BAKU, Azerbaijan, May 18
By Leman Zeynalova – Trend:
Total annual energy investment surges to $5 trillion by 2030, adding an extra 0.4 percentage point a year to annual global GDP growth, Trend reports with reference to the International Energy Agency (IEA).
This unparalleled increase – with investment in clean energy and energy infrastructure more than tripling already by 2030 – brings significant economic benefits as the world emerges from the Covid‐19 crisis, IEA said in its latest report.
“The jump in private and government spending creates millions of jobs in clean energy, including energy efficiency, as well as in the engineering, manufacturing and construction industries. All of this puts global GDP 4 percent higher in 2030 than it would be based on current trends. Governments have a key role in enabling investment‐led growth and ensuring that the benefits are shared by all,” reads the report.
The agency says that the contraction of oil and natural gas production will have far‐reaching implications for all the countries and companies that produce these fuels. No new oil and natural gas fields are needed in our pathway, and oil and natural gas supplies become increasingly concentrated in a small number of low‐cost producers. For oil, the OPEC share of a much‐reduced global oil supply increases from around 37 percent in recent years to 52 percent in 2050, a level higher than at any point in the history of oil markets. Yet annual per capita income from oil and natural gas in producer economies falls by about 75%, from USD 1 800 in recent years to USD 450 by the 2030s, which could have knock‐on societal effects. Structural reforms and new sources of revenue are needed, even though these are unlikely to compensate fully for the drop in oil and gas income. While traditional supply activities decline, the expertise of the oil and natural gas industry fits well with technologies such as hydrogen, CCUS and offshore wind that are needed to tackle emissions in sectors where reductions are likely to be most challenging.
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