$2T Per Year Required to Triple Global Renewables by 2030
Tripling global renewable energy capacity by 2030, as pledged at the UN climate summit in Dubai, requires an annual investment of US$2 trillion, reports the Berlin-based Climate Analytics. This figure is double the 2023 investment in renewables but significantly less than the $7 trillion spent on fossil fuel subsidies in 2022. Achieving this goal, which is crucial for reducing emissions as per the Intergovernmental Panel on Climate Change, would cost less than one-third of fossil fuel subsidies and under 2% of 2022's global GDP.
The report emphasizes the importance of this investment for transitioning away from fossil fuels, especially highlighting the potential impacts on clean air, cheaper power, and energy security. However, it notes significant investment shortfalls, particularly in Sub-Saharan Africa, jeopardizing the achievement of these targets. The required $12 trillion investment from 2024 to 2029 would mainly fund new renewable installations and necessary grid and storage enhancements.
Despite the ambitious goals, many regions are lagging, with Asia, led by China and India, being the closest to meeting the targets. The report calls for massive investment in renewables and grid expansion to align with a 1.5ºC transition, warning against the ongoing construction of coal plants in China and India as a threat to this transition. OECD countries also face a significant shortfall in meeting their 2030 renewable energy targets, necessitating new policies to close the gap.