$1 trillion/year of fossil fuel investments must be diverted to renewables to ensure transition – IRENA

The International Renewable Energy Agency (IRENA) estimates that global investments in renewable energy-related technologies must reach $5 trillion/year by 2030 to keep global warming below 1.5°C.

PHOTO: International Renewable Energy Agency's (IRENA) headquarters in Masdar City, UAE. IRENA

Around 41% of "planned investments by 2050" are allocated to fossil fuels, IRENA has found. It recommends directing about $1 trillion/year of these planned investments towards renewable energy technologies and infrastructure by 2030, to keep the 1.5°C goal in sight.

“Investment and comprehensive policies across the globe and all sectors must grow renewables and instigate the structural changes required for the predominantly renewables-based energy transition,” IRENA says in its World Energy Transitions Outlook 2023 report.

The renewable energy-focussed organisation calls for around $44 trillion in "cumulative investments" to be made in green transition-related technologies by 2030.

“Achieving the energy transition requires stronger international collaboration, including collective efforts to channel more funds to developing countries. A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation,” IRENA’s Director-General Francesco La Camera says.

“Moving forward, multilateral financial institutions need to direct more funds, at better terms, towards energy transition projects and build the physical infrastructure that is needed to sustain the development of a new energy system," he concludes.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online