Energy challenges in the Global SouthCEFR B2
10 Dec 2025
Adapted from Qian Sun, Global Voices • CC BY 3.0
Photo by Ahmed Raza, Unsplash
Many Global South countries are at a turning point in their energy systems. More than 70 percent of the world’s population faces an "energy trilemma": securing reliable electricity, keeping it affordable, and cutting emissions. China’s renewable industry now supplies solar panels, wind turbines, batteries and transmission equipment at scale; this manufacturing pushed global prices down and made renewables financially feasible in parts of South Asia.
The Global South Energy Trilemma Index (能源不可能三角), compiled by Renmin University of China, shows that since 2000 most countries improved energy access and security but continue to lag on environmental sustainability. For many low- and middle-income states the main barrier is cost: without cheaper clean technology, fossil-fuel dependence will persist. Currency instability, circular debt and volatile foreign investment deepen this problem.
Pakistan highlights these pressures. It ranks 51st out of 196 on the index and faces an investment deficit that experts put at USD 1.01 trillion by 2030. The country relies on imported technology and on foreign fuel, often under dollar‑denominated contracts. Earlier coal plants built under the Belt and Road Initiative (launched in 2013) still impose fixed capacity payments; Pakistan owes billions annually to independent power producers, many Chinese, which limits fiscal room for clean projects. Climate risks, for example the 2022 floods that destroyed wide parts of power infrastructure, increase vulnerability.
China can mobilize large infrastructure quickly, accept longer payback periods and provide finance without strict austerity conditions. But climate justice requires more than speed. Transformative engagement should include long-term, region-wide planning, meaningful technology transfer, support for local manufacturing and steps to address debt-heavy legacy contracts, while centring community resilience and basic living needs.
- Lower equipment costs have expanded renewables.
- Legacy coal contracts and foreign fuel dependence create fiscal and climate risk.
- Technology transfer, local industry support and debt measures are suggested next steps.
Difficult words
- trilemma — situation with three difficult, conflicting goals
- renewable — energy from sources that naturally replenishrenewables
- sustainability — ability to be maintained without harming environment
- circular debt — debt that grows because payments are delayed
- investment deficit — shortfall in money needed for projects
- legacy contract — older agreements that still have obligationslegacy contracts
- technology transfer — sharing technical knowledge or equipment between parties
- resilience — ability to recover from difficulties or shocks
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Discussion questions
- What are the likely benefits and risks of cheaper renewable equipment for countries in the Global South? Give reasons from the article.
- How could meaningful technology transfer and support for local manufacturing change a country's energy future?
- What practical steps could governments take to address the fiscal risks created by legacy contracts and foreign fuel dependence?
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