Yearly global investments in energy transition technologies must more than quadruple to enable the world continue meeting the obligations under the The Paris Agreement, according to International Renewable Energy Agency (IRENA).
To be in line with key Paris record target of limiting temperature to 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial levels, Investments in renewable energy technologies must reach to around $5 trillion annually. This is why last year’s record of $1.3 trillion must be multiplied by more than four, IRENA said.
According to IRENA, the world will require around $35 trillion for transition technology by 2030 in order to increase efficiency, electrification, grid expansion and flexibility.
According to IRENA, the deployment of renewable energy must increase from about 3,000 GW yearly currently to over 10,000 GW by 2030, adding that more equality is needed in renewable expansion between industrial and developing countries.
Showing how unequally renewable expansions distributed between industrial and developing countries, China, the European Union, and the United States accounted for two thirds of renewable installed capacity last year, while Africa accounted for only 1% of renewable capacity installed.
“A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation,” IRENA’ Director General Francesco La Camera said, calling on financial institutions to direct more funds towards energy transition projects with better conditions.
IRENA called for directing planned fossil fuel investments -around $1 trillion of fossil fuel investments per year by 2030 – toward renewable energy technologies and infrastructure.