Renewable Energy Thrives as an Economic Force Amid US Climate Policy Challenges
Climate change is undoubtedly a daunting topic, casting a cloud over much of our discussions. Its status as an existential crisis complicates the search for positive news.
Recent developments, particularly with the advent of the second Trump Administration, have intensified these challenges. The administration has systematically rolled back America’s climate commitments, diminishing support for clean technology industries, and even withdrawing from the Paris Climate Agreement—an unprecedented move for the world’s largest historical emitter of carbon.
The phrase “drill-baby-drill” has become emblematic of the current administration’s approach to fossil fuels.
These actions raise concerns for the global value chain of clean technology, leading many climate activists to feel disheartened. However, amidst this difficult landscape, a beacon of hope emerged recently.
The reality is that the global renewable energy revolution is on a robust trajectory, one that the Trump administration cannot derail. Recent data indicates that momentum in the transition to renewable energy sources is stronger than ever.
In fact, the shift towards sustainable energy suggests that a “drill-baby-drill” philosophy may ultimately leave the U.S. lagging behind its global counterparts. This encouraging data comes courtesy of the International Renewable Energy Agency (IRENA), the leading intergovernmental organization dedicated to energy transformation, representing 169 countries. Their latest Renewable Capacity Statistics report for 2025, released this week, documents record-breaking growth in renewable energy capacity from the previous year.
According to the report, an astounding 92.5% of all new electricity generating capacity added worldwide came from renewable sources—including solar, hydro, wind, bioenergy, geothermal, and wave energy. This marks a significant rise from 2023, where renewables accounted for 85.8% of new capacity additions. In Europe alone, capacity rose by 9%, with Germany contributing over a quarter of that growth. Africa also saw notable progress, with a nearly 7% increase.
These figures underscore a pivotal shift in direction for global investments. The fossil fuel era appears to be coming to an end, irrespective of the current political climate in the U.S. As President Francesco La Camera of IRENA highlighted, “When one government steps back from climate leadership, it opens up space for others to step forward.” This sentiment captures the essence of the ongoing transformation.
Wind power costs have plummeted by 60% since 2010, and solar power has become a staggering 90% cheaper. Remarkably, renewable energy now constitutes almost half of the total global installed power capacity, with IRENA reporting a figure of 46.4%—a number that continues to rise.
The report also identifies a consistent trend of decommissioning outdated fossil fuel facilities in various regions. As in past years, the majority of renewable energy capacity increases last year were concentrated in Asia, with China leading the charge, contributing nearly 64% of the global added capacity.
With growing concerns about economic competitiveness and energy security, the rapid expansion of renewable energy offers myriad business opportunities while addressing these pressing issues sustainably.
Countries around the world have until September of this year to present new and enhanced climate action promises, known as Nationally Determined Contributions. These pledges are crucial roadmaps for how each nation plans to meet the targets set forth in the Paris Climate Agreement, with a primary goal of limiting global temperature rises to 1.5°C.
Reflecting on the potential for growth, Secretary-General of the United Nations António Guterres recently reiterated the need to accelerate the clean energy transition. He emphasized the positive impacts of renewable energy, including job creation, lower energy bills, and improved air quality, while advocating for a more equitable distribution of its benefits.
In the same vein, UN Climate Chief Simon Stiell transformed the positive momentum in renewable energy into a call for decisive action, urging nations to maintain their commitments despite any setbacks from the U.S. administration. He noted, “As one government steps back from climate leadership, it opens up space for others to step forward and seize the vast benefits on offer.”
Last year, global clean energy investments surged to an impressive $2 trillion. Stiell highlighted the monumental dividends that this transition could yield, asserting that “the clean energy transition can be Europe’s economic engine-room.” As countries bolster their climate action promises, they have an opportunity to send a powerful message to market players and consumers alike.
Indeed, there is hope that governments across Europe—and beyond—will heed this call and make substantive strides toward a greener future. Despite the challenges posed by current leadership, forward momentum in the renewable energy sector suggests that we are not only moving ahead but creating a more sustainable world.
It’s a positive narrative worth sharing, and many are hopeful that our leaders are listening.
Edited By Ali Musa
Axadle Times International – Monitoring.
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