The Unexpected Nations Powering a Rapid Clean Energy Shift
This year has brought a series of discouraging developments in the fight against climate change. Fossil fuel production continues to climb, the United States has retreated from climate leadership, and global tensions have pushed environmental priorities down political agendas. Yet, amid the setbacks, a different story is emerging; one of remarkable progress. Clean energy is expanding at record speed around the world, and the momentum is building in some of the least-expected places. The surge suggests that a new era of energy, dominated by wind and solar, may be arriving faster than anticipated.
In the first half of 2025, renewable sources overtook coal for the first time as the world’s leading supplier of electricity, a major symbolic and practical milestone. Since power generation is the largest source of global carbon emissions, this shift has wide-reaching implications. Clean electricity also underpins the decarbonisation of transport and other heavily polluting industries.
The clean energy boom shows no signs of slowing. As solar panels, wind turbines, and batteries become cheaper and easier to deploy, renewables are outcompeting fossil fuels in cost and scalability. The International Energy Agency forecasts that renewable power capacity will double in the next five years, adding about 4,600 gigawatts, equivalent to the combined generation capacity of China, the European Union, and Japan.
Even with this extraordinary growth, overall emissions are not yet falling fast enough. In many countries, surging energy demand is preventing renewables from fully replacing fossil fuels. The world’s transition to clean power is accelerating, but not yet fast enough to meet global climate goals.
The Largest Polluters Are Shifting — Cautiously
After decades of relying on fossil fuels to fuel economic growth, major emitters are increasingly turning toward renewables, driven primarily by economics. Solar power, in particular, has become one of the most affordable forms of electricity ever produced.
China remains in a class of its own. It has installed more wind and solar capacity than any other nation, and in 2024 alone added more renewables than the United States currently operates in total. By the end of that year, China’s installed wind and solar capacity exceeded 1,400 gigawatts, with hundreds more under construction.
The United States, despite federal rollbacks on clean energy policy, continues to expand renewable capacity. Most of the country’s new power generation now comes from wind and solar. Businesses have accelerated construction to take advantage of remaining clean energy tax incentives, and renewables continue to grow because they are among the cheapest options available.
India is also setting records for new solar and wind capacity, establishing itself as one of the top developing economies for renewable energy growth. The European Union, supported by strong climate policies, aims to generate nearly 43% of its energy from renewables by 2030.
Still, the world’s largest economies have not abandoned fossil fuels. China’s coal production reached its highest level in a decade last year. The United States has seen an uptick in coal-fired power generation, and India continues to rely on fossil fuels to sustain its rapid industrial growth. Europe has also temporarily increased fossil fuel use to compensate for reduced hydropower and weaker wind output.
Emerging Economies Take the Lead
While large economies dominate global emissions, the real momentum in clean energy is now coming from smaller and rapidly developing nations. Countries across South America, Africa, Southeast Asia, and the Middle East are moving quickly toward renewables, helped by the availability of low-cost solar panels, batteries, and wind turbines, many manufactured in China.
Several nations are experiencing especially swift transitions. Nepal, for example, has seen electric vehicles surge to more than three-quarters of new car sales, supported by a power grid largely fueled by hydropower.
Hungary, once almost entirely dependent on fossil fuels, has rapidly expanded its solar capacity thanks to simplified regulations and government incentives. In South America, Chile has turned its sun-drenched Atacama Desert into one of the world’s fastest-growing solar regions. In Europe, Greece has seen a solar boom, with panels spreading across rooftops, hillsides, and islands.
Pakistan’s progress is particularly striking. In just six years, solar has gone from nearly nonexistent to supplying about 30% of the country’s electricity. Its rapid expansion illustrates how developing economies can leapfrog older energy systems and move directly into renewables.
The Next Frontier: Storage and Integration
Building renewable power is only part of the transition. To ensure consistent electricity, countries must also invest in storage technologies such as batteries, which can balance the intermittent nature of solar and wind.
In many developing regions, fossil fuels are likely to remain part of the mix for years to come, particularly where energy demand is growing rapidly. However, in places without extensive legacy infrastructure, renewables are increasingly the cheapest and most practical choice.
As clean technology prices fall and accessibility improves, developing nations could surpass wealthier economies in the pace of their transition. The global energy system is shifting more rapidly than expected, and while challenges remain, the clean energy revolution has clearly begun.