To reach net-zero emissions by 2050 and limit global warming to 1.5C, investment in renewable energy sources needs to surpass finance flows to fossil fuels by a factor of four over the next decade, according to research from BloombergNEF.
Currently, about 90 cents goes to low-carbon energy sources for every $1 put toward fossil fuels. That ratio needs to change dramatically by 2030, with an average $4 invested in renewables for every $1 allocated to high-polluting energy supplies, analysts at BNEF said. For context, that ratio has never before crossed the 1:1 mark.
The numbers show that the decarbonization of the global economy is an undertaking with few parallels in modern history. Investment in the global energy system may climb to as much as $114.4 trillion by 2050, as dollars pour into renewable energy sources including wind and solar, according to BNEF.
This decade “is a vital time to kick-start investing in the energy transition and prevent back-loading emission reductions,” the BNEF analysts wrote in a report published Thursday. Scientists have said global greenhouse-gas emissions need to halve by 2030 to avoid catastrophic impacts of climate change.
