The International Energy Agency (IEA) has indicated that an annual investment of $4.5 trillion (£3.7 trillion) will be necessary starting from the beginning of the next decade for the world to attain net zero by 2050.
This Paris-based agency highlighted that limiting global temperature rises to 1.5C is still achievable due to record growth in clean energy technology, such as solar panels and electric vehicles. Nonetheless, this goal necessitates a substantial increase in expenditure.
In 2023, it is anticipated that global governments and organizations will allocate $1.8 trillion (£1.5 trillion) towards transitioning to cleaner energy.
This year has seen temperatures reach unprecedented levels, with global averages approximately 1.1C higher than those in the pre-industrial era.
This situation is measured against the objective of the 2015 UN Paris Agreement, which aims to restrict global temperature increases to well below 2C and endeavours to limit them to 1.5C to avoid more severe outcomes like droughts, floods, and intensified wildfires.
According to the IEA’s updated Net Zero Roadmap, tripling global renewable capacity, doubling energy-efficient infrastructure, boosting heat pump sales, and augmenting EV usage are essential steps to be taken by 2030.
