To keep global warming within 1.5 degrees, an investment of at least 6 trillion euros is required in renewable energy worldwide.
This represents 7 percent of global GDP. The funds should be used, among other things, to expand networks, but also for energy technology.
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Consulting and engineering firm Arcadis has calculated this in a new report, in which model calculations have been used to investigate how the international energy sector is reducing greenhouse gas emissions to zero. The researchers said that the investments ultimately lead to benefits for society and the economy. If the transition goes well, consumers’ energy bills will also decrease in the long run. Arcadis hopes the report will help shape the discussion around the energy transition. It must also create a sense of urgency in politics and in the energy sector.
According to Arcadis, the report asserts that the world will not achieve its ambition to become carbon neutral if the global energy sector fails to rapidly decarbonize and increase its sustainable generation capacity. According to the consultancy, there is a major role for the energy sector. All countries in this report must halve their energy sector emissions by 2029, most of them within the next four years.
“Creating a zero-energy sector is essential because it will enable the rest of the economy to be decarbonised,” said Alexis Haas, director of Arcadis, who is also responsible for sustainability. The study uses a macroeconomic model of global economic and energy systems, and highlights data from ten markets: the Netherlands, Australia, Belgium, Brazil, China, France, Germany, India, the United Kingdom, and the United States.
According to the UN IPCC Climate Report, global warming below 1.5 degrees is no longer possible. In addition, sea level rise is irreversible. However, there is a strong reduction in carbon dioxide2emissions and other greenhouse gases necessary to reduce climate change.
NN Investment Partners, NN IP for short, stresses the need for trillions of investments annually to avert catastrophe. Investment levels are “unfortunately” inadequate, according to the asset manager. NN IP promises more attention to solar and wind energy, but also energy efficiency.
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