Public Financial Support for Renewable Power Generation and Integration in the G20 Countries

The report finds that G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, which is less than one third of the USD 535 billion provided in fossil fuel subsidies. Advanced economies and China account for 95% of this support, leaving many emerging market and developing economies (EMDEs) at risk. To meet the 2030 tripling target, public support in G20 countries may need to double to approximately USD 336 billion per year. The report highlights a shift from feed-in tariffs toward market-based mechanisms like auctions and a growing emphasis on domestic manufacturing support in the US, EU, and India.

• G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, which represents only 31% of the amount provided as subsidies for fossil fuels in the same year.
• Public support for renewable energy is highly concentrated, with advanced G20 economies and China accounting for 95% of the support, a share that exceeds their combined G20 GDP (85%) and population (51%).
• To achieve the target of tripling renewable energy capacity by 2030, public financial support in G20 countries may need to double to approximately USD 336 billion per year, assuming current investment patterns continue.
• In 2023, public support for renewable power and integration in G20 countries leveraged over 6 dollars of investment for every dollar of public support, whereas fossil fuel subsidies leveraged only one additional dollar for every 3 dollars of subsidy.
• The majority of public support (83% of the USD 531 billion provided between 2020-2023) targeted producers and developers, while consumers received 8% and sector-wide support (including grids and R&D) received 6%.
• Germany was the largest G20 supporter of renewable power in 2023 by both absolute value (USD 43 billion) and as a percentage of GDP, and was the only G20 economy where renewable support exceeded fossil fuel subsidies as a percentage of GDP.
• There is a transition in policy tools: China, Germany, and Japan have shifted away from feed-in tariffs (FITs) for new projects toward market-based mechanisms such as auctions and feed-in premiums (FIP).
• The US, EU, and India are increasing support for domestic manufacturing of renewable equipment, with the US utilizing the USD 370 billion Inflation Reduction Act (IRA) for tax credits and grants.
• Total public financial support for fossil fuels in 2023 reached USD 1,125 billion, including USD 535 billion in subsidies, USD 300 billion in SOE capital investments, and USD 43 billion in international lending.

APA

Laan, T., Do, N., Haig, S., Urazova, I., Posada, E., & Wang, H. (2024). Public Financial Support for Renewable Power Generation and Integration in the G20 Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-09/renewable-energy-support-g20.pdf

Chicago

Laan, Tara, Nhat Do, Steven Haig, Indira Urazova, Eduardo Posada, and Hanjie Wang. Public Financial Support for Renewable Power Generation and Integration in the G20 Countries. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-09/renewable-energy-support-g20.pdf.

Wikipedia

{{cite report |last1=Laan |first1=Tara |last2=Do |first2=Nhat |last3=Haig |first3=Steven |last4=Urazova |first4=Indira |last5=Posada |first5=Eduardo |last6=Wang |first6=Hanjie |title=Public Financial Support for Renewable Power Generation and Integration in the G20 Countries |publisher=International Institute for Sustainable Development |date=September 2024 |url=https://www.iisd.org/system/files/2024-09/renewable-energy-support-g20.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{laan2024public, author = {Laan, Tara and Do, Nhat and Haig, Steven and Urazova, Indira and Posada, Eduardo and Wang, Hanjie}, title = {{Public Financial Support for Renewable Power Generation and Integration in the G20 Countries}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = sep, url = {https://www.iisd.org/system/files/2024-09/renewable-energy-support-g20.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }