Clean energy competitiveness is key to meeting climate goals

Improving the competitiveness of clean energy technologies is essential to keeping the 1.5°C global warming target within reach, according to a new analysis based on 2025 data

The findings show the importance of accelerating the development and deployment of a wide range of low-carbon solutions to meet the objectives of the Paris Agreement on climate change.

The Joint Research Centre (JRC) report shows that although progress has been made, there is still room for improvement, especially in terms of scaling up the technologies needed to limit the worst impacts of climate change.

The four technologies leading the way

Out of 15 key clean energy technologies assessed, four are already more cost-efficient than fossil fuel alternatives.

Solar power, wind energy, electric vehicles, and biofuels have reached a level of competitiveness that allows for large-scale deployment under current policy frameworks.

These technologies are already being rolled out rapidly across global markets, supported by falling costs and increasing demand. Their strong performance suggests that clean energy can compete economically while also reducing greenhouse gas emissions. It is still important to note that relying on these technologies alone will not be enough to meet long-term climate targets.

New solutions need more support

A range of technologies will be required to fully decarbonise the global economy. The JRC report identifies several emerging solutions, including synthetic fuels, low-emission industrial processes, and carbon capture, that are still in earlier stages of development.

These technologies currently account for a smaller share of emissions reductions but are expected to play a crucial complementary role, particularly in sectors that are difficult to decarbonise, such as heavy industry, aviation, and shipping.

The JRC analysis also highlights uneven progress across different parts of the energy system. In power generation, solar and wind energy are now among the cheapest options in many regions and are being deployed at levels consistent with climate goals.

Energy storage is expanding rapidly and is seen as vital for supporting renewable energy systems. Increased storage capacity will help balance supply and demand, improving grid reliability as more intermittent energy sources come online.

In transport, electric car adoption is accelerating quickly, with the global fleet projected to grow dramatically by 2050. Electric trucks are also advancing, though at a slower pace, requiring continued policy support to scale effectively.

Meanwhile, sectors such as aviation and maritime transport are exploring alternatives like synthetic fuels and hydrogen-based solutions. These areas will depend heavily on long-term policy frameworks to drive innovation and investment.

Trade challenges are potentially slowing progress

The report also examines how global trade dynamics could influence climate action. It finds that increasing trade fragmentation may reduce emissions but less efficiently, leading to higher economic costs.

Fragmentation can disrupt supply chains, slow the spread of clean technologies, and make it more difficult to achieve deep decarbonisation. While climate policies are shaping energy markets, broader trade policies continue to play a dominant role in manufacturing and global economic flows.

The findings are published in the latest edition of the Global Energy and Climate Outlook, an annual report that tracks the evolution of the global energy system and its alignment with climate targets. The report contributes to international policy discussions, including those led by the United Nations Framework Convention on Climate Change.