Supply chain risk and government policies top barriers to renewables growth: KPMG

Supply chain risks are among the main barriers to scaling renewable energy to replace fossil fuels, according to a survey by KPMG, which warns that the current pace of renewable deployment is “nowhere near sufficient” to meet ambitions under the Paris Agreement.

As part of its Turning the Tide report on scaling renewables, a survey of more than 100 renewables experts globally finds 80% believe accelerating renewable deployment is the most pressing challenge for the transition to greener energy. The survey further finds that 84% name current market barriers as a cause of major delays to renewables, with some renewable energy projects abandoned as a result.

KPMG says 40% of respondents believe current government policies are ineffective in accelerating renewable deployment. This is named as the leading barrier to scaling up renewables followed by market structures and design, supply chain risks, access to capital and lack of investment in grid infrastructure.

As the COP28 presidency pushes for global commitments to triple renewable energy by 2030, KPMG says there are real-world challenges that will need to be overcome to achieve these ambitions.

“Achieving climate goals will likely require tripling annual renewable capacity by 2030 and then scaling dramatically up to 2050. For this to happen, the world must wake up and attendees must come to COP28 ready to join forces to help remove these barriers or risk meaningful progress slipping through our fingers,” KPMG warns.

“It is time for immediate urgency and implementation or otherwise the reality is that the world will need to burn fossil fuels for much longer than is currently anticipated,” it says.

Anish De, global head for energy, natural resources and chemicals at KPMG International, says identifying barriers to renewable deployment should be followed by solutions to unlock growth in the renewables sector.

“Confluence across sectors is key. As the world prepares to discuss these issues at length at COP28 and beyond, now is the time for government, industry, and all of society to collaborate and move from identifying challenges to taking deliberate action in a meaningful way,” De says.