COP29: the 29^th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change

To maintain route to 1.5 C by 2050 and recognizing its critical contribution to the achievement of all the UN SDGs, more than 130 countries agreed to triple renewable energy capacity by 2030 at COP28. At the Summit of the Future in 2024, leaders have reinstated commitments to transition away from fossil fuels. From global ambition, it is time to draw regional and local transformations. COP29 needs to deliver on financing and implementation ensuring no one is left behind.

Small islands worldwide are disproportionally impacted by accelerating impacts of a changing climate such as rising temperatures, more frequent natural disasters, and flooding due to rising sea levels, and urgently need improved energy security and resilience. Developing ambitious renewable energy strategies stands as a vital priority for these vulnerable communities, also given they bear some of the highest electricity generation costs in the world. At the same time, they represent high-value laboratories to develop 100% renewable energy roadmaps and lead the global decarbonisation effort.

As reinforced by the major outcome of the Fourth UN Conference on Small Island Developing States (SIDS4), the Antigua and Barbuda Agenda for SIDS (ABAS), switching to renewable energy has a key role to play for small islands’ energy security as well as economy-wide decarbonisation and revitalisation through job creation, empowerment of local value chains and communities, and circularity.

The case studies developed as part of the Greening the Islands 100% RES Islands Initiative demonstrate the technical and economic feasibility of achieving fully renewable power systems in a relative short timeframe. Furthermore, they indicate that investment potential into the islands’ renewables market is larger than what typically assumed. The renewable energy capacity potential on islands worldwide is estimated to be over 1 TW (including offshore), equivalent to about USD 1 trillion of investment opportunity.

Following high-level engagements at COP 28, SIDS4, and the Global Renewables Summit at New York Climate Week 2024, the UN Department of Economic and Social Affairs (UN DESA), the Global Renewables Alliance (GRA), and Greening the Islands (GTI) Foundation will host a joint event at COP 29, focusing on the key role of early finance and effective permitting for accelerated energy transition on small islands worldwide.

Streamlined permitting processes and clear legal and regulatory frameworks are necessary for small islands to reduce costs and attract private investments. To this end, GTI Foundation has partnered with GRA to advance a set of island-specific recommendations to implement fast and fair permitting for renewable energy and related projects.

While funding is generally available for ready-to-build projects, islands need a more structured and standardised framework to de-risk investments and reach the implementation stage. Crucial preliminary steps include developing a comprehensive energy strategy; implementing enabling legal and regulatory frameworks; building appropriate capacities and technical skills; creating a roadmap that incorporates resource assessment, power grid upgrade studies, energy demand dynamics, and projects mapping; conducting pre-feasibility and feasibility analyses; and defining financial mechanisms for the deployment of projects.

Hence, increased early finance is necessary to unlock the full potential of the energy transition. Islands need dedicated financial flows – public and private – to support energy strategy and planning as well as the development of enabling factors. Raising awareness about the importance of supporting islands along all stages of their decarbonisation journeys and developing dedicated financial models to catalyse public and private capital are two key priorities for islands at COP 29.

The event will involve island case studies and build on the outcomes of the recent GTI Observatory Summit in Curaçao to stimulate the discussion around the significance of integrating efforts among multiple islands and stakeholders through a global structured framework to accelerate energy transitions. A panel discussion will feature high-level representatives from SIDS, global leaders from the renewables industry, development banks and other key institutions bringing diverse experiences and points of view.