Daily Management Review

New Report Says $131 Trillion Investment In Clean Energy Needed By 2050 To Achieve Climate Goals


New Report Says $131 Trillion Investment In Clean Energy Needed By 2050 To Achieve Climate Goals
A new study that was published on Tuesday has claimed that there needs to be an increase of 30 per cent in planned investment in clean energy by 2050m totalling to an investment of $131 trillion globally to prevent a catastrophic climate change. The report also noted the acute need to significantly increase hydrogen production in particular.
The scale and the pace of change that is currently required to put a lid on the increase in average global temperatures and maintain it at 1.5 degrees Celsius, in line with the 2015 Paris climate accord, was underscored in the annual flagship report of the International Renewable Energy Agency.
"The gap between where we are and where we should be is not decreasing but widening," said Francesco La Camera, director-general of the Abu Dhabi-based organisation, which has more than 160 member states. "We need a drastic acceleration of energy transitions to make a meaningful turnaround."
By 2050, there has to be a drop of more than 75 per cent in the fossil fuel consumption globally with the need for faster shrinking in the usage of oil and coal, said the agency in its "1.5C pathway" set out in the report.
Further by 2025m there has to be a peaking of use of natural gas even though it would continue to remain the dominant fossil fuel by mid-century, the report noted.
However by the middle of the century, the world also needs to increase the capacity of renewable power by more than ten-fold while also increasing the electrification of transport by about 30 folds in the same period, the report also found.
The report forecast a dramatic growth in the production and use of "green hydrogen" - a zero-carbon fuel made by electrolysis, that uses power from wind and solar and splits water into hydrogen and oxygen.
The report said that the world has to dedicate at least 30 per cent of the electricity generated to production of green hydrogen and hydrogen and its derivatives, such as e-ammonia and e-methanol by the year 2050. Consequently to achieve this target, the total electrolyser capacity of the world has to be increased to almost 5,000 Gigawatts from 0.3 GW currently, the report noted.
In order to accelerate the transformation mentioned in the report, it was still possible for various governments to make use of their post-pandemic recovery packages – most of which have so far been mostly focused on making use of fossil fuels, the report also noted.