More Than 40% of World’s Electricity Came From Zero-Carbon Sources in 2023

Zero-carbon technologies comprised more than 40% of global electricity generation for the first time in 2023, according to a report released Tuesday from BloombergNEF.

Renewable energy sources like wind and solar made up 17% of total electricity generation, and hydroelectric and nuclear power contributed 24%. Fossil fuels including coal and natural gas produced 57% of global electricity last year.

“We’ve consistently seen the penetration of renewables rising every year, and this year we hit quite a few milestones that had felt harder to reach in past years,” said Meredith Annex, head of clean power at BNEF.

One such milestone: Solar and wind represented more than 90% of global energy capacity additions last year, a step up from 2022. Global wind capacity also crossed the one-terawatt threshold. And Brazil, the country with the cleanest power mix of the G-20 economies, hit 88% renewable power generation in 2023.

“It just shows the momentum that the space is having. A lot of that does tie into the investment story, where you’ve got rising—skyrocketing, honestly—investment into solar,” Annex said.

Mainland China accounted for almost a third of total renewable energy output last year. The country recently reached its 2030 target for wind and solar energy six years early, according to a statement from its National Energy Administration, and it has pulled back on permits for new coal-fired power plants. The country’s rapid deployment of renewables has some analysts wondering if it will reach peak fossil fuel consumption this year. Declining emissions in China would signal a turning point because it is the world’s largest polluter, comprising nearly a third of global greenhouse gas emissions, according to the International Energy Agency.

Despite rapid growth in renewables, countries’ current commitments aren’t sufficient to limit global warming to 1.5 degrees Celsius, the goal outlined in the 2015 Paris Agreement, according to the IEA. Advanced economies would need to slash emissions by 80% by 2035 to meet the goal.

At last December’s COP28, a global climate conference hosted by the United Nations, participating countries agreed to triple renewable energy capacity by 2030. BNEF has forecast that achieving this goal would require investments in renewables to increase to 1.6 times 2023 levels from 2024 to 2030.

So far, that increase hasn’t materialised. Global investments in renewables are roughly on par with 2023 levels, at $313 billion in the first half of 2024, according to the new BNEF analysis. “We’re expecting steady growth, but steady growth does not get you to net zero,” Annex said.

The topline numbers obscure bigger changes under the surface. Average spending in the U.S. is up by about 63% compared with levels before the 2022 Inflation Reduction Act, which offers generous subsidies and tax breaks to promote decarbonisation. And while Chinese investment is actually down 4% from the same period in 2023, Annex said the dip is due to cheaper equipment for wind and solar, not a decline in demand.

The second half of this year will be a “defining moment,” for the investment landscape, Annex said. Steady growth “is definitely a positive, and it could be a sign that the industry as a whole is reaching a new kind of status quo, but we need to help expand even faster if we’re going to be in line with net zero.”

For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.

1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.

2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.

3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.

4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.

5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.

6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.

7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.

8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.

Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.

More Than 40% of World’s Electricity Came From Zero-Carbon Sources in 2023

Investments in renewables continue to outpace fossil fuels, a BloombergNEF report finds