New Report: $8 Trillion Investment Needed to Triple Renewables by 2030, Says Climate Analytics

According to a recent report by Climate Analytics, a prominent think tank focusing on climate change, significant investment totaling $8 trillion in new renewables and $4 trillion in grid and storage infrastructure is required to achieve the goal of tripling renewable energy capacity by 2030, as agreed upon at COP28. This ambitious target demands an average annual investment of $2 trillion globally.

The report emphasizes the importance of mobilizing climate finance to aid in the rollout of renewable energy in Sub-Saharan Africa, proposing an increase to $100 billion per year, five times the current investment levels. This substantial boost in funding would not only ensure universal energy access in the region but also align it with the global renewable energy targets.

Dr. Neil Grant, lead author of the report and an expert at Climate Analytics, underscores that the $2 trillion annual investment needed for renewables is not a cost but a choice. He points out that the world is poised to invest over $6 trillion in fossil fuels during this decade alone, suggesting that redirecting these funds towards renewables presents a safer and more beneficial option.

The report highlights the urgency for different regions to accelerate their renewable energy efforts. Sub-Saharan Africa, in particular, needs to rapidly scale up its renewable capacity by a factor of seven, owing to historical underinvestment and energy access challenges. Similarly, the OECD countries must triple their renewable capacity, with current progress falling short of the target.

Asia emerges as a region largely on track to meet the tripling goal, driven by robust policies in countries like China and India. However, the report warns against the continued development of coal and gas infrastructure in these nations, urging a transition towards renewable energy to avoid the risk of stranded assets.

Bruce Douglas, CEO of the Global Renewables Alliance, stresses the readiness of the renewables industry to meet the global targets but calls for urgent government action and international support to accelerate the transition, especially in emerging markets.

The report concludes that tripling renewables by 2030 is just the beginning, with further significant growth required beyond the decade to limit global warming to 1.5°C. It urges governments to incorporate the tripling ambition into their future climate targets and commitments.