Aligning renewable energy goals with broader development policies could lift almost 193 million people out of extreme poverty by 2060, concluded a study conducted by the United Nations Development Programme (UNDP), University of Denver’s Pardee Institute and Octopus Energy.
The study was aimed at exploring how time-bound renewable energy targets could unlock emissions-cuts, help improve economy and deliver social benefits when backed by coherent policies and financing mechanisms.
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Most importantly, the adoption of renewable energy can unlock USD 20.4 trillion in cumulative savings for the global economy, said the report.
The study was conducted under the lens of three scenarios – a business-as-usual scenario; accelerated renewable energy deployment; and accelerated renewable energy deployment alongside investments in health, education, water, and food systems.
In a business-as-usual scenario, the study came to the conclusion that global energy system remains dependent on fossil fuels, accounting for over 50 per cent of primary energy by 2060.
This trajectory would push global warming to 2.6°C, exacerbating poverty, malnutrition and lack of access to essential services like electricity, safe water and sanitation.
The second scenario considered accelerated renewable energy deployment aligned with the first Global Stocktake’s call to triple renewable energy and double energy efficiency. In this scenario, fossil fuels would make up just 12 per cent of the energy mix by 2060, thereby limiting global temperature rise to below 2 degree Celsius.
But, it is the third and most ambitious scenario – where renewables are accelerated alongside investments in health, education, water and food systems – that yields the most transformative outcomes.
In this, universal access to electricity and clean cooking is achieved, almost 142 million people are saved from malnutrition, and 550 million more gain access to clean water and sanitation.
Cassie Flynn, UNDP’s Global Director of Climate Change remarked that the study proves that a clean energy future is possible. “This study shows us that a clean energy future is possible, but we must choose to embed renewable ambition into climate plans linked to inclusive development policies,” she said.
In addition to its social impact, the study also estimates that the third scenario would generate USD 8.9 trillion in energy efficiency savings and USD 11.5 trillion from declining renewable costs, while boosting global GDP by 21 per cent and raising per capita income by USD 6,000 by 2060.
Octopus Energy founder Greg Jackson highlighted the growth potential that clean energy can unlock. “Renewables can offer the chance to bring electricity to hundreds of millions of people, improving lives and driving growth,” he said.
With the world’s renewable power capacity reaching 4,448 GW in 2025, accounting for over 90 per cent of new power additions and clean energy investments projected to hit a record USD 2.2 trillion, the momentum is strong.
Yet, fossil fuels continue to dominate the earth’s landscape, comprising over 70 per cent of the global supply.
In 2024 alone, fossil fuels accounted for more than half of the 2.2 per cent rise in energy demand, and energy efficiency growth halved from previous decades.
The responsibility now befalls global leaders, said Jonathan Moyer, director of the Pardee Institute.
“The imperative now falls to global leaders to embrace these strategies and act,” he said.
“This research shows it is possible to balance global development with environmental protection while managing the inherent trade-offs,” Moyer said.
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