This project is funded by the European Union.

22 Eyl 2020

Global Trends in Renewable Energy Investment 2020

Yayıncı: ABC Media

Global Trends in Renewable Energy Investment 2020

This report was commissioned by UNEP’s Economy Division in cooperation with Frankfurt
School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance and produced in collaboration with BloombergNEF.

It is nothing new to say that clean energy is better for the planet, and humanity, than energy derived from fossil fuels. Its benefits in avoiding greenhouse gas emissions, delivering cleaner air and bringing energy to marginalized communities are essential to a better future for all. What is new is that the world has a unique opportunity to accelerate clean development by putting renewable energy at the heart of Covid-19 economic recovery plans. Governments will inject huge amounts of money into their economies as they look to bounce back from Covid-19 lockdowns, which have saved lives but stopped growth and cost jobs.

This new report, Global Trends in Renewable Energy Investment 2020, shows that putting these dollars into renewables will buy more generation capacity than ever before, and help governments deliver stronger climate action under the Paris Agreement. The report shows that renewable energy capacity, excluding large hydro, grew by a record 184 gigawatts (GW) in 2019. This was 20GW, or 12%, more than new capacity added in 2018. Yet the 2019 dollar investment was only 1% higher, at $282.2 billion. Meanwhile, the all-in cost of electricity continues to fall for wind and solar, thanks to technology improvements, economies of scale and fierce competition in auctions. Costs for electricity from new solar photovoltaic plants in the second half of 2019 were 83% lower than a decade earlier. This is great progress, but there is room to do much more. Nations and corporations have made clean energy commitments over the next decade. Analyzing them in its focus chapter, the report finds commitments for 826GW of new non-hydro renewable power capacity by 2030, at a likely cost of around $1 trillion. However, these commitments fall far short of what is needed to limit the rise in global temperatures to less than 2 degrees Celsius under the Paris Agreement. It also falls short of last decade’s achievements, which brought around 1,200GW of new capacity for $2.7 trillion. This lack of ambition can be rectified in economic recovery packages. Simply repeating the investment of the last decade over the next would buy far more clean energy than it did before. The slump in the fossil fuel sector due to Covid-19, combined with the resilience clean energy has shown during this period, made it clear that clean energy is a smart investment. If governments take advantage of the ever-falling price tag of renewables to put clean energy at the heart of Covid-19 economic recovery, instead of subsidizing the recovery of fossil-fuel industries, they can take a big step towards clean energy and a healthy natural world – which ultimately is the best insurance policy against global pandemics.

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