To meet the objectives of the Paris Agreement and reduce greenhouse gas emissions, betting on renewable energy is the best thing to do. Go towards an energy transition that helps reduce emissions and prevent global temperatures from rising above 1,5 degrees.
Global CO2 emissions that are related to industry and energy can be reduced by 70% by 2050 and even disappear by 2060, if all the countries of the world invest in renewable energy and energy efficiency. Can this create negative economic impacts?
Emissions are reduced thanks to renewables
The benefits of investing in renewables can be greater than those offered by fossil fuels. In fact, these benefits, In addition to being able to improve the living conditions of the planet by reducing pollution, they would add about 0,8% to world GDP by 2050. This is reflected in a report published by the International Renewable Energy Agency (IRENA).
IRENA's report is called "Perspectives for the Energy Transition: investment needs for a low-carbon energy transition" and it shows, above all, that a greater deployment and development of renewable energies and energy efficiency in all G20 countries and at a global level, can reduce greenhouse gas emissions, and thus be able to meet the objectives of the Paris Agreement against climate change.
“The Paris Agreement reflects an unprecedented international determination to act on the climate. Attention should be focused on the decarbonisation of the global energy system, as it accounts for almost two-thirds of greenhouse gas emissions, "said IRENA Director General Adnan Z. Amin.
Today, almost all over the world, new plants are being built based on renewable energies that will generate electricity at a lower cost than those that work with fossil fuels. If it is technologically developed and invested in R&D you can be more efficient and get a lot of profitability. In addition, the decarbonisation of industry globally can support sustainable economic growth and create more jobs related to renewable energy.
Renewables will increase world GDP
The technologies developed for the world of renewables are increasing every day, in such a way that we can say that we are in a good position to transform our energy system. The success that all this goes well and works, It will depend on the investment and the security with which you work in this area. In addition, it also depends on a speed of action, since the longer we take to move towards an energy transition based on decarbonization, the higher its costs will be, since the effects of climate change will be more and more accentuated.
For the development of renewables an initial investment is required and it is substantial. It is estimated that by 2050 an investment of 29.000 million dollars is required. This represents only a small part of world GDP (plus or minus 0,4%).
In addition, IRENA's macroeconomic analysis suggests that such investment creates a stimulus that, along with other pro-growth policies, brings significant benefits:
• It will boost world GDP by 0,8% by 2050.
• It will create new jobs in the renewable energy and energy efficiency sector, which would more than compensate for job losses in the fossil fuel industry.
• It will improve human well-being through significant additional benefits for the environment and health, thanks to the reduction of air pollution.
How do we accelerate the energy transition?
In 2015, 32 gigatons (Gt) of energy-related CO2 were emitted. The report notes that emissions will have to fall progressively to 9,5 Gt in 2050 to limit warming to no more than two degrees above pre-industrial temperatures.
To achieve this collapse in greenhouse gas emissions, we have to invest and expand renewable energy (especially wind and solar) and improve energy efficiency.