Clean energy support is cutting fossil fuel dependence in major importers, with projected savings reaching billions through renewables and electrification.
Public support for renewable energy and clean electrification is strengthening energy security in four major energy-importing countries while cutting exposure to fossil fuel price shocks, according to new analysis by the International Institute for Sustainable Development (IISD).
The analysis covers Germany, Türkiye, China and India, which together account for around 40 percent of global oil imports and 27 percent of gas imports. It found that support for renewables and electrification can reduce dependence on imported fossil fuels, meet rising energy demand at lower cost and limit vulnerability to future price shocks.
In Germany and Türkiye, support for renewable energy is projected to generate a combined USD 39 billion in net savings from avoided gas imports in 2026.
Germany is projected to save USD 28 billion this year through public support for renewable electricity, which is reducing dependence on imported gas and exposure to price volatility. In Türkiye, support for domestic renewable generation is projected to deliver USD 11 billion in net savings by displacing costly gas-fired power and reducing vulnerability to imported gas.
The analysis said renewable energy support in the two countries generated an estimated USD 38 billion in combined net savings from avoided gas imports during the 2022 energy crisis, when fossil fuel prices surged.
China could save USD 1.9 trillion by 2050 by using solar and wind power rather than coal to meet growing electricity demand, according to the analysis.
In India, support for electric vehicles is projected to save consumers USD 7.8 billion and reduce crude oil imports by USD 2.5 billion by 2035.
The report said the benefits extend beyond the headline savings, with clean energy support expanding and diversifying domestic energy supplies, reducing reliance on imported oil and gas and leaving economies less exposed to global fuel shocks. It also gives countries greater control over the technologies and infrastructure on which their energy systems depend.
“Taken together, these results show why clean energy is an energy security policy. Every fossil fuel price shock hits importing countries twice: first through higher import bills, and then through the cost of protecting households and businesses from those higher prices. The answer is not to stop protecting people, but to invest in solutions that reduce exposure to volatile fossil fuel markets. Across four very different economies, we see the same result: public support for renewables and electrification can build lasting energy security,” said Tara Laan, lead author of the analysis at IISD.
The findings were released ahead of the G20 Energy Abundance Ministerial in Houston, Texas, scheduled for September 14 to 16, where ministers are expected to discuss deregulation, faster permitting and expanded energy production under the banner of “energy abundance”.
The analysis argues that energy abundance and security depend not simply on increasing supply, but also on directing public support toward energy sources that reduce exposure to volatile imported fuels.
IISD said governments should spend public money more effectively by shifting support from fossil fuels toward people and clean energy, targeting measures at bottlenecks holding back renewable energy and electrification, using competitive, predictable and time-bound support, and incorporating reduced fossil fuel exposure into national energy, investment and transition plans.
Global public financial support for fossil fuels, including subsidies, investment by state-owned enterprises and international public finance, exceeded USD 1.2 trillion in 2024, compared with USD 254 billion for clean energy, according to IISD.
The institute said governments can protect vulnerable households and businesses through targeted social protection while redirecting public support toward cleaner technologies that reduce exposure to future fuel shocks.
The analysis was authored by Tara Laan, Indira Urazova, Andrea M. Bassi, Natalie Jones and Suban Biixi.
