Global energy-related CO2 emissions can be reduced by 70% by 2050 and completely phased-out by 2060 with a net positive economic outlook, according to new findings released by IRENA. Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy Transition, presents the case that increased deployment of renewable energy and energy efficiency in G20 countries and globally can achieve the emissions reductions needed to keep global temperature rise to no more than two-degrees Celsius, avoiding the most severe impacts of climate change.
Globally, 32 Gt of energy-related CO2 were emitted in 2015. The report states that emissions will need to fall continuously to 9.5 Gt by 2050 to limit warming to no more than two degrees above pre-industrial temperatures. 90% of this energy CO2 emission reduction can be achieved through expanding renewable energy deployment and improving energy efficiency.
Renewable energy now accounts for 24% of global power generation and 16% of primary energy supply. To achieve decarbonisation, the report states that, by 2050, renewables should be 80% of power generation and 65% of total primary energy supply, based on continued rapid growth especially for solar and wind power in combination with enabling grids and new operating practices. But also, the buildings, industry and transport sectors need more bioenergy, solar heating and electricity from renewable sources that substitute conventional energy. Electric vehicles need to become the predominant car type in 2050. Liquid biofuel production must grow ten-fold. High efficiency all-electric buildings should become the norm. Deployment of heat pumps must accelerate and a combined total of 2 billion buildings will need to be new built or renovated.
While overall the energy investment needed for decarbonising the energy sector is substantial – an additional USD 29 trillion until 2050 – it amounts to a small share (0.4%) of global GDP. Furthermore, IRENA’s macroeconomic analysis suggests that such investment creates a stimulus that, together with other pro-growth policies, will:
- Boost global GDP by 0.8% in 2050.
- Generate new jobs in the renewable energy sector that would more than offset job losses in the fossil fuel industry, with further jobs being created by energy efficiency activities.
- Improve human welfare through important additional environmental and health benefits thanks to reduced air pollution.
The report calls for policy efforts to create an enabling framework and re-design of energy markets. Stronger price signals and carbon pricing can help provide a level playing field when complemented by other measures, and the report emphasizes the importance of considering needs of those without energy access.