BAKU, Azerbaijan, March 29. Global annual investment in renewable energy sector has to more than quadruple to remain on the 1.5°C pathway, Trend reports via the latest publication from the International Renewable Energy Agency (IRENA).
According to the report, global investment across all energy transition technologies in 2022 reached a record high of $1.3 trillion, although, the sector still lags behind.
"A cumulative $150 trillion is required to reach the 1.5°C target by 2050, averaging over $5 trillion in annual terms. Compared with the Planned Energy Scenario - under which a cumulative investment of $103 trillion is required - an additional $47 trillion in cumulative investment is required by 2050 to remain on the 1.5°C pathway," the IRENA said.
Moreover, around $1 trillion of annual investments in fossil fuels currently envisaged in the Planned Energy Scenario must be redirected towards energy transition technologies and infrastructure.
"Cumulative investments between now and 2030 need to total $44 trillion, with energy transition technologies representing 80 percent of the investment, or $35 trillion. Total cumulative energy sector investments in the Planned Energy Scenario until 2030 are $29 trillion. An additional cumulative investment of $15 trillion - or an annual average investment of $1.9 billion - would be needed in the 1.5°C Scenario until 2030. Furthermore, a change in the volume and type of investments is required under the 1.5°C Scenario to prioritize the energy transition and set the stage for a dramatic decrease in the fossil fuel share by 2050," the agency added.