A report by the International Renewable Energy Agency or Irena urged renewable electricity production to grow eight times the current rate to limit global heating.
Also, the sector would need a total investment of US$131 trillion in renewables by 2050 to urgently keep pace with the rising electricity demand. Irena’s director, Francesco La Camera, said the critical window to achieve the Paris climate agreement goals was closing fast.
The report suggested electricity production surpass fossil fuels as the primary energy source before 2050 to stop the global temperature from rising more. Ultimately, carbon emissions can be cut when more economies electrify transport and heating.
In heavy industry and manufacturing plants where direct electrification is not feasible, renewable energy would be in high demand to generate “green hydrogen” to burn.
By 2050, electric power could account for just over half of all energy consumed, up from 21 percent in 2018. In recent years, fossil fuels accounted for nearly two-thirds of total energy consumption, but by 2050, that figure could drop to 10 percent.
Before the downturn in the market for transportation fuels during the coronavirus pandemic, the organisation believes that the world has already reached its peak oil production and that gas demand will peak in the next three years.
However, it contradicted Shell’s prediction that demand for gas will keep increasing until the mid-2030s at the earliest before beginning to decline.
According to the organisation, oil will account for 4 percent of global energy use by 2050, gas will hit the plateau in 2025 before dropping to 6 percent, and coal will account for 2 percent by the 2050s, according to the organisation.
According to La Camera, there are “a range of favourable elements” that could speed up the transition to a renewable energy system.
More than half of the world’s carbon emissions are expected to be eliminated by 2050, capital markets and investors are shifting toward renewable investments, and COVID-19 has shown the dangers of tying economies to the financial fate of fossil fuels, he said.