NEW YORK (AP) — The transition to cleaner energy sources such as solar and wind has reached a crucial milestone, suggesting continued price drops and increased adoption, according to two new reports from the United Nations released Tuesday. These findings provide a glimmer of hope amid the broader challenges of reducing global emissions.

In 2023, renewable sources like wind and solar made up 74% of the increase in global electricity production, the U.N.’s multiagency paper titled Seizing the Moment of Opportunity revealed. It also noted that nearly 93% of all new power capacity added during this period came from renewables. Meanwhile, electric vehicle sales have jumped from 500,000 in 2015 to over 17 million in 2024.

According to analysis from the International Renewable Energy Agency (IRENA), the most cost-effective sources of electricity last year were onshore wind, solar energy, and newly built hydropower. The data shows that solar energy is now 41% cheaper and wind energy 53% less expensive than the most affordable fossil fuel source. Fossil fuels such as coal, oil, and gas remain the primary drivers of climate change.

“The era of fossil fuels is fading,” declared United Nations Secretary-General Antonio Guterres during the launch of the reports. “We’re entering a new age powered by affordable, clean, and abundant energy—a path toward better economic prospects for all.”

Guterres highlighted that investments in renewable energy reached $2 trillion last year, surpassing fossil fuel investments by around $800 billion. “The trend is clear—just follow the money,” he said.

UN Urges More Rapid Transition to Clean Energy

Sheep graze beneath solar panels in Hainan, a western prefecture in China's Qinghai province, on July 1, 2025. (AP Photo/Ng Han Guan)

Despite the growing momentum, U.N. leaders cautioned that the shift to renewables isn’t happening fast enough to meet global climate targets.

Most of the renewable energy progress has occurred in wealthier nations like China, India, and Brazil—China alone has tied a tenth of its economy to clean energy industries.

On the other hand, Africa contributed to less than 2% of the new global renewable capacity last year, despite being in urgent need of electricity. The reports attribute this disparity to the high financial costs faced by countries in the Global South.

“Developing nations must be able to expand their energy supplies sustainably, without being burdened by unmanageable debt,” said climate scientist Adelle Thomas from the Natural Resources Defense Council. Although she was not involved in the reports, she emphasized they counter the misconception that green energy can't compete with fossil fuels—stating instead that a clean energy future is not only possible but likely.

Jonathan Overpeck, dean of the environment school at the University of Michigan, echoed this sentiment. He explained that the economic advantages of renewables create a cycle that continually reduces their cost, making fossil fuels less attractive.

Fossil Fuel Subsidies Still Dominate Despite Renewable Growth

Workers install solar panels in Galena, Alaska, on May 21, 2025. (AP Photo/John Locher, File)

Even with significant progress, Guterres and the reports noted that fossil fuels continue to receive far more government subsidies. In 2023, fossil fuel subsidies globally totaled $620 billion, compared to just $70 billion for renewables.

Meanwhile, fossil fuel production isn’t slowing—it's growing. Rising global energy demand, especially in emerging economies and energy-intensive sectors like artificial intelligence, is fueling this increase.

“A single large AI data center can use as much electricity as 100,000 households,” Guterres noted. “By 2030, data centers may consume as much energy as Japan does today.”

He urged major technology companies to transition their data centers to 100% renewable energy sources by the end of the decade.

US Clean Energy Sector Faces Policy Shifts

Workers handle solar panel equipment at Adani New Industries Limited in Gujarat, India, Sept. 20, 2023. (AP Photo/Rafiq Maqbool, File)

According to IRENA statistics, solar and wind energy in the United States grew steadily at about 12.3% annually from 2018 through 2023. However, recent policy changes under President Donald Trump’s administration—such as the country’s exit from the Paris climate agreement and cuts to federal clean energy initiatives—have shifted focus back to fossil fuels.

Though Guterres didn’t name any specific nations, he issued a stern warning to those still investing heavily in fossil fuels: “They are not safeguarding their economies; they are undermining them. Rising costs, lost competitiveness, and wasted investments will follow.”

He highlighted that renewable energy offers a more stable path forward. “There are no fuel price shocks with sunshine and no political embargoes on wind,” Guterres said.

David Waskow from the World Resources Institute commented that while the challenges ahead are steep, the present progress offers encouragement. He likened the situation to being halfway up a mountain—having come far, but facing an even steeper climb ahead.

In closing, Guterres acknowledged the despair many young people feel but insisted the outlook isn’t entirely bleak.

“This path is not fixed,” he said. “We have the knowledge, tools, and determination to steer toward a better future. There’s still hope.”

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