Explore how developing economies can balance growth and sustainability through decarbonization strategies, fostering economic development while reducing emissions.

Energy consumption in the world economy has increased highly, from 13,371 EJ in 2012 to 557 EJ in 2020. In 2020, fossil fuels dominated global primary energy consumption by 83%, amounting to 463 EJ, while renewable energy contributed a mere 6% (32 EJ), and the remaining were nuclear energy and hydroelectricity. The burning of fossil fuels releases CO2, therefore, global warming, which has resulted in decarbonization globally.

The global energy transition toward full decarbonization by 2050, which limits temperature rise to 1.5°C, constitutes several challenges to third-world nations.

It is in this context that decarbonization has become a global priority. Developing economies are challenged to achieve this goal in a manner that guarantees economic growth, while advanced nations have better access to renewable energy comparatively.

Thus with the growing recognition that sustainable development is not just a necessity but an opportunity for economic progress.

Challenges for Developing Economies

Energy Poverty

Energy poverty is possibly one of the biggest challenges in developing economies. According to World Bank figures, about 940 million people worldwide lack access to electricity, the majority of whom are found in Sub-Saharan Africa and South Asia. Better access to affordable and reliable energy is decisive for better living standards, new jobs, and a catalyst for economic growth. The demand fulfilment in this context often falls on fossil fuels, leading to an increase in carbon emissions which is inconsistent with decarbonization.

Economic Development

The key focus of many of the developing economies is economic growth. Industrialization and infrastructural development are key elements towards enhancing overall levels of living, poverty alleviation, and creating employment opportunities. However, such activities do not go without environmental degradation costs that need optimum compartmentalization and balance.

Infrastructure Development

Developing countries face important needs for sustainable infrastructure also. With scarce capital, green buildings, smart grids, and sustainable transport infrastructures are resource-hungry and expensive as well as quite infeasible to have created. Technically and financially, there is not much capacity in most of the countries to promote sustainable infrastructure. Old and dominant methods are quicker and cheaper but can also bind such a country into carbon-intensive development paths.

Technological Limitations

Most of the developing countries lack advanced technologies, which will help in the process of decarbonization. Many renewable technologies like solar and wind power entail economies of scale and utilize skilled labour. Energy-efficient technologies with unsustainable practices remain a costly affair to deploy. Technological transfer from developed countries to developing ones is inevitable to overcome such constraints.

Decarbonisation Opportunities

Developing economies have immense opportunities to deliver decarbonization, despite all these constraints.

Renewable Energy

Renewable energy has great potential in developing countries; most of these countries have vast natural resources, including sunlight, wind, and water, which can be exploited to produce clean energy. African nations lead in the use of geothermal energy in the continent, followed by Kenya and others, while countries such as Ethiopia lead in wind energy. Investment in renewable energy lowers carbon emissions apart from producing cheap, clean, and reliable energy, thus boosting economic growth.

Sustainable Agriculture

Agriculture is one of the central sectors in the economy of developing countries. However, at the same time, it is one of the largest emitters of greenhouse gases. While still achieving food security, in various ways such as agroforestry, conservation tillage and organic farming, developing countries are set to begin reducing their emissions with the help of sustainable agriculture.

Sustainable agriculture promotes soil health and contributes to water conservation too. It goes without saying that it is a win-win for the environment and local economies alike.

Green Industries

Green jobs and industries in developing economies may also generate a natural environmental sustainability perspective. Low-carbon sectors, such as renewable energy and sustainable tourism, might also provide stimulus and growth opportunities. They don't only have low carbon outputs but are also looking to enhance employment and decrease poverty.

Reconciling Growth and Sustainability

Policy Frameworks

Policies and regulation are essential guides in the developing economies to converge onto sustainable development. A framework of encouragement of renewable energy, efficiency of energy, and sustainable infrastructure development by a government will create incentives for investment. Tax breaks, subsidies, and low-interest loans will encourage businesses to move toward green technology.

International Cooperation

International cooperation is a necessity for decarbonization in developing economies. The developed nations and international organizations have to provide much-needed support through financial assistance, technology transfer, and capacity building. GCF, partnerships with development banks, etc., are pertinent for funding renewable energy projects and other sustainable development projects in developing countries.

Public-Private Partnerships

Collaboration between governments, businesses, and civil society may be quite crucial to further the course of sustainable development. PPPs could be one of those mechanisms that will rally together resources and expertise towards the development of green infrastructure and industries. 

Conclusion

But in 2022, fossil fuels still accounted for 80% of the global energy consumption. Africa only contributed 1.3% to the global installed solar capacity in renewable energy. Out of 586,434 MW installed worldwide by 2019, Africa stood at 1.3%. Excluding major Asian countries, other Asian nations only contributed 5.4% of installed renewables or 330,786 MW. Africa's wind capacity in 2019 similarly accounted for only 0.9% of the global total. Other Asian countries even emerged at a lowly 2%.

If the consumption of fossil fuels is allowed to continue unabated, and energy demand almost doubles by 2050, emissions will exceed the limiting amplitude; in other words, all efforts at limiting a global temperature rise of less than 2°C will have failed, and catastrophic climate consequences await the world.

Balancing economic growth and decarbonization in developing economies is both a challenge and an opportunity.