International public funding for clean energy projects in the world’s least developed countries dropped to $3.7 billion in 2024, raising concerns about growing inequalities in the global shift to cleaner energy, according to a new global report.
The Tracking SDG 7: The Energy Progress Report, released in June 2026 by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Department of Economic and Social Affairs (UN DESA), the World Bank and the World Health Organisation (WHO), said financing to the poorest nations declined by 11 per cent from the previous year.
The report noted that the reduction comes despite continued growth in renewable energy worldwide, with clean energy now generating more than 30 per cent of global electricity. It warned that many low-income countries, particularly in Sub-Saharan Africa, are still struggling to expand energy access because investment has not kept pace with demand.
According to the findings, renewable energy infrastructure remains heavily concentrated in wealthier economies. Low-income countries have an average installed renewable energy capacity of 33.6 watts per person, compared with 1,224 watts per person in high-income nations.
The report said the funding gap could slow progress toward Sustainable Development Goal 7, which aims to ensure universal access to affordable, reliable and sustainable energy by 2030. While global electricity access has reached 92 per cent, progress has weakened in Sub-Saharan Africa, where millions of people, especially in rural communities, still lack electricity.
It added that affordability remains a major challenge, with many households unable to pay for electricity connections, internal wiring and other basic installation costs even where power infrastructure is available.
The report also identified clean cooking as one of the biggest outstanding energy challenges, estimating that around two billion people worldwide still rely on polluting cooking fuels. It warned that without stronger investment and policy action, as many as 1.8 billion people could still lack access to clean cooking solutions by 2030.
IEA Executive Director Fatih Birol said significant progress has been made over the past decade, with 1.5 billion people gaining access to clean cooking and 800 million people gaining electricity since 2010. He stressed that stronger policies and increased investment are needed to achieve universal energy access, adding that reliable energy supports better health, economic development, security and community resilience.
IRENA Director-General Francesco La Camera said recent global energy disruptions have demonstrated the importance of expanding domestic renewable energy capacity. He urged the international community to provide more affordable and targeted financial support to least developed countries to strengthen energy security, improve economic resilience and accelerate progress toward global energy goals.
