russian Fossil Gas in European Buildings via Renewables

Decarbonising Buildings With Renewables

INVESTMENT

MARKET DEVELOPMENTS

CHALLENGES

R The number of engineers and installers

OPPORTUNITIES

ountH2 es had

for renewabSeven

INDUSTRY IN FOCUS

Clustering Development to Meet Energy Demand and Decarbonisation Commitments

Making Progress in Decarbonising Industry with Renewables

CHALLENGES AND OPPORTUNITIES

CHALLENGES

OPPORTUNITIES

TRANSPORT IN FOCUS

MODULE OVERVIEW

Road Transport

4 countries

Aviation, Rail and Shipping

World's First Trans-Pacific Green Shipping Corridor Between Los Angeles and Shanghai

Source: See endnote 55 for this module.

INVESTMENT

Investment in biofuels

BUILDINGS IN FOCUS

POLICY INDUSTRY IN FOCUS

TRANSPORT IN FOCUS

AGRICULTURE IN FOCUS

RENEWABLES IN

REN21-可再生能源2023年全球状况报告（英）-75页-WN5