$12 trn needed to meet global renewable energy targets by 2030: Report

14 Feb '24

2 min read

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Insights

To achieve COP28's renewable energy targets, $12 trillion investment is needed by 2030, including $8 trillion for new projects and $4 trillion for grid and storage enhancements.
Rapid renewable capacity expansion is essential, with Asia leading but cautioned against new fossil projects.
Sustainable growth and limiting warming to 1.5 degrees Celsius by 2035.

To meet the ambitious global renewable energy targets agreed upon at COP28, a significant investment of $12 trillion is needed by 2030, according to a recent report by Climate Analytics. This breaks down to an average of $2 trillion annually, with $8 trillion earmarked for new renewable energy projects and $4 trillion for enhancing grid and storage capabilities.

The report emphasises the critical role of climate finance, particularly in mobilising $100 billion yearly for renewable energy deployment in Sub-Saharan Africa. This investment, quintuple the current rates, aims to ensure universal energy access in the region and align it with global objectives.

The analysis sheds light on the urgent need for accelerated renewable capacity expansion across different regions to meet the 2030 tripling goal. Sub-Saharan Africa faces a unique challenge, requiring a sevenfold increase in renewable capacity due to historical underinvestment and significant energy access gaps. In contrast, the OECD countries must triple their current renewable output, a significant leap from the forecasted doubling by 2030, as per the report titled ‘Tripling Renewables by 2030: Interpreting the Global Goal at the Regional Level’.

Asia, particularly led by policy initiatives in China and India, is the closest to being on track for the tripling target, needing to nearly quadruple its renewable capacity. However, the ongoing development of coal and gas projects poses a risk of creating stranded assets or hindering the transition to renewable energy. The report advocates for a halt in new fossil fuel plant constructions, given the robust growth expected in renewables.

Looking beyond 2030, Climate Analytics stresses that the expansion of renewable energy must not stall. To cap global warming at 1.5 degrees Celsius, renewables will need to grow fivefold by 2035 compared to 2022 levels. As countries start planning their 2035 Nationally Determined Contributions (NDCs), incorporating strategies to continue this momentum will be crucial for meeting international climate commitments and ensuring a sustainable future.Top of Form

“$2 trillion a year sounds like a cost, but it’s really a choice. We’re set to invest over $6 trillion in fossil fuels over this decade—more than enough to close the tripling investment gap. Faced with this choice, I’d go with the safest, best value option—renewables,” said lead author and Climate Analytics expert Dr Neil Grant.

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