BAKU, Azerbaijan, July 11. The expected amount of $1.4 trillion to be spent on clean energy technologies and efficiency globally in 2022 falls short of what is required in the Net Zero Emissions by 2050 Scenario, Trend reports via International Energy Agency (IEA).
According to the 2050 Scenario, almost $5 trillion in 2035, decreasing to $4.5 trillion in 2050, is required for clean energy technologies.
“Solar PV investment needs peak at around $430 billion around 2030, while EV-related investments keep rising to 2050, reaching over $1.1 trillion. Capital spending on hydrogen peaks at over $120 billion around 2030, falling back to around $80 billion by 2050,” the IEA said.
As the publication noted, most of the investments (around 70 percent) in clean energy technologies are projected to be carried out by the private sector.
“This is likely to be financed mainly by channeling retained earnings from the balance sheets of large energy companies, as well as external sources – notably banks and the enormous pools of capital in financial markets. There is, nonetheless, an important role for governments, not just in funding the other 30 percent of the investment, but also in creating an enabling environment for private investment and facilitating private access to public infrastructure projects. Public actors, including state-owned enterprises (SOEs), will often have a key part to play in funding network infrastructure and clean energy investments in emissions-intensive sectors like heavy industry, as well as accelerating innovation in technologies that are in the demonstration or prototype phase today. Public finance institutions will also need to catalyze private capital,” the IEA added.
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