Wednesday 16 September 2020

‘The world could reach net zero emissions goal with up to $2tn a year additional investments’

The world can achieve net zero greenhouse gas (GHG) emissions by 2050 with additional investments of up to $2 trillion (£1.5 trillion) a year.

That's according to a new report by the Energy Transitions Commission (ETC), which suggests the reduction in the cost of renewable energy has made the energy transition 'easily affordable' and argues all growth in electricity supply should now come from zero-carbon sources with no need to build any new coal-fired power capacity.

The body, which estimates the equivalent amount to 1% to 1.5% of global GDP would be required to make this energy transition happen, outlines the three critical priorities needed to support the journey to a net zero economy.

It notes the deployment of proven zero-carbon solutions to enable the clean electrification of the economy needs to accelerate.

The authors of the report also argue it is important governments create the right environment through policies, regulations and working with financial institutions to drive investment not only in green actions but also in energy-intensive industries making their transition.

Finally, the next wave of zero-carbon technologies needs to be supported so they can be deployed in the 2030s and 2040s.

ETC Co-Chair Adair Turner said: "There is no doubt that it is technically and economically possible to reach the zero-carbon economy which we need by 2050 and zero must mean zero, not a plan which relies on the permanent and large-scale use of offsets to balance continued GHG emissions.

"But action in the next decade is crucial – otherwise it will be too late."