BAKU, Azerbaijan, January 16. Expansion of the global production capacity of wind, solar PV, electric batteries, electrolyzers, heat pumps, and fuel cell trucks will require a combined investment of about $640 billion over 2022-2030, the International Energy Agency (IEA) said, Trend reports via the latest publication from the IEA.
"Around two-thirds is needed to scale up EV battery (including anode and cathode) manufacturing and around 15 percent would be dedicated to wind power. About $470 billion already claimed by projects in the pipeline, most of which are in China, Europe and North America. This represents about two-thirds of the cumulative investment required," the report said.
At the same time, the investment deficit before 2030 is about $90 billion for electric vehicles, $45 billion - for fuel cells and fuel cell trucks, and about $15 billion - for heat pumps, the IEA noted.
"Scaling up clean energy technology manufacturing capacity is crucial not only to meet higher demand in 2030, but to establish the foundation needed to achieve net zero emissions by 2050. Deployment of most of the mass-manufactured technologies continues to increase after 2030, though more slowly than during the current decade as markets reach saturation," the report added.
As the IEA pointed out, manufacturing, assembling, installing and constructing clean energy technologies tend not to be energy-intensive or carbon-intensive processes. "This is because they do not generally involve high temperatures but rather mechanical operations, which use much less energy," the Agency explained.
Moreover, the global manufacturing sector is classified as "light industry", which now accounts for about 5 per cent of global CO2 emissions, the Agency noted.
"For most technologies, electricity is currently the main energy input, accounting for around 35 percent of total energy consumption in the manufacturing sector in 2021, followed by natural gas at 20 percent. Given its heavy reliance on electricity, the entire sector halves its emissions from today’s level by 2035 in the NZE Scenario, thanks to the parallel increase in the electrification of manufacturing and the decarbonization of power generation," the report added.