Climate Week Report: Renewable Gaps Threaten Clean Energy Goals
  • RE100 companies now source 59% of their electricity from renewables globally, but limited supply and cost remain the biggest barriers to further progress.
  • South Korea, Singapore and Taiwan show some of the widest procurement gaps, while South Africa and Mexico recorded sharp gains in renewable electricity use.
  • Nike has reached 100% renewable electricity globally, as Climate Group calls for governments to tackle grid, regulatory and procurement constraints.

Global companies are buying more renewable electricity, but access to clean power is failing to keep pace with corporate demand.

The latest RE100 Annual Disclosure Report finds that limited renewable supply and cost are now the biggest obstacles in key markets. Companies also cite inadequate procurement options and regulatory barriers.

The findings arrive ahead of Climate Week NYC, where business and government leaders will confront a growing policy challenge. Corporate demand for clean power is rising, but grid infrastructure and electricity market rules are restricting what companies can actually procure.

Asian markets face the steepest barriers

South Korea has the largest number of RE100 companies reporting procurement barriers. Singapore and Japan also rank among the most challenging markets.

The impact is visible in procurement data. Renewables account for just 12% of RE100 members’ electricity use in South Korea, unchanged from last year. Only 5% of companies there procure 100% renewable electricity.

In Taiwan, members meet just 6% of their electricity needs with renewables. Only 9% have reached 100%. Singapore also stands at 6%, up just one percentage point from last year.

Progress remains slow elsewhere in Asia. Renewable electricity use among members increased from 33% to 35% in Indonesia and from 36% to 40% in Japan.

China and India also present barriers, but companies have achieved greater progress. In both markets, 28% of RE100 members have reached 100% renewable electricity.

Helen Clarkson, CEO, Climate Group, says: “The world’s leading companies are hungry for renewables, and their investments are shaping a smarter new energy future for all. But grid bottlenecks, regulatory constraints, and market inefficiencies are restricting what they can buy. Governments serious about shielding their economies from the devastating effects of fossil fuel instability need to urgently break down these barriers.”

Helen Clarkson, CEO, Climate Group

South Africa and Mexico accelerate progress

Other markets are moving faster. RE100 members in South Africa increased renewable electricity use from 54% to 84%. Mexico recorded a rise from 38% to 52%.

Across the initiative, more than 70 members now source between 90% and 100% of their electricity from renewables. Companies recently verified at 100% include Asahi, Aviva, K-water, Lloyds and Mitie.

Collectively, RE100 companies now operate on 59% renewable electricity globally. That volume is enough to power Spain for a year.

Importantly for investors assessing additionality, 65% of the renewable electricity purchased comes from facilities established within the past 15 years. The data suggests corporate procurement is supporting newer generation capacity rather than relying solely on older renewable assets.

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Nike reaches 100% renewable electricity

Nike has reached its RE100 target this year, covering 100% of its worldwide electricity needs with renewables for the first time.

The company is now extending its focus into its value chain. Its work includes collaboration with suppliers and industry partners to expand renewable access and build capabilities beyond Nike’s own operations.

Cimarron Nix, Chief Sustainability Officer, Nike, says: “At Nike, we focus on the parts of our value chain where we can drive the greatest impact. That’s why renewable electricity is both an environmental priority and a supply chain opportunity. Through collaboration with suppliers and organizations such as RE100, we’re helping expand access to renewable energy, share what we’ve learned and create pathways that can accelerate progress beyond our own business. The transition to renewable electricity requires pre-competitive collaboration, and we’re proud to contribute alongside others working to build a more resilient energy future.”

Cimarron Nix, Chief Sustainability Officer, Nike

Policy barriers become a corporate risk

The report draws on disclosures from more than 400 companies, providing a broad view of voluntary corporate renewable procurement.

For governments, the findings highlight how electricity market design can influence private clean-energy investment. Grid bottlenecks, permitting constraints and limited procurement mechanisms can prevent corporate demand from translating into new capacity.

Sherry Madera, CEO, CDP: “The data is clear: corporate demand for renewable electricity is growing, but access is not keeping pace. In too many markets, limited supply, infrastructure constraints and a lack of procurement options are preventing companies from translating their ambition into action. Addressing these barriers can unlock greater private investment in renewable energy, accelerate the development of clean power systems and enable more companies to deliver on their climate targets.”

Sherry Madera, CEO, CDP

For companies and investors, the geographic divide is increasingly material. Corporate renewable targets depend not only on ambition and capital, but also on the markets in which businesses operate. As demand grows, policy reform and grid investment will increasingly determine where companies can turn clean-energy commitments into measurable results.

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Categories: International, News

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