IRENA – World Energy Transitions Outlook, 2023

The report IRENA's World Energy Transitions Outlook, 2023 highlights the urgent need to accelerate the energy transition in order to avoid the catastrophic effects of climate change. The report emphasizes the importance of a holistic approach to the transition, considering both technological advancements and socio-economic aspects. It discusses the socio-economic impacts of IRENA's Paris Agreement-compliant 1.5°C Scenario compared to the Planned Energy Scenario. The analysis provides insights for policymakers on how economic activity, employment, and well-being may be affected under the 1.5°C pathway. The report suggests that successful policy-making should involve different government ministries and stakeholders to ensure a just and effective energy transition. The previous edition of the Outlook explored progressive policies, such as international collaboration, differentiated carbon pricing, and distributive policies, to address the potential regressive impacts of the transition. This edition extends the analysis to model the effects of greater international collaboration and assesses the generation of additional transition revenues. The report suggests that these measures can significantly improve GDP, job creation, and welfare globally, especially in poorer countries and regions. By 2050, the energy transition is projected to increase energy sector jobs by 73 million compared to the current level. The report concludes by emphasizing the need for urgent and ambitious policy-making to translate the knowledge presented in the report into action. It hopes that the report will inspire positive outcomes at COP28.