Report exposes deep inequalities in global renewable energy transition

By Abbas Nazil

A new report by Climate Action Network (CAN) International has revealed that the global shift to renewable energy is replicating the same injustices that marked the fossil fuel era, prioritizing profits over people and ignoring the rights and needs of local communities.

The report, which analyzed renewable energy developments in 16 countries, shows that the transition is failing to be just and equitable.

It argues that the push for clean energy has been dominated by corporate and geopolitical interests rather than public welfare, threatening both human rights and national sovereignty.

According to the findings, four wealthy nations, Canada, Australia, Germany, and Japan, are leading extractive and profit-driven practices under the guise of renewable energy development.

Canada and Australia continue mining transition minerals, Germany is promoting a risky “green” hydrogen market, and Japan is harvesting forests in the name of renewable expansion.

China and the United Arab Emirates were also cited as following similar exploitative patterns.

The study found that nearly half, 47 percent, of planned renewable energy capacity across these countries comes from large-scale “giga projects” exceeding one gigawatt.

These massive projects, often developed by foreign corporations, pose serious risks to local communities and workers while diverting resources that could have supported smaller, community-led renewable initiatives.

Jacobo Ocharan, Head of Political Strategies at CAN International, warned that the transition to renewables is being built on a flawed foundation of extraction and exclusion.

He stressed that a fair and people-centered transition requires strong public policies, international cooperation, and alternative ownership models to ensure that the benefits of renewable energy are widely shared.

Janet Milongo, Energy Transition Senior Manager at CAN International, called for a systemic shift, urging governments and corporations to prioritize people and accountability.

She cited community-led successes such as Pakistan’s solar rooftop boom, Germany’s widespread adoption of balcony solar kits, and Indigenous-led renewable projects in Canada and Australia as examples of inclusive, sustainable progress.

The report calls on global leaders to use upcoming international forums, including COP30 and the G20 Summit, to establish a Just Transition Global Mechanism that promotes fair cooperation and accountability.

It also recommends that countries strengthen corporate responsibility laws, support community-driven renewable projects, and protect vulnerable groups including Indigenous Peoples, tenants, and rural households.

Julie Ducasse, CAN’s Renewable Energy Coordinator and lead author of the report, emphasized that the private sector is turning potential benefits such as local jobs, energy access, and economic diversification into missed opportunities.

She said the transition cannot succeed without community involvement and local ownership.

Caroline Avan of the Business and Human Rights Resource Centre added that renewable energy must become a tool for justice, human rights, and equality, not another engine of exploitation.

Frosina Antonovska from CAN Europe noted that countries in the Western Balkans face growing foreign pressure to exploit natural resources, which could worsen inequalities unless people and communities are placed at the center of the energy transition.

Echoing these concerns, Sunil Acharya from Recourse stated that international financial institutions must stop promoting privatization models that exclude communities and instead fund public and community-led energy systems that deliver affordable and fair power.

The report concludes that a people-centered renewable energy transition is not just a moral obligation but a practical necessity. Without justice, inclusiveness, and local empowerment, the world risks replacing one system of inequality with another, undermining the very goals of climate justice and sustainable development.