Clean Energy Surges, But ‘Radical Policy’ Still Needed to Cut Emissions: Bloomberg
Clean energy will draw US$8 trillion in investment through 2040, including US$3.7 trillion for solar, Bloomberg New Energy Finance concludes in a forecast released earlier this week.
But while “we will see tremendous progress toward a decarbonized power system,” BNEF founder Michael Liebreich said Tuesday in London, greenhouse gas emissions will continue to rise through 2029 “unless radical policy action is taken.” The International Energy Agency says emissions growth would have to end a decade earlier to maximize the odds of keeping average global emissions to 2ºC (3.6ºF).
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The investment projection for renewable energy “is almost double the $4.1 trillion that will be spent on coal, natural gas and nuclear plants,” Bloomberg reports. “The figures show the traditional dominance of coal and natural gas suppliers will slip in the coming years, as cheaper renewables mean developing nations can tap less-polluting sources to meet their swelling energy needs.”
However, the forecast “indicates that coal will remain an important fuel, suggesting policy-makers must take further steps to control greenhouse gases.”
The study projects US$1.6 trillion in new investment for coal, US$1.3 trillion for nuclear, US$1.2 trillion for natural gas, and US$2.4 trillion for wind over the next 25 years. Developing countries will account for four-fifths of new generating capacity around the world.