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USD 8 Trillion Investment Needed for RE Expansion by 2030: Climate Analytics
According to the report, a staggering USD 8 trillion is needed for new renewables, along with an additional USD 4 trillion for grid and storage infrastructure, to achieve the goal of tripling renewable energy capacity by 2030.
February 14, 2024. By Abha Rustagi
A recent report by the think tank Climate Analytics has highlighted the substantial investment required to meet the ambitious renewable energy goals set at COP28. According to the report, a staggering USD 8 trillion is needed for new renewables, along with an additional USD 4 trillion for grid and storage infrastructure, to achieve the goal of tripling renewable energy capacity by 2030.
Lead author of the report, Dr. Neil Grant, emphasizes that while the investment may seem daunting, it ultimately represents a choice. “USD 2 trillion a year sounds like a cost, but it’s really a choice. We’re set to invest over USD 6 trillion in fossil fuels over this decade – more than enough to close the tripling investment gap. Faced with this choice, I’d go with the safest, best value option – renewables,” he said.
The report underscores the urgent need for action in different regions, with Sub-Saharan Africa facing the challenge of rapidly scaling up renewable capacity by a factor of seven due to historic underinvestment and energy access needs. The OECD, on the other hand, needs to triple its renewable capacity by 2030, but is currently falling short of targets.
Claire Fyson, co-author of the report, calls on countries claiming to be climate leaders to not only ramp up renewables domestically but also to provide financial support to regions in need. “The OECD needs to triple renewables but is currently way off target. Countries in the region claiming to be climate leaders need to walk the talk, not just by ramping up renewables at home, but by coming through for other regions which need finance to contribute to the tripling goal,” Fyson said.
Bruce Douglas, CEO of the Global Renewables Alliance, emphasizes the readiness of the renewables industry to meet the tripling goal but stresses the importance of urgent government action and public finance, particularly to support emerging markets in transitioning to renewables.
Furthermore, the report highlights that tripling renewables by 2030 is just the beginning, as continued strong growth is necessary to limit warming to 1.5°C. Governments are urged to develop ambitious targets for 2035, building on the collective agreement reached at COP28.
Lead author of the report, Dr. Neil Grant, emphasizes that while the investment may seem daunting, it ultimately represents a choice. “USD 2 trillion a year sounds like a cost, but it’s really a choice. We’re set to invest over USD 6 trillion in fossil fuels over this decade – more than enough to close the tripling investment gap. Faced with this choice, I’d go with the safest, best value option – renewables,” he said.
The report underscores the urgent need for action in different regions, with Sub-Saharan Africa facing the challenge of rapidly scaling up renewable capacity by a factor of seven due to historic underinvestment and energy access needs. The OECD, on the other hand, needs to triple its renewable capacity by 2030, but is currently falling short of targets.
Claire Fyson, co-author of the report, calls on countries claiming to be climate leaders to not only ramp up renewables domestically but also to provide financial support to regions in need. “The OECD needs to triple renewables but is currently way off target. Countries in the region claiming to be climate leaders need to walk the talk, not just by ramping up renewables at home, but by coming through for other regions which need finance to contribute to the tripling goal,” Fyson said.
Bruce Douglas, CEO of the Global Renewables Alliance, emphasizes the readiness of the renewables industry to meet the tripling goal but stresses the importance of urgent government action and public finance, particularly to support emerging markets in transitioning to renewables.
Furthermore, the report highlights that tripling renewables by 2030 is just the beginning, as continued strong growth is necessary to limit warming to 1.5°C. Governments are urged to develop ambitious targets for 2035, building on the collective agreement reached at COP28.
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