Impact of climate risks on the renewable energy transition: From a transnational study

Amid the escalating severity of climate risks (CR), extensive research exists on CR, yet a critical gap remains regarding their direct impact on the renewable energy transition (RET). This study explores this relationship by comprehensively investigating how CR affects RET and identifying the underlying mechanisms. The findings robustly show that CR significantly hinders RET, posing a substantial threat to sustainability efforts. Furthermore, this negative influence operates through dual pathways: impeding renewable energy technology innovation and reinforcing reliance on non-renewable energy development. The impact of CR on RET also shows marked heterogeneity, varying significantly across countries based on characteristics like energy organization affiliations, trade dynamics, carbon intensity, human capital, and forest cover. Rigorous robustness and consistency checks affirm the reliability of the results. Collectively, this research provides vital insights and informs policy strategies to mitigate CR and foster RET.