BAKU, Azerbaijan, March 14
By Leman Zeynalova – Trend:
Achieving net zero emissions will require an unparalleled increase in clean energy investment, Trend reports with reference to the International Energy Agency (IEA).
In fact, the IEA Net Zero Emissions Scenario indicates that annual investments in clean energy must more than triple to USD 4 trillion by 2030.
“Although mobilizing such a considerable sum will be challenging, this investment will not only ensure clean energy transitions but also offer unprecedented market opportunities for equipment manufacturers, service providers and developers, as well as engineering, procurement and construction companies along the entire clean energy supply chain,” reads the IEA report.
The agency estimates that indeed, the markets for wind turbines, solar panels, lithium-ion batteries, electrolysers and fuel cells combined represent a cumulative (i.e. up to 2050) market opportunity of USD 27 trillion.
In the Net Zero Emissions Scenario, the Asia Pacific region is home to 45 percent of the estimated market for clean energy technologies up to 2050. This is a momentous opportunity for the best innovators from all over the world to become part of emerging value chains that have enormous future potential.
However, some innovators in emerging market and developing economies will have to overcome or reshape the existing networks of knowledge and capital that have led technology developments in the past. For start-ups working on clean energy technologies, welcome attention from sustainability-oriented investors and customers will also entail pressure to meet certain criteria. Increasingly, capital allocations to energy companies and projects involve scrutiny for compatibility with environmental, social and governance (ESG) goals.
Start-ups may be well positioned to meet this growing demand for ESGaligned equity, products and services, and opportunities to partner with established firms that need to address their emissions profile will expand further in upcoming years. However, as young companies have only limited resources to measure and document their performance to the required standards, targeted tools or support may be needed to prevent this from becoming an additional barrier to market entry.
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