Renewable energy could drive $98tn of global GDP gains by 2050
Renewable energy could spur global GDP (gross domestic product) gains of $98trillion by 2050, according to the latest report by the International Renewable Energy Agency (Irena).
In its first global renewables outlook report, Irena said that a global concerted effort to develop renewable energy and decarbonize away from fossil fuels could add an additional 2.4 per cent to GDP between now and 2050.
In statement released to launch the report, Irena’s Director-General Francesco La-Camera implored governments to include sustainability and renewable energy programmes as part of stimulus packages to support the economic upheaval caused by the Covid-19 outbreak.
“Governments are facing a difficult task of bringing the health emergency under control while introducing major stimulus and recovery measures. The crisis has exposed deeply embedded vulnerabilities of the current system. Irena’s Outlook shows the ways to build more sustainable, equitable and resilient economies by aligning short-term recovery efforts with the medium-and long-term objectives of the Paris Agreement and the UN Sustainable Development Agenda.”
“By accelerating renewables and making the energy transition an integral part of the wider recovery, governments can achieve multiple economic and social objectives in the pursuit of a resilient future that leaves nobody behind.”
According to the report, if the energy system is transformed to a point where renewable energy accounted for 70-80 per cent of energy across the world, $98tn in GDP gains could be achieved by 2050.
The report also states that energy jobs could be quadrupled to 42 million if the 70-80 per cent clean energy target was met. Up to 21.3 million people could be employed in the energy efficiency sphere, while another 14.5 million people could be employed in jobs related to power grids and energy flexibility.
For the energy system to be transformed, 80 per cent of total energy investment would be required to be invested in renewables, energy efficiency, end-use electrification, power grids upgrades and grid flexibility. According to Irena, this would require $110tn of cumulative investments by 2050. To reach zero-carbon emissions, an additional $20tn of cumulative investment would be required, bringing the total to $130tn.
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