World Energy Transitions Outlook, which outlines priority actions till 2030 to keep 1.5°C alive; calls on governments to fast-track energy transition for more energy security, resilience, and affordable energy for all.
The Outlook sees investment needs of $5.7 trillion per year until 2030 including the imperative to redirect $0.7 trillion annually away from fossil fuels to avoid stranded assets.
But investing in the transition would bring concrete socioeconomic and welfare benefits, adding 85 million jobs worldwide in renewables and other transition-related technologies between today and 2030.
Francesco La Camera, Director-General of IRENA, said:
- The energy transition is far from being on track and anything short of radical action in the coming years will diminish, even eliminate chances to meet our climate goals
- It is high time to act
- Recent developments have clearly demonstrated that high fossil fuel prices can result in energy poverty and loss of industrial competitiveness
- 80% of the global population lives in countries that are net-importers of fossil fuels
- By contrast, renewables are available in all countries, offering a way out of import dependency and allowing countries to decouple economies from the costs of fossil fuels while driving economic growth and new jobs
They will need to support the global supply of 65 % renewables in power generation by 2030.
Climate finance, knowledge transfer and assistance will have to increase for an inclusive and equal world.
IRENA said investments of $700 billion should be diverted away from the fossil fuel sector each year to avoid creating wells, pipelines and power plants that can’t be used anymore.
According to the outlook, renewables would have to scale up massively across all sectors from 14 % of total energy today to around 40 % in 2030.
Global annual additions of renewable power would triple by 2030.
At the same time, coal power would have to resolutely be replaced, fossil fuel assets phased out and infrastructure upgraded.