Facilitating the Transition from Oil-Based Economies to Renewable Energy in LEDCs

Karl-Gustav Kallasmaa

Karl-Gustav Kallasmaa

Position Paper

Delegation: United Kingdom of Great Britain and Northern Ireland
Committee: United Nations Economic and Social Council (ECOSOC)
Topic: Facilitating the Transition from Oil-Based Economies to Renewable Energy in LEDCs
Date: March 10, 2025

I. Introduction

The United Kingdom reaffirms its unwavering commitment to global sustainable development and the urgent need to address climate change, a challenge that disproportionately affects Less Economically Developed Countries (LEDCs) reliant on oil-based economies. As a nation that has historically navigated its own energy transition—from coal to a leader in renewable energy—the UK recognizes the economic, social, and environmental complexities involved in shifting away from fossil fuels. We view this transition in LEDCs not only as a necessity for climate resilience but also as an opportunity to foster inclusive economic growth, reduce poverty, and enhance energy security.

Guided by the Paris Agreement and the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), the UK seeks to champion international cooperation that empowers LEDCs to leapfrog to renewable energy systems. Our delegation advocates for a balanced approach that respects national sovereignty, leverages technological innovation, and ensures equitable access to resources and expertise.

II. National Background and Position

The UK has established itself as a global leader in the renewable energy transition, achieving a 50% reduction in greenhouse gas emissions since 1990 and phasing out coal-fired power by 2024. With offshore wind capacity exceeding 14 gigawatts by 2025 and ambitious net-zero targets for 2050, the UK has demonstrated that economic prosperity and decarbonization can coexist. Our experience informs our understanding of the challenges faced by LEDCs, where oil revenues often underpin government budgets, employment, and infrastructure.

Through initiatives like the UK’s International Climate Finance (ICF), which has committed £11.6 billion between 2011 and 2026, we have supported renewable energy projects in LEDCs, such as solar grids in Sub-Saharan Africa and wind farms in South Asia. The UK also co-launched the COP26 Energy Transition Council, fostering dialogue between energy producers and consumers to accelerate clean energy adoption. However, we acknowledge that LEDCs face unique barriers—limited capital, technological gaps, and socio-economic reliance on oil—that require tailored, collaborative solutions rather than one-size-fits-all mandates.

The UK firmly believes that the transition from oil-based economies must be just, inclusive, and economically viable. We oppose punitive measures that risk destabilizing vulnerable states and instead prioritize partnerships that build resilience and capacity while respecting each nation’s developmental priorities.

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III. Proposed Solutions

Establishment of a Global Energy Transition Partnership (GETP)

The UK calls for the creation of a UN-backed GETP to coordinate financing, technology transfer, and policy support for LEDCs. This partnership would pool resources from developed nations, multilateral banks (e.g., World Bank, African Development Bank), and private sectors to fund renewable infrastructure, such as solar, wind, and hydroelectric projects, tailored to local needs.

Green Skills and Economic Diversification Program

To mitigate job losses in oil sectors, the UK proposes a UN-led Green Skills Initiative, offering vocational training in renewable energy technologies (e.g., solar panel installation, wind turbine maintenance) for workers in LEDCs. Coupled with this, we advocate for economic diversification grants to support entrepreneurship in green industries, reducing reliance on oil revenues.

Subsidized Technology Transfer Framework

The UK urges the development of a framework to provide LEDCs with subsidized access to cutting-edge renewable technologies, including energy storage systems and grid modernization tools. This would be supported by intellectual property agreements that encourage innovation sharing without undermining private sector incentives.

Just Transition Financing Mechanism

Recognizing the fiscal constraints of LEDCs, the UK proposes a Just Transition Fund under ECOSOC, offering low-interest loans and debt relief tied to renewable energy milestones. This mechanism would help oil-dependent states redirect subsidies from fossil fuels to clean energy while maintaining economic stability.

Regional Renewable Energy Hubs

The UK supports the establishment of regional hubs—modeled on successful examples like the UK’s Offshore Wind Sector Deal—to foster collaboration among LEDCs. These hubs would serve as centers for research, investment, and knowledge exchange, leveraging geographic advantages (e.g., solar potential in the Sahel, hydropower in Southeast Asia).

IV. Conclusion

The United Kingdom stands ready to lead by example and partner with the international community to facilitate the transition of LEDCs from oil-based economies to renewable energy systems. We believe that this shift represents not only a moral imperative but also an economic opportunity to build resilient, sustainable futures for the world’s most vulnerable nations. By combining financial support, technological innovation, and capacity-building, we can ensure a just transition that leaves no one behind. The UK looks forward to working constructively with all delegations to advance this critical agenda.

Signed,
Delegate of the United Kingdom of Great Britain and Northern Ireland
United Nations Economic and Social Council

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