Without investments in green energy the planet is approaching 1,5°C

Due to the lack of investment in green energy, temperatures on the planet are approaching the critical point of 1,5°C.

A lack of investment in green energy has left the world facing a temperature rise of 1,5°C, which scientists have identified as a key threshold in the global effort to limit climate change.

In its annual report on global clean energy supply and demand, renewable energy consultancy REN21 explains that last year's increase in environmental spending was not enough to curb the rise in greenhouse gas emissions.

"Although we have had another record year in terms of renewable energy growth, at the same time energy demand is increasing and the pace of renewable energy adoption is not sufficient"commented REN21 CEO Rana Adib.

Current investment in green energy is not enough

Last year, global green energy recorded a record 473 Gigawatt, which is an increase of 36% compared to 2022 related to the continued development of the industry, according to Ren21. In total, more than $600 billion was allocated to renewable energy and fuels by 2023.

However, according to REN21, to prevent global warming, investment must reach around 1,3 trillion dollars annually by the end of this decade. The evaluation is based on the objectives established in the Paris Agreement.

"We don't even reach 50 percent of what is needed annually. "Governments have committed, but action is necessary."said Adib.

Furthermore, investment in renewable energy is unevenly distributed and the emerging markets that need it most are largely overlooked. According to REN21, 43% of last year's net investment was made in China, 20% in Europe and 15% in the United States. Meanwhile, less than 4% went to Africa and the Middle East.

Poor countries pay more

This is because poor countries have to pay more to ensure clean energy supplies. Adib said the average capital cost of such projects in developing countries is around 10%, which is more than double the capital cost of renewable energy in developed economies. This is "the key challenge we must address to ensure global transformation"He said.

At the same time, public funds continue to invest in fossil fuels in the form of subsidies, and around 20% of energy project financing from donor countries and multilateral development banks goes to fossil fuels and non-renewable energy, REN21 concluded. .

"There is money for clean energy"Adib stated. However, "economic and financial signals are not going in the right direction".

Ecoportal.net

With information of: https://www.finanzas.com/