Tracking the technological advancement and global pivot towards the green energy revolution.
We have reached an important threshold in the transition from fossil fuels to renewable energy. Clean technologies like wind and solar power continue to fall in cost, with many renewable energy sources now cheaper than fossil fuels.
We continue to see improving economics – helped by superior technologies and production at scale, combined with more experienced developers and vast investments (both private and public).
The transition has been accelerated by the Covid-19 pandemic: renewable energies are not unaffected by the crisis, but are more resilient than other energy sources. The IEA projected renewables to be the only energy source to grow in 2020 compared to 2019, in contrast to all fossil fuels and nuclear.
As the head of the IEA put it, “our numbers show that renewables are set to become the largest source of energy generation by 2025, overtaking coal – and ending the fossil-fuel domination of the last decades.” The scale and pace of the transition has already surpassed expectations, and it’s just getting started.
What sets the energy transition apart is the inevitability – from an environmental perspective it just has to happen. It’s also being championed by governments, companies and investors worldwide. The sheer scale of investment needed into renewable energies and the development of infrastructure is vast, with trillions of dollars a year required to meet climate change goals.
Many of the world’s largest economies have adopted targets for net-zero emissions of greenhouse gases by 2050 and hundreds more have joined the Paris Climate Accord. The energy transition is likely to be greatly disruptive – involving a large amount of technology-driven investment. A big part of the demand is the growing popularity of electric cars driving the need for the mass introduction of electric transportation infrastructure.
Global commitment
As climate concerns escalate, the world is getting behind the energy transition as governments continue to make net-zero commitments. 189 countries have joined the Paris climate accord as countries hasten their progress to clean energy.
Scale of Investment
In 2020, over $500bn was invested globally in energy transition sectors such as renewable energy, electric vehicles and charging, and electric heat*. This trend only looks set to accelerate from here according to the BNEF.
Change
Renewable energy is predicted to soon pass coal as the biggest source of power generation. The clean energy transition is underway, and its reach is faster and further than anyone expected.
The sheer scale of investment needed into renewable energies and the development of infrastructure is vast, with trillions of dollars a year required to meet climate goals.
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