Energy transformation will increase GDP by 2.5 per cent by 2050: IRENA
The energy transformation brought about by low-carbon technologies will lead to economic improvements, says IRENA in their report, Global energy transformation: A roadmap to 2050. In the next three decades, global gross domestic product (GDP) is expected to increase by 2.5 per cent. This is US$99 trillion more than the forecasted GDP for 2050 in the scenario the energy landscape maintains the status quo.
However, in order to enjoy this economic growth, a substantial amount of additional energy sector investment is needed.
Nonetheless, the global energy transformation makes socio-economic sense. As the energy mix shifts to make way for more low-margin renewable power, the need for energy sector subsidies also decreases. By avoiding subsidies and reducing the effect of health and environmental damage, successful energy transformation is expected to save as much as US$160 trillion by 2050. This comes up to savings of US$7 for every US$1 invested.
For a deeper perspective on the energy transition, read the full report, Global energy transformation: A roadmap to 2050.
Have you signed up for SIEW 2019? Hear more about developments in renewable energy as Francesco La Camera, the new Director-General of IRENA, delivers his opening keynote address on 29 October 2019. We look forward to seeing you from 29 October to 1 November 2019!