Renewables body seeks private cash as US exit leaves funding gap

• US pulls out of Abu Dhabi’s Irena
• Agency aids countries with energy transition
• Trump slows climate change funding

An Abu Dhabi-based intergovernmental organisation that helps countries expand their renewable energy sectors will look for private funding to help plug the gap left by Washington’s planned withdrawal from the body, the group’s senior leadership told media on Sunday.

The 16th edition of the assembly of the International Renewable Energy Agency (Irena) is underway in the UAE capital following the US’s announcement last week that it would exit the group.

The decision forms part of a broader US withdrawal along with 64 other organisations, many of them environmental, which President Donald Trump said were “contrary to the interests of the United States”.

The US contributes 22 percent of Irena’s annual budget. The agency’s funding plan for the next cycle has yet to be approved, with scenarios ranging from a zero-growth budget frozen at the 2024-25 level of $64.8 million to a “programme continuity” option of $76.1 million. A US withdrawal could leave a $15 million hole.

While part of the money may come from governments, director-general Francesco La Camera said the body is trying to get some from companies that are part of its initiatives in the private sector. “I don’t see any impact on any specific regions,” he said.

Irena supports countries in scaling up renewable energy through policy advice, data and market analysis, helping governments and investors navigate the global energy transition.

The agency’s budget is made up of 45 percent mandatory contributions from its membership of 170 countries plus the European Union, and the remainder from voluntary payments.

La Camera said the US would need to give one year’s notice before leaving, during which time it would be obliged to pay its dues. 

However, the US has ceased funding to the UNFCCC (UN Framework Convention on Climate Change), placing any recompense in doubt.

“This is what politics brings,” La Camera said. “We have to accept it and strive for the best.”

Ministers and delegates mounted a robust defence of Irena and other institutions working to advance climate goals, pushing back against sharp criticism from Trump and members of his cabinet.

“This is bigger than any single one of us in this room, bigger than anyone who has chosen not to be in this room,” said Joan Groizard, Spain’s secretary of state for energy, as he talked about the climate crisis.

Further reading:

• Net zero and the GCC: How the Gulf is faring on climate change
• World is off track to meet Cop28 renewables goal
• Costs versus profits in the energy transition debate

La Camera sought to underline the momentum behind clean energy, saying renewables accounted for 92 percent of new power generation capacity added globally last year, with around 700 gigawatts expected to come online in 2026. “This process is simply unstoppable,” he said.

The Trump administration has moved to slow the expansion of renewable energy in the US, including delaying offshore wind projects, rolling back climate regulations and imposing tariffs that have raised the cost of imported solar equipment.

Yet, La Camera said the White House’s push to expand oil and gas production could end up strengthening the case for renewables by increasing market volatility. “This move will increase uncertainty,” he said.

“How the US relates to Opec, the role of Russia, the role of Arab countries – this uncertainty may further boost renewables.”