Due to a lack of investment in green energy, temperatures on the planet are approaching the critical point of 1.5°C.
A lack of investment in green energy has left the world facing a 1.5C temperature rise, which scientists have identified as a key threshold in global efforts to limit climate change.
In its annual report on global clean energy supply and demand, renewable energy consultancy REN21 says increases in environmental spending last year were not enough to curb the rise in greenhouse gas emissions.
“Although we have had another record year for renewable energy growth, at the same time energy demand is increasing and the pace of renewable energy deployment is not sufficient“commented Rana Adib, CEO of REN21.
Current investments in green energy are not enough
According to Ren21, global green energy recorded a record 473 gigawatts last year, an increase of 36% compared to 2022, driven by further development of the industry. In total, more than $600 billion has been committed to renewable energy and fuels by 2023.
However, to prevent global warming, investments must reach around $1.3 trillion annually by the end of this decade, according to REN21. The assessment is based on the goals set out in the Paris Agreement.
“We don’t even reach 50 percent of the annual requirement. “Governments are committed, but action is needed.”Adib said.
Furthermore, investment in renewable energy is unevenly distributed and the emerging economies that need it most are largely overlooked. According to REN21, 43% of last year’s net investments were made in China, 20% in Europe and 15% in the United States. Meanwhile, less than 4% went to Africa and the Middle East.
Poor countries pay more
Because poor countries have to pay more to ensure a clean energy supply. Adib said the average capital cost of such projects in developing countries is about 10%, which is more than double the capital cost of renewable energy in developed economies. That is “The biggest challenge we must face to ensure global transformation” said.
At the same time, public funds continue to invest in fossil fuels in the form of subsidies, and around 20% of energy project financing from donor countries and multilateral development banks goes to fossil fuels and non-renewable energy, according to REN21.
“There is money for clean energyAdib explained. However “Economic and financial signals are not going in the right direction“.
With information from:
