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Energy Inequality: A Global and Local Perspective

Published March 21, 2025

While much of the global conversation on climate change focuses on greenhouse gas (GHG) emissions, it is equally important to consider disparities in global energy access. Energy inequality plays a crucial role in shaping economic development, sustainability efforts, and the feasibility of climate goals.

The Biden administration set an ambitious goal for electric vehicles (EVs) to make up 50% of new car sales by 2030, yet they currently account for only 10%. Automakers are scaling back EV investments due to multibillion-dollar losses. Similarly, offshore wind energy production was targeted to reach 30 gigawatts by 2030 but is now projected to achieve only 13 gigawatts. Policy shifts under the Trump administration have further widened these gaps, making energy transition goals even harder to attain.

The Interplay of Climate Goals and Economic Development

Climate objectives do not exist in isolation. They intersect with broader priorities like GDP growth, infrastructure development, and social equity. As history shows, energy transitions take time and are often driven by cost and efficiency rather than purely environmental concerns.

“…The 19th century is often called the “century of coal,” yet historian Vaclav Smil author of “How to Feed the World notes that coal did not surpass biomass (wood and crop residues) as the primary energy source until the early 20th century. Likewise, oil—discovered in 1859 in Pennsylvania—did not overtake coal as the world’s leading energy source until the 1960s. Importantly, the absolute consumption of coal has continued to rise, tripling since the 1960s, despite the expansion of renewables.“^[1]

And

“…China, India, Saudi Arabia, and Nigeria account for almost 45 percent of energy-related greenhouse gas emissions. None of them has a 2050 target for net-zero emissions; their targets are 2060 or 2070. Similarly, while investment in new coal-fired power plants continues to decline globally, nearly all of the 75 gigawatts of new coal capacity construction that began in 2023 was in China.”¹

Energy Poverty: A Stark Reality

The global energy landscape remains deeply unequal:

• “Half of the developing world—three billion people—consume less electricity annually than the average American refrigerator.”¹
• 30% of the world’s population still relies on traditional biomass for cooking.
• Nearly 600 million people in Africa lack access to electricity, with one billion unable to access clean cooking fuel.
• Traditional biomass accounts for nearly half of Africa’s total energy consumption.

These disparities underscore the challenge of transitioning to cleaner energy sources while meeting the urgent demand for increased energy access.

The Reality of Global Energy Consumption

Despite rapid growth in renewable energy, fossil fuels remain dominant:

• Wind and solar now generate 15% of global electricity, yet oil and coal consumption hit record highs in 2024.
• The global energy mix has only slightly shifted, from 85% hydrocarbons in 1990 to 80% today.

Rather than a full “energy transition,” what we are witnessing is an “energy addition”—where renewables supplement, rather than replace, fossil fuels.

Energy Sources and Their Emissions

A closer look at different energy sources highlights the link between production and emissions:

• Coal: Burning coal releases significant amounts of CO₂ and harmful pollutants like sulfur dioxide, nitrogen oxides, and particulate matter, which contribute to respiratory diseases and environmental degradation.
• Natural Gas: Produces roughly half the CO₂ emissions of coal for the same energy output and operates with greater efficiency.
• Renewables (Wind & Solar): The fastest-growing energy sources, providing the crucial benefit of zero direct carbon emissions while eliminating the environmental and health risks associated with burning fossil fuels.

Final Thought: Why Energy Inequality Matters

Greenhouse gas emissions are not just an environmental issue — they are closely linked to global equity and development. Building a sustainable future requires bridging energy access gaps worldwide while transitioning to cleaner, locally sourced energy. Without considering these economic and social realities, climate policies risk leaving billions behind, both physically and economically.

[1] Yergin, Daniel, Orszag, Peter, & Arya, Atul. (2025, February 25). “The Troubled Energy Transition: How To Find a Pragmatic Path Forward” Foreign Affairs.