Renewable energy transition drives global reform and economic benefits

The International Renewable Energy Agency (IRENA) has released the 2026 World Energy Transition Outlook (WETO), emphasizing that global energy systems require urgent reforms to align with the 1.5 °C target. The report highlights that electrification powered by renewable energy must accelerate significantly to replace fossil fuel-based systems. While renewable capacity is breaking records, grid reinforcement and energy efficiency improvements are currently lagging behind rising global demand.

In a related economic perspective, a study by the Plan4Climate coalition and Climate Action Network Europe (CAN Europe) suggests that the energy transition can generate substantial economic co-benefits. For Portugal, these benefits—including energy savings, health improvements, job creation, and avoided climate damages—are estimated to reach €8.5 billion annually by 2030, potentially rising to €28.6 billion per year by 2050. On a European scale, energy efficiency measures could yield annual benefits of €826 billion by 2030 and up to €2 trillion by 2050.