International Renewable Energy Agency
Impactful Partnerships for Small Islands' Climate Resilience and Sustainable Development

With climate change increasingly putting people in dire situations in recent years, meeting the climate goal through the transition to sustainable energy is now a matter of urgency. Like many countries in the Global South, Small Island Developing States (SIDS) are not only in need for energy security, but also for climate resilience.

Many SIDS depend their livelihoods on fishery, tourism and other sectors that are vulnerable to climate disasters. This is why they put energy transition targets at the heart of climate ambition and sustainable development. Achieving those targets, however, will require the international community to step up financing and technical support.

As one of the custodians of the Sustainable Development Goal 7, and in support of SIDS' plea in global climate discussions, the International Renewable Energy Agency (IRENA) was highly engaged at the Sustainable Energy for All (SEforALL) Global Forum earlier this week, hosted by the Government of Barbados. Below are the key takeaways of IRENA's participations in the different sessions:

Being small islands that are surrounded by vast ocean territory, SIDS are at the frontlines of the climate crisis, despite contributing less than 1% of global greenhouse gas emissions. The increasingly-intense weather events, rising sea-level, and substantial reliance on fossil fuels - which, together with food imports eat up 40% of their income - have driven these ocean states to pursue the energy transition, at speed.

Knowing that renewables provide climate resilience, energy, food, and water security while reducing reliance on costly imports, many SIDS demonstrated strong commitments through their Nationally Determined Contributions (NDCs) and targeted 100% renewables in their electricity mix by 2030. But as COP30 is closing in, achieving the energy transition in SIDS requires stronger renewables ambitions in their NDCs. IRENA through the SIDS Lighthouses Initiative provides tailored support to NDCs enhancement and implementation for SIDS.

Up to date, the Global South receives only 10% of energy transitions investment, threatening the progress of just, inclusive transitions. IRENA has identified the need for countries to work together to address the disparity. With climate hazards costing them USD153 billion over the past 50 years while international investment flows are insufficient to finance their energy transitions, SIDS' call for international support has grown louder and more united. SIDS Ministers gathered at the SIDS Ministerial Roundtable announced a Call to Action to unlock climate finance and technical support.

In line with IRENA's call to strengthen international collaboration to leverage development finance, multilateral and bilateral, SIDS call upon development partners and the international community for a SIDS package on Accelerating Just and Equitable Energy Transitions Investments (SIDS AJETI). The SIDS AJETI should build and leverage on existing initiatives such as the Bridgetown Initiative, which - under the leadership of Prime Minister Mia Mottley - pushes for the reforming of the international financial architecture.

Due to perceived or real higher risks, unpredictable returns and private sector's preference for investing in low-risk mature markets, countries in the Global South have been struggling to attract private investment. Prompted by Brazil's experience that shows strengthened planning processes drive the needed investments, the Global Coalition for Energy Planning (GCEP) initiative was established by the Group of 20 in October 2024. It seeks to empower countries, especially in the Global South, in strengthening their energy planning capabilities, developing and executing their nationally determined energy transition strategies.

With its extensive expertise in energy planning and leadership in the Global Network on Long-Term Energy Scenarios, IRENA is designated to be the incoming GCEP Secretariat. The session dedicated to GCEP in the SEforALL Global Forum emphasised the role of energy planning to create enabling conditions through forward-looking policies and regulations; address investors' needs with actionable investment plans; and ensure credibility through strong governance frameworks. As reiterated by IRENA Director-General Francesco La Camera in his remarks, "When countries develop well-coordinated and transparent planning processes, they create the foundation for sound investment strategies, effective risk mitigation, and ultimately, the attraction of private capital at scale."

IRENA has identified that lagging infrastructure development and inefficiencies in power grids represent some of the energy transition's barriers. The session on Barbados' energy leadership and regional grids underscores this point: without infrastructure modernisation, a diversified and interconnected power system based on renewables will neither advance nor expand.

Using the Caribbean experience, the session highlights the role of regional grids in the sustainable deployment of renewables, as well as geothermal contribution to the stability and resilience of national energy infrastructure in small island nations. With the objective to enhance the Caribbean regional connectivity and renewables expansion, IRENA works closely with the Caribbean Development Bank and partners to support the Caribbean Regional Grid Interconnection and Renewable Energy Scaling initiative.

Under the theme of Sustainable Energy for Equity, Security and Prosperity', this year's SEforALL Forum focused on catalysing actions and investment for countries to increase their energy access while achieving climate and development goals. Across the different sessions at the Forum, participants agreed that energy transition addresses energy poverty, promotes economic development, and unlocks opportunities for diversified supply chains.

For its part, IRENA has found that a key benefit of the energy transition is its potential to improve global welfare. IRENA analysis shows for instance that the transition is estimated to create 30 million renewables jobs by 2030. It is therefore timely for the international community to respond to developing countries' need for an accelerated energy transition, both to unlock economic prosperity and build climate resilience.

1. Small Island Developing States (SIDS)' survival truly depends on the climate goal.
2. Disparity can only be addressed by strengthened collaboration.
3. Robust energy planning is what the Global South needs to attract investments.
4. Grid infrastructure enhancement can no longer wait.
5. Improving access to sustainable energy drives economic prosperity.