UNFCCC marginal emissions data show that building renewables in the Global South has greatest benefit
For companies and other organizations investing in new renewable energy projects, two main strategies guide their procurement:
- 24/7 Carbon-Free Energy (24/7 CFE): focuses on hour-by-hour megawatt-hour (MWh) matching of renewable generation’s timing and a corporation’s electricity demand load profile, with the clean energy procured from the same grid region where the electricity load is located
- Emissionality: an emissions-first approach that targets the dirtiest grids globally, procuring clean energy from wherever the new renewable capacity will have the greatest avoided emissions benefit by displacing generation from the most-polluting fossil-fueled power plants
These two strategies have important implications for where clean energy investment will flow and where new renewable capacity will get built, and consequently, on how much (or how little) climate benefit those projects will ultimately have.
In this analysis, we use marginal emissions data from the United Nations Framework Convention on Climate Change (UNFCCC) to gain insights into these questions, especially: Where should new renewable energy projects get built to have the greatest overall climate benefit?
Tapping the UNFCCC’s marginal emissions data
To better understand the beneficial impact of new renewable projects across the globe, the UNFCCC — the UN body that oversees the Paris Agreement — developed a methodology for estimating the long-term impact on grid emissions in each country around the world. UNFCCC’s combined margin emissions factors take into account both operating margin and build margin, giving a sense for renewable energy’s climate benefit in the nearer and longer terms.
Using data from the IEA’s Global Energy and Climate Model (previously known as the World Energy Model) — which underpins IEA’s annual World Energy Outlook — UNFCCC experts calculated the marginal emissions rates resulting from predicted new generation across both traditional firm energy sources (e.g., fossil fuels, nuclear, geothermal) as well as clean energy technologies (e.g., solar PV, wind, tidal). The IEA model incorporates information on existing energy sources, economics, and policies in 26 large countries and regions, with additional regression modeling for other countries, making it comprehensive in breadth and scale.
Mapping renewable energy’s avoided emissions potential
Looking at a global heat map of marginal emissions rates for new renewable energy sources, the greatest avoided emissions potential based on UNFCCC data is primarily located in the Global South, in countries spanning Asia, Africa, and Eastern Europe (red shades on the map). These countries’ grids tend to rely on heavier-polluting sources of generation, such as coal-fired power plants.
Conversely, the lowest avoided emissions potential is primarily in the Global North, in countries spanning the EU and North America, as well as select countries elsewhere around the world where hydropower (and sometimes, nuclear) provides a dominant share of electricity generation (blue shades on the map).
![Power grid combined marginal emissions factor by country map of the world](https://watttime.org/wp-content/uploads/2025/01/IPA-WattTime-UNFCCC-marginal-emissions-CHART-global-heat-map-1024x470.png)
Multiplying the avoided emissions benefit of renewable energy investment
For any organization deciding where to invest in new renewable capacity, using marginal emissions estimates like these from UNFCCC can lead to much larger reductions in overall global emissions.
In Annex I countries (which largely overlaps with the Global North), the average avoided emissions rate (weighted by total electricity generation) is 345 g CO2/kWh. Meanwhile, countries in the top 50% of most-polluting power grids have an avoided emissions potential of 702 g CO2/kWh, and countries among the top 10% of most-polluting electricity generation have an avoided emissions rate of 979 g CO2/kWh. These heavier-polluting power grids are predominantly throughout the Global South.
In other words, investing in renewable energy projects across the Global South can yield 2x to nearly 3x greater climate benefit vs. renewables projects in the Annex I countries of the Global North. Organizations considering siting renewable energy — whether bilateral national agreements now being drafted under the revised Article 6 framework of the Paris Agreement, or voluntary corporate actors using the GHG Protocol — may want to consider UNFCCC’s data when deciding where to invest in renewable energy projects.
![Avoided emissions rate of renewable energy projects by global countries category column chart](https://watttime.org/wp-content/uploads/2025/01/IPA-WattTime-UNFCCC-marginal-emissions-CHART-column-chart-1024x470.png)
How procurement approach influences renewable energy’s potential
24/7 CFE proponents argue that it encourages the buildout of renewables that would generate during “off” hours, helping power grids move closer to 100% clean energy around the clock. This may be partly true. But it also amounts to massive investment aimed at “squeezing the last drop” of emissions from grids that have already significantly decarbonized. This misses opportunities for major larger global decarbonization by building renewables in other places where they’d have greater avoided emissions benefits and where coal-fired generation still dominates the grid mix.
Moreover, some of 24/7 CFE’s biggest proponents are major tech companies whose operations and data centers are overwhelmingly located in the EU, US, and other Global North locations. These are regions that have already seen large investment in new wind and solar capacity, especially. Meanwhile, Global South locations — the same places where UNFCCC marginal emissions data show there are the greatest avoided emissions opportunities — have seen chronic underinvestment in clean energy technologies, according to IEA data.
From a global climate action perspective, it’s far less impactful to inch California or Texas (where wind and solar have already made huge gains) closer to 100% carbon-free energy than it is to invest in new renewables in a place such as India, where coal still contributes more than 70% of the nation’s electricity generation and clean energy investment in 2024 was just one-fifth of what it was in the US.
On top of this compelling climate argument, there’s also the crucially important humanitarian component, too. Investing in renewable energy in Global South countries will also bring economic and health benefits by expanding energy access and reducing air pollution in the places that also have the worst air quality. Globally, 1 in 8 deaths are now attributed to air pollution, predominantly in countries with the most-polluting electric generation, since the same power plants spew both carbon dioxide and PM2.5.
Conclusion
The UNFCCC model is not the only model for estimating marginal emissions rates. In terms of long-run build margin in particular, it lacks many of the more-detailed features of other models such as Cambium, GenX, and PyPSA. In particular, it does not consider variance in emissions rates within a country, which can be great in large countries such as the US or China. But it is one of the only existing models that covers the entire globe, which is a critical consideration when evaluating emissions reductions.
More research is needed to evaluate these different modeling approaches and to develop more detailed models across the globe, so that renewable energy investments can be targeted at the location where they have the most impact. For now, one thing is clear: data is increasingly pointing to the Global South as a critical focus for the world’s future renewable investment.
image source: iStock | rvimages