About $44t needed by 2030 for a successful energy transition: report
Investment of around $35t should be allotted for transition technologies.
The world would need $44t in investments by 2030, around $35t of which will be allocated to transition technologies, to pursue an energy transition that will meet climate targets.
In a report, the International Renewable Energy Agency said that whilst the global investment in renewable energy hit a record $1.3t in 2022, annual investments must more than quadruple to over $5t to achieve climate change targets.
The energy transition technologies should prioritise efficiency, electrification, grid expansion, and flexibility.
In the power sector, renewables already account for 40% of the installed power generation, which contributed 83% of global power additions in 2022. However, to limit the temperature rise to 1.5 degrees Celcius, deployment must reach over 10,000 gigawatts (GW) in 2030 or an average of around 1,000GW annually.
“The stakes could not be higher. A profound and systemic transformation of the global energy system must occur in under 30 years, underscoring the need for a new approach to accelerate the energy transition,” said IRENA Director-General Francesco La Camera.
“Pursuing fossil fuel and sectoral mitigation measures is necessary but insufficient to shift to an energy system fit for the dominance of renewables,” he added.