With the current global investment in clean energy, it is still far away to reach net zero emissions by 2050, and it is not even enough to prevent global carbon emissions from soaring to a record high.
According to the latest analysis by the International Energy Agency (IEA), during the Covid-19 pandemic, governments spent US$16 trillion in fiscal expenditures to stabilize and rebuild their economies, most of which were used to provide emergency services for families and businesses. Financial relief; only 2% of funds are earmarked for clean energy transition.
According to the current proportion of government expenditures, global carbon dioxide (CO2) emissions will reach a record high in 2023 and continue to rise in the next few years; this will make the world closer to the goal of achieving net zero emissions by 2050. Coming farther and farther.
The public and private funds raised on a global scale are far below the funds needed to achieve international climate goals. These shortages are particularly evident in emerging and developing economies, many of which face severe financial challenges. Many governments may have realized the importance of clean energy for the future, but have failed to make substantial investments. Despite ambitions, economic investment in clean energy accounts for only a small part of the total.
Governments need to rapidly increase spending and actions on clean energy
In the early stages of the epidemic, the IEA issued a sustainable recovery plan, which recommended a global investment of US$1 trillion in clean energy measures, which may occupy an important position in the recovery plan. According to a plan formulated in cooperation with the International Monetary Fund, this expenditure will promote global economic growth, create millions of jobs, and put the world on track to achieve the goals of the Paris Climate Agreement.
However, all governments have not paid enough attention to the IEA’s sustainable recovery plan. At present, government investment in clean energy will only increase to about 350 billion US dollars per year before 2023-only 35% of the plan’s envisaged.
There are also obvious geographical differences in clean energy investment. Most of the funds are raised in developed economies, and these funds are close to 60% of the predetermined investment level of the sustainable recovery plan. Many of the emerging and developing economies have limited fiscal affordability and have so far only spent about 20% of their recommended expenditures.
With the current investment in clean energy, not only is the path for the world to reach net zero emissions by 2050 is still far away, it is not even enough to prevent global emissions from soaring to a new record. Many countries—especially those with the greatest demand—are also missing out on the benefits of clean energy investment, such as stronger economic growth, new job opportunities, and future development of the energy industry.
Governments need to rapidly increase spending and actions on clean energy and fulfill their commitments made in the Paris climate agreement in 2015 to enable the world to achieve the vision of net zero emissions by 2050. Although this path is difficult, it can still be achieved- If we act now.
Data reference source: IEA