A glimpse of the renewable future

Fossil fuels dominate our energy systems, accounting for more than 70% of global greenhouse gas emissions. At the same time, billions of people live without access to reliable and affordable energy, while extreme weather events and rising energy demand expose the vulnerabilities of our current infrastructure.

In one way, the transformation has already begun: cleaner, renewable energy technologies are quickly scaling up and, in many regions, have become the cheapest sources of new electricity generation. In another, we are off-track: due to growing demand, our dependency on fossil fuel-based energy has failed to decrease.

A renewable future to aspire to

In 2025, the Australian government gave us a glimpse of the energy future we could one day all experience. They confirmed everyone in the country would soon receive three hours of free renewable electricity each afternoon. Why? Because the country now generates more renewable power than it can use during daylight hours. Another more negative contributing factor was a lack of storage capacity for renewable energy. But three free hours are just the beginning… This move shows that when technology, finance and policy align, renewable energy can deliver both lower emissions and tangible social benefits.  

Societal benefits of a world powered by renewables

Billions of people suffer from the health effects of energy-related pollution. More than 700 million people still live without electricity, while millions more rely on unsafe or polluting fuels for cooking and heating. People around the world face energy poverty, unmanageable prices and unreliable supply. All of these put very real and damaging stress on both physical and mental health, especially for vulnerable people such as the elderly and children. Expanding clean energy systems can support the health of people as well as the planet, and in turn reduce the strain on healthcare systems caused by air pollution and the fossil fuel industry.  

The growth of renewable energy also presents an opportunity for local job creation, skills development and new forms of community ownership. The energy transition can have a direct focus on affordability, fairness and resilience. Around the world, decentralised ownership models are emerging. This means that ownership and decision making are spread across many stakeholders, allowing for more tailored responses to local challenges. Local energy co-operatives, community-owned solar parks and benefit sharing initiatives put financial returns and control in the hands of local people and communities.  

The path to get there

Appropriate policies and collaboration are needed to implement a successful energy transition. Governments could begin phasing out fossil fuel subsidies and setting firm deadlines immediately. They must also invest directly in the backbone of the transition – grids, storage, and public infrastructure.  

Finance, of course, plays a huge role in this change. It’s estimated that the global energy transition will require $6.3 trillion per year by 2030. Setting reduction targets for funding fossil fuels and reporting on these year-on-year, as well as actively channelling funding towards decentralised renewables, storage, supply chains and efficiency solutions, will all contribute to propelling the energy transition forward.  

Finally, civil society also holds the power to democratise energy. From launching initiatives exploring alternative ownership models, to awareness building and advocacy – this all keeps the energy transition at the centre of agenda. Civil action can also be as simple as creating demand and actively switching your energy tariff to a renewable supply. Alternatively, why not write to your current energy provider and ask them to champion renewables, or request that they offer fully green energy tariffs if they don’t already.  

The key transformations

The energy transition is often presented as a technological puzzle: replace fossil fuels with renewables and the transition is complete. But it's not that simple. The context in which this transition takes place is not neutral: it's an economy that is fundamentally dependent on continuous growth and driven by profit.  

The dynamic between energy and demand is driven by rebound effects: as as energy efficiency improves and cleaner technologies are adopted, systemic pressures for growth continue to push energy demand upward. Simply put, as energy becomes cheaper or more efficient, it encourages more energy use. To keep up with this demand, we will need system redesigns and innovation in infrastructure that enables and incentivises a reduction in overall energy use.  

Energy should be for the public good. Our goal is to make sure the systems we transform enhance wellbeing and social justice. Reducing energy demand shouldn’t be about sacrifice. It should be about doing more with less, improving efficiency and securing a better quality of life for all. For households this could involve better insulation, smart heating systems, and appliances that use less energy whilst maintaining comfort. 

A shift in society

A renewable future isn’t just about building more solar panels and wind turbines. It’s about rethinking how much energy we use and need, as well as balancing demand so that globally we can achieve fair and affordable access to energy.  

If governments, financers, companies and citizens each act within their sphere of influence and in alignment with one another, we can swiftly move to an energy future that is clean, reliable, and accessible to everyone. By banking with Triodos, you are already using your money to make this renewable future a reality – you can find out more about the energy projects your money is funding here.