BERLIN – Global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris climate accord, the International Renewable Energy Agency (Irena) said on Tuesday.
Investments in renewable energy technologies reached a record of US$1.3 trillion (S$1.7 trillion) in 2022 but that figure must rise to around US$5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5 deg C above pre-industrial levels, Irena said.
In total, the world needs around US$35 trillion for transition technology by 2030, including improving efficiency, electrification, grid expansion and flexibility, Irena said.
Renewable energy deployment must grow from around 3,000 gigawatts annually today to over 10,000 gigawatts in 2030, Irena said, adding that more equality is needed in renewable expansion between industrial and developing countries.
New renewable energy projects in China, the European Union and the United States accounted for two thirds of installed capacity in 2022, while Africa accounted for only 1 per cent of renewable capacity installed.
“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 said, calling on financial institutions to direct more funds towards energy transition projects with better conditions.
Irena called for directing planned fossil fuel investments – around US$1 trillion of fossil fuel investments per year by 2030 – towards renewable energy technologies and infrastructure. REUTERS