Accelerating energy transitions on a path to climate safety can grow the world’s economy by 2.4 per cent over the expected growth of current plans within the next decade, a new analysis from the International Renewable Energy Agency (IRENA) shows. The Agency’s 1.5°C pathway foresees the creation of up to 122 million energy-related jobs in 2050, more than double 58 million. Renewable energy alone will account for more than a third of all energy jobs employing 43 million people globally, supporting the post-COVID recovery and long-term economic growth.
IRENA’s World Energy Transitions Outlook sees renewables-based energy systems instigating profound changes that will reverberate across economies and societies. Sharp adjustments in capital flows and a reorientation of investments are necessary to align energy with a positive economic and environmental trajectory. Forward-looking policies can accelerate the transition, mitigate uncertainties, and ensure maximum benefits of the energy transition. The annual investment of USD 4.4 trillion needed on average is high. But it is feasible and equals around 5 percent of global GDP in 2019.
“This Outlook represents a concrete, practical toolbox to the total reorientation of the global energy system and writes a new and positive energy narrative as the sector undergoes a dynamic transition. There is consensus that an energy transition grounded in renewables and efficient technologies is the only way to give us a fighting chance of limiting global warming by 2050 to 1.5°C. As the only realistic option for a climate-safe world, IRENA’s vision has become mainstream.” said Francesco La Camera, IRENA’s Director-General.
“Energy transformation will drive economic transformation. The energy transition is a daunting task but can bring unprecedented new possibilities to revitalize economies and lift people out of poverty. IRENA’s Outlook brings unique value as it also outlines the policy frameworks and financing structures necessary to advance a transition that is just and inclusive. Each country will define what is best for them, but collectively, we must ensure that all countries and regions can realize the benefits of the global energy transition for a resilient and more equitable world. We have the know-how, we have the tools, we need to act, and do so now,” continued La Camera.
The next decade will be decisive to achieve the Paris and Sustainable Developments goals. Any delay will drive us in the direction of further warming, with profound and irreversible economic and humanitarian consequences.
Phasing out coal, limiting investments in oil and gas to facilitate a swift decline and a managed transition as well as embracing technology, policy, and market solutions will put the global energy system on track for a 1.5°C pathway. By 2050, a total of USD 33 trillion of additional investment are required into efficiency, renewables, end-use electrification, power grids, flexibility, hydrogen, and innovations. The benefits, however, greatly exceed the costs of investments.
