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Developing Economies Energy Transition needs USD 1 Trillion by 2030 : IEA Report

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Over $1 trillion needed by 2030 to put world on track to reach net-zero by 2050According to the ‘Financing Clean Energy Transitions in Emerging and Developing Economies’ report released by International Energy Agency (IEA),
The Annual Clean energy investment in emerging and developing economies  needs to increase by more than seven times – from less than USD 150 billion in 2019 to more than  USD 1 Trillion by 2030 to put the world on track to reach net-zero emissions by 2050.

  • Annual investment across the entire energy sector in emerging and developing markets have fallen by about 20% since 2016.
  • World’s energy and climate future will depend on how emerging economies manage energy transition successfully.
  • The report has been prepared by IEA in collaboration with the World Bank and the World Economic Forum (WEF).

Key Points

i.Recent trends in Global clean energy spending highlight an increasing gap between advanced economies and the developing world, even though the  adoption of Clean energy is more cost effective in developing economies than in advanced economies

  • Emerging and developing economies account for two-thirds of the world’s population, but only one-fifth of global investment in clean energy and just one-tenth of global financial wealth.

ii.If investments are not increased, energy related CO2 emissions from Asia, Africa and Latin America will grow by 5 billion tonnes over the next two decades.

Other Renewable Energy Sectors

The report states that USD 600 billion per year should be devoted to wind and solar power (and supporting infrastructure) by 2030.

  • By 2030, 5 million Electric Vehicles (EVs) will be sold in the developing world per year, or about a 25% market share.

Recent Related News:

April 20, 2021, According to ‘Global Energy Review 2021’ released by IEA, Global CO2 emissions are set to touch 33 Billion Tonnes in 2021, an increase of 5% compared to 2020 Levels (up by 1.5 Billion Tonnes from 2020).  It is the 2nd Largest increase in  emissions ever.

About International Energy Agency (IEA)

Executive Director – Fatih Birol
Headquarters – Paris, France
Members Countries– 30 member countries