Energy transition is progressing steadily but sectors that progress at pace are limited to where favorable economics are already within reach.
Clean technologies are now scaling because they increasingly make economic sense over fossil alternatives. Solar, batteries and electric vehicles continue to outperform expectations and are beginning to reshape energy systems globally – removing barriers (tariffs, grid, business models) can extend this further still, according to the Energy Transition Commission’s (ETC) report – Energy Transition Monitor 2026.
Demand for clean alternatives has been driven in 2026 mainly by the Iran war.
Clean power is chasing a moving target because electricity remains only a fifth of total final energy use. This growth in clean electricity covered just 40 percent of the rise in global energy demand, with fossil fuels supplying the rest, as demand from buildings, heavy industry and long-distance transport kept rising.
However, grid capacity is a major bottleneck to this acceleration.
Around 375 GW of renewables and 455 GW of battery storage are stuck in European connection and permitting queues, roughly 2,300 GW await grid connection in the United States, and nearly 10 percent of China’s wind and solar outputs were curtailed due to grid constraints in the first half of 2026.
Supporting low-cost renewables through long-term contracts can also accelerate electrification.
Strengthen Energy Security
Adair Turner, Co-Chair, ETC, said clean energy is outpacing fossil growth but deployment speed alone won’t cut emissions.
“Without removing grid bottlenecks, securing buyer commitments for clean industrial products, and achieving cost breakthroughs in shipping and aviation, emissions will continue to plateau and not fall.”
Jules Kortenhorst, Co-Chair, ETC, stated that coal is not phasing down, methane emissions are not falling, forests are still being cut down, and carbon removal is nowhere near the scale required.
“We must act to address these. Only by doing this can we stop the rapid heating of the planet, and we are seeing the effects of this in real time.”
Jon Creyts, CEO, RMI,a member of the Energy Transitions Commission, said the challenge is no longer whether clean energy technologies can scale, but whether we can deploy them fast enough to meet growing demand and reduce emissions simultaneously.
“As electricity demand accelerates, we have all the resources available to design energy solutions that pair abundant clean power with efficiency, flexibility, and modernized grids. The report points out solutions to unlock permitting and connection barriers to access resources at the scale of the opportunity. By combining clean electrification with smarter energy use, we can strengthen energy security and accelerate emissions reductions while still supporting economic growth.”
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Scale Clean Energy
According to the report, current trajectories put the world on track for a ~2.5°C of warming which would have severe impacts on human lives.
Emissions appear to be plateauing, but the world remains significantly off-track towards climate goals; climate damage costs are already at ~1 percent of global GDP and sectors such as industry and transportation are making progress but still heavily depend on fossil fuels.
Early investments in heavy industry are moving forward but the pace must increase. The foundations for decarbonisation are largely in place – driven by European-led carbon pricing that is increasingly mirrored by key geographies such as China and India.
Multinational schemes in aviation and shipping can provide similar foundations. Project investments are strongest in China. Accelerating the pipeline will require additional policy support, via carbon pricing and additional de-risking, to reach delivery.
The transition increasingly depends on public support, international supply chains, carbon markets and clean technology trade. The Strait of Hormuz crisis highlighted choices between clean energy and fossil fuels.
China’s leadership accelerates clean deployment globally but also raises key questions outside its borders around industrial strategy, resilience and dependence.
