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Renewable energy sector needs $750 billion

Christian Fernsby |
Investments into renewable energy projects should be doubled from $330 billion to $750 billion to achieve the objectives of energy transition and sustainable development goals.

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International Renewable Energy Agency (Irena) director-general Francesco La Camera stressed the need for stronger policies and more investment. He noted renewables should be central to energy and economic planning.

"Renewables are most competitive way to produce energy. It could be the most effective way to give access to energy to population in remote and rural areas. But if you want to avoid consequences of climate change, we have to accelerate our task. We have to double our investment in renewables.

"We started having $50 billion investment at the start of the decade, now it is $330 billion and hope to achieve $750 billion goal [by 2030]," he told reporters during the 10th annual assembly of Irena.

"There is tremendous liquidity available," La Camera said, adding that investment can be met by redirecting planned fossil fuel investment. "Close to $10 trillion of non-renewables related energy investments are planned to 2030, risking stranded assets and increasing likelihood of exceeding the world's 1.5 degree carbon budget this decade."

La Camera underlined the share of renewables in global power should more than double in the next decade. "Renewable electricity supplies 26 per cent of global power and by end of 2030 should be 57 per cent," he added.

La Camera said additional investments bring significant cost savings, including minimising losses by climate change as a result of inaction.

"Savings could amount to $1.6 trillion and $3.7 trillion annually by 2030."

He mentioned that oil and gas companies are diversifying portfolios as they understand the "future will be different from the past".

"The energy mix will be different after 20-30 years. Gas for us is promising ally in this transition period," he pointed out.

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