Written by Forest Crellin
(Reuters) – Investment in the green energy transition needs to double to $3.5 trillion a year if the world is to meet the Paris Agreement goal of net-zero emissions by 2050, Wood Mackenzie says. report said on Tuesday.
In addition to the investment gap, the consultancy’s analysis shows that global efforts to transition to clean electricity are being slowed by concerns about energy security, tariffs and trade barriers that are hindering the growth of global electrification. The analysis suggests that they are under pressure.
According to the report, no major countries, and only a few companies, are on track to meet the 2030 climate goals set out in the Paris Agreement.
Why is it important?
Climate experts say strong nationally determined contributions (NDCs) and global cooperation will be essential to mobilizing $3.5 trillion in investment. If these challenges are not overcome, more resources may be needed to fund mitigation and adaptation.
Look at the numbers
The share of solar and wind power in global electricity supply is expected to reach 25% to 36% of total electricity generation by 2030, after increasing from 4.5% in 2015 to 17% in 2024. The analysis showed that.
Gas demand is expected to have a wide range of outcomes, with a scenario that limits warming to 2.5 degrees Celsius (4.5 degrees Fahrenheit) increasing demand by 11% in 2050, while a net-zero scenario would reduce demand by 47%. It turns out. period, the report states.
important quotes
“A series of shocks to global markets threaten to derail a pivotal decade of progress in the energy transition,” said Prakash Sharma, vice president and head of scenarios and technology at Wood Mackenzie.
“But if we act decisively now, there is still time for the world to reach net-zero emissions by 2050.”
context
Replacing fossil fuels with renewable power sources in electricity generation is a pillar of the energy transition aimed at achieving the Paris Agreement’s goal of limiting global temperature rise to 1.5 degrees Celsius (2.7 degrees Celsius).
The supply of renewable electricity has increased rapidly in recent years in an effort to meet emissions reduction targets, but it is not growing fast enough to displace fossil fuels from the energy mix.
(Reporting by Forest Crelin in Paris; Editing by Helen Popper)
