IRENA Releases 2026 “Transitioning Away From Fossil Fuels” Roadmap

The International Renewable Energy Agency (IRENA) released in May 2026 an analytical report titled Transitioning Away From Fossil Fuels, which provides a foundation for international discussions on shifting away from fossil fuels. The report states that the share of electricity in final energy consumption must rise from the current level of approximately 23 percent to 35 percent by 2035 and to more than 50 percent by 2050. It also presents numerical targets, including expanding global renewable energy capacity to 18.4 TW by 2035 and doubling annual investment in power grids from the current USD 0.5 trillion to USD 1 trillion. IRENA concludes that moving away from fossil fuels will require not only the deployment of renewable energy but also a systemwide transformation that combines demand‑side electrification with significant expansion of grid infrastructure.

Changes in Conditions Surrounding the Energy Transition

Several factors have pushed the energy transition into a new phase, including heightened geopolitical tensions, market price volatility, and disruptions in supply chains. At the same time, electricity demand is surging due to economic growth, urbanization, and digitalization—particularly the increase in cooling demand from data centers—while improvements in energy efficiency have not kept pace.

Taking these developments into account, the twenty‑eighth session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP28) reached agreement on several international directions, including transitioning away from fossil fuels, tripling global renewable energy capacity, and doubling the annual rate of energy‑efficiency improvement. With these directions now established, countries are expected to clarify the level of electrification and infrastructure development needed to achieve climate goals while maintaining energy security.

Levels Required for the Transition

IRENA’s report identifies the levels of electrification and infrastructure development needed to limit global temperature rise to within 1.5°C.

System Transformation and Policy Challenges Alongside Infrastructure Development

Infrastructure development remains one of the most significant challenges in the energy transition. Currently, approximately 2,500 GW of projects—mainly wind, solar, and battery storage—are waiting to be connected to power grids worldwide. As electrification progresses, the load on power systems will continue to increase, making planned grid expansion and upgrades essential. The report also calls for increasing overall power‑system flexibility to 30 percent by 2050.

At the same time, sectors where direct electrification is difficult—such as aviation, maritime transport, and steel and cement production—will require sustainable fuels, including biofuels and hydrogen, as key alternatives.

Achieving these structural changes will require policy reforms such as the gradual phaseout of fossil‑fuel subsidies, as well as mobilizing investment for developing countries. A “just transition” approach, including retraining programs for workers affected by the shift, will also be essential. Countries will need to develop integrated policies across multiple ministries, taking into account differences in economic structures and energy access between developed and developing economies.

Related Link

IRENA report: Transitioning Away From Fossil Fuels: A Roadmap Based on Renewables, Electrification and Grid Enhancement
https://www.irena.org/Publications/2026/May/Transitioning-away-from-fossil-fuels