2024 has been a transformative year, marked by unparalleled advancements in renewable energy capacity, electric vehicle adoption, and global efforts to combat climate change. Market forces, innovation, and collective ambition have driven significant progress toward climate goals, often exceeding expectations.
China: A Global Renewable Leader
- Solar and Wind Targets Surpassed: China’s 2030 renewable energy target of 1,200 gigawatts (GW) was achieved in mid-2024, years ahead of schedule. Solar capacity alone reached close to 900 GW, with nearly 350 GW added this year.
- CO₂ Emissions Peak: Analysts suggest China’s CO₂ emissions peaked in 2024 due to accelerated renewable deployment and a slowdown in industrial emissions.
- Global Influence: China’s renewable energy expansion accounted for two-thirds of the world’s new wind and solar capacity, reinforcing its position as a clean energy superpower.
Electric Vehicles: A Milestone Year
- Global EV Sales Surge: Over 10 million battery electric vehicles (BEVs) were sold globally in 2024, bringing the total number of BEVs on the road to 50 million. BEV sales continued to grow rapidly, though hybrids like the Toyota HS remain a strong presence in the market. However the increasing popularity of BEVs reflects a clear shift toward full electrification and away from anything that contains a fuel combusion engine.
- China’s Market Leadership: EVs accounted for over 50% of new car sales in China year-over-year, cementing its status as the world’s largest EV market.
- Declining ICE Sales: Internal combustion engine (ICE) vehicle sales continued their sharp decline globally, dropping by an estimated 25% compared to 2023 levels. The shift highlights the growing dominance of EVs in the automotive sector.
Renewable Energy: Breaking Records Worldwide
- Decline in Coal and Oil Demand: Coal and oil consumption saw significant declines in 2024, driven by the surge in renewables and electrification of transportation. These traditional energy sources are losing market share to cleaner alternatives as nations prioritize climate goals and economic efficiency.
- Faltering Nuclear Ambitions: Many countries scaled back nuclear energy investments, citing high costs, long timelines, and competition from rapidly deployable renewables. Renewables’ cost-effectiveness and scalability have created a “home run” scenario, leaving nuclear power struggling to keep pace.
- New Capacity Added: By the end of 2024, the world added over 500 GW of renewable energy capacity, with solar and wind contributing the lion’s share. Total global renewable energy capacity now exceeds 3 terawatts (TW).
- Regional Highlights:
- United States: Texas overtook California as the leader in solar capacity and energy storage systems (ESS). Quebec emerged as the EV capital of North America, outpacing California in EV market share.
- European Union: Renewable energy deployment shattered records, while coal and nuclear power faced further decline.
- Latin America and Africa: Countries like Brazil and South Africa saw significant growth in wind and solar energy, supported by international investments and local initiatives.
Market Forces and Capitalism Driving Change
The rapid progress in renewable energy and EV adoption illustrates how market dynamics can accelerate climate action:
- Cost Reductions: Solar and wind energy have become the cheapest sources of electricity in many regions, driving widespread adoption.
- Private Sector Leadership: Investments from major corporations and startups alike have driven innovation and scalability in clean technologies.
- Economic Opportunities: The shift to renewables and EVs is creating millions of jobs worldwide, fueling economic growth while reducing environmental harm.
2025: Building on 2024’s Momentum
The breakthroughs of 2024 set a strong foundation for even greater achievements in 2025:
- Higher-Range EVs: Advancements in battery technology will bring EVs with significantly extended ranges to market, addressing one of the last barriers to mass adoption.
- Expanded Charging Infrastructure: Massive investments made in 2024 are set to materialize, resulting in a more extensive and efficient global EV charging network.
- Upscaling Renewable Energy and BESS: The deployment of battery energy storage systems (BESS) will scale rapidly alongside new solar and wind projects, solidifying renewables as the backbone of modern energy grids.
- Projected Growth: Renewable energy capacity is expected to expand by another 600 GW globally in 2025, driven by technological advancements and government incentives.
- Electrification Accelerates: BEV sales are projected to exceed 15 million, further reducing ICE market share and emissions.
- Global Collaboration: Efforts in Latin America, Africa, and Asia will play a crucial role in shaping a sustainable energy future.
The breakthroughs of 2024 set a strong foundation for even greater achievements in 2025:
- Projected Growth: Renewable energy capacity is expected to expand by another 600 GW globally in 2025, driven by technological advancements and government incentives.
- Electrification Accelerates: BEV sales are projected to exceed 15 million, further reducing ICE market share and emissions.
- Global Collaboration: Efforts in Latin America, Africa, and Asia will play a crucial role in shaping a sustainable energy future.
Conclusion
2024 has proven that market forces, innovation, and global collaboration can drive unprecedented progress in addressing climate change. The plummeting costs of renewable energy technologies, coupled with the massive adoption of EVs led by companies like Tesla, BYD, and Geely, have accelerated the transition away from fossil fuels. Meanwhile, private-sector investment in battery technology and large-scale solar and wind projects has further solidified the role of clean energy as the backbone of the global energy system.
The “China export tsunami” continues to reshape EV markets worldwide. Established brands like BYD and Geely dominate in regions such as Southeast Asia, Latin America, Africa, and Europe. Simultaneously, innovators like Xpeng, Xiaomi, Leapmotor, and Zeekr are redefining affordability and performance with breakthroughs such as Xpeng’s 500 kW charging speeds, Xiaomi’s affordable EV launches, Leapmotor’s global market expansion, and Zeekr’s rise in the luxury segment.
These advancements are amplified by breakthroughs in artificial intelligence, humanoid robotics, and precision fermentation technologies. Industries such as automotive manufacturing, energy production, and food systems are being transformed. The automotive sector is electrifying rapidly, energy production is shifting toward decentralized renewables, and food systems are being revolutionized by sustainable practices like precision fermentation.
As 2025 begins, the momentum toward a cleaner, greener future is stronger than ever. This transformation, powered by market forces and capitalism rather than solely government policies, is proving that delays by legacy-focused leaders are increasingly ineffective. Humanity is not only catching up to climate goals but also setting the stage for even greater achievements in the years to come.
Happy New Year, everyone!
