The International Renewable Energy Agency (IRENA) said on Tuesday that global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris climate accord.
Last year, investments in renewable energy technologies reached a record of $1.3 trillion. However, IRENA said that figure must rise to around $5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial levels.
In total, the world needs around $35 trillion for transition technology by 2030, including improving efficiency, electrification, grid expansion and flexibility, IRENA said.
This means renewable energy deployment must grow from around 3,000 gigawatts annually today to over 10,000 GW in 2030, IRENA said, adding that more equality is needed in renewable expansion between industrial and developing countries.
New renewable energy projects in China, the European Union and the United States accounted for two thirds of installed capacity last year, while Africa accounted for only 1% of renewable capacity installed.
“A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation,” IRENA’ Director General Francesco La Camera said, as he called on financial institutions to direct more funds towards energy transition projects with better conditions.
IRENA called for directing planned fossil fuel investments -around $1 trillion of fossil fuel investments per year by 2030 – toward renewable energy technologies and infrastructure.
Story was adapted from Reuters.