Page 6 - AfrElec Week 13 2022

AfrElec INVESTMENT AfrElec

Energy transition

needs $5.7 trillion per

year until 2030

GLOBAL THE world needs to invest $5.7 trillion per year accelerated transition. But it’s a political choice
between now and 2030 if it is to have any chance to put policies in place that comply with Paris
of limiting global warming to 1.5°C. Agreement and the Sustainable Development
Renewables will have to increase its energy Agenda. Investing in new fossil fuel infrastruc-
market share from 14% today to 40% in 2030 ture will only lock-in uneconomic practices, per-
if the world is to reach net zero by 2050, the petuate existing risks and increase the threats of
International Renewable Energy Association climate change.”
(IRENA) said in its World Energy Transitions “80% of the global population lives in coun-
Outlook 2022. tries that are net-importers of fossil fuels. By con-
A further $700bn per year will also have to trast, renewables are available in all countries,
redirected from fossil fuels towards renewables offering a way out of import dependency and
in order to avoid stranded assets, meaning coal allowing countries to decouple economies from
and gas projects that are unprofitable. the costs of fossil fuels while driving economic
The report said that the transition would growth and new jobs.”
bring concrete socioeconomic and welfare ben- The Outlook sees electrification and effi-
efits, adding 85mn million green jobs worldwide ciency as key drivers of the energy transition,
between today and 2030. These would replace enabled by renewables, hydrogen, and sustain-
12mn jobs lost in fossil fuel industries. able biomass.
Global annual additions of renewable capac- End-use decarbonisation will take cen-
ity would need to triple by 2030, as recom- tre-stage with many solutions available through
mended by the Intergovernmental Panel on electrification, green hydrogen, and the direct
Climate Change (IPCC). use of renewables.
At the same time, coal power would have to Notably electromobility is seen as driver of
resolutely be replaced, fossil fuel assets phased energy transition progress, growing the sales of
out and infrastructure upgraded. electric vehicles (EV) to a global EV fleet twenty
The report stressed that the current energy times bigger than today.
crisis, with high gas prices, energy security con- Increasing ambition in the National Deter-
cerns and supply volatility caused by the war mined Contributions (NDCs) and national
in Ukraine, provided an opportunity to focus energy plans under the Glasgow Climate Pact
on the mid- and long-term goals of the energy must provide certainty and guide investment
transition. strategies in line with 1.5°C, the report warned.
The report set out its 2030 targets as these The report called on G20 and G7 nations to
must be met as a stepping stone to achieving net show leadership and implement ambitious plans
zero by 2050. and investments domestically and abroad.
“The energy transition is far from being on They would need to support the global sup-
track and anything short of radical action in ply of 65% renewables in power generation by
the coming years will diminish, even eliminate 2030. Climate finance, knowledge transfer and
chances to meet our climate goals”, said Franc- assistance would have to increase for an inclusive
esco La Camera, Director-General of IRENA. and equal world.
“Today, governments are facing multiple All this needs political commitment to
challenges of energy security, economic recovery support the highest level of international
and the affordability of energy bills for house- cooperation.™
holds and businesses. Many answers lie in the

P6 www. NEWSBASE .com Week 13 31•March•2022