(Bloomberg) -- Investments in renewables must climb to an average of $1 trillion per year if the world is to achieve the goal of tripling green energy capacity by 2030, according to BloombergNEF.
To meet the goal set at the COP28 climate summit last year, governments will need to address barriers to expansion, including removing subsidies for fossil fuels, easing supply chains, and smoothing the permitting process, BNEF said in a report on Tuesday. Average annual investments of $193 billion for battery storage and $607 billion for grid upgrades will also be needed, it added.
Green power deployment has set new records nearly every year, with $623 billion invested in renewables in 2023 — an all-time high. But experts say it is far from enough to curb planet-warming carbon emissions that continue to rise alongside energy demand, highlighting the need to ramp up climate financing.
China and Brazil are broadly on track for a net-zero future, with Latin America seeing the biggest increase in investment. Japan, Indonesia, Turkey, the Middle East, North Africa, and sub-Saharan Africa are lagging behind. While the US, Europe, and India have strong policy support for energy transition, funding and deployment need to accelerate, the report said.
©2024 Bloomberg L.P.
