Emmanuel Addeh in Abuja
Investment in renewables must more than triple to $1.3 trillion annually by 2030 if the world is to reach net-zero emissions by 2050, the International Energy Agency (IEA) has said in a report.
Previously, the agency had estimated that clean energy would need $1 trillion in annual investment to reach the climate goals.
In the World Energy Outlook 2022 published Thursday, the IEA said that electricity generation from renewables needs to see one of the largest increases in investment in the Net Zero Emissions (NZE) Scenario, rising from $390 billion in recent years to $1.3 trillion by 2030.
This level of annual spending in 2030 would be equal to the highest level ever spent on fossil fuel supply, $1.3 trillion spent on fossil fuels in 2014, the IEA said.
Concerns about fuel prices, energy security, and emissions – bolstered by stronger policy support – are brightening the prospects for many low emissions fuels, the IEA said.
Clean energy investment is massive today, but it needs to rise much more if the world has a chance to get to net zero by 2050.
“A huge increase in energy investment is essential to reduce the risks of future price spikes and volatility, and to get on track for net zero emissions by 2050,” the IEA added.
“Governments should take the lead and provide strong strategic direction, but the investments required are far beyond the reaches of public finance. It is vital to harness the vast resources of markets and incentivize private actors to play their part,” the agency noted.
According to the report, for every $1 spent globally on fossil fuels, $1.5 is spent on clean energy technologies. Under the NZE Scenario, every $1 spent on fossil fuels needs to be outmatched by $5 spent on clean energy supply and another $4 on efficiency and end uses by 2030.