Bridging the Gap: Energy Equity in a Divided World

Energy powers progress. It lights homes, fuels industries, and drives economic growth. Yet access to this fundamental resource remains profoundly unequal across the globe. While someone in North America consumes energy equivalent to running multiple air conditioners daily, over 4 billion people live in countries where energy access falls below what is needed for basic human development. This stark divide sits at the heart of one of climate policy’s most challenging questions: how do we address global warming while ensuring that developing nations can still lift their populations out of poverty?

The unequal history of emissions 🔗

Climate change is fundamentally a problem of accumulated carbon dioxide in our atmosphere. The warming we experience today results from CO2 released over more than a century and a half of industrialisation. This history matters enormously when discussing who bears responsibility for our current predicament.

The United States has released more than 509 billion tonnes of CO2 since 1850, accounting for roughly 20% of all historical emissions. China follows as a distant second with approximately 11%, then Russia at 7%. These three nations alone are responsible for nearly 40% of all the carbon dioxide ever released by human activity.

The contrast with developing nations is striking. Many countries across Africa have been responsible for less than 0.01% of all emissions over the past 270 years. India, home to nearly a fifth of humanity, accounts for just 3.4% of cumulative emissions despite its massive population. This disparity reflects a simple historical truth: wealthy nations built their prosperity on fossil fuels while developing countries were largely excluded from this carbon-intensive growth.

Why historical emissions matter 🔗

The connection between cumulative emissions and warming is direct and well-established scientifically. Humans have pumped around 2,500 billion tonnes of CO2 into the atmosphere since 1850, leaving less than 500 billion tonnes of remaining carbon budget to stay below 1.5°C of warming. By the end of 2021, the world had collectively burned through 86% of this budget.

This scientific reality forms the basis for climate justice arguments. Nations that industrialised earliest consumed the largest share of our collective carbon budget. Those seeking to develop now face a drastically constrained atmospheric space in which to do so.

India’s energy challenge: a case study 🔗

India exemplifies the tension between development aspirations and climate constraints. The country is home to 1.4 billion people and has legitimate ambitions to improve living standards for hundreds of millions still in poverty. Yet doing so requires energy, and lots of it.

The internal disparities within India are themselves remarkable. In rural areas, 57% of households experience energy poverty while only 22% experience income poverty. In urban areas, the figures are 28% and 20% respectively. This gap between income poverty and energy poverty reveals how access to reliable, modern energy services lags behind other development indicators.

Rural electrification in India grew from 39% in 1993 to 95% in 2021, representing remarkable progress. However, having an electricity connection differs vastly from having adequate power. Many rural households receive inconsistent supply with frequent outages, while their actual consumption remains far below what is needed for modern living standards.

The clean cooking challenge 🔗

Electricity access tells only part of the story. Despite nearly all Indians having access to electricity, 41% still rely on traditional biofuels like cow dung and wood for cooking due to financial constraints. Women and girls bear the primary burden of collecting and preparing these fuels, detracting from time spent on education, childcare, and income-generating activities.

The health impacts are severe. Indoor air pollutants from burning traditional fuels are a leading cause of death in low-income households. Moving to cleaner cooking solutions requires not just infrastructure but sustained affordability, which remains challenging for the poorest families.

The global energy access gap 🔗

India’s challenges mirror broader global patterns. In 2022, the number of people without electricity actually increased for the first time in over a decade, reaching 685 million, with 10 million more people lacking access than in 2021. This reversal occurred as population growth in regions like Sub-Saharan Africa outpaced the rate of new electricity connections.

The disparity in renewable energy capacity illustrates these inequalities clearly. Developed countries have 3.7 times more installed renewable capacity per person than developing countries, standing at 1,073 watts per capita compared to 293 watts. This gap means that even as clean energy grows globally, its benefits remain concentrated in wealthier nations.

Approximately 2.1 billion people still lack access to clean cooking fuels and technologies. Without significant intervention, projections suggest around 1.8 billion people will remain without clean cooking solutions by 2030, perpetuating health risks and environmental damage.

Balancing development and climate goals 🔗

The challenge facing developing nations is fundamentally different from that confronting wealthy countries. While industrialised nations must reduce existing emissions, developing countries must find ways to grow their energy systems without following the carbon-intensive path their predecessors took.

Energy use in developing countries is projected to grow by 25% by 2050, driven by population growth and rising living standards. This is not optional growth but rather the energy needed for basic human development: healthcare, education, employment, and decent housing.

Research consistently shows that countries with higher energy use tend to have higher life expectancies, education levels, and income per person. The opposite is equally true: inadequate energy access translates directly into diminished living standards and reduced opportunities.

The investment gap 🔗

The most striking barrier to equitable energy transition is financing. Despite emerging and developing economies accounting for 85% of the world’s population and the majority of future energy demand growth, these regions receive just 15% of global clean energy investment. This imbalance represents perhaps the single greatest obstacle to achieving both development and climate goals.

High financing costs, regulatory uncertainty, and perceived investment risks deter capital from flowing to where it is most needed. The result is a self-reinforcing cycle where the regions that could benefit most from clean energy investment struggle to attract the necessary funding.

Around 80% of clean energy investment remains concentrated in just 25 countries. Addressing this concentration is essential if the global community hopes to meet both the Sustainable Development Goals and climate targets.

Low-carbon pathways for development 🔗

The good news is that developing countries do not need to replicate the carbon-intensive development paths of their predecessors. Declining costs are making renewable energy more attractive worldwide, particularly in low- and middle-income countries where most future electricity demand will arise.

By 2040, Africa could potentially generate ten times more electricity than it needs, entirely from renewables. This represents an extraordinary opportunity to leapfrog fossil fuel infrastructure entirely, building modern energy systems that are clean from the start.

Solar and wind: the cost revolution 🔗

The economics of renewable energy have transformed dramatically. According to the International Renewable Energy Agency, 91% of new renewable projects are now cheaper than fossil fuel alternatives. This represents a watershed moment where clean energy is not just environmentally sound but economically optimal.

Renewable sources provided more than 40% of the world’s electricity in 2024, the first time this figure has been reached since the 1940s. Solar energy alone now provides nearly 7% of total electricity, with wind power also growing rapidly.

However, these global averages mask significant regional variations. While renewable capacity is growing everywhere, the pace varies enormously based on available financing, regulatory frameworks, and infrastructure capabilities.

Off-grid and decentralised solutions 🔗

For many developing regions, the path to energy access may not follow the traditional model of large centralised power plants feeding national grids. Countries like Ethiopia, Tanzania, and Zimbabwe are prioritising off-grid renewable energy to enhance access and sustainability.

Solar mini-grids and home systems can reach remote communities that would otherwise wait decades for grid connections. These decentralised approaches offer faster deployment, lower costs, and greater resilience than extending traditional infrastructure.

The role of international cooperation 🔗

Closing the energy equity gap requires unprecedented international cooperation. The principle of common but differentiated responsibilities, enshrined in climate agreements, recognises that while all countries must contribute to addressing climate change, their contributions should reflect their different capabilities and historical responsibilities.

A landmark resolution at COP-29 aimed to triple climate funding to developing regions, setting a goal of at least $300 billion annually by 2035. While some developing countries have criticised this as insufficient given the scale of challenges they face, increased financial support could facilitate renewable energy deployment and sustainable infrastructure projects.

Technology transfer represents another critical dimension. Developing countries need access not just to financing but to the knowledge and technologies required for clean energy transitions. This includes everything from solar panel manufacturing capabilities to smart grid management systems.

Equitable emission budgets 🔗

Some researchers argue for allocating the remaining carbon budget based on population, giving each person an equal share of the atmospheric commons. Under such frameworks, wealthy nations that have already exceeded their fair share would need to support developing countries in their transitions while making steeper cuts to their own emissions.

This approach acknowledges a fundamental ethical principle: those who created the climate crisis bear greater responsibility for solving it and for supporting those who will be most affected despite contributing least to the problem.

The path forward 🔗

Bridging the global energy divide requires action on multiple fronts simultaneously. Developed nations must accelerate their own transitions away from fossil fuels while dramatically increasing financial and technical support for developing countries. Developing nations, in turn, must build regulatory frameworks that attract investment while ensuring that the benefits of energy access reach their most vulnerable populations.

Least developed countries have substantial opportunities for expanding renewable energy to meet local electricity needs and improve energy access. Realising this potential requires viable carbon pricing, accessible financing, and supportive international frameworks.

The stakes could not be higher. Without adequate energy access, hundreds of millions of people will remain trapped in poverty. Without rapid decarbonisation, climate change will devastate the very communities struggling to develop. Finding the balance between these imperatives represents one of the defining challenges of our time.

What do you think? How should the global community balance the legitimate development needs of countries like India with the urgent need to reduce emissions? What role should historical responsibility play in determining who pays for the clean energy transition?

References

1. https://corporate.exxonmobil.com/sustainability-and-reports/global-outlook/energy-demand-drivers
2. https://www.carbonbrief.org/analysis-which-countries-are-historically-responsible-for-climate-change/
3. https://ourworldindata.org/contributed-most-global-co2
4. https://borgenproject.org/energy-poverty-in-india-2/
5. https://www.dataforindia.com/access-to-electricity/
6. https://iap.unido.org/articles/promoting-global-sustainability-investing-energy-transition-developing-countries
7. https://www.un.org/sustainabledevelopment/blog/2024/06/press-release-energy-progress-report-2024/
8. https://www.who.int/news/item/12-06-2024-progress-on-basic-energy-access-reverses-for-first-time-in-a-decade
9. https://corporate.exxonmobil.com/sustainability-and-reports/global-outlook/developing-countries-use-25-percent-more-energy
10. https://climateinsider.com/2024/10/22/world-energy-outlook-2024-a-deep-dive-into-global-energy-transition/
11. https://www.un.org/en/climatechange/raising-ambition/renewable-energy
12. https://greencentralbanking.com/2025/12/23/clean-energy-boom-and-new-climate-leaders-7-stories-of-progress-in-2025/
13. https://www.weforum.org/stories/2024/06/energy-transition-index-top-countries-2024/
14. https://www.sciencedirect.com/science/article/abs/pii/S0140988325008576
15. https://www.thelancet.com/journals/lanplh/article/PIIS2542-5196(20)30196-0/fulltext
16. https://unctad.org/news/leveraging-carbon-markets-least-developed-countries